2006 Minnesota Statutes

136A.173 NEGOTIABILITY; BOND ANTICIPATION NOTES; PAYMENT;
CONDITIONS.
    Subdivision 1. Revenue bonds and notes. The office may from time to time issue revenue
bonds for purposes of sections 136A.15 to 136A.178 and all such revenue bonds, notes, bond
anticipation notes, or other obligations of the office issued pursuant to sections 136A.15 to
136A.178 shall be and are hereby declared to be negotiable for all purposes notwithstanding their
payment from a limited source and without regard to any other law or laws. In anticipation of
the sale of such revenue bonds, the office may issue negotiable bond anticipation notes and
may renew the same from time to time, but the maximum maturity of any such note, including
renewals thereof, shall not exceed five years from the date of issue of the original note. Such notes
shall be paid from any revenues of the office available therefor and not otherwise pledged, or from
the proceeds of sale of the revenue bonds of the office in anticipation of which they were issued.
The notes shall be issued in the same manner as the revenue bonds. Such notes and the resolution
or resolutions authorizing the same may contain any provisions, conditions, or limitations which
a bond resolution or the office may contain.
    Subd. 2. Payment of bonds and notes. The revenue bonds and notes of every issue shall be
payable solely out of revenues of the office, subject only to any agreements with the holders of
particular revenue bonds or notes pledging any particular revenues. Notwithstanding that revenue
bonds and notes may be payable from a special fund, they shall be and be deemed to be, for all
purposes, negotiable instruments, subject only to the provisions of the revenue bonds.
    Subd. 3. Issuance, terms, redemption. The revenue bonds may be issued as serial bonds or
as term bonds, or the office, in its discretion, may issue bonds of both types. The revenue bonds
shall be authorized by resolution of the director of the office and shall bear such date or dates,
mature at such time or times, not exceeding 50 years from their respective dates, bear interest at
such rate or rates, payable at such time or times, be in denominations, be in such form, either
coupon or registered, carry such registration privileges, be executed in such manner, be payable
in lawful money of the United States of America at such place or places, and be subject to such
terms of redemption, as such resolution or resolutions may provide. The revenue bonds or notes
may be sold at public or private sale for such price or prices as the office shall determine. Pending
preparation of the definitive bonds, the office may issue interim receipts or certificates which
shall be exchanged for such definite bonds.
    Subd. 4. Provisions of resolution authorizing bonds. Any resolution or resolutions
authorizing any revenue bonds or any issue of revenue bonds may contain provisions which shall
be part of the contract with the holders of the revenue bonds to be authorized as to:
(a) The setting aside of reserves or sinking funds, and the regulation and disposition thereof;
(b) Limitations on the purpose to which the proceeds of sale of any issue of revenue bonds
then or thereafter to be issued may be applied and pledging such proceeds to secure the payment
of the revenue bonds or any issue of the revenue bonds;
(c) Limitations on the issuance of additional bonds, the terms upon which additional bonds
may be issued and secured and the refunding of outstanding bonds;
(d) The procedure, if any, by which the terms of any contract with bondholders may be
amended or abrogated, the amount of bonds the holders of which must consent thereto, and the
manner in which such consent may be given;
(e) Defining the acts or omissions to act which shall constitute a default in the duties of
the office to holders of its obligations and providing the rights and remedies of such holders in
the event of a default.
    Subd. 5. Liability. Neither the members of the office nor any person executing the revenue
bonds or notes shall be liable personally on the revenue bonds or notes or be subject to any
personal liability or accountability by reason of the issuance thereof.
    Subd. 6. Other powers. The office shall have power out of any funds available therefor to
purchase its bonds or notes. The office may hold, pledge, cancel or resell such bonds, subject to
and in accordance with agreements with bondholders.
History: 1973 c 605 s 14; 1975 c 271 s 6; 1978 c 706 s 54; 1989 c 293 s 48; 1995 c 212 art
3 s 59; 1997 c 7 art 1 s 73; 1997 c 183 art 3 s 17