475.60 SALE OF BONDS.
Subdivision 1. Advertisement.
All obligations shall be negotiated and sold by the governing
body, except when authority therefor is delegated by the governing body or by the charter of the
municipality to a board, department, or officers of the municipality. Except as provided in section
, obligations shall be sold at not less than par value plus accrued interest to date of delivery
and not greater than two percent greater than the amount authorized to be issued plus accrued
interest. Except as provided in subdivision 2 all obligations shall be sold at competitive sale
after notice given as provided in subdivision 3.
Subd. 2. Requirements waived.
The requirements as to public sale shall not apply to:
(1) obligations issued under the provisions of a home rule charter or of a law specifically
authorizing a different method of sale, or authorizing them to be issued in such manner or on such
terms and conditions as the governing body may determine;
(2) obligations sold by an issuer in an amount not exceeding the total sum of $1,200,000 in
any 12-month period;
(3) obligations issued by a governing body other than a school board in anticipation of the
collection of taxes or other revenues appropriated for expenditure in a single year, if sold in
accordance with the most favorable of two or more proposals solicited privately;
(4) obligations sold to any board, department, or agency of the United States of America or
of the state of Minnesota, in accordance with rules or regulations promulgated by such board,
department, or agency;
(5) obligations issued to fund pension and retirement fund liabilities under section
, obligations issued with tender options under section
475.54, subdivision 5a
crossover refunding obligations referred to in section
475.67, subdivision 13
, and any issue of
obligations comprised in whole or in part of obligations bearing interest at a rate or rates which
vary periodically referred to in section
(6) obligations to be issued for a purpose, in a manner, and upon terms and conditions
authorized by law, if the governing body of the municipality, on the advice of bond counsel
or special tax counsel, determines that interest on the obligations cannot be represented to be
excluded from gross income for purposes of federal income taxation;
(7) obligations issued in the form of an installment purchase contract, lease purchase
agreement, or other similar agreement;
(8) obligations sold under a bond reinvestment program; and
(9) if the municipality has retained an independent financial advisor, obligations which the
governing body determines shall be sold by private negotiation.
Subd. 3. Published notice.
The notice of sale to prospective bidders, where required, shall
specify the maximum principal amount of the obligations, the place of receipt and consideration
of bids and other details as to the obligations and terms of sale as the governing body or the
municipality's authorized financial consultant deems suitable. The notice shall either specify the
date and time for receipt of bids or specify the manner in which notice of the date or amount of
the sale will be given to prospective bidders. Notification of prospective bidders shall be given
by mail, facsimile, electronic data transmission or other form of communication common to the
municipal bond trade at least two days (omitting Saturdays, Sundays, and legal holidays) before
the date for receipt of bids to at least five firms determined by the governing body or its financial
consultant to be prospective bidders, or shall be published in a newspaper or other periodical
which circulates throughout the state and furnishes financial news as part of its service. Failure to
give the notice as described in this subdivision shall not affect the validity of the obligations. Bids
may be accepted by facsimile or other electronic transmission or in writing as specified by the
governing body or its financial consultant. The governing body may employ an agent to receive
and open the bids at any place within or outside the corporate limits of the municipality, in the
presence of an officer of the municipality or the officer's designee, but the obligations shall not
be sold except by action of the governing body or authorized officers of the municipality after
communication of the bids to them. Additional notice may be given for such time and in such
manner as the governing body deems suitable. At the time and place so fixed, the bids shall be
considered and the offer complying with the terms of sale and deemed most favorable shall
be accepted, but the governing body may reject any and all such offers, in which event, or if
no offers have been received, it may award the obligations to any person who within 30 days
thereafter presents an offer complying with the terms of sale and deemed more favorable than
any received previously, or upon like notice the governing body may invite other bids upon
the same or different terms and conditions.
Subd. 4. Public subscription.
In lieu of calling for bids, obligations may be sold on public
subscription, after notice given in the manner required for public sale. Such notice of call for
public subscription shall specify the interest rate and all terms of sale, including the date and
place of delivery of the obligations.
Subd. 5. Compliance mandatory.
No contract for the sale and delivery of obligations shall
be enforceable unless made in accordance with this section.
Subd. 6. Prohibitions and penalties.
Any officer of any municipality who shall enter into or
approve any contract or agreement for the sale of obligations contrary to the provisions hereof or
which lessens, restricts or tends to prevent competitive bidding shall be guilty of a misdemeanor.
Subd. 7. Investment of proceeds.
A municipality, after it has contracted for the sale of
obligations, may enter into a contract for the future purchase of securities described in section
, for a purchase price, including accrued interest on it, not in excess of the sale price of
the obligations, excluding accrued interest on them. The contract shall provide a settlement
date for the purchase of the securities which is not earlier than the anticipated delivery date of
Subd. 8. Continuing disclosure agreements.
Any officer of a municipality charged with
the responsibility of issuing bonds for or on behalf of the municipality is authorized to enter into
written agreements or contracts relating to the continuing disclosure of information necessary
to comply with, or facilitate the issuance of bonds in accordance with, federal securities laws,
rules and regulations, including securities and exchange commission rules and regulations,
section 240.15c2-12. An agreement may comprise covenants with purchasers and holders of
bonds set forth in the resolution authorizing the issuance of the bonds, or a separate document
authorized by resolution.
History: 1949 c 682 s 10; 1965 c 583 s 1; 1971 c 903 s 4; 1976 c 324 s 9,10; 1978 c 764 s
128; 1980 c 607 art 8 s 3; 1982 c 523 art 3 s 3; 1984 c 563 s 5,6; 1Sp1985 c 14 art 8 s 54; 1986 c
465 art 2 s 21; 1987 c 344 s 31; 1988 c 702 s 11; 1989 c 355 s 21-23; 1991 c 342 s 17; 1995 c 256
s 28; 1996 c 399 art 2 s 12; 1999 c 248 s 15,16