Minnesota Legislature
Office of the Revisor of Statutes
2007 Minnesota Statutes
This is an historical version of this statute chapter. Also view the most recent published version.
475A.05 MUNICIPAL BOND GUARANTY FUND.
Subdivision 1. Money in fund; excess. For the purpose of providing money to be loaned to
municipalities to acquire and to better public lands and buildings and other public improvements
of a capital nature, when needed to pay the principal of or interest on bonds issued for this
purpose, or bonds issued to refund such guaranteed bonds, the municipal bond guaranty loan
fund is created as a separate bookkeeping account in the general books of account of the state.
All proceeds of state bonds credited to this fund, all amounts transferred from the general fund,
all guaranty fees received, and all repayments of principal and interest on loans made from the
fund are appropriated for construction and other permanent improvement and shall be available
until the purposes for which the appropriation was made have been accomplished, except that
at any time when the balance on hand in the state municipal bond guaranty fund exceeds ten
percent of the principal amount of all then outstanding bonds secured by the fund, the state may
reappropriate to the general fund the balance in excess of this amount.
Subd. 1a. General fund appropriation. In order to eliminate the need to sell Minnesota state
municipal aid bonds, there is annually appropriated from the general fund to the commissioner of
finance for transfer to the municipal bond guaranty loan fund the amounts needed to meet the
state's obligations under sections 475A.01 to 475A.06, not to exceed a total of $4,330,000. This
subdivision does not prevent the sale of state municipal aid bonds to the extent that the amount
available for transfer from the general fund is not sufficient to meet all the state's obligations
under sections 475A.01 to 475A.06.
Subd. 2. Transfer of excess; appropriation. All money deposited to the credit of the
municipal bond guaranty fund shall be available for the making of loans under section 475A.04,
except that on November 1 in each year the commissioner of finance shall certify the balance then
on hand in the fund which the commissioner believes will not be required for loans to be made
in the following year, and there shall then be transferred and credited to the state municipal aid
bond account in the state bond fund the entire balance or so much thereof as, with the balance
then in the bond account, will equal the total amount of principal and interest due and to become
due on state municipal aid bonds to and including July 1 in the second ensuing year. Amounts so
transferred and credited are appropriated for the purpose of reducing the amount of tax otherwise
required to be levied for the state bond fund by article XI, section 7 of the Constitution.
History: 1971 c 856 s 5; Ex1971 c 46 s 5; 1973 c 492 s 14; 1976 c 2 s 172; 1984 c 597
s 51,52; 1986 c 444; 2003 c 112 art 2 s 50
Subdivision 1. Money in fund; excess. For the purpose of providing money to be loaned to
municipalities to acquire and to better public lands and buildings and other public improvements
of a capital nature, when needed to pay the principal of or interest on bonds issued for this
purpose, or bonds issued to refund such guaranteed bonds, the municipal bond guaranty loan
fund is created as a separate bookkeeping account in the general books of account of the state.
All proceeds of state bonds credited to this fund, all amounts transferred from the general fund,
all guaranty fees received, and all repayments of principal and interest on loans made from the
fund are appropriated for construction and other permanent improvement and shall be available
until the purposes for which the appropriation was made have been accomplished, except that
at any time when the balance on hand in the state municipal bond guaranty fund exceeds ten
percent of the principal amount of all then outstanding bonds secured by the fund, the state may
reappropriate to the general fund the balance in excess of this amount.
Subd. 1a. General fund appropriation. In order to eliminate the need to sell Minnesota state
municipal aid bonds, there is annually appropriated from the general fund to the commissioner of
finance for transfer to the municipal bond guaranty loan fund the amounts needed to meet the
state's obligations under sections 475A.01 to 475A.06, not to exceed a total of $4,330,000. This
subdivision does not prevent the sale of state municipal aid bonds to the extent that the amount
available for transfer from the general fund is not sufficient to meet all the state's obligations
under sections 475A.01 to 475A.06.
Subd. 2. Transfer of excess; appropriation. All money deposited to the credit of the
municipal bond guaranty fund shall be available for the making of loans under section 475A.04,
except that on November 1 in each year the commissioner of finance shall certify the balance then
on hand in the fund which the commissioner believes will not be required for loans to be made
in the following year, and there shall then be transferred and credited to the state municipal aid
bond account in the state bond fund the entire balance or so much thereof as, with the balance
then in the bond account, will equal the total amount of principal and interest due and to become
due on state municipal aid bonds to and including July 1 in the second ensuing year. Amounts so
transferred and credited are appropriated for the purpose of reducing the amount of tax otherwise
required to be levied for the state bond fund by article XI, section 7 of the Constitution.
History: 1971 c 856 s 5; Ex1971 c 46 s 5; 1973 c 492 s 14; 1976 c 2 s 172; 1984 c 597
s 51,52; 1986 c 444; 2003 c 112 art 2 s 50
Official Publication of the State of Minnesota
Revisor of Statutes