SF 1562

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:22am

A bill for an act
relating to the state agricultural society; eliminating the maximum limit on
its bonded debt and the sunset on the authority to issue bonds; modifying the
authorized investments of debt service funds; requiring notification of the
commissioner of finance; amending Minnesota Statutes 2008, sections 37.31,
subdivisions 1, 7; 37.33, subdivision 3; 37.34; repealing Minnesota Statutes
2008, section 37.31, subdivision 7.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2008, section 37.31, subdivision 1, is amended to read:

Subdivision 1.

Bonding authority.

The society may issue negotiable bonds in
a principal amount that the society determines necessary to provide sufficient money
for achieving its purposes, including the payment of interest on bonds of the society,
the establishment of reserves to secure its bonds, the payment of fees to a third party
providing credit enhancement, and the payment of all other expenditures of the society
incident to and necessary or convenient to carry out its corporate purposes and powers.
Bonds of the society may be issued as bonds or notes or in any other form authorized by
law. deleted text begin The principal amount of bonds issued and outstanding under this section at any time
may not exceed $20,000,000, excluding bonds for which refunding bonds or crossover
refunding bonds have been issued.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2008, section 37.31, subdivision 7, is amended to read:

Subd. 7.

deleted text begin Approval deleted text end new text begin Notification new text end ; commissioner of finance.

deleted text begin Before deleted text end new text begin Within 30 days
after new text end issuing new text begin and selling new text end bonds under this section, the society must deleted text begin obtain the approval deleted text end new text begin
notify new text end , in writing, deleted text begin of deleted text end the commissioner of finance new text begin of the date of issuance, principal amount,
true interest cost, final maturity date of the issue, and credit rating as applicable new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2008, section 37.33, subdivision 3, is amended to read:

Subd. 3.

Investment.

Money in a debt service reserve fund not required for
immediate use may be invested in accordance with section deleted text begin 37.07 deleted text end new text begin 37.34 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

Minnesota Statutes 2008, section 37.34, is amended to read:

37.34 MONEY OF THE SOCIETY.

The society may contract with the holders of any of its bonds as to the custody,
collection, securing, investment, and payment of money of the society or money held in
trust or otherwise for the payment of bonds, and to carry out the contract. Money held in
trust or otherwise for the payment of bonds or in any way to secure bonds and deposits of
the money may be new text begin invested in accordance with chapter 118A and may be new text end secured in the
same manner as money of the society, and all banks and trust companies are authorized
to give security for the deposits.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2008, section 37.31, subdivision 7, new text end new text begin is repealed.
new text end