473.436 COUNCIL; BORROWING MONEY.
Subdivision 1.[Repealed, 1Sp1985 c 10 s 123
Subd. 2. Legal investments.
Certificates of indebtedness, bonds, or other obligations issued
by the council to which tax levies have been pledged pursuant to section
, shall be proper for investment of any funds by any bank, savings bank, savings association,
credit union, trust company, insurance company or public or municipal corporation, and may be
pledged by any bank, savings bank, savings association, credit union, or trust company as security
for the deposit of public moneys.
Subd. 3. Tax exempt.
Certificates of indebtedness, bonds, or other obligations of the council
shall be deemed and treated as instrumentalities of a public government agency.
Subd. 4.[Repealed, 1Sp1985 c 10 s 123
Subd. 5.[Repealed, 1Sp1985 c 10 s 123
Subd. 6. Temporary borrowing.
On or after the first day of any fiscal year, the council
may borrow money which may be used or expended by the council for any purpose, including
but not limited to current expenses, capital expenditures and the discharge of any obligation or
indebtedness of the council. The indebtedness must be represented by a note or notes which may
be issued from time to time in any denomination and sold at public or private sale pursuant to
a resolution authorizing the issuance. The resolution must set forth the form and manner of
execution of the notes and shall contain other terms and conditions the council deems necessary
or desirable to provide security for the holders of the notes. The note or notes are payable from
committed or appropriated money from taxes, grants or loans of the state or federal government
made to the council, or other revenues of the council, and the money may be pledged to the
payment of the notes. The council is authorized to pledge to the payment of the note or notes
taxes levied by it under section
473.446, subdivision 1
, clause (a), and if taxes are so pledged the
council shall transfer amounts received from the levy to the council for payment of the note or
notes. To the extent the notes are not paid from the grant or loan money pledged for the payment
thereof, the principal and interest of the notes must be paid from any taxes received by the council
and any income and revenue received by or accrued to the council during the fiscal year in which
the note or notes were issued, or other money of the council lawfully available therefor.
Subd. 7.[Repealed, 1994 c 628 art 3 s 209
History: 1979 c 46 s 1; 1980 c 462 s 2; 1983 c 213 s 21; 1983 c 293 s 105; 1983 c 344 s 25;
1984 c 654 art 3 s 132,133; 1Sp1985 c 10 s 111; 1994 c 628 art 3 s 132-134; 1995 c 202 art 1 s 25