Minnesota Session Laws - 1984, Regular Session

  

                         Laws of Minnesota 1984 

                        CHAPTER 563-S.F.No. 2165
           An act relating to public finance; authorizing 
          additional investment alternatives; providing for the 
          delivery of municipal obligations in certificated or 
          uncertificated form; providing restrictions on the use 
          of certain data; providing a formula for determining 
          limitations on interest rates on municipal obligations;
          providing an alternative procedure for conducting a 
          public sale of municipal obligations; amending 
          Minnesota Statutes 1982, sections 471.56, by adding a 
          subdivision; 475.55, subdivisions 1, 4, and by adding 
          a subdivision; 475.60, subdivision 3, and by adding a 
          subdivision; repealing Minnesota Statutes 1982, 
          sections 475.71; and 475.76, subdivision 5.  
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1982, section 471.56, is 
amended by adding a subdivision to read:  
    Subd. 5.  In addition to other authority granted by this 
section, a county containing a city of the first class, a 
statutory or home rule charter city of the first or second 
class, and a metropolitan commission, as defined in section 
473.121, may sell futures contracts but only with respect to 
securities owned by it, including securities which are the 
subject of reverse repurchase agreements under section 475.76 
which expire at or before the due date of the futures contract.  
    Sec. 2.  Minnesota Statutes 1982, section 475.55, 
subdivision 1, is amended to read:  
    Subdivision 1.  [INTEREST; FORM.] All obligations shall be 
signed by officers authorized by resolution of the governing 
body or by persons authorized to sign on behalf of a bank 
designated by the resolution as authenticating agent, and shall 
express the amount and the terms of payment.  Interest on 
obligations authorized by resolution before January 1, 1986 
shall not exceed the greater greatest of (a) the rate determined 
pursuant to subdivision 4 for the month in which the resolution 
authorizing the obligations was adopted, or (b) the rate 
determined pursuant to subdivision 4 for the month in which the 
bonds obligations are sold, or (c) the rate of ten percent per 
annum, payable half yearly.  Interest on obligations issued 
after December 31, 1985, shall not exceed nine percent per 
year.  All obligations shall be negotiable investment securities 
as provided in the uniform commercial code, chapter 336, article 
8, may be issued as certificated securities or as uncertificated 
securities, and if issued as certificated securities may be 
issued in bearer form or in registered form, as defined in 
section 336.8-102.  The validity of an obligation shall not be 
impaired by the fact that one or more officers authorized to 
execute it by the governing body of the municipality shall have 
ceased to be in office before delivery to the purchaser or shall 
not have been in office on the formal issue date of the 
obligation.  Every obligation, as to certificated securities, or 
transaction statement, as to uncertificated securities, shall be 
signed manually by one officer of the municipality or by a 
person authorized to act on behalf of a bank or trust company, 
located in or outside of the state, which has been designated by 
the governing body of the municipality to act as authenticating 
agent.  Other signatures and the seal of the issuer may be 
printed, lithographed, stamped or engraved thereon and on any 
interest coupons to be attached thereto.  The seal need not be 
used.  A municipality may do all acts and things which are 
permitted or required of issuers of securities under the Uniform 
Commercial Code, chapter 336, article 8, and may designate a 
corporate registrar to perform on behalf of the municipality the 
duties of a registrar as set forth in those sections.  Any 
registrar shall be an incorporated bank or trust company, 
located in or outside of the state, authorized by the laws of 
the United States or of the state in which it is located to 
perform the duties.  If obligations are issued as uncertificated 
securities, and a law requires or permits the obligations to 
contain a statement or recital, whether on their face or 
otherwise, it shall be sufficient compliance with the law that 
the statement or recital is contained in the transaction 
statement or in an ordinance, resolution, or other instrument 
which is made a part of the obligation by reference in the 
transaction statement as provided in section 336.8-202.  
