446A.01 MINNESOTA PUBLIC FACILITIES AUTHORITY ACT.
This chapter may be cited as the "Minnesota Public Facilities Authority Act."
History: 1987 c 386 art 3 s 18; 1999 c 86 art 1 s 69

446A.02 DEFINITIONS.
    Subdivision 1. Applicability. For the purposes of this chapter, the terms in this section have
the meanings given them.
    Subd. 1a. [Repealed by amendment, 2007 c 96 art 1 s 1]
    Subd. 2. Authority. "Authority" means the Minnesota Public Facilities Authority.
    Subd. 3. [Repealed by amendment, 2007 c 96 art 1 s 1]
    Subd. 4. [Repealed by amendment, 2007 c 96 art 1 s 1]
    Subd. 4a. Eligible recipient. "Eligible recipient" means a governmental unit or other entity
that may be defined as an eligible recipient for specific programs within this chapter, and which
may be different from one program to another.
    Subd. 5. Governmental unit. "Governmental unit" means a state agency, home rule charter
or statutory city, county, sanitary district, or other governmental subdivision.
    Subd. 6. Project. "Project" means any eligible activity authorized in this chapter including
the acquisition, design, construction, improvement, expansion, repair, or rehabilitation of all or
part of any structure, facility, or equipment.
History: 1987 c 312 art 1 s 26 subd 2; 1987 c 386 art 3 s 19; 1989 c 354 s 3; 1994 c 632 art
2 s 40,41; 1Sp2003 c 4 s 1; 2007 c 96 art 1 s 1

446A.03 MINNESOTA PUBLIC FACILITIES AUTHORITY.
    Subdivision 1. Membership. The Minnesota Public Facilities Authority consists of the
commissioner of employment and economic development, the commissioner of finance, the
commissioner of the Pollution Control Agency, the commissioner of agriculture, the commissioner
of health, and the commissioner of transportation.
    Subd. 2. Chair; other officers. The commissioner of employment and economic
development shall serve as the chair and chief executive officer of the authority. The authority
shall have the position of vice-chair rotate annually among its members. In the absence of the
chair or vice-chair at meetings of the authority members may elect a chair for the meeting, and
may elect other officers as necessary from its members.
    Subd. 3.[Repealed, 1994 c 632 art 2 s 67]
    Subd. 3a. Delegation. In addition to any powers to delegate that members of the authority
have as commissioners, they may delegate to the chair, vice-chair, or executive director their
responsibilities as members of the authority for reviewing and approving financing of eligible
projects that have been certified to the authority by another department or agency, projects that
have been authorized by law, or programs specifically authorized by resolution of the authority.
    Subd. 4. Board actions. (a) A majority of the authority, excluding vacancies, constitutes a
quorum to conduct its business, to exercise its powers, and for all other purposes.
(b) The board may conduct its business by any technological means available, including
teleconference calls or interactive video, that allows for an interaction between members. If a
meeting is conducted under this paragraph, a specific location must be available for the public to
attend the meeting and at least one member must be present at that location.
    Subd. 5. Executive director; staffing. The authority shall employ and the chair shall
appoint, with the concurrence of the authority, an executive director in the unclassified service.
The executive director shall be responsible for staff of the authority. The executive director shall
perform duties that the authority may require in carrying out its responsibilities to manage and
implement the funds and programs in this chapter, implementation of debt issuance authorized by
the authority, compliance with all state and federal program requirements, and state and federal
securities and tax laws and regulations.
    Subd. 6. Administrative services. The authority shall enter into agreements for
administrative and professional services, and technical support.
    Subd. 7. [Repealed by amendment, 2007 c 96 art 1 s 2]
History: 1987 c 186 s 15; 1987 c 312 art 1 s 26 subd 2; 1987 c 386 art 3 s 20; 1991 c 238
art 1 s 16; 1993 c 163 art 1 s 30; 1993 c 327 s 17; 1994 c 632 art 2 s 42,43; 1995 c 232 s 8; 1997
c 141 s 8; 1Sp2003 c 4 s 1; 2006 c 281 art 4 s 23; 2007 c 96 art 1 s 2

446A.04 POWERS; DUTIES; PROGRAM ADMINISTRATION.
    Subdivision 1. [Repealed by amendment, 2007 c 96 art 1 s 3]
    Subd. 2. Power to sue; enter contracts. The authority may sue and be sued. The authority
may make and enter into contracts, leases, and agreements necessary to perform its duties and
exercise its powers.
    Subd. 3. Gifts; grants. The authority may apply for, accept, and disburse gifts, grants, loans,
or other property from the United States, the state, private sources, or any other source for any of
its purposes. Money received by the authority under this subdivision must be deposited in the
state treasury and is appropriated to the authority to carry out its duties.
    Subd. 4. Contract for services. The authority may retain or contract for the services of
accountants, financial advisors, and other consultants or agents needed to perform its duties and
exercise its powers.
    Subd. 5. Fees. (a) The authority may set and collect fees for costs incurred by the authority,
the Department of Employment and Economic Development, the Department of Health, the
Pollution Control Agency, and the Department of Transportation, including costs for personnel,
professional, and administrative services, for debt issuance related costs and the establishment
and maintenance of reserve funds. Fees charged directly to borrowers or grantees upon executing
a loan or grant agreement must not exceed one-half of one percent of the loan or grant amount.
Servicing fees assessed to loan repayments must not exceed two percent of the loan repayment.
The disposition of fees collected for costs incurred by the authority is governed by subdivision
20. The authority shall enter into interagency agreements to transfer funds into appropriate
administrative accounts established for fees collected under this subdivision for costs incurred
by the Department of Employment and Economic Development, the Department of Health, or
the Pollution Control Agency. Fees collected under this subdivision for costs incurred by the
Department of Transportation must be credited to the fund or account which is the source of the
loan to which the fees are related.
(b) The authority shall annually report to the chairs of the finance and appropriations
committees of the legislature on:
(1) the amount of fees collected under this subdivision for costs incurred by the authority;
(2) the purposes for which the fee proceeds have been spent; and
(3) the amount of any remaining balance of fee proceeds.
    Subd. 6. Property. The authority may acquire, encumber, hold, and convey through lease,
purchase, gift, or otherwise, any real or personal property.
    Subd. 6a. Loans; grants. The authority may make and contract to make loans and grants
to eligible recipients to finance projects that the eligible recipient may construct or acquire. The
authority may acquire or contract to acquire notes and bonds issued by eligible recipients to
finance those projects.
    Subd. 6b. Debt. The authority may borrow money to administer its programs and may issue
bonds or notes as evidence of the borrowing in accordance with sections 446A.12 to 446A.20.
    Subd. 7. In general. The authority has all the powers necessary and convenient to carry out
its duties under this chapter.
    Subd. 8. Powers. In implementing the purposes and the programs described in this chapter,
the authority has the powers in subdivisions 9 to 21.
    Subd. 9. Rules. It may adopt, amend, and repeal rules necessary to effectuate its purposes.
    Subd. 10. Personal property. It may acquire, hold, and dispose of personal property for its
corporate purposes.
    Subd. 11. Real property. It may acquire real property, or an interest in real property, in its
own name, by purchase or foreclosure, where the acquisition is necessary or appropriate to protect
a loan in which the authority has an interest and may sell, transfer, and convey the property to a
buyer and, in the event the sale, transfer, or conveyance cannot be effected with reasonable
promptness or at a reasonable price, may lease the property to a tenant.
    Subd. 12. Notes; mortgages; obligations; sale of. It may sell, at public or private sale, any
note, mortgage or other instrument or obligation evidencing or securing a loan.
    Subd. 13. Insurance. It may procure insurance against a loss in connection with its property
in the amounts, and from the insurers, as may be necessary or desirable.
    Subd. 14. Loan terms; modification. It may consent, whenever it considers it necessary
or desirable in the fulfillment of its purpose, to the modification of the rate of interest, time of
payment, installment of principal or interest, or other term, of a contract or agreement to which
the authority is a party.
    Subd. 15. Loan payments; interest and amortization. It may establish and collect
reasonable interest and amortization payments on loans, and in connection with them may
establish and collect or authorize the collection of reasonable fees and charges or require money
to be placed in escrow, sufficient to provide for the payment and security of its bonds, notes,
commitments and other obligations and for their servicing, to provide reasonable allowances for
or insurance against losses which may be incurred and to cover the cost of issuance of obligations
and technical, consultative, and project assistance services.
    Subd. 16. Investments. (a) It may cause any money not required for immediate
disbursement, including the general reserve account, to be invested in direct obligations of or
obligations guaranteed as to principal and interest by the United States, or in insured savings
accounts, up to the amount of the insurance, in any institution the accounts of which are insured
by the Federal Savings and Loan Insurance Corporation or to be deposited in a savings or other
account in a bank insured by the Federal Deposit Insurance Corporation or to be invested in time
certificates of deposit issued by a bank insured by the Federal Deposit Insurance Corporation and
maturing within one year or less and in the investments described in section 11A.24, subdivision
4 , except clause (d). It may deposit money in excess of the amount insured with security as
provided in chapter 118A.
(b) Notwithstanding paragraph (a), it may invest and deposit money into accounts established
pursuant to resolutions or indentures securing its bonds or notes in investments and deposit
accounts or certificates, and with security, agreed upon with the holders or a trustee for the holders.
    Subd. 17. Consultative and technical services. It may provide general consultative and
technical services to assist in financing the entities to which loans may be made. It may enter into
agreements or other transactions concerning the receipt or provision of those services.
    Subd. 18. Financial information. Financial information, including credit reports, financial
statements and net worth calculations, received or prepared by the authority regarding an authority
loan, financial assistance, or insurance is private data with regard to data on individuals as defined
in section 13.02, subdivision 12 and nonpublic data with regard to data not on individuals as
defined in section 13.02, subdivision 9.
    Subd. 19. Appropriations; gifts; grants. The authority may accept appropriations, gifts,
grants, bequests, and devises and use or dispose of them for its purposes. All gifts, grants,
bequests, and revenues from those sources are appropriated to the authority.
    Subd. 20. Proceeds appropriated to authority. Proceeds of the authority's bonds, notes, and
other obligations; amounts granted or appropriated to the authority for the making or purchase or
the insurance or guaranty of loans or for bond reserves; income from investment; money in the
funds; and all revenues from loans, fees, and charges of the authority including rentals, royalties,
dividends, or other proceeds are annually appropriated to the authority for the accomplishment of
its corporate purposes and must be spent, administered, and accounted for in accordance with
the applicable provisions of all bond and note resolutions, indentures, and other instruments,
contracts, and agreements of the authority. Notwithstanding section 16A.28, these appropriations
are available until expended.
    Subd. 21. General purpose. The authority may do all things necessary and proper to fulfill
its purpose.
History: 1987 c 386 art 3 s 21; 1988 c 546 s 1,2; 1992 c 601 s 11; 1997 c 141 s 9; 1997 c
200 art 5 s 2; 1999 c 86 art 1 s 70; 2005 c 20 art 1 s 38; 1987 c 386 art 3 s 29; 1994 c 632 art 2 s
51; 1995 c 233 art 2 s 56; 2001 c 7 s 90; 2007 c 96 art 1 s 3,13,15

