Minnesota Session Laws - 1984, Regular Session

  

                         Laws of Minnesota 1984 

                        CHAPTER 461-S.F.No. 1977
           An act relating to economic development; clarifying 
          provisions relating to the export finance authority; 
          amending Minnesota Statutes 1983 Supplement, sections 
          17.104, by adding a subdivision; and 17.105, 
          subdivisions 1, 3, 4, and 7. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1983 Supplement, section 
17.104, is amended by adding a subdivision to read: 
     Subd. 4.  [POST-EXPORT.] "Post-export" means the period of 
time between a shipment of goods and receipt of final payment 
for the goods. 
     Sec. 2.  Minnesota Statutes 1983 Supplement, section 
17.105, subdivision 1, is amended to read: 
    Subdivision 1.  [CREATION; PURPOSE.] The export finance 
authority is created to aid and facilitate the financing of 
exports from this state.  The finance authority powers shall be 
used exclusively to meet the pre-export credit needs of 
Minnesota exporters.  
     Sec. 3.  Minnesota Statutes 1983 Supplement, section 
17.105, subdivision 3, is amended to read: 
    Subd. 3.  [POWERS.] The finance authority has the power and 
authority to perform the following functions and may:  
    (1) insure, coinsure, and guarantee against commercial 
pre-export and post-export credit risks;  
    (2) sue and be sued;  
    (3) enter into agreements and transactions with any person, 
partnership, or corporation, both foreign and domestic, state, 
federal, and foreign governments and governmental agencies;  
    (4) acquire and hold personal and real property pursuant to 
the provisions of insurance and the granting of guarantees;  
    (5) pledge and appropriate collateral;  
    (6) charge premiums, interest, and fees;  
    (7) provide administrative, consultative, and technical 
services to assist in the financing of exports;  
    (8) prepare and receive reports regarding credit, 
insurance, and guarantees with respect to export finance;  
    (9) perform all necessary and appropriate operations, 
administration, processing, and marketing functions related to 
the authority's functions; and 
    (10) adopt rules necessary to carry out responsibilities 
under this section.  
    Sec. 4.  Minnesota Statutes 1983 Supplement, section 
17.105, subdivision 4, is amended to read: 
    Subd. 4.  [WORKING CAPITAL ACCOUNT.] An export finance 
authority working capital account is created as a special 
account in the state treasury.  All premiums, interest, and fees 
collected under section 17.105, subdivision 3, clause (6) must 
be deposited into this account.  Money in the account including 
interest earned and appropriations made by the legislature for 
the purposes of section 17.105, is appropriated annually to the 
finance authority for the purposes of this section.  
     Sec. 5.  Minnesota Statutes 1983 Supplement, section 
17.105, subdivision 7, is amended to read: 
    Subd. 7.  [INSURANCE AND GUARANTEES.] The finance authority 
may provide insurance and guarantees to the following extent:  
    (1) The finance authority may not provide to any one person 
insurance or guarantees in excess of $250,000; for pre-export 
transactions and $250,000 for post-export transactions.  When 
insuring, co-insuring, or guaranteeing the post-export portion 
of transactions, the finance authority shall retain not more 
than ten percent of the commercial risk, or alternatively, the 
normal and standard deductible of the insurance policy.  
    (2) The policy of the finance authority is to provide 
insurance and guarantees for export credits that would otherwise 
not be made and that the chairman and the board deem to 
represent a reasonable risk and have a sufficient likelihood of 
repayment;.  
    (3) The finance authority shall contract with, among 
others, the Foreign Credit Insurance Association, the U.S. 
Export-Import Bank, and private insurers to secure insurance or 
reinsurance for country and commercial risks for the finance 
authority's insurance program;.  The finance authority may 
purchase insurance policies using moneys from the finance 
authority's appropriations.  
    (4) Losses incurred by the finance authority that relate to 
its insurance or guarantee activities shall be solely borne by 
the finance authority to the extent of its capital and reserves. 
    Approved April 24, 1984