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    Subdivision 1. Power to issue. A local agency may issue bonds for any of its corporate
purposes. Subject to the limitations of this section, the bonds may be of the type it determines,
including bonds on which the principal and interest are payable exclusively from the income and
revenues of the project financed with the proceeds of the bonds, or exclusively from the income
and revenues of certain designated projects, whether or not they are financed in whole or in part
with the proceeds of the bonds. The bonds may be additionally secured by a pledge of any grant or
contribution from the federal government or other sources, or a pledge of any income or revenues
of the agency, from the redevelopment project for which the proceeds of the bonds are to be used,
or a mortgage of any project or other property of the agency. Neither the commissioners of any
agency nor any person executing the bonds shall be liable personally on the bonds.
    Subd. 2. Liability limited. The bonds and other obligations of a local agency shall not be a
debt of any municipality, the state, or any political subdivision thereof. Neither a municipality nor
the state or any political subdivision thereof shall be liable on the bonds, nor shall the bonds or
obligations be payable out of any funds or properties other than those of the agency.
    Subd. 3. Debt limitations inapplicable. The bonds shall not constitute an indebtedness
within the meaning of any constitutional or statutory debt limitation or restriction.
    Subd. 4. Bond characteristics. The bonds of a local agency are declared to be issued for an
essential public and governmental purpose and to be public instrumentalities. The provisions of
these sections exempting from taxation redevelopment agencies, their properties and income,
shall be considered additional security for the repayment of bonds and shall constitute a contract
between the bondholders, including transferees, and the local agencies issuing the bonds. A local
agency may confer upon the holder of the bonds the rights and remedies it deems necessary
or advisable, including the right in the event of default to have a receiver appointed to take
possession of and operate the redevelopment project.
    Subd. 5. Taxability of transferred property. Nothing in these sections shall be construed to
exempt from taxation any property which any local agency sells, leases, conveys, or otherwise
transfers to private individuals or corporations for development, use, or operation in connection
with a redevelopment project. The property, real or personal, shall have the same tax status as if it
were owned by private individuals or corporations.
    Subd. 6. Terms of bonds. The bonds of a local agency shall be authorized by its resolution
and may be issued in one or more series. They shall bear the date or dates, mature at the time
or times, bear interest at the rate or rates, not exceeding six percent per annum, be in the
denomination or denominations, be in the form, either coupon or registered, carry the conversion
or registration privileges, have the priority, and be subject to the terms of redemption as the
resolution, its trust indenture or mortgage may provide. The bonds may be sold at public or
private sale at not less than par.
    Subd. 7. Investment in bonds. Subject to the approval of the state agency, the bonds of a
local agency may be declared securities in which all public officers and bodies of the state and
of its municipal subdivisions, all insurance companies and associations, all savings banks and
savings institutions, including savings associations, executors, administrators, guardians, trustees,
and all other fiduciaries in the state may properly and legally invest the funds within their control.
Each mortgage or issue of bonds shall relate only to a single specified project, and those bonds
shall be secured by a mortgage upon all the real property of which the projects consist and shall
be first lien bonds, secured by a mortgage not exceeding 80 percent of the estimated cost prior to
the completion of the project, or 80 percent of the appraised value or actual cost, but in no event
in excess of 80 percent of the actual cost, after that completion, as certified by the department.
    Subd. 8. When Bond Allocation Act applies. Sections 474A.01 to 474A.21 apply to any
issuance of obligations under this section which are subject to limitation under a federal tax law
as defined in section 474A.02, subdivision 8.
History: 1987 c 291 s 117; 1995 c 202 art 1 s 25; 2000 c 260 s 64; 2002 c 379 art 1 s 89