446A.05 [Repealed, 2007 c 96 art 1 s 16]

446A.051 PROJECT FINANCIAL ASSISTANCE.
    Subdivision 1. Determination of financial assistance. The authority shall assist eligible
recipients in determining what grants or loans under sections 446A.06, 446A.07, 446A.072,
446A.073, 446A.074, 446A.075, and 446A.081 to apply for to finance projects and the manner in
which the eligible recipient will pay for its portion of the project cost.
    Subd. 2. Grant limitations. If a project is eligible for a grant under section 446A.073,
446A.074, or 446A.075, the total grant shall not exceed the greater of the maximum amount from
a single program or the amount the project could receive under section 446A.072.
    Subd. 3. Financial feasibility review. (a) The authority shall review the proposed financing
for each project certified to the authority to ascertain whether or not: (1) total financing of a project
is assured; (2) the governmental unit's financial plan to pay for its portion of the project cost is
feasible; (3) the proposed project and financing plan is an eligible use of the money; and (4) the
proposal is in compliance with applicable state and federal tax and securities laws and regulations.
(b) Unless a project is specifically authorized by law, the authority may reject the proposed
financing for a project meeting the requirements in paragraph (a) if a majority of members believe
the financing of the project would not be in the best interests of the state or would be detrimental
to the authority's funds or programs. A determination to reject a proposed project shall not be
made in an arbitrary and capricious manner and must be supported by substantive evidence and
documented by a resolution of the authority stating its findings.
History: 1988 c 546 s 4; 2006 c 251 s 11; 2007 c 96 art 1 s 4

446A.06 [Repealed, 2007 c 96 art 1 s 16]

446A.07 CLEAN WATER REVOLVING FUND.
    Subdivision 1. Establishment of fund. The authority shall establish a clean water revolving
fund to provide loans for the purposes and eligible costs authorized under title VI of the Federal
Water Pollution Control Act. The fund must be credited with repayments.
    Subd. 1a. Definitions. (a) For the purposes of this section, the terms in this subdivision have
the meanings given them.
(b) "Eligible recipients" means governmental units or other entities eligible to receive loans
or other assistance as provided in title VI of the Federal Water Pollution Control Act.
(c) "Federal Water Pollution Control Act" means the Federal Water Pollution Control Act, as
amended, United States Code, title 33, sections 1251 et seq.
    Subd. 2. State funds. A state matching fund is established to be used in compliance with
federal matching requirements specified in the Federal Water Pollution Control Act.
    Subd. 3. Capitalization grant agreement. The authority shall enter an agreement with the
administrator of the United States Environmental Protection Agency to receive capitalization
grants for the clean water revolving fund. The authority may exercise powers necessary to comply
with the requirements specified in the agreement, which must be in compliance with the Federal
Water Pollution Control Act.
    Subd. 4. Intended use plan. (a) The authority shall annually prepare and submit to the
United States Environmental Protection Agency an intended use plan. The plan must identify
the intended uses of the amounts available to the clean water revolving fund, including a list
of wastewater treatment and storm water projects and all other eligible activities to be funded
during the fiscal year.
(b) To be eligible for placement on the intended use plan:
(1) a project must be listed on the Pollution Control Agency's project priority list;
(2) the applicant must submit a written request to the authority, including a brief description
of the project, a project cost estimate and the requested loan amount, and a proposed project
schedule; and
(3) for a construction loan, the project must have a facility plan approved by the Pollution
Control Agency.
(c) The Pollution Control Agency shall annually provide to the authority its project priority
list of wastewater and storm water projects to be considered for funding. The authority may not
submit the plan until it has received the review and comment of the Pollution Control Agency
or until 30 days have elapsed since the plan was submitted to the Pollution Control Agency,
whichever occurs first. In addition, the authority shall offer eligible recipients seeking placement
on the intended use plan an opportunity to review and comment on the plan before it is adopted.
The plan may be amended to add additional projects for consideration for funding as it determines
funds are available and additional projects are able to proceed.
    Subd. 5. Applications. Applications by eligible recipients for loans from the clean water
revolving fund must be made to the authority on forms requiring information prescribed by the
authority. The Pollution Control Agency shall certify to the authority those projects that appear to
meet the criteria set forth in the Federal Water Pollution Control Act, this section, and rules of the
Pollution Control Agency.
    Subd. 6. Award and terms of loans. The authority shall award loans for projects certified
by the Pollution Control Agency or shall provide funding for the appropriate state agency or
department to make loans for eligible activities identified in the intended use plan, provided the
use of funds and the terms and conditions of the loans are in conformance with the federal Water
Pollution Control Act, this section, and rules of the Pollution Control Agency and the authority
adopted under this section.
    Subd. 7. Loan conditions. When making loans from the revolving fund, the authority shall
comply with the conditions of the Federal Water Pollution Control Act, including:
(a) Loans must be made at or below market interest rates, including interest-free loans, at
terms not to exceed 20 years.
(b) The annual principal and interest payments must begin no later than one year after
completion of a project. Loans must be fully amortized no later than 20 years after project
completion.
(c) An eligible recipient shall establish a dedicated source of revenue for repayment of the
loan.
(d) The fund must be credited with all payments of principal and interest on all loans.
(e) A loan may not be used to pay operating expenses or current obligations, unless
specifically allowed by the Federal Water Pollution Control Act.
(f) A loan made by the authority must be secured by notes or bonds of the eligible recipient
of the loan.
    Subd. 8. Other uses of revolving fund. The clean water revolving fund may be used as
provided in title VI of the Federal Water Pollution Control Act, including the following uses:
(1) to buy or refinance the debt obligation of governmental units for treatment works where
debt was incurred and construction begun after March 7, 1985, at or below market rates;
(2) to guarantee or purchase insurance for local obligations to improve credit market access
or reduce interest rates;
(3) to provide a source of revenue or security for the payment of principal and interest on
revenue or general obligation bonds issued by the authority if the bond proceeds are deposited in
the fund;
(4) to provide loan guarantees, loans, or set-aside for similar revolving funds established by a
governmental unit other than state agencies, or state agencies under sections 17.117, 103F.725,
subdivision 1a , and 116J.617;
(5) to earn interest on fund accounts; and
(6) to pay the reasonable costs incurred by the authority and the Pollution Control Agency
of administering the fund and conducting activities required under the Federal Water Pollution
Control Act, including water quality management planning under section 205(j) of the act and
water quality standards continuing planning under section 303(e) of the act.
Amounts spent under clause (6) may not exceed the amount allowed under the Federal
Water Pollution Control Act.
    Subd. 9. Payments. Payments from the fund must be made in accordance with the applicable
state and federal law governing the payments, except that for projects other than those funded
under section 17.117, 103F.725, subdivision 1a, 116J.617, or 462A.05, no payment for a project
may be made to an eligible recipient until and unless the authority has determined the total
estimated cost of the project and ascertained that financing of the project is assured by:
(1) a loan authorized by state law or the appropriation of proceeds of bonds or other money
of the governmental unit to a fund for the construction of the project; and
(2) an irrevocable undertaking, by resolution of the eligible recipient of the governmental
unit, to use all money made available for the project exclusively for the project, and to pay any
additional amount by which the cost of the project exceeds the estimate by the appropriation to
the construction fund of additional money or the proceeds of additional bonds to be issued by
the eligible recipient.
    Subd. 10. [Repealed by amendment, 2007 c 96 art 1 s 5]
    Subd. 11. Rules of Pollution Control Agency. The Pollution Control Agency shall adopt
rules relating to the certification of projects to the authority for funding, and other matters that
the Pollution Control Agency considers necessary for proper administration of its duties under
this section. Eligible activities are those required under the Federal Water Pollution Control
Act of 1987, as amended.
History: 1987 c 386 art 3 s 24; 1989 c 354 s 4; 1990 c 564 s 4; 1992 c 601 s 12; 1994 c
465 art 1 s 51; 1994 c 632 art 2 s 44-48; 1995 c 220 s 122; 1996 c 407 s 47; 2002 c 380 art
2 s 17; 2002 c 393 s 64; 2007 c 96 art 1 s 5

