Minnesota Session Laws - 1983, Regular Session

  

                         Laws of Minnesota 1983 

                         CHAPTER 91--H.F.No. 176
           An act relating to financial institutions; providing 
          that Small Business Administration guaranteed loans 
          are collateral for public deposits; amending Minnesota 
          Statutes 1982, section 118.01, subdivision 1. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1982, section 118.01, 
subdivision 1, is amended to read: 
    Subdivision 1.  Any bank, trust company or thrift 
institution authorized to do business in this state, designated 
as a depository of funds of a municipality, as provided by law 
may, in lieu of the corporate or personal surety bond required 
to be furnished to secure the funds, deposit with the custodian 
of the funds, the bonds or other interest bearing obligations 
which are legally authorized investments for savings banks under 
section 50.14, except as otherwise provided by this 
subdivision.  Notes secured by first mortgages of future 
maturity, upon which interest is not past due, on improved real 
estate free from delinquent taxes, within the county wherein the 
depository is located, or within counties immediately adjoining 
the county in the state of Minnesota or, to the extent of the 
guarantee, loans guaranteed by the Small Business Administration 
under the Federal Small Business Act or, to the extent of the 
guarantee, loans or obligations secured or guaranteed by the 
United States or any department, bureau, board, commission, or 
establishment of the United States, including any corporation 
wholly owned directly or indirectly by the United States may 
also be deposited with the custodian of the funds in lieu of the 
corporate or personal surety bond required to be furnished to 
secure the funds.  Industrial revenue bonds or notes issued 
pursuant to chapter 474 or similar bonds or notes of other 
states, territories, or their municipal subdivisions or bonds 
secured by real estate may not be deposited with the custodian 
of the funds in fulfilling the requirement of this subdivision. 
    Sec. 2.  [EFFECTIVE DATE.] 
    This act is effective the day following final enactment. 
    Approved May 9, 1983