2006 Minnesota Statutes

458A.05 REVENUE BONDS.
    Subdivision 1. Authority to issue; purposes. The commission shall have authority to
issue negotiable revenue bonds for any one or more of its powers and purposes, including the
following: to construct and equip terminal facilities, maintenance and garage facilities, ramps,
parking areas, or similar facilities used or useful in connection with a public transit system or part
thereof; to acquire, improve, extend, or reconstruct any public transit system or any part thereof;
to acquire any property or equipment useful for the construction, reconstruction, extension,
improvement, or operation of any public transit system or any part thereof; to acquire any other
real or personal property, franchises, easements, transit lanes, rights-of-way or other rights used
or useful in connection with a public transit system or any part thereof; and to refund revenue
bonds issued for any such purposes.
    Subd. 2. Resolution, terms, sales. Revenue bonds under this section shall be issued in
such amounts, times, and series as the commission by resolution shall determine and shall
mature within 40 years from their date. No election shall be necessary to authorize the issuance
of revenue bonds by the commission. Such revenue bonds may be sold at public or private sale
or may be issued in exchange for bonds refunded thereby or property acquisitions or contract
obligations funded thereby. Except as otherwise provided by this section, the maturities, any right
of prior redemption, execution, paying agency, provision for interest and other terms of the bonds
shall be subject to the provisions of sections 475.54 to 475.56.
    Subd. 3. Revenue bonds. Revenue bonds issued under this section shall not constitute a debt
of the state or of any municipal corporation or political subdivision and no ad valorem tax levy
may be compelled for their payment except as provided in section 458A.10 where the wheelage
tax is held invalid but they shall be payable only from the revenues of the commission pledged
by the commission to payment of principal thereof and interest thereon, and they shall so recite.
At or before the issuance of revenue bonds, the commission shall pledge and appropriate to the
payment of principal and interest the gross or net revenues of the public transit system or some
part thereof, and may pledge and appropriate other revenues of the commission, as described and
defined in the authorizing resolution.
    Subd. 4. Covenants, trust indenture. By the authorizing resolution, the commission may
provide covenants for the protection of the bondholders relating to disposition of bond proceeds
and revenues; reserves and investment thereof; construction, acquisition, repair, replacement,
operation and insurance of the public transit system facilities; accounting and reports; issuance of
parity or subordinate lien bonds; rates and charges to be established or maintained; competing
public transit systems; and such other covenants as the commission shall find to be usual and
reasonably necessary for the protection of transit system revenue bondholders. Among other
covenants, the commission is authorized to covenant on behalf of the state that the state will not
limit or alter the power and obligation of the commission to establish, increase and collect pledged
moneys sufficient to pay expenses of operation and maintenance and provide debt service on the
bonds and to covenant on behalf of the state and each municipality or other political subdivision
that no franchise, license, or permit shall be granted or renewed for any public transit system or
part thereof which would compete with the public transit system or part thereof the revenues of
which are pledged. The commission may also define the event or events of default and other
requisites for suit by bondholders or their representatives, conditions of bond registration or
replacement, and conditions upon which any covenant may be amended. Any terms, covenants, or
conditions of revenue bonds to be provided by resolution of the commission may instead be set
forth in a trust indenture with a corporation having trust powers appointed by the commission to
represent and act for bondholders and to hold and disburse pledged moneys and to perform such
other duties as may be provided in the trust indenture, but no such trust indenture shall confer or
authorize any mortgage lien on the real or operating properties or general funds of the commission.
    Subd. 5. Legal investments. Revenue bonds issued by the commission may be purchased
by the State Board of Investment for any trust fund of the state or other fund administered by
such board, and shall be proper for investment of any funds by any savings bank, trust company,
insurance company or public or municipal corporation, and may be pledged by any bank or trust
company as security for the deposit of public moneys.
    Subd. 6. Obligations of governmental agency. Revenue bonds of the commission shall be
deemed and treated as instrumentalities and obligations of a public government agency.
History: 1969 c 1134 s 5; 1983 c 213 s 15