446A.071    Subdivision 1.[Repealed, 1996 c 463 s 61]
    Subd. 2.[Repealed, 1996 c 463 s 61]
    Subd. 3.[Repealed, 1996 c 463 s 61]
    Subd. 4.[Repealed, 1996 c 463 s 61]
    Subd. 5.[Repealed, 1996 c 463 s 61]
    Subd. 6.[Repealed, 1996 c 463 s 61]
    Subd. 7.[Repealed, 1995 c 220 s 141; 1996 c 463 s 61]
    Subd. 8.[Repealed, 1996 c 463 s 61]

446A.072 WASTEWATER INFRASTRUCTURE FUNDING PROGRAM.
    Subdivision 1. Establishment of program. The authority will establish a wastewater
infrastructure funding program to provide supplemental assistance to governmental units receiving
funding through the clean water revolving fund program or the United States Department
of Agriculture Rural Economic and Community Development's (USDA/RECD) Water and
Waste Disposal Loans and Grants program for the design and planning, improvements to, and
construction of municipal wastewater treatment systems. The purpose of the program is to assist
governmental units demonstrating financial need in building cost-efficient projects to address
existing environmental or public health problems. To implement the program, the authority shall
establish a wastewater infrastructure fund to provide grants and loans for the purposes authorized
under title VI of the Federal Water Pollution Control Act. The fund shall be credited with all
investment income from the fund and all repayments of loans, grants, and penalties.
    Subd. 2.[Repealed, 2002 c 393 s 91]
    Subd. 3. Program administration. (a) The authority shall provide supplemental assistance,
as provided in subdivision 5a to governmental units:
(1) whose projects are listed on the Pollution Control Agency's project priority list;
(2) that demonstrate their projects are a cost-effective solution to an existing environmental
or public health problem; and
(3) whose projects are approved by the USDA/RECD or certified by the commissioner of the
Pollution Control Agency.
(b) For a governmental unit receiving grant funding from the USDA/RECD, applications
must be made to the USDA/RECD with additional information submitted to the authority as
required by the authority. Eligible project costs and affordability criteria shall be determined
by the USDA/RECD.
(c) For a governmental unit not receiving grant funding from the USDA/RECD, application
must be made to the authority on forms prescribed by the authority for the clean water revolving
fund program with additional information as required by the authority. In accordance with section
116.182, the Pollution Control Agency shall:
(1) calculate the essential project component percentage which must be multiplied by the
total project cost to determine the eligible project cost; and
(2) review and certify approved projects to the authority.
(d) At the time funds are appropriated under this section, the authority shall reserve
supplemental assistance for projects in order of their rankings on the Pollution Control Agency's
project priority list and in an amount based on their most recent cost estimates submitted to the
authority or the as-bid costs, whichever is less.
    Subd. 4.[Repealed, 2002 c 393 s 91]
    Subd. 4a.[Repealed, 1998 c 404 s 84]
    Subd. 5.[Repealed, 2002 c 393 s 91]
    Subd. 5a. Type and amount of assistance. (a) For a governmental unit receiving grant
funding from the USDA/RECD, the authority shall provide assistance in the form of a grant of
up to one-half of the eligible grant amount determined by USDA/RECD. A governmental unit
may not receive a grant under this paragraph for more than $4,000,000 or $15,000 per existing
connection, whichever is less, unless specifically approved by law. In the case of a sanitary
district or other multijurisdictional project for which the USDA/RECD is unable to fully fund up
to one-half of the eligible grant amount, the authority may provide up to an additional $1,000,000
for each additional governmental unit participating up to a maximum of $8,000,000 or $15,000
per existing connection, whichever is less, but not to exceed the maximum grant level determined
by the USDA/RECD as needed to keep the project affordable.
(b) For a governmental unit not receiving grant funding from the USDA/RECD, the
authority shall provide assistance in the form of a loan for the eligible project costs that exceed
five percent of the market value of properties in the project service area, less the amount of any
other grant funding received by the governmental unit for the project. A governmental unit
may not receive a loan under this paragraph for more than $4,000,000 or $15,000 per existing
connection, whichever is less, unless specifically approved by law. In the case of a sanitary district
or other multijurisdictional project, the authority may provide a loan under this paragraph for up
to an additional $1,000,000 for each additional municipality participating up to a maximum of
$8,000,000 or $15,000 per existing connection, whichever is less, unless specifically approved by
law. A loan under this paragraph must bear no interest, must be repaid as provided in subdivision
7, and must only be provided in conjunction with a loan from the clean water revolving fund
under section 446A.07.
(c) Notwithstanding the limits in paragraphs (a) and (b), for a governmental unit receiving
supplemental assistance under this section after January 1, 2002, if the authority determines
that the governmental unit's construction and installation costs are significantly increased due
to geological conditions of crystalline bedrock or karst areas and discharge limits that are more
stringent than secondary treatment, the authority shall provide assistance in the form of half
grant and half loan. Assistance from the authority may not be more than $25,000 per existing
connection. Any additional grant amount received for the same project must be used to reduce
the amount of the governmental unit's loan from the water pollution control revolving fund that
exceeds five percent of the market value of properties in the project service area.
    Subd. 5b. Special assessment deferral. A governmental unit receiving a loan under
subdivision 5a that levies special assessments to repay the loan under subdivision 5a or section
446A.07 may defer payment of such assessments under the provisions of sections 435.193 to
435.195.
    Subd. 6. Disbursements. Disbursements of grants or loans awarded under this section by the
authority to recipients must be made for eligible project costs as incurred by the recipients, and
must be made by the authority in accordance with the project financing agreement and applicable
state and federal laws and rules governing the payments.
    Subd. 7. Loan repayments. Notwithstanding the limitations set forth in section 475.54,
subdivision 1, this subdivision shall govern the maturities and mandatory sinking fund
redemptions of the loans under this section. A governmental unit receiving a loan under this
section shall repay the loan in semiannual payment amounts determined by the authority. The
payment amount must be based on the average payments on the governmental unit's clean water
revolving fund loan or, if greater, the minimum amount required to fully repay the loan by the
maturity date. Payments must begin within one year of the date of the governmental unit's final
payment on the clean water revolving fund loan. The final maturity date of the loan under this
section must be no later than 20 years from the date of the first payment on the loan under this
section and no later than 40 years from the date of the first payment on the clean water revolving
fund loan.
    Subd. 8. Eligibility. A governmental unit is eligible for assistance under this section only
after applying for grant funding from other sources and funding has been obtained, rejected, or the
authority has determined that the potential funding is unlikely.
    Subd. 9. Loan limitation. Supplemental assistance may not be used to reduce the sewer
service charges of a significant wastewater contributor, or a single user that has caused the
need for the project or whose current or projected flow and load exceed one-half of the current
wastewater treatment plant's capacity.
    Subd. 10.[Repealed, 2002 c 393 s 91]
    Subd. 11. Report on needs. By February 1 of each even-numbered year, the authority, in
conjunction with the Pollution Control Agency, shall prepare a report to the Finance Division
of the senate Environment and Natural Resources Committee and the house Environment and
Natural Resources Finance Committee on wastewater funding assistance needs of governmental
units under this section.
    Subd. 12. System replacement fund. Each governmental unit receiving a loan or grant
under this section shall establish a system replacement fund and shall annually deposit a minimum
of $.50 per 1,000 gallons of flow for major rehabilitation or expansion of the treatment system,
or replacement of the treatment system at the end of its useful life. Money must remain in the
account for the life of the loan from the authority or USDA/RECD, unless use of the fund is
approved in writing by the authority for major rehabilitation, expansion, or replacement of the
treatment system. By March 1 each year during the life of the loan, each recipient shall submit a
report to the authority regarding the amount deposited and the fund balance for the prior calendar
year. Failure to comply with the requirements of this subdivision shall result in the authority
assessing a penalty fee to the recipient equal to one percent of the supplemental assistance amount
for each year of noncompliance. Failure to make the required deposit or pay the penalty fee
as required constitutes a default on the loan.
    Subd. 13.[Repealed, 2002 c 393 s 91]
    Subd. 14. Consistency with land use plans. A governmental unit applying for a project
in an unsewered area shall include in its application to the authority a certification from the
county in which the project is located that:
(1) the project is consistent with the county comprehensive land use plan, if the county
has adopted one;
(2) the project is consistent with the county water plan, if the county has adopted one; and
(3) the county has adopted specific land use ordinances or controls so as to meet or exceed
the requirements of Minnesota Rules, part 7080.0305.
History: 1996 c 463 s 45; 1997 c 246 s 18; 1998 c 404 s 50-52; 1999 c 223 art 2 s 48; 2000
c 492 art 1 s 60; 2002 c 393 s 65-75; 2006 c 281 art 4 s 24; 2007 c 96 art 1 s 6

