2004 Minnesota Statutes

     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. 

    HIST: 1989 c 317 s 1