2006 Minnesota Statutes

41B.08 REVENUE BONDS; PURPOSES, TERMS, APPROVAL.
    Subdivision 1. Bonds for program. The authority from time to time may issue its negotiable
bonds in a principal amount which, in the opinion of the authority, is necessary to provide
sufficient funds for achieving its purposes including the making of qualified agricultural loans
or the purchase of interests in those loans, the payment of interest on bonds of the authority, the
establishment of reserves to secure the bonds, and the payment of all other expenditures of the
authority incident to and necessary or convenient to carry out its corporate purposes and powers.
Bonds of the administration may be issued as bonds or notes or in any other form authorized
by law.
    Subd. 2. Refunding of bonds. The authority from time to time may issue bonds for the
purpose of refunding any bonds of the authority then outstanding, including the payment of any
redemption premiums thereon and any interest accrued or to accrue to the redemption date next
succeeding the date of delivery of those refunding bonds. The proceeds of any refunding bonds
may, in the discretion of the authority, be applied to the purchase or payment at maturity of the
bonds to be refunded, or to the redemption of such outstanding bonds on the redemption date next
succeeding the date of delivery of such refunding bonds and may, pending such application, be
placed in escrow to be applied to such purchase, retirement, or redemption. Any such escrowed
proceeds, pending such use, may be invested and reinvested in obligations issued or guaranteed
by the state or the United States or by any agency or instrumentality thereof, or in certificates of
deposit or time deposits secured in a manner determined by the authority, maturing at a time or
times appropriate to assure the prompt payment of the principal of and interest and redemption
premiums, if any, on the bonds to be refunded. The income earned or realized on any such
investment may also be applied to the payment of the bonds to be refunded. After the terms of
the escrow have been fully satisfied, any balance of such proceeds and any investment income
may be returned to the authority for use by it in any lawful manner. All refunding bonds issued
under the provisions of this subdivision must be issued and secured in the manner provided by
resolution of the authority.
    Subd. 3. Kind of bonds. All bonds issued under this section must be negotiable investment
securities within the meaning and for all purposes of the Uniform Commercial Code, subject only
to any provisions of the bonds and notes for registration. All bonds so issued may be either
general obligations of the authority, secured by its full faith and credit, and payable out of any
money, assets, or revenues of the authority, subject to the provisions of resolutions or indentures
pledging and appropriating particular money, assets, or revenues to particular bonds, or limited
obligations of the authority not secured by its full faith and credit, and payable solely from
specified sources or assets.
    Subd. 4. Required rating. No bonds may be issued unless a rating of "A" or better has been
awarded to the bonds by a national bond rating agency. The "A" rating is not required if the bonds
are initially sold to corporations or financial institutions for investment purposes and not for the
purpose of remarketing the bonds to the public.
History: 1986 c 398 art 6 s 8; 1987 c 396 art 1 s 25,31