446A.073 TOTAL MAXIMUM DAILY LOAD GRANTS.
    Subdivision 1. Program established. When money is appropriated for grants under this
program, the authority must make grants up to a maximum of $3,000,000 to governmental units
to cover up to one-half the cost of wastewater treatment or stormwater projects made necessary by
wasteload reductions under total maximum daily load plans required by section 303(d) of the
federal Clean Water Act, United States Code, title 33, section 1313(d).
    Subd. 2. Grant application. Application for a grant must be made to the authority on forms
prescribed by the authority for the total maximum daily load grant program, with additional
information as required by the authority, including a project schedule and cost estimate for the
work necessary to comply with the point source wasteload allocation. The Pollution Control
Agency shall:
(1) in accordance with section 116.182, calculate the essential project component percentage,
which must be multiplied by the total project cost to determine the eligible project cost; and
(2) review and certify to the authority those projects that have plans and specifications
approved under section 115.03, subdivision 1, paragraph (f).
    Subd. 3. Project priorities. When money is appropriated for grants under this program, the
authority shall accept applications during the month of July and reserve money for projects
expected to proceed with construction by the end of the fiscal year in the order listed on the
Pollution Control Agency's project priority list, provided the project is included in a total
maximum daily load plan that has been approved by the United States Environmental Protection
Agency at the time the appropriation became law and in an amount based on the cost estimate
submitted to the authority in the grant application or the as-bid costs, whichever is less.
    Subd. 4. Grant approval. The authority must make a grant to a governmental unit, as
defined in section 116.182, subdivision 1, only after:
(1) the commissioner of the Pollution Control Agency has certified to the United States
Environmental Protection Agency a total maximum daily load plan for identified waters of this
state that includes a point source wasteload allocation;
(2) the Environmental Protection Agency has approved the plan;
(3) a governmental unit affected by the plan has submitted the as-bid cost for the wastewater
treatment or storm water projects necessary to comply with the point source wasteload allocation;
(4) the Pollution Control Agency has approved the as-bid costs and certified the grant
eligible portion of the project; and
(5) the authority has determined that the additional financing necessary to complete the
project has been committed from other sources.
    Subd. 5. Grant disbursement. Disbursement of a grant must be made for eligible project
costs as incurred by the governmental unit and in accordance with a project financing agreement
and applicable state and federal laws and rules governing the payments.
History: 2005 c 20 art 1 s 39; 2006 c 251 s 12,13; 2007 c 96 art 1 s 7

446A.074 CLEAN WATER LEGACY PHOSPHORUS REDUCTION GRANTS.
    Subdivision 1. Creation of account. A clean water legacy capital improvement account is
created in the state treasury. Money in the account may only be used for grants for eligible capital
costs as provided in this section. Money in the clean water legacy capital improvement account,
including interest earned, is appropriated to the authority for the purposes of this section.
    Subd. 2. Grants. The authority shall award grants from the clean water legacy capital
improvement account to governmental units for the capital costs of wastewater treatment facility
projects or a portion thereof that will reduce the discharge of total phosphorus from the facility
to one milligram per liter or less. A project is eligible for a grant if it meets the following
requirements:
    (1) the applicable phosphorus discharge limit is incorporated in a permit issued by the
Pollution Control Agency for the wastewater treatment facility on or after March 28, 2000, the
grantee agrees to comply with the applicable limit as a condition of receiving the grant, or the
grantee made improvements to a wastewater treatment facility on or after March 28, 2000, that
include infrastructure to reduce the discharge of total phosphorus to one milligram per liter or less;
    (2) the governmental unit has submitted plans and specifications for the project to the
Pollution Control Agency and a grant application to the authority on a form prescribed by the
authority; and
    (3) the Pollution Control Agency has approved the plans and specifications, and certified
the project and the as-bid or final eligible costs to the authority.
    Subd. 3. Eligible capital costs. Eligible capital costs for phosphorus reduction grants under
subdivision 4, paragraph (a), include engineering and inspection costs and the as-bid construction
costs for phosphorus treatment. Eligible capital costs for phosphorus reduction grants under
subdivision 4, paragraph (b), include the final, incurred construction, engineering, and inspection
costs for phosphorus treatment.
    Subd. 4. Grant amounts and priorities. (a) Priority must be given to projects that start
construction on or after July 1, 2006, and rank on the Pollution Control Agency's project priority
list. If a project is approved and certified by the Pollution Control Agency before July 1, 2010,
the amount of the grant is 75 percent of the eligible capital cost of the project up to a maximum
of $500,000. If a project is approved and certified by the Pollution Control Agency on or after
July 1, 2010, the amount of the grant is 50 percent of the eligible capital cost of the project up to
a maximum of $500,000.
    (b) Projects that meet the eligibility requirements in subdivision 2 and have started
construction before July 1, 2006, may be eligible for grants to reimburse up to 75 percent of the
eligible capital cost of the project, less any amounts previously received in grants from other
sources, provided that reimbursement is an eligible use of funds. Application for a grant under
this paragraph must be submitted to the authority no later than June 30, 2008. Priority for award
of grants under this paragraph must be based on the date of Pollution Control Agency approval of
the project plans and specifications.
    (c) In each fiscal year that money is available for grants, the authority shall accept
applications during the month of July. Money shall first be reserved until May 1 of that fiscal
year for projects under paragraph (a) in the order listed on the Pollution Control Agency's project
priority list and in an amount based on the cost estimate submitted to the authority in the grant
application or the as-bid costs, whichever is less. Any money reserved for projects that are not
approved and certified by the Pollution Control Agency by May 1 of that year shall be available to
award grants under paragraph (b).
    (d) Disbursements of grants under this section by the authority to recipients must be made
for eligible project costs as incurred by the recipients, and must be made by the authority in
accordance with the project financing agreement and applicable state law.
    Subd. 5. Fees. The authority may charge the grant recipient a fee for its administrative
costs not to exceed one-half of one percent of the grant amount, to be paid upon execution of
the grant agreement.
History: 2006 c 251 s 14; 2007 c 96 art 1 s 8

