Minnesota Session Laws - 1989, Regular Session

  

                         Laws of Minnesota 1989 

                         CHAPTER 317-H.F.No. 65 
           An act relating to economic development; authorizing 
          local jurisdictions involved in economic development 
          to participate in secondary markets; proposing coding 
          for new law in Minnesota Statutes, chapter 465. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  [465.78] [PARTICIPATION IN ECONOMIC DEVELOPMENT 
SECONDARY MARKETS.] 
    (a) A municipality may sell at private or public sale, at 
the price or prices determined by the municipality, any note, 
mortgage, lease, sublease, lease purchase, or other instrument 
or obligation evidencing or securing a loan made for the purpose 
of economic development, job creation, redevelopment, or 
community revitalization to a business, for-profit or nonprofit 
organization, or an individual.  
    (b) Sales under this section must be made through 
arrangements whereby the ultimate sale of the instrument is to 
be made as part of a pool of instruments on behalf of one or 
more other municipalities, port authorities, housing and 
redevelopment authorities, or rural development finance 
authorities (other than a port authority or housing and 
redevelopment authority located wholly or partly within the 
municipality).  The restrictions of the previous sentence do not 
apply if the sale is a public sale or if the proposed sale is 
submitted to and approved by the commissioner of commerce.  The 
commissioner shall review the proposed sale to determine if the 
agreed upon price adequately compensates the municipality, given 
the maturity, risk and yield of the instrument.  If a proposed 
sale is submitted to the commissioner of commerce and the sale 
is not disapproved in writing by the commissioner within 30 
days, the sale is deemed approved.  The restrictions contained 
in this paragraph apply to sales made under sections 469.059, 
subdivision 17; 469.101, subdivision 22; and 469.146, 
subdivision 3. 
    (c) This section does not apply to an obligation to make 
payments to the municipality, if the underlying obligation arose 
out of a transaction in which the proceeds of the loan were 
financed by revenues derived from tax increments from a tax 
increment financing district that includes property owned by the 
borrower.  For the purpose of this section, a "municipality" is 
any home rule charter city, statutory city, county, or town. 
     Sec. 2.  [EFFECTIVE DATE.] 
    Section 1 is effective the day after final enactment. 
    Presented to the governor May 30, 1989 
    Signed by the governor June 1, 1989, 11:44 p.m.