    Sec. 3.  Minnesota Statutes 1982, section 475.55, 
subdivision 4, is amended to read:  
    Subd. 4.  [RATE DETERMINATION.] On or before the 20th day 
of each month prior to December, 1985, the commissioner of 
finance shall determine the most recently published yield for 
the Bond Buyer's Index of 20 Municipals.  This rate plus one 
percent and rounded to the next highest percent per annum shall 
be the rate for the next succeeding month.  The commissioner of 
finance shall publish the maximum rate in the State Register 
each month.  
    Sec. 4.  Minnesota Statutes 1982, section 475.55, is 
amended by adding a subdivision to read: 
    Subd. 6.  [REGISTRATION DATA PRIVATE.] All information 
contained in any register maintained by a municipality or by a 
corporate registrar with respect to the ownership of municipal 
obligations is nonpublic data as defined in section 13.02, 
subdivision 9, or private data on individuals as defined in 
section 13.02, subdivision 12.  The information is not public 
and is accessible only to the individual or entity that is the 
subject of it, except if disclosure:  
    (1) is necessary for the performance of the duties of the 
municipality or the registrar;  
    (2) is requested by an authorized representative of the 
state commissioner of revenue or attorney general or of the 
commissioner of internal revenue of the United States for the 
purpose of determining the applicability of a tax; or 
    (3) is required under section 13.03, subdivision 4.  
    Sec. 5.  Minnesota Statutes 1982, section 475.60, 
subdivision 3, is amended to read:  
    Subd. 3.  [PUBLISHED NOTICE.] Published notice, where 
required, shall specify the maximum principal amount of the 
obligations, the time and place of receipt and consideration of 
bids and such other details as to the obligations and terms of 
sale as the governing body deems suitable.  The published notice 
shall either specify the date and time for receipt of bids or 
provide that the bids will be received at a date and time not 
less than ten nor more than 45 days after the date of 
publication.  If the published notice does not state the 
specific date and amount for the sale, it shall specify the 
manner in which notice of the date and amount of the sale will 
be given to prospective bidders.  Notification of prospective 
bidders shall be given by electronic data transmission or other 
form of communication common to the municipal bond trade at 
least four days (omitting Saturdays, Sundays, and legal 
holidays) before the date for receipt of bids.  If within five 
days after the date of publication a prospective bidder requests 
in writing to be notified by mail, the municipality shall do 
so.  Failure to give the notice as described in the preceding 
sentence to a bidder shall not affect the validity of the sale 
or of the obligations.  The governing body may employ an agent 
to receive and open the bids at any place within or outside the 
corporate limits of the municipality, in the presence of an 
officer of the municipality, but the obligations shall not be 
sold except by action of the governing body or authorized 
officers of the municipality after communication of the bids to 
them.  Additional notice may be given for such time and in such 
manner as the governing body deems suitable.  At the time and 
place so fixed, the bids shall be opened and the offer complying 
with the terms of sale and deemed most favorable shall be 
accepted, but the governing body may reject any and all such 
offers, in which event, or if no offers have been received, it 
may award the obligations to any person who within 30 days 
thereafter presents an offer complying with the terms of sale 
and deemed more favorable than any received previously, or upon 
like notice the governing body may invite other bids upon the 
same or different terms and conditions. 
    Sec. 6.  Minnesota Statutes 1982, section 475.60, is 
amended by adding a subdivision to read:  
    Subd. 7.  [INVESTMENT OF PROCEEDS.] A municipality, after 
it has contracted for the sale of obligations, may enter into a 
contract for the future purchase of securities described in 
section 475.66, for a purchase price, including accrued interest 
on it, not in excess of the sale price of the obligations, 
excluding accrued interest on them.  The contract shall provide 
a settlement date for the purchase of the securities which is 
not earlier than the anticipated delivery date of the 
obligations.  
    Sec. 7.  [REPEALER.] 
    Minnesota Statutes 1982, sections 475.71; and 475.76, 
subdivision 5, are repealed. 
    Approved April 25, 1984