446A.075 SMALL COMMUNITY WASTEWATER TREATMENT PROGRAM.
    Subdivision 1. Creation of account. A small community wastewater treatment account is
created in the special revenue fund. The authority shall make loans and grants from the account as
provided in this section. Money in the fund is annually appropriated to the authority and does
not lapse. The account shall be credited with all loan repayments and investment income from
the account and servicing fees assessed under section 446A.04, subdivision 5. The authority
shall manage and administer the small community wastewater treatment account and for these
purposes, may exercise all powers provided in this chapter.
    Subd. 1a. Technical assistance grants. If requested, and if it is an eligible use of funds, the
authority shall provide technical assistance grants to governmental units as provided in this
section to analyze possible solutions to problems from noncomplying individual sewage treatment
systems. A grant under this subdivision shall equal $10,000 plus $500 per household, not to
exceed a total of $40,000. Technical assistance grant funds may be used to:
(1) contract with a licensed individual sewage treatment system professional for a
preliminary analysis of the feasibility of installing new systems meeting the requirements of
section 115.55; and
(2) to contract for services from the University of Minnesota Extension Service to advise the
governmental unit on the feasibility of possible wastewater treatment alternatives and help the
governmental unit develop the technical, managerial, and financial capacity necessary to build,
operate, and maintain individual wastewater treatment systems.
    Subd. 2. Construction loans and grants. (a) The authority shall award loans and grants
as provided in this subdivision to governmental units from the small community wastewater
treatment account for projects to replace noncomplying individual sewage treatment systems with
an individual sewage treatment system or systems meeting the requirements of section 115.55. A
governmental unit receiving a loan or grant from the account shall own the individual wastewater
treatment systems built under the program and shall be responsible, either directly or through a
contract with a private vendor, for all inspections, maintenance, and repairs necessary to ensure
proper operation of the systems.
    (b) Loans may be awarded for up to 100 percent of eligible project costs as described
in this section.
    (c) When the area to be served by a project has a median household income below the state
average median household income, the governmental unit may receive 50 percent of the funding
provided under this subdivision in the form of a grant. An applicant may submit income survey
data collected by an independent party if it believes the most recent United States census does not
accurately reflect the median household income of the area to be served.
    Subd. 3. Project priority list. Governmental units seeking loans or grants from the small
community wastewater treatment program shall first submit a project proposal to the Pollution
Control Agency on a form prescribed by the Pollution Control Agency. A project proposal shall
include the compliance status for all individual sewage treatment systems in the project area. The
Pollution Control agency shall rank project proposals on its project priority list used for the clean
water revolving fund under section 446A.07.
    Subd. 4. Applications. Governmental units with projects on the project priority list shall
submit applications for loans or grants under this program to the authority on forms prescribed by
the authority. An application for technical assistance funds shall include the number of households
served by individual sewage treatment systems in the community and the proposed use of funds.
An application for construction funds shall include:
    (1) a list of the individual sewage treatment systems proposed to be replaced over a period
of up to three years;
    (2) a project schedule and cost estimate for each year of the project;
    (3) a financing plan for repayment of the loan; and
    (4) a management plan providing for the inspection, maintenance, and repairs necessary to
ensure proper operation of the systems.
    Subd. 5. Awards. The authority shall award loans and grants as provided in this section to
governmental units with approved applications based on their ranking on the Pollution Control
Agency's project priority list. Prior to the award of construction loans or grants under subdivision
2, paragraph (b), the Pollution Control Agency shall certify that the individual sewage treatment
systems to be built appear to meet the criteria set forth in section 115.55 and rules of the Pollution
Control Agency. The total amount awarded for construction loans and grants under subdivision 2,
paragraph (b), shall be based on the estimated project costs for the portion of the project expected
to be completed within one year, up to an annual maximum of $500,000. For projects expected to
take more than one year to complete, the authority may make a multiyear commitment for a period
not to exceed three years, contingent on the future availability of funds. Each year of a multiyear
commitment must be funded by a separate loan or loan and grant agreement meeting the terms
and conditions in subdivision 6. A governmental unit receiving a loan or loan and grant under a
multiyear commitment shall have priority for additional loan and grant funds in subsequent years.
    Subd. 6. Loan terms and conditions. Loans from the small community wastewater
treatment account shall comply with the following terms and conditions:
    (1) principal and interest payments must begin no later than two years after the loan is
awarded;
    (2) loans shall carry an interest rate of one percent;
    (3) loans shall be fully amortized within ten years of the first scheduled payment or, if the
loan amount exceeds $10,000 per household, shall be fully amortized within 20 years but not to
exceed the expected design life of the system;
    (4) a governmental unit receiving a loan must establish a dedicated source or sources of
revenues for repayment of the loan and must issue a general obligation note to the authority
for the full amount of the loan; and
    (5) each property owner voluntarily seeking assistance for repair or replacement of
an individual treatment system under this program must provide a utility easement to the
governmental unit to allow access to the system for management and repairs.
    Subd. 7. Special assessment deferral. (a) A governmental unit receiving a loan under this
section that levies special assessments to repay the loan may defer payment of the assessments
under the provisions of sections 435.193 to 435.195.
    (b) A governmental unit that defers payment of special assessments for one or more
properties under paragraph (a) may request deferral of that portion of the debt service on its loan,
and the authority shall accept appropriate amendments to the general obligation note of the
governmental unit. If special assessment payments are later received from properties that received
a deferral, the funds received shall be paid to the authority with the next scheduled loan payment.
    Subd. 8. Eligible costs. (a) Eligible costs for technical assistance grants as provided in
subdivision 1a shall include the cost of soil borings.
(b) Eligible costs for construction loans and grants shall include the costs for design,
construction, related legal fees, and land acquisition.
    Subd. 9. Disbursements. Loan and grant disbursements by the authority under this section
must be made for eligible project costs as incurred by the recipients, and must be made in
accordance with the project loan or grant and loan agreement and applicable state law.
    Subd. 10. Audits. A governmental unit receiving a loan under this section must annually
provide to the authority for the term of the loan a copy of its annual independent audit or, if the
governmental unit is not required to prepare an independent audit, a copy of the annual financial
reporting form it provides to the state auditor.
History: 2006 c 251 s 15; 2007 c 96 art 1 s 9

446A.08 [Repealed, 1994 c 632 art 2 s 67]

446A.081 DRINKING WATER REVOLVING FUND.
    Subdivision 1. Definitions. (a) For the purposes of this section, the terms in this subdivision
have the meanings given them.
(b) "Eligible recipient" means governmental units or other entities eligible to receive loans or
other assistance as provided in the federal Safe Drinking Water Act.
(c) "Federal Safe Drinking Water Act" means the federal Safe Drinking Water Act, as
amended, United States Code, title 42, sections 300f et seq.
    Subd. 2. Establishment of fund. The authority shall establish a drinking water revolving
fund to provide loans and other forms of financial assistance authorized by the federal Safe
Drinking Water Act, as determined by the authority under the rules adopted under this section
for the purposes and eligible costs authorized under the federal Safe Drinking Water Act. The
fund must be credited with repayments. The federal Safe Drinking Water Act requires that the
fund corpus must be managed so as to be available in perpetuity for the financing of drinking
water systems in the state. At a minimum, 15 percent of the funds received each federal fiscal
year shall be available solely for providing loans to public water systems which regularly serve
fewer than 10,000 individuals.
    Subd. 3. State funds. A state matching fund is established to be used in compliance with
federal matching requirements specified in the federal Safe Drinking Water Act.
    Subd. 4. Capitalization grant agreement. The authority shall enter into an agreement with
the administrator of the United States Environmental Protection Agency to receive capitalization
grants for the fund. The authority and the Department of Health shall enter into an operating
agreement with the administrator of the United States Environmental Protection Agency to satisfy
the criteria in the act to operate the fund. The authority and the Department of Health may exercise
the powers necessary to comply with the requirements specified in the agreements and to ensure
that loan recipients comply with all applicable federal and state requirements.
    Subd. 5. Intended use plan. The authority shall annually prepare and submit to the United
States Environmental Protection Agency an intended use plan. The plan must identify the
intended uses of the amounts available to the drinking water revolving loan fund. The Department
of Health shall provide a prioritized list of drinking water projects and other eligible activities to
be considered for funding by the authority. The plan may be amended by the authority and include
additional eligible projects proposed by the Department of Health.
    Subd. 6. Applications. Applications by municipalities, privately owned public water
systems, and eligible entities identified in the annual intended use plan for loans from the fund
must be made to the authority on the forms prescribed by the rules of the authority and the rules of
the Department of Health adopted under this section. The authority shall forward the application
to the Department of Health within ten days of receipt. The Department of Health shall approve
those applications that appear to meet the criteria in the federal Safe Drinking Water Act, this
section, and the rules of the Department of Health or the authority.
    Subd. 7. Award and terms of loans. The authority shall award loans to those municipalities,
privately owned public water systems, and other eligible entities approved by the Department of
Health, provided that the applicant is able to comply with the terms and conditions of the authority
loan, which must be in conformance with the federal Safe Drinking Water Act, this section, and
the rules of the authority adopted under this section.
    Subd. 8. Loan conditions. (a) When making loans from the drinking water revolving fund,
the authority shall comply with the conditions of the federal Safe Drinking Water Act, including
the criteria in paragraphs (b) to (e).
(b) Loans must be made at or below market interest rates, including zero interest loans, for
terms not to exceed 20 years.
(c) The annual principal and interest payments must begin no later than one year after
completion of the project. Loans must be amortized no later than 20 years after project completion.
(d) A loan recipient must identify and establish a dedicated source of revenue for repayment
of the loan, and provide for a source of revenue to properly operate, maintain, and repair the
water system.
(e) The fund must be credited with all payments of principal and interest on all loans, except
the costs as permitted under section 446A.04, subdivision 5, paragraph (a).
(f) A loan may not be used to pay operating expenses or current obligations, unless
specifically allowed by the federal Safe Drinking Water Act.
(g) A loan made by the authority must be secured by notes or bonds of the governmental unit
and collateral to be determined by the authority for private borrowers.
    Subd. 9. Other uses of fund. The drinking water revolving loan fund may be used as
provided in the act, including the following uses:
(1) to buy or refinance the debt obligations, at or below market rates, of public water systems
for drinking water systems, where the debt was incurred after the date of enactment of the act, for
the purposes of construction of the necessary improvements to comply with the national primary
drinking water regulations under the federal Safe Drinking Water Act;
(2) to purchase or guarantee insurance for local obligations to improve credit market access
or reduce interest rates;
(3) to provide a source of revenue or security for the payment of principal and interest on
revenue or general obligation bonds issued by the authority if the bond proceeds are deposited in
the fund;
(4) to provide loans or loan guarantees for similar revolving funds established by a
governmental unit or state agency;
(5) to earn interest on fund accounts;
(6) to pay the reasonable costs incurred by the authority, the Department of Employment and
Economic Development, and the Department of Health for conducting activities as authorized and
required under the act up to the limits authorized under the act; and
(7) to develop and administer programs for water system supervision, source water
protection, and related programs required under the act.
    Subd. 10. Payments. Payments from the fund to borrowers must be in accordance with the
applicable state and federal laws governing the payments, except no payment for a project may be
made to a borrower until and unless the authority has determined that the total estimated cost
of the project and the financing of the project are assured by:
(1) a loan authorized by state law or appropriation of proceeds of bonds or other money of
the borrower to a fund for the construction of the project; and
(2) an irrevocable undertaking, by resolution of the governing body of the borrower, to use all
money made available for the project exclusively for the project, and to pay any additional amount
by which the cost of the project exceeds the estimate by the appropriation to the construction fund
of additional money or proceeds of additional bonds to be issued by the borrower.
    Subd. 11. [Repealed by amendment, 2007 c 96 art 1 s 10]
    Subd. 12. Rules of the department. The Department of Health shall adopt rules relating
to the procedures for administration of the Department of Health's duties under the act and this
section.
History: 1994 c 632 art 2 s 50; 1997 c 200 art 5 s 3-5; 1Sp2003 c 4 s 1; 2007 c 96 art 1 s 10

