1997 Minnesota Statutes

     471.563 Uses of loan repayments. 

    Subject to any restrictions imposed on their use by any 
 related federal or state grant, economic development loan 
 repayments and the proceeds of any bonds issued pursuant to 
 section 471.564 may be applied by a municipality to any of the 
 following purposes:  

    (1) to finance or otherwise pay the costs of a project; 

    (2) to pay principal and interest on any bonds issued 
 pursuant to section 469.178, with respect to a project, 
 certification of which is requested before August 1, 1987, or 
 pursuant to chapter 474, 458, 462, or section 471.564, to 
 purchase insurance or other credit enhancement for any of those 
 obligations or to create or maintain reserves therefor; or 

    (3) for any other purpose authorized by law.  

    If economic development loan repayments are used to pay 
 principal or interest on any such obligations, the municipality 
 may be reimbursed for the amount so applied with interest not 
 exceeding the rate of interest on the obligations from 
 subsequent collections of taxes or other revenues that had been 
 designated as the primary source of payment of the obligations. 

    HIST: 1987 c 344 s 11; 1989 c 209 art 2 s 45