Minnesota Session Laws - 1983, Regular Session

  

                         Laws of Minnesota 1983 

                         CHAPTER 54--S.F.No. 369
           An act relating to local government; providing for the 
          investment of debt service funds; amending Minnesota 
          Statutes 1982, section 475.66, subdivision 3.  
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1982, section 475.66, 
subdivision 3, is amended to read: 
    Subd. 3.  Subject to the provisions of any resolutions or 
other instruments securing obligations payable from a debt 
service fund, any balance in the fund may be invested 
     (a) in any security which is a direct obligation of or is 
guaranteed as to payment of principal and interest by the United 
States or any agency or instrumentality of the United States, or 
     (b) in shares of an investment company registered under the 
federal investment company act of 1940, whose shares are 
registered under the federal securities act of 1933, and whose 
only investments are in securities described in the preceding 
clause, or 
     (c) in any security which is a general obligation of the 
state of Minnesota or any of its municipalities, 
     (d) in bankers acceptances of United States banks eligible 
for purchase by the Federal Reserve System, or 
     (e) in commercial paper issued by United States 
corporations or their Canadian subsidiaries that is of the 
highest quality and matures in 270 days or less. 
    The fund may also be used to purchase any obligation, 
whether general or special, of an issue which is payable from 
the fund, at such price, which may include a premium, as shall 
be agreed to by the holder, or may be used to redeem any 
obligation of such an issue prior to maturity in accordance with 
its terms.  The securities representing any such investment may 
be sold or hypothecated by the municipality at any time, but the 
money so received remains a part of the fund until used for the 
purpose for which the fund was created. 
    Approved April 22, 1983