446A.083 METHAMPHETAMINE LABORATORY CLEANUP REVOLVING ACCOUNT.
    Subdivision 1. Definitions. As used in this section:
(1) "clandestine lab site" has the meaning given in section 152.0275, subdivision 1,
paragraph (a);
(2) "property" has the meaning given in section 152.0275, subdivision 2, paragraph (a), but
does not include motor vehicles; and
(3) "remediate" has the meaning given to remediation in section 152.0275, subdivision 1,
paragraph (a).
    Subd. 2. Account established. The authority shall establish a methamphetamine laboratory
cleanup revolving account in the public facility authority fund to provide loans to counties and
cities to remediate clandestine lab sites. The account must be credited with repayments.
    Subd. 3. Applications. Applications by a county or city for a loan from the account must
be made to the authority on the forms prescribed by the authority. The application must include,
but is not limited to:
(1) the amount of the loan requested and the proposed use of the loan proceeds;
(2) the source of revenues to repay the loan; and
(3) certification by the county or city that it meets the loan eligibility requirements of
subdivision 4.
    Subd. 4. Loan eligibility. A county or city is eligible for a loan under this section if the
county or city:
(1) identifies a site or sites designated by a local public health department or law enforcement
as a clandestine lab site;
(2) has required the site's property owner to remediate the site at cost, under a local public
health nuisance ordinance that addresses clandestine lab remediation;
(3) certifies that the property owner cannot pay for the remediation immediately;
(4) certifies that the property owner has not properly remediated the site; and
(5) issues a revenue bond, secured as provided in subdivision 8, payable to the authority to
secure the loan.
    Subd. 5. Use of loan proceeds; reimbursement by property owner. (a) A loan recipient
shall use the loan to remediate the clandestine lab site or if this has already been done to
reimburse the applicable county or city fund for costs paid by the recipient to remediate the
clandestine lab site.
(b) A loan recipient shall seek reimbursement from the owner of the property containing the
clandestine lab site for the costs of the remediation. In addition to other lawful means of seeking
reimbursement, the loan recipient may recover its costs through a property tax assessment by
following the procedures specified in section 145A.08, subdivision 2, paragraph (c).
(c) A mortgagee is not responsible for cleanup costs under this section solely because the
mortgagee becomes an owner of real property through foreclosure of the mortgage or by receipt
of the deed to the mortgaged property in lieu of foreclosure.
    Subd. 6. Award and disbursement of funds. The authority shall award loans to recipients
on a first-come, first-served basis, provided that the recipient is able to comply with the terms and
conditions of the authority loan, which must be in conformance with this section. The authority
shall make a single disbursement of the loan upon receipt of a payment request that includes a list
of remediation expenses and evidence that a second-party sampling was undertaken to ensure that
the remediation work was successful or a guarantee that such a sampling will be undertaken.
    Subd. 7. Loan conditions and terms. (a) When making loans from the revolving account,
the authority shall comply with the criteria in paragraphs (b) to (e).
(b) Loans must be made at a two percent per annum interest rate for terms not to exceed ten
years unless the recipient requests a 20-year term due to financial hardship.
(c) The annual principal and interest payments must begin no later than one year after
completion of the cleanup. Loans must be amortized no later than 20 years after completion
of the cleanup.
(d) A loan recipient must identify and establish a source of revenue for repayment of the
loan and must undertake whatever steps are necessary to collect payments within one year of
receipt of funds from the authority.
(e) The account must be credited with all payments of principal and interest on all loans,
except the costs as permitted under section 446A.04, subdivision 5, paragraph (a).
(f) Loans must be made only to recipients with clandestine lab ordinances that address
remediation.
    Subd. 8. Authority to incur debt. Counties and cities may incur debt under this section by
resolution of the board or council authorizing issuance of a revenue bond to the authority. The
county or city may secure and pay the revenue bond only with proceeds derived from the property
containing the clandestine lab site, including assessments and charges under section 145A.08,
subdivision 2 , paragraph (c); payments by the property owner; or similar revenues.
History: 2005 c 136 art 7 s 15

446A.085 TRANSPORTATION REVOLVING LOAN FUND.
    Subdivision 1. Definitions. (a) For the purposes of this section, the terms defined in this
subdivision have the meanings given them.
(b) "Act" means the National Highway System Designation Act of 1995, Public Law
104-59, as amended.
(c) "Borrower" means the state, counties, cities, and other governmental entities eligible
under the act and state law to apply for and receive loans from the transportation revolving
loan fund.
(d) "Loan" means financial assistance provided for all or part of the cost of a project
including money disbursed in anticipation of reimbursement or repayment, loan guarantees, lines
of credit, credit enhancements, equipment financing leases, bond insurance, or other forms of
financial assistance.
    Subd. 2. Purpose. The purpose of the transportation revolving loan fund is to provide loans
for public transportation projects eligible for financing or aid under any federal act or program or
state law, including, without limitation, the study of the feasibility of construction, reconstruction,
resurfacing, restoring, rehabilitation, or replacement of transportation facilities; acquisition of
right-of-way; and maintenance, repair, improvement, or construction of city, town, county, or state
highways, roads, streets, rights-of-way, bridges, tunnels, railroad-highway crossings, drainage
structures, signs, maintenance and operation facilities, guardrails, and protective structures used
in connection with highways or transit projects. Enhancement items, including without limitation
bicycle paths, ornamental lighting, and landscaping, are eligible for financing provided they are
an integral part of overall project design and construction of a federal-aid highway. Money in the
fund may not be used for any toll facilities project or congestion-pricing project.
    Subd. 3. Establishment of fund. A transportation revolving loan fund is established to
make loans for the purposes described in subdivision 2. A highway account is established
in the fund for highway projects eligible under United States Code, title 23. A transit account
is established in the fund for transit capital projects eligible under United States Code, title 49.
A state funds general loan account is established in the fund for transportation projects eligible
under state law. Other accounts may be established in the fund as necessary for its management
and administration. The transportation revolving loan fund receives federal money under the act
and money from any source. Money received under this section must be paid to the commissioner
of finance and credited to the transportation revolving loan fund. Money in the fund is annually
appropriated to the authority and does not lapse. The fund must be credited with investment
income, and with repayments of principal and interest, except for servicing fees assessed under
section 446A.04, subdivisions 5 and 15.
    Subd. 4. Management of fund and accounts. The authority shall manage and administer
the transportation revolving loan fund and individual accounts in the fund. For those purposes,
the authority may exercise all powers provided in this chapter.
    Subd. 5.[Repealed by amendment, 1Sp2001 c 8 art 2 s 67]
    Subd. 6. [Repealed by amendment, 2007 c 96 art 1 s 11]
    Subd. 7. Applications. (a) Applicants for loans must submit an application to the authority
on forms prescribed by the authority. The applicant must provide the following information:
(1) the estimated cost of the project and the amount of the loan sought;
(2) other possible sources of funding in addition to loans sought from the transportation
revolving loan fund;
(3) the proposed methods and sources of funds to be used for repayment of loans received;
and
(4) information showing the financial status and ability of the borrower to repay loans.
    (b) Each project must be certified by the commissioner of transportation under subdivision 8
before its consideration by the authority.
    Subd. 8. Certification of projects. The commissioner of transportation shall consider the
following information when evaluating projects to certify to the authority:
(1) a description of the nature and purpose of the proposed transportation project including
an explanation of the need for the project and the reasons why it is in the public interest;
(2) the relationship of the project to the area transportation improvement program, the
approved statewide transportation improvement program, and to any transportation plans required
under state or federal law;
(3) the estimated cost of the project and the amount of loans sought;
(4) proposed sources of funding in addition to loans sought from the transportation revolving
loan fund;
(5) the need for the project as part of the overall transportation system;
(6) the overall economic impact of the project; and
(7) the extent to which completion of the project will improve the movement of people
and freight.
    Subd. 9. Loan conditions. A loan made under this section must:
(1) bear interest at or below market rates or as otherwise specified in federal law;
(2) have a repayment term not longer than 30 years;
(3) be fully amortized no later than 30 years after project completion;
(4) be subject to repayment of principal and interest beginning not later than five years after
the facility financed with a loan has been completed, or in the case of a highway project, five
years after the facility has opened to traffic; and
(5) be disbursed for specific project elements only after all applicable environmental
requirements have been met.
    Subd. 10. Loans in anticipation of future apportionments. A loan may be made to a
county, or to a statutory or home rule charter city having a population of 5,000 or more, in
anticipation of repayment of the loan from sums that will be apportioned to a county from the
county state-aid highway fund under section 162.07 or to a city from the municipal state-aid street
fund under section 162.14.
    Subd. 11. Payment by county or city. Notwithstanding the allocation provisions of
section 162.08 for counties, and the apportionment provisions of section 162.14 for cities, sums
apportioned under section 162.13 to a statutory or home rule charter city, or under section 162.07
to a county, that has loan repayments due to the transportation revolving loan fund, shall be paid
by the commissioner of transportation to the appropriate loan fund to offset the loan repayments
that are due.
    Subd. 12. [Repealed by amendment, 2007 c 96 art 1 s 11]
    Subd. 13. Duties and Rules of Department of Transportation. The commissioner of
transportation shall establish and adopt rules to implement a program to identify, assist with
development, and certify projects eligible for loans under this section to the authority.
    Subd. 14. [Repealed by amendment, 2007 c 96 art 1 s 11]
History: 1997 c 141 s 10; 1998 c 389 art 16 s 17; 1999 c 230 s 34,35; 1Sp2001 c 8 art 2 s
67; 2003 c 112 art 2 s 50; 1Sp2003 c 4 s 1; 2007 c 96 art 1 s 11,15

