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465.78 PARTICIPATE IN ECONOMIC DEVELOPMENT SECONDARY MARKET.
(a) A municipality may sell at private or public sale, at the price or prices determined
by the municipality, any note, mortgage, lease, sublease, lease purchase, or other instrument
or obligation evidencing or securing a loan made for the purpose of economic development,
job creation, redevelopment, or community revitalization to a business, for-profit or nonprofit
organization, or an individual.
(b) Sales under this section must be made through arrangements whereby the ultimate sale
of the instrument is to be made as part of a pool of instruments on behalf of one or more other
municipalities, port authorities, housing and redevelopment authorities, or rural development
finance authorities (other than a port authority or housing and redevelopment authority located
wholly or partly within the municipality). The restrictions of the previous sentence do not apply if
the sale is a public sale or if the proposed sale is submitted to and approved by the commissioner
of commerce. The commissioner shall review the proposed sale to determine if the agreed
upon price adequately compensates the municipality, given the maturity, risk, and yield of the
instrument. If a proposed sale is submitted to the commissioner of commerce and the sale is not
disapproved in writing by the commissioner within 30 days, the sale is deemed approved. The
restrictions contained in this paragraph apply to sales made under sections 469.059, subdivision
17
; 469.101, subdivision 22; and 469.146, subdivision 3.
(c) This section does not apply to an obligation to make payments to the municipality, if the
underlying obligation arose out of a transaction in which the proceeds of the loan were financed
by revenues derived from tax increments from a tax increment financing district that includes
property owned by the borrower. For the purpose of this section, a "municipality" is any home
rule charter city, statutory city, county, or town.
History: 1989 c 317 s 1