2006 Minnesota Statutes

469.162 SOURCE OF PAYMENT FOR BONDS.
    Subdivision 1. Restrictions on payment. Revenue bonds issued under sections 469.152 to
469.165 shall not be payable from nor charged upon any funds other than the revenue pledged to
their payment, except as provided in this section, nor shall the municipality or redevelopment
agency issuing the same be subject to any liability on them. No holder of the bonds shall ever
have the right to compel any exercise of the taxing power of the municipality or redevelopment
agency to pay the bonds or the interest thereon, except as provided in subdivision 2, nor to enforce
payment of them against any property of the municipality or redevelopment agency except those
projects, or portions thereof, mortgaged or otherwise encumbered under the provisions and for
the purpose of sections 469.152 to 469.165.
    Subd. 2. Tax increments; pre-1979 projects. (a) Any municipality or redevelopment agency
may request the county auditor of the county in which a project is situated to certify the original
net tax capacity of the real property included therein and the tax increments realized each year
after the commencement of the project, as defined in section 469.042, and shall be entitled to
receive, use, and pledge the tax increments for the further security of the revenue bonds issued to
finance the project, in either of the following ways:
(1) to pay premiums for insurance guaranteeing the payment of net rentals when due under
the project lease; or
(2) to accumulate and maintain a reserve securing the payment when due of the principal of
and interest on the bonds.
(b) Tax increments with respect to any industrial development project shall be segregated
and specially accounted for by the county treasurer until all bonds issued to finance the project
have been fully paid; but the county treasurer shall remit the same to the municipality or
redevelopment agency only in the amount certified to the treasurer to be required for any of the
purposes stated in paragraph (a). The amount so needed shall be certified annually to the county
auditor and treasurer by the municipality or redevelopment agency on or before October 1. Any
tax increment remaining in any year after the remittance shall, when collected, be distributed
among all of the taxing districts levying taxes on the project area, in proportion to the amounts
levied by them. This subdivision shall not apply to a project, certification of which is requested
subsequent to August 1, 1979.
    Subd. 3. Restrictions on security. Bonds issued under sections 469.152 to 469.165 shall
not constitute a charge, lien, or encumbrance, legal or equitable, upon any property of the
municipality or redevelopment agency, except those projects, or portions thereof, mortgaged or
otherwise encumbered under the provisions and for the purposes of sections 469.152 to 469.165.
Each bond issued under sections 469.152 to 469.165 shall recite in substance that the bond,
including interest thereon, is payable solely from the revenue pledged to its payment, but may
contain a reference to the lease insurance or bond reserve for which the tax increment is pledged
and appropriated. No such bond shall constitute a debt of the municipality or redevelopment
agency within the meaning of any constitutional or statutory limitation. However, nothing herein
shall impair the rights of holders of bonds issued hereunder to enforce covenants made for the
security thereof as provided in section 469.163.
History: 1987 c 291 s 163; 1988 c 719 art 5 s 84; 1989 c 329 art 13 s 20