446A.086 STATE MAY GUARANTEE COUNTY BUILDING DEBT; REPAYMENT.
    Subdivision 1. Definitions. (a) As used in this section, the following terms have the
meanings given.
(b) "Authority" means the Minnesota Public Facilities Authority.
(c) "Commissioner" means the commissioner of finance.
(d) "Debt obligation" means a general obligation bond issued by a county, a bond to which the
general obligation of a county is pledged under section 469.034, subdivision 2, or a bond payable
from a county lease obligation under section 641.24, to provide funds for the construction of:
(1) jails;
(2) correctional facilities;
(3) law enforcement facilities;
(4) social services and human services facilities;
(5) solid waste facilities; or
(6) qualified housing development projects as defined in section 469.034, subdivision 2.
    Subd. 2. Application. (a) This section provides a state guarantee of the payment of principal
and interest on debt obligations if:
(1) the obligations are issued after June 30, 2000;
(2) application to the Public Facilities Authority is made before issuance; and
(3) the obligations are covered by an agreement meeting the requirements of subdivision 3.
(b) Applications to be covered by the provisions of this section must be made in a form and
contain the information prescribed by the authority. Applications are subject to a fee of $500 for
the first bond issue requested by the county and $250 for each bond issue thereafter.
(c) Application fees paid under this section must be deposited in a separate county
bond guarantee account in the general fund. Money in the county bond guarantee account is
appropriated to the authority for purposes of administering this section.
(d) Neither the authority nor the commissioner is required to promulgate administrative
rules under this section and the procedures and requirements established by the authority or
commissioner under this section are not subject to chapter 14.
    Subd. 3. Agreement. (a) For specified debt obligations of a county to be covered by this
section, the county must enter an agreement with the authority obligating the county to be bound
by this section.
(b) This agreement must be in a form prescribed by the authority and contain any provisions
required by the authority, including, at least, an obligation to:
(1) deposit with the paying agent three days before the date on which the payment is due
an amount sufficient to make that payment;
(2) notify the authority, if the county will be unable to make all or a portion of the payment;
and
(3) include a provision in the bond resolution and county's agreement with the paying agent
for the debt obligation that requires the paying agent to inform the commissioner if it becomes
aware of a default or potential default in the payment of principal or interest on that issue or if, on
the day two business days before the date a payment is due on that issue, there are insufficient
funds to make the payment on deposit with the paying agent.
(c) Funds invested in a refunding escrow account established under section 475.67 that are to
become available to the paying agent on a principal or interest payment date are deemed to be on
deposit with the paying agent three business days before the payment date.
(d) The provisions of an agreement under this subdivision are binding as to an issue as long
as any debt obligation of the issue remains outstanding.
(e) This section and the obligations of the state under this section are not a public debt of the
state under article XI, section 4, of the Minnesota Constitution, and the legislature may, at any
time, choose not to appropriate amounts under subdivision 4, paragraph (b).
    Subd. 4. Notifications; payment; appropriation. (a) After receipt of a notice of a default or
potential default in payment of principal or interest in debt obligations covered by this section
or an agreement under this section, and after consultation with the county, the paying agent,
and after verification of the accuracy of the information provided, the authority shall notify the
commissioner of the potential default. The notice must include a final figure as to the amount due
that the county will be unable to repay on the date due.
(b) Upon receipt of this notice from the authority, the commissioner shall issue a warrant and
authorize the authority to pay to the paying agent for the debt obligation the specified amount
on or before the date due. The amounts needed for the purposes of this subdivision are annually
appropriated to the authority from the general fund.
    Subd. 5. Interest on state paid amount. If the state has paid part or all of the principal or
interest due on a county's debt obligation, the amount paid bears interest from the date paid by the
state until the date of repayment. The interest rate is the commissioner's invested cash rate as it is
certified by the commissioner. Interest only accrues on the amounts paid and outstanding less the
reduction in aid under subdivision 7 and other payments received from the county.
    Subd. 6. Pledge of county's full faith and credit. If the state has paid part or all of the
principal or interest due on a county's debt obligation, the county's pledge of its full faith
and credit and unlimited taxing powers to repay the principal and interest due on those debt
obligations becomes, without an election or the requirement of a further authorization, a pledge
of the full faith and credit and unlimited taxing powers of the county to repay to the state the
amount paid, with interest. Amounts paid by the state must be repaid in the order in which the
state payments were made.
    Subd. 7. Aid reduction for repayment. (a) Except as provided in paragraph (b), the
commissioner may reduce, by the amount paid by the state under this section on behalf of
the county, plus the interest due on the state payments, the county program aid under section
477A.0124. The amount of any aid reduction reverts from the appropriate account to the state
general fund.
(b) If, after review of the financial situation of the county, the authority advises the
commissioner that a total reduction of the aids would cause an undue hardship on the county, the
authority, with the approval of the commissioner, may establish a different schedule for reduction
of aids to repay the state. The amount of aids to be reduced are decreased by any amounts repaid
to the state by the county from other revenue sources.
    Subd. 8. Tax levy for repayment. (a) With the approval of the authority, a county may levy
in the year the state makes a payment under this section an amount up to the amount necessary
to provide funds for the repayment of the amount paid by the state plus interest through the
date of estimated repayment by the county. The proceeds of this levy may be used only for this
purpose unless they exceed the amount actually due. Any excess must be used to repay other state
payments made under this section or must be deposited in the debt redemption fund of the county.
The amount of aids to be reduced to repay the state are decreased by the amount levied.
(b) If the state is not repaid in full for a payment made under this section by November 30
of the calendar year following the year in which the state makes the payment, the authority
shall require the county to certify a property tax levy in an amount up to the amount necessary
to provide funds for repayment of the amount paid by the state plus interest through the date of
estimated repayment by the county. To prevent undue hardship, the authority may allow the
county to certify the levy over a five-year period. The proceeds of the levy may be used only for
this purpose unless they are in excess of the amount actually due, in which case the excess must
be used to repay other state payments made under this section or must be deposited in the debt
redemption fund of the county. If the authority orders the county to levy, the amount of aids
reduced to repay the state are decreased by the amount levied.
(c) A levy under this subdivision is an increase in the levy limits of the county for purposes
of section 275.065, subdivision 6, and must be explained as a specific increase at the meeting
required under that provision.
    Subd. 9. Mandatory plan; technical assistance. If the state makes payments on behalf of
a county under this section or the county defaults in the payment of principal or interest on an
outstanding debt obligation, it must submit a plan to the authority for approval specifying the
measures it intends to implement to resolve the issues which led to its inability to make the
payment and to prevent further defaults. If the authority determines that a county's plan is not
adequate, the authority shall notify the county that the plan has been disapproved, the reasons
for the disapproval, and that the state will not make future payments under this section for debt
obligations of the affected county issued after the date specified in that notice until its plan is
approved. The authority may also notify the county that until its plan is approved, aids due the
county will be withheld after a date specified in the notice.
    Subd. 10. Continuing disclosure agreements. The authority may enter into written
agreements or contracts relating to the continuing disclosure of information needed to facilitate
the ability of counties to issue debt obligations according to federal securities laws, rules,
and regulations, including securities and exchange commission rules and regulations, section
240.15c2-12. The agreements or contracts may be in any form the authority deems reasonable and
in the state's best interests.
History: 2000 c 493 s 3; 2001 c 214 s 4; 2003 c 112 art 2 s 50; 2003 c 127 art 12 s 9;
1Sp2003 c 21 art 10 s 11; 2005 c 151 art 5 s 41; 2006 c 259 art 9 s 6; 2007 c 96 art 1 s 19

