Minnesota Session Laws - 1991, Regular Session

  

                         Laws of Minnesota 1991 

                        CHAPTER 120-S.F.No. 636 
           An act relating to local government; enlarging 
          authority to participate in certain federal loan 
          programs; amending Minnesota Statutes 1990, section 
          465.73. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1990, section 465.73, is 
amended to read: 
    465.73 [TOWN HALLS; FIRE HALLS OR RESCUE EQUIPMENT; DIRECT 
LOANS TO POLITICAL SUBDIVISIONS.] 
    For purposes of constructing, repairing, or acquiring town 
halls, fire halls or fire or rescue equipment any city, county 
or town may borrow up to $100,000 $250,000 directly from or 
guaranteed by the Farmers Home Administration or other agency of 
the United States Department of Agriculture on a note secured by 
a mortgage on the real or personal property purchased with the 
borrowed funds.  The city, county, or town may assign revenues 
from the town halls, fire or rescue department, or fire hall or 
any other available funds to the Farmers Home Administration or 
other agency of the United States Department of Agriculture or 
its guaranteed lender to repay the loan.  The amount of the 
obligation shall not be included when computing the net debt of 
the city or, county but not the, or town.  Unless expressly 
provided otherwise in the mortgage instrument, when a city, 
county or town borrows on a mortgage and fails to repay all or a 
part of the mortgage, the agency is confined to the remedy of 
recovery of the property purchased with the borrowed funds.  An 
election shall not be required to authorize the note and 
mortgage unless the agency is confined to the remedy of recovery 
of the property or assignment of revenues. 
    Sec. 2.  [EFFECTIVE DATE.] 
    This act takes effect the day after final enactment. 
    Presented to the governor May 16, 1991 
    Signed by the governor May 19, 1991, 7:28 p.m.