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Whenever any action at law or in equity is brought in any court in this state questioning
directly or indirectly the existence of any condition or thing precedent to, or the validity of any
action taken or proposed to be taken, by any public body or its officers or agents in the course
of the authorization or sale, issuance or delivery of bonds, the making of a contract for public
improvement or the validity of any proceeding to alter the organization of a school district in any
manner, such public body may move the court for an order requiring the party, or parties, bringing
such action to file a surety bond as hereinafter set forth. Three days' written notice of such motion
shall be given. If the public body is not a party to the action, but if it deems that such action be
injurious to the public interest and to the taxpayers, such public body may intervene or appear
specially for the purpose of making such motion. If the court determines that loss or damage to
the public or taxpayers may result from the pendency of the action or proceeding, the court may
require such party, or parties, to file a surety bond, which shall be approved by the court, in such
amount as the court may determine. The court must also consider whether the action presents
substantial constitutional issues or substantial issues of statutory construction, and the likelihood
of a party prevailing on these issues, when determining the amount of a bond and whether a bond
should be required under this section or section 473.675. Such bond shall be conditioned for
payment to the public body of any loss or damage which may be caused to the public body or
taxpayers by such delay, to the extent of the penal sum of such bond, if such party, or parties,
shall not prevail therein. If such surety bond is not filed within a reasonable time allowed therefor
by the court, the action shall be dismissed with prejudice. If such party, or parties, file a bond as
herein required and prevail in the action, any premium paid on the bond shall be repaid by or
taxed against the public body.
History: 1957 c 857 s 2; 1993 c 170 s 1

Official Publication of the State of Minnesota
Revisor of Statutes