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462A.22 BOND FUND.
    Subdivision 1. Debt ceiling. The aggregate principal amount of bonds and notes which are
outstanding at any time, excluding the principal amount of any bonds and notes refunded by the
issuance of new bonds or notes, shall not exceed the sum of $3,000,000,000.
    Subd. 1a.[Repealed, 1983 c 185 s 15]
    Subd. 2. Limit is not a contract. Subdivision 1 is not a contract with the holders of any
bonds or notes excluding the issuance of bonds or notes in excess of said maximum amount,
if such maximum shall be increased by law.
    Subd. 3. Debt service reserve funds. The agency may create and establish a special fund
or funds for the security of one or more or all series of its bonds or notes, which funds shall be
known as debt service reserve funds. The agency may pay into each debt service reserve fund (a)
any moneys appropriated by the state only for the purposes of such fund, (b) any proceeds of sale
of bonds or notes to the extent provided in the resolution or indenture authorizing the issuance
thereof, (c) any funds directed to be transferred by the agency to such debt service reserve fund,
and (d) any other moneys made available to the agency only for the purpose of such fund from
any other source or sources.
    Subd. 4. Solely for bonds, notes; exception. The moneys held in or credited to each debt
service reserve fund, except as provided in this section, shall be used solely for the payment of
the principal of bonds or notes of the agency as the same mature, the purchase of such bonds or
notes, the payment of interest thereon, or the payment of any premium required when such bonds
or notes are redeemed before maturity; provided, that moneys in any such fund shall not be
withdrawn therefrom at any time in such amount as would reduce the amount of the fund to less
than the amount which the agency shall determine to be reasonably necessary for the purposes of
the fund, except for the purpose of paying principal or interest due on bonds or notes secured by
the fund, for the payment of which other moneys of the agency are not available.
    Subd. 5. Investments. Moneys in any debt service reserve fund not required for immediate
use or disbursement may be invested in accordance with the provisions of section 462A.18,
subdivision 2
    Subd. 6. No similar bonds unless minimum in funds. If the agency shall create and establish
a debt service reserve fund for the security of any series of bonds or notes, it shall not issue any
additional bonds or notes which are similarly secured if the amount of any of the debt service
reserve funds at the time of such issuance does not equal or exceed the minimum amount, if any,
required by the resolution creating such fund, unless the agency shall deposit in each such fund at
the time of such issuance, from the proceeds of the bonds or notes or otherwise, an amount which,
together with the amount then in the fund, will be not less than the minimum amount so required.
    Subd. 7. Transfer of excess. To the extent consistent with the resolutions and indentures
securing outstanding bonds and notes, the agency may periodically transfer to any other fund or
account from any debt service reserve fund, any excess in that fund over the amount deemed by
the agency to be reasonably necessary for the purpose of the fund.
    Subd. 8. Annual certificate of minimum needed for budget. In order to assure the
payment of the principal of and interest on bonds and notes of the agency and the continued
maintenance of all debt service reserve funds created and established therefor, the agency shall
annually determine and certify to the governor, on or before December 1, (a) the amount, if any,
then needed to restore each debt service reserve fund to the minimum amount required by the
resolution or indenture establishing the fund, not exceeding the maximum amount of principal
and interest to become due and payable in any subsequent year on all bonds or notes which are
then outstanding and secured by such fund; and (b) the amount, if any, determined by the agency
to be needed in the then immediately ensuing fiscal year, with other funds pledged and estimated
to be received during that year, for the payment of the principal and interest due and payable in
that year on all then outstanding bonds and notes secured by a debt service reserve fund the
amount of which is then less than the minimum amount agreed. The governor shall include and
submit to the legislature, in the budget for the following fiscal year, or in a supplemental budget
if the regular budget for that year has previously been approved, the amounts certified by the
agency in accordance with this subdivision.
    Subd. 9. Biennial report. The agency shall also submit a biennial report of its activities
and receipts, and a plan for the next biennium, to the governor and the legislature on or before
February 15 in each odd-numbered year. The report shall include the distribution of money under
each agency program by county, except for counties containing a city of the first class, where the
distribution shall be reported by municipality.
In addition, the report shall include the cost to the agency of the issuance of its bonds for each
issue in the biennium, along with comparable information for other state housing finance agencies.
    Subd. 10. Audits. All of the books and records of the agency shall be subject to audit by the
legislative auditor in the manner prescribed for other agencies of state government. The agency is
authorized also to employ and to contract in its resolutions and indentures for the employment
of public accountants for the audit of books and records pertaining to any fund or funds. The
legislative auditor shall review contracts with public accountants as provided in section 3.972.
History: 1971 c 702 s 22; 1973 c 492 s 14; 1973 c 515 s 39; 1974 c 441 s 26; 1976 c 254 s
13; 1977 c 347 s 60; 1977 c 401 s 20-22; 1979 c 327 s 10-12; 1980 c 509 s 169; 1981 c 306 s 13;
1983 c 185 s 11,12; 1983 c 317 s 3; 1985 c 6 s 1; 1Sp1985 c 14 art 8 s 20; 1986 c 444; 1991 c 292
art 9 s 32; 1992 c 511 art 9 s 15; 1992 c 522 s 36; 2003 c 61 s 5,6