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Office of the Revisor of Statutes

475.55 EXECUTION; NEGOTIABILITY; INTEREST RATES.
    Subdivision 1. Form. All obligations shall be securities as provided in the Uniform
Commercial Code, chapter 336, article 8, may be issued as certificated securities or as
uncertificated securities, and if issued as certificated securities may be issued in bearer form or
in registered form, as defined in section 336.8-102. The validity of an obligation shall not be
impaired by the fact that one or more officers authorized to execute it by the governing body of
the municipality shall have ceased to be in office before delivery to the purchaser or shall not
have been in office on the formal issue date of the obligation. Every obligation, as to certificated
securities, or transaction statement, as to uncertificated securities, shall be signed manually by
one officer of the municipality or by a person authorized to act on behalf of a bank or trust
company, located in or outside of the state, which has been designated by the governing body
of the municipality to act as authenticating agent. Other signatures and the seal of the issuer
may be printed, lithographed, stamped, or engraved thereon and on any interest coupons to be
attached thereto. The seal need not be used. A municipality may do all acts and things which are
permitted or required of issuers of securities under the Uniform Commercial Code, chapter
336, article 8, and may designate a corporate registrar to perform on behalf of the municipality
the duties of a registrar as set forth in those sections. Any registrar shall be an incorporated
bank or trust company, located in or outside of the state, authorized by the laws of the United
States or of the state in which it is located to perform the duties. If obligations are issued as
uncertificated securities, and a law requires or permits the obligations to contain a statement or
recital, whether on their face or otherwise, it shall be sufficient compliance with the law that the
statement or recital is contained in the transaction statement or in an ordinance, resolution, or
other instrument which is made a part of the obligation by reference in the transaction statement
as provided in section 336.8-202.
    Subd. 1a. Interest. Interest on obligations issued after April 1, 1986, is not subject to any
limitation on rate or amount.
    Subd. 2. Supersession. The provisions of this section shall supersede any maximum interest
rate fixed by any other law or a city charter with respect to obligations of the state or any
municipality or governmental or public subdivision, district, corporation, commission, board,
council, or authority of whatsoever kind, including warrants or orders issued in evidence of
allowed claims for property or services furnished to the issuer.
    Subd. 3. Special assessments. Notwithstanding any contrary provisions of law or charter,
special assessments pledged to the payment of obligations may bear interest at the rate the
governing body by resolution determines, not exceeding the maximum interest rate permitted
to be charged against the assessments under the city charter pursuant to which the assessments
were levied.
    Subd. 4. Rate determination. On or before the 20th day of each month, the commissioner
of finance shall determine the most recently published yield for the Bond Buyer's Index of 20
Municipals. This rate plus one percent and rounded to the next highest percent per annum
shall be the rate for the next succeeding month for the purpose set forth in subdivision 7. The
commissioner of finance shall publish the maximum rate in the State Register each month.
    Subd. 5.[Repealed, 1987 c 344 s 37]
    Subd. 6. Registration data private. All information contained in any register maintained by
a municipality or by a corporate registrar with respect to the ownership of municipal obligations is
nonpublic data as defined in section 13.02, subdivision 9, or private data on individuals as defined
in section 13.02, subdivision 12. The information is not public and is accessible only to the
individual or entity that is the subject of it, except if disclosure:
(1) is necessary for the performance of the duties of the municipality or the registrar;
(2) is requested by an authorized representative of the state commissioner of revenue or
attorney general or of the commissioner of internal revenue of the United States for the purpose of
determining the applicability of a tax;
(3) is required under section 13.03, subdivision 4; or
(4) is requested at any time by the corporate trust department of a bank or trust company
acting as a tender agent pursuant to documents executed at the time of issuance of the obligations
to purchase obligations described in section 475.54, subdivision 5a, or obligations to which a
tender option has been attached in connection with the performance of such person's duties as
tender agent, or purchaser of the obligations.
A municipality or its agent may use the information in a register for purposes of offering
obligations under a bond reinvestment program.
    Subd. 7. Assumed maximum interest rate for other laws. If an obligation is not subject to
a maximum interest rate pursuant to subdivision 1, paragraph (1) and another law provides for a
calculation of a debt service levy, determination of a rate of interest on a special assessment, or
other factor based on an assumption that a maximum interest rate applies to the obligation, the
governing body of the municipality may estimate or determine an assumed maximum interest rate
for purposes of that law. If the municipality does not determine, specify or estimate the maximum
interest rate for such purpose, then the maximum interest rate for purposes of the other law is the
interest rate determined by the commissioner of finance under subdivision 4. This subdivision
does not limit the interest rate that may be paid on obligations under subdivision 1a.
    Subd. 8. Bond reinvestment programs. In connection with a bond reinvestment program,
the governing body may by resolution delegate to any appropriate officer of the municipality
authority to establish from time to time the interest rate or rates, subject to limitations imposed by
law, on such obligations and other terms of obligations issued under a bond reinvestment program.
Obligations issued under a bond reinvestment program may be in any denomination as determined
by the governing body or an officer acting pursuant to delegation from the governing body.
History: (1939) RL s 781; 1947 c 296 s 3; 1949 c 682 s 5; 1951 c 422 s 3; 1969 c 93 s 1;
1971 c 903 s 2; 1976 c 324 s 4; 1980 c 607 art 8 s 2; 1982 c 523 art 3 s 2; 1982 c 642 s 19; 1984
c 563 s 2-4; 1986 c 465 art 2 s 18,19; 1987 c 344 s 23-29; 1989 c 355 s 19,20