2006 Minnesota Statutes

37.32 TENDER OPTION.
An obligation may be issued giving its owner the right to tender or the society to demand
tender of the obligation to the society or another person designated by it, for purchase at a
specified time or times, if the society has first entered into an agreement with a suitable financial
institution obligating the financial institution to provide funds on a timely basis for purchase of
bonds tendered. The obligation is not considered to mature on any tender date and the purchase of
a tendered obligation is not considered a payment or discharge of the obligation by the society.
Obligations tendered for purchase may be remarketed by or on behalf of the society or another
purchaser. The society may enter into agreements it considers appropriate to provide for the
purchase and remarketing of tendered obligations, including:
(1) provisions under which undelivered obligations may be considered tendered for purchase
and new obligations may be substituted for them;
(2) provisions for the payment of charges of tender agents, remarketing agents, and financial
institutions extending lines of credit or letters of credit assuring repurchase; and
(3) provisions for reimbursement of advances under letters of credit that may be paid from
the proceeds of the obligations or from tax and other revenues appropriated for the payment and
security of the obligations and similar or related provisions.
History: 2003 c 127 art 12 s 2; 1Sp2003 c 21 art 10 s 11