2000 Minnesota Statutes

     446A.14 Interest exchanges. 

    The authority may enter into an agreement with a third 
 party for an exchange of interest rates under this subdivision.  
 With respect to outstanding obligations bearing interest at a 
 variable rate, the authority may agree to pay sums equal to 
 interest at a fixed rate or at a different variable rate 
 determined in accordance with a formula set out in the agreement 
 on an amount not exceeding the outstanding principal amount of 
 the obligations, in exchange for an agreement by the third party 
 to pay sums equal to interest on a similar amount at a variable 
 rate determined according to a formula set out in the agreement. 
 With respect to outstanding obligations bearing interest at a 
 fixed rate or rates, the authority may agree to pay sums equal 
 to interest at a variable rate determined according to a formula 
 set out in the agreement on an amount not exceeding the 
 outstanding principal amount of the obligations in exchange for 
 an agreement by the third party to pay sums equal to interest on 
 a similar amount at a fixed rate or rates set out in the 
 agreement.  Subject to any applicable bonds covenants, payments 
 required to be made by the municipality under the swap agreement 
 may be made from amounts secured to pay debt service on the 
 obligations with respect to which the swap agreement was made 
 from any other available source of the authority. 

    HIST: 1988 c 546 s 7