2004 Minnesota Statutes

     447.345 Temporary borrowing authority. 

    Subdivision 1.    Certificates of indebtedness.  A 
 hospital district located wholly outside the seven county 
 metropolitan area and created or reorganized under sections 
 447.31 to 447.37 may borrow money by issuing certificates of 
 indebtedness in anticipation of taxes previously levied, 
 revenues, and federal aids.  Total indebtedness for the 
 certificates must not exceed $50,000.  The proceeds must be used 
 for expenses of administration, operation, and maintenance of 
 the district's hospital and nursing home facilities.  

    Subd. 2.    Resolution.  The district may authorize and 
 borrow and issue the certificates of indebtedness on passage of 
 a resolution specifying the amount and reasons for borrowing.  
 The resolution must be adopted by a vote of at least two-thirds 
 of its board members.  The board shall fix the amount, date, 
 maturity, form, denomination, and other details of the 
 certificates and the date and place for receipt of bids for 
 their purchase.  The board shall direct the clerk to give notice 
 of the date and place fixed.  

    Subd. 3.    Terms of certificates.  Certificates must 
 become due and payable no later than two years from the date of 
 issuance.  Certificates must be negotiable and payable to the 
 order of the payee and have a definite due date but may be 
 payable on or before the due date.  Certificates must be sold 
 for at least par and accrued interest and must bear interest at 
 not more than eight percent a year.  Interest must be payable at 
 maturity or earlier as the board determines.  The proceeds of 
 the current tax levies and revenues derived from the facilities 
 of the district and future federal aids and any other district 
 funds that become available must be applied to the extent 
 necessary to repay the certificates.  The full faith and credit 
 of the hospital district must be pledged for their payment.  

    HIST: 1971 c 103 s 1; 1987 c 229 art 10 s 1