1999 Minnesota Statutes

     116J.9673 Export finance authority. 

    Subdivision 1.    Creation; purpose.  The export finance 
 authority is created to aid and facilitate the financing of 
 exports from this state.  The finance authority powers shall be 
 used exclusively to meet the credit needs of Minnesota exporters.

    Subd. 2.    Board of directors.  The governor shall 
 appoint seven members to the authority's board of directors.  
 Six members shall be knowledgeable in international finance, 
 exporting, or international law and one member shall represent a 
 company specializing in agricultural trade. 

    The commissioner of the department of trade and economic 
 development shall be chair of the board.  Membership, terms, 
 compensation and removals are governed by section 15.0575.  
 Board members shall perform their duties in a non-self-serving 
 manner and in compliance with section 10A.07.  

    Subd. 3.    Powers.  The finance authority has the power 
 and authority to perform the following functions and may:  

    (1) insure, coinsure, and guarantee against commercial 
 preexport and postexport credit risks; 

    (2) sue and be sued; 

    (3) enter into agreements and transactions with any person, 
 partnership, or corporation, both foreign and domestic, state, 
 federal, and foreign governments and governmental agencies; 

    (4) acquire and hold personal and real property pursuant to 
 the provisions of insurance and the granting of guarantees; 

    (5) pledge and appropriate collateral; 

    (6) charge premiums, interest, and fees; 

    (7) provide administrative, consultative, and technical 
 services to assist in the financing of exports; 

    (8) prepare and receive reports regarding credit, 
 insurance, and guarantees with respect to export finance; 

    (9) perform all necessary and appropriate operations, 
 administration, processing, and marketing functions related to 
 the authority's functions; and 

    (10) adopt rules necessary to carry out responsibilities 
 under this section.  

    Subd. 4.    Working capital account.  An export finance 
 authority working capital account is created as a special 
 account in the state treasury.  All premiums and interest 
 collected under subdivision 3, clause (6), must be deposited 
 into this account.  Fees collected must be credited to the 
 general fund.  The balance in the account may exceed $918,000 on 
 June 30, 1994, and $1,000,000 on June 30 of each subsequent year 
 through accumulated earnings.  Any balance in excess of $918,000 
 on June 30, 1994, and $1,000,000 on June 30 of every subsequent 
 year must be transferred to the general fund.  Money in the 
 account including interest earned and appropriations made by the 
 legislature for the purposes of this section, is appropriated 
 annually to the finance authority for the purposes of this 
 section.  The balance in the account may decline below $918,000 
 on June 30, 1994, and $1,000,000 on June 30 of each subsequent 
 year as required to pay defaults on guaranteed loans. 

    Subd. 5.    Annual report.  The chair and board of 
 directors shall submit to the governor an annual report on the 
 activities of the finance authority.  

    Subd. 6.    Liability limitation.  The finance authority 
 may not have at any one time net liabilities greater than four 
 times its capital and reserves.  

    Subd. 7.    Insurance and guarantees.  The finance 
 authority may provide insurance and guarantees to the following 
 extent:  

    (1) The finance authority may provide to any one person 
 insurance or guarantees for preexport transactions or for 
 postexport transactions.  When insuring, coinsuring, or 
 guaranteeing the postexport portion of transactions, the finance 
 authority shall retain not more than ten percent of the 
 commercial risk, or alternatively, the normal and standard 
 deductible of the insurance policy.  

    (2) The policy of the finance authority is to provide 
 insurance and guarantees for export credits that would otherwise 
 not be made and that the chair and the board deem to represent a 
 reasonable risk and have a sufficient likelihood of repayment.  

    (3) The finance authority shall contract with, among 
 others, the Foreign Credit Insurance Association, the United 
 States Export-Import Bank, and private insurers to secure 
 insurance or reinsurance for country and commercial risks for 
 the finance authority's insurance program.  The finance 
 authority may purchase insurance policies using money from the 
 finance authority's appropriations. 

    (4) Losses incurred by the finance authority that relate to 
 its insurance or guarantee activities shall be solely borne by 
 the finance authority to the extent of its capital and reserves. 

    Subd. 8.    Staffing.  The commissioner of the 
 department of trade and economic development shall provide staff 
 to work for the finance authority.  

    HIST: 1983 c 289 s 8; 1984 c 461 s 2-5; 1986 c 444; 1987 c 312 
 art 1 s 26 subd 1; 1987 c 396 art 10 s 8; 1988 c 686 art 1 s 46; 
 1989 c 335 art 4 s 51; 1992 c 513 art 4 s 33; 1992 c 602 s 
 10,11; 1994 c 632 art 4 s 46