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    Subdivision 1. Certification. On or before October 1 in each year, the commissioner shall
certify to the commissioner of finance the amount anticipated to be needed for debt service loans
and capital loans to be made under the Maximum Effort School Aid Law prior to October 1 in
the following year. Each such certification of the commissioner shall also state an estimate of
the dates and amounts the certified amount will be needed in the maximum effort school loan
fund and an estimate as to the years and amounts in which payments on debt service loans and
capital loans will be received.
    Subd. 2. Issuance and sale of bonds; commissioner of finance. Upon receipt of each
such certification, subject to authorization as provided in subdivision 4, the commissioner of
finance shall from time to time as needed issue and sell state of Minnesota school loan bonds in
the aggregate principal amount stated in the commissioner's certificate, for the prompt and full
payment of which, with the interest thereon, the full faith, credit, and taxing powers of the state
are hereby irrevocably pledged. The commissioner of finance shall credit the net proceeds of the
sale of the bonds to the purposes for which they are appropriated by section 126C.66, subdivision
. The bonds shall be issued and sold at such price, in such manner, in such number of series, at
such times, and in such form and denominations, shall bear such dates of issue and of maturity,
either without option of prior redemption or subject to prepayment upon such notice and at such
times and prices, shall bear interest at such rate or rates and payable at such intervals, shall be
payable at such bank or banks within or without the state, with such provisions for registration,
conversion, and exchange, and for the issuance of notes in anticipation of the sale and delivery of
definitive bonds, and in accordance with such further provisions as the commissioner of finance
shall determine subject to the limitations stated in this subdivision (but not subject to chapter 14,
including section 14.386). The maturity date must not be more than 20 years after the date of
issue of any bond and the principal amounts. The due dates must conform as near as may be with
the commissioner's estimates of dates and amounts of payments to be received on debt service
and capital loans. The bonds and any interest coupons attached to them must be executed by the
commissioner of finance under official seal. The signature of the commissioner and the seal may
be printed, lithographed, stamped, engraved, or otherwise reproduced thereon. Each bond must be
authenticated by the manual signature on its face of the commissioner or a person authorized to
sign on behalf of a bank or trust company designated by the commissioner to act as registrar or
other authenticating agent. The commissioner of finance is authorized and directed to ascertain
and certify to purchasers of the bonds the performance and existence of all acts, conditions, and
things necessary to make them valid and binding general obligations of the state of Minnesota in
accordance with their terms.
    Subd. 3. School loan bond account. The commissioner of finance shall maintain a separate
school loan bond account in the state bond fund, showing all money transferred to that fund for
the payment of school loan bonds and all income received from the investment of such money. On
December 1, the commissioner of finance shall transfer to the bond account as much of the money
then on hand in the loan repayment account in the maximum effort school loan fund as will be
sufficient, with the balance then on hand in said bond account, to pay all principal and interest due
and to become due within the next ensuing year and July 1 in the second ensuing year on school
loan bonds issued and sold pursuant to this section. If money is not available for the transfer in
the full amount required, and if any principal or interest on school loan bonds should become
due at any time when there is not on hand a sufficient amount from any of the sources herein
appropriated for the payment thereof, the moneys must be paid out of the general fund in the state
treasury according to section 16A.641, and the amount necessary therefor is hereby appropriated.
    Subd. 4. Authority for issuance of bonds. Bonds shall be issued pursuant to this section
only when authorized by a law specifying the purpose thereof and the maximum amount of the
proceeds authorized to be expended for that purpose. Any act authorizing the issuance of bonds in
the manner provided in this section shall, together with this section, constitute complete authority
for the issue, and the bonds shall not be subject to the restrictions or limitations contained
in any other law. Bonds issued pursuant hereto may be sold at public or private sale and shall
be deemed "authorized securities" within the provisions of section 50.14 and acts amendatory
thereof or supplemental thereto.
History: Ex1959 c 27 s 12; 1963 c 601 s 4; 1965 c 875 s 13; 1969 c 399 s 49; 1973 c 492 s
14; 1980 c 509 s 34; 1980 c 607 art 14 s 29; 1982 c 424 s 130; 1983 c 301 s 135; 1Sp1985 c 14
art 4 s 22; 1986 c 444; 1991 c 45 s 4; 1994 c 647 art 5 s 4; 1995 c 233 art 2 s 56; 1997 c 187 art
5 s 17; 1998 c 397 art 7 s 65,164; art 11 s 3; 2003 c 112 art 2 s 19