2005 Minnesota Statutes

     37.32 Tender option. 

    An obligation may be issued giving its owner the right to 
 tender or the society to demand tender of the obligation to the 
 society or another person designated by it, for purchase at a 
 specified time or times, if the society has first entered into 
 an agreement with a suitable financial institution obligating 
 the financial institution to provide funds on a timely basis for 
 purchase of bonds tendered.  The obligation is not considered to 
 mature on any tender date and the purchase of a tendered 
 obligation is not considered a payment or discharge of the 
 obligation by the society.  Obligations tendered for purchase 
 may be remarketed by or on behalf of the society or another 
 purchaser.  The society may enter into agreements it considers 
 appropriate to provide for the purchase and remarketing of 
 tendered obligations, including: 

    (1) provisions under which undelivered obligations may be 
 considered tendered for purchase and new obligations may be 
 substituted for them; 

    (2) provisions for the payment of charges of tender agents, 
 remarketing agents, and financial institutions extending lines 
 of credit or letters of credit assuring repurchase; and 

    (3) provisions for reimbursement of advances under letters 
 of credit that may be paid from the proceeds of the obligations 
 or from tax and other revenues appropriated for the payment and 
 security of the obligations and similar or related provisions. 

    HIST: 2003 c 127 art 12 s 2; 1Sp2003 c 21 art 10 s 11