1997 Minnesota Statutes

     465.715 Political subdivisions; lease purchase 
  agreements; corporations. 

    Subdivision 1.    Statutory authorization required.  A 
 county, home rule charter city, statutory city, town, school 
 district, or other political subdivision may not create a 
 corporation, whether for profit or not for profit, unless 
 explicitly authorized to do so by law.  

    Subd. 2.    Pre-December 1, 1996, lease purchase 
 agreements.  The validity of any lease purchase agreement 
 entered into prior to December 1, 1996, and subsequent 
 refinancings are not affected by either the amount of 
 consideration paid by a lessor for an interest in real property 
 or, in the case of lessors organized by or on behalf of the 
 city, county, town, or school district, any defect in or lack of 
 authority to organize such entity.  A nonprofit corporation 
 organized by or on behalf of a city, county, town, or school 
 district, for the purpose of a lease purchase agreement, may 
 continue in existence until the end of any lease agreement in 
 effect on December 1, 1996, but thereafter is dissolved.  During 
 its existence, the nonprofit corporation shall conduct only 
 business that is necessary and directly related to the lease 
 agreement.  The nonprofit corporation is a public corporation 
 for purposes of section 465.035 and is subject to all laws as if 
 it were a part of the city, county, town, or school district. 

    HIST: 1997 c 219 s 7; 1997 c 231 art 16 s 19