446A.09 REPORT; AUDIT.
The authority shall report to the legislature and the governor by January 15 of each year.
The report must include a complete operating and financial statement covering the authority's
operations during the year, including amounts of income from all sources. The report must also
include the authority's analysis of the interest rate subsidy provided to borrowers on loans made
during the year. Books and records of the authority are subject to audit by the legislative auditor
in the manner prescribed for state agencies.
History: 1987 c 386 art 3 s 26; 2007 c 96 art 1 s 12

446A.10 [Repealed, 1996 c 310 s 1]

446A.11    Subdivision 1.[Renumbered 446A.04, subd 8]
    Subd. 2.[Renumbered 446A.04, subd 9]
    Subd. 3.[Renumbered 446A.04, subd 10]
    Subd. 4.[Renumbered 446A.04, subd 11]
    Subd. 5.[Renumbered 446A.04, subd 12]
    Subd. 6.[Renumbered 446A.04, subd 13]
    Subd. 7.[Renumbered 446A.04, subd 14]
    Subd. 8.[Renumbered 446A.04, subd 15]
    Subd. 9.[Renumbered 446A.04, subd 16]
    Subd. 10.[Renumbered 446A.04, subd 17]
    Subd. 11.[Renumbered 446A.04, subd 18]
    Subd. 12.[Renumbered 446A.04, subd 19]
    Subd. 13.[Renumbered 446A.04, subd 20]
    Subd. 14.[Renumbered 446A.04, subd 21]

446A.12 ISSUANCE OF BONDS.
    Subdivision 1. Bonding authority. The authority may issue negotiable bonds in a principal
amount that the authority determines necessary to provide sufficient funds for achieving its
purposes, including the making of loans and purchase of securities, the payment of interest on
bonds of the authority, the establishment of reserves to secure its bonds, the payment of fees to
a third party providing credit enhancement, and the payment of all other expenditures of the
authority incident to and necessary or convenient to carry out its corporate purposes and powers,
but not including the making of grants. Bonds of the authority may be issued as bonds or notes or
in any other form authorized by law. The principal amount of bonds issued and outstanding under
this section at any time may not exceed $1,500,000,000, excluding bonds for which refunding
bonds or crossover refunding bonds have been issued.
    Subd. 2. Refunding of bonds. The authority may issue bonds to refund outstanding bonds of
the authority, to pay any redemption premiums on those bonds, and to pay interest accrued or to
accrue to the redemption date next succeeding the date of delivery of the refunding bonds. The
authority may apply the proceeds of any refunding bonds to the purchase or payment at maturity
of the bonds to be refunded, or to the redemption of outstanding bonds on the redemption date
next succeeding the date of delivery of the refunding bonds and may, pending the application,
place the proceeds in escrow to be applied to the purchase, retirement, or redemption. Pending
use, escrowed proceeds may be invested and reinvested in obligations issued or guaranteed by the
state or the United States or by any agency or instrumentality of the state or the United States, or in
certificates of deposit or time deposits secured in a manner determined by the authority, maturing
at a time appropriate to assure the prompt payment of the principal and interest and redemption
premiums, if any, on the bonds to be refunded. The income realized on any investment may also
be applied to the payment of the bonds to be refunded. After the terms of the escrow have been
fully satisfied, any balance of the proceeds and any investment income may be returned to the
authority for use by it in any lawful manner. All refunding bonds issued under this subdivision
must be issued and secured in the manner provided by resolution of the authority.
    Subd. 3. Kind of bonds. Bonds issued under this section must be negotiable investment
securities within the meaning and for all purposes of the Uniform Commercial Code, subject only
to the provisions of the bonds for registration. The bonds issued may be either general obligations
of the authority, secured by its full faith and credit and payable out of any money, assets, or
revenues of the authority, subject to the provisions of resolutions or indenture pledging and
appropriating particular money, assets, or revenues to particular bonds, or limited obligations of
the authority not secured by its full faith and credit and payable solely from specified sources
or assets.
    Subd. 4. Resolution and terms of sale. The bonds of the authority must be authorized by a
resolution or resolutions adopted by the authority. The bonds must bear the date or dates, mature
at the time or times, bear interest at a fixed or variable rate, including a rate varying periodically
at the time or times and on the terms determined by the authority, or any combination of fixed
and variable rates, be in the denominations, be in the form, carry the registration privileges, be
executed in the manner, be payable in lawful money of the United States, at the place or places
within or without the state, and be subject to the terms of redemption or purchase before maturity
as the resolutions or certificates provide. If, for any reason existing at the date of issue of the
bonds or existing at the date of making or purchasing any loan or securities from the proceeds or
after that date, the interest on the bonds is or becomes subject to federal income taxation, this fact
does not affect the validity or the provisions made for the security of the bonds. The authority may
make covenants and take or have taken actions that are in its judgment necessary or desirable to
comply with conditions established by federal law or regulations for the exemption of interest on
its obligations. The authority may refrain from compliance with those conditions if in its judgment
this would serve the purposes and policies set forth in this chapter with respect to any particular
issue of bonds, unless this would violate covenants made by the authority. The maximum maturity
of a bond, whether or not issued for the purpose of refunding, must be 30 years from its date. The
bonds of the authority may be sold at public or private sale, at a price or prices determined by the
authority; provided that (i) the aggregate price at which an issue of bonds is initially offered by
underwriters to investors, as stated in the authority's official statement with respect to the offering,
must not exceed by more than three percent the aggregate price paid by the underwriters to the
authority at the time of delivery; (ii) the commission paid by the authority to an underwriter for
placing an issue of bonds with investors must not exceed three percent of the aggregate price at
which the issue is offered to investors as stated in the authority's offering statement; and (iii) the
spread or commission must be an amount determined by the authority to be reasonable in the light
of the risk assumed and the expenses of issuance, if any, required to be paid by the underwriters.
    Subd. 5. Exemption. The notes and bonds of the authority are not subject to sections
16C.03, subdivision 4, and 16C.05.
History: 1988 c 546 s 5; 1989 c 354 s 5; 1990 c 564 s 5; 1991 c 354 art 10 s 10; 1994 c 632
art 2 s 52; 1Sp1995 c 2 art 1 s 39; 1997 c 200 art 5 s 6; 1998 c 386 art 2 s 91; 2002 c 380 art 2 s
18; 2002 c 393 s 76; 2004 c 272 art 4 s 1; 2006 c 258 s 39; 2006 c 281 art 4 s 25

446A.13 TENDER OPTION.
An obligation may be issued giving its owner the right to tender or the authority to demand
tender of the obligation to the authority or another person designated by it, for purchase at a
specified time or times, if the authority has first entered into an agreement with a suitable financial
institution obligating the financial institution to provide funds on a timely basis for purchase of
bonds tendered. The obligation is not considered to mature on any tender date and the purchase of
a tendered obligation is not considered a payment or discharge of the obligation by the authority.
Obligations tendered for purchase may be remarketed by or on behalf of the authority or another
purchaser. The authority may enter into agreements it considers appropriate to provide for the
purchase and remarketing of tendered obligations, including:
(1) provisions under which undelivered obligations may be considered tendered for purchase
and new obligations may be substituted for them;
(2) provisions for the payment of charges of tender agents, remarketing agents, and financial
institutions extending lines of credit or letters of credit assuring repurchase; and
(3) provisions for reimbursement of advances under letters of credit that may be paid from
the proceeds of the obligations or from tax and other revenues appropriated for the payment and
security of the obligations and similar or related provisions.
History: 1988 c 546 s 6

446A.14 INTEREST RATE SWAPS AND OTHER AGREEMENTS.
    Subdivision 1. Agreements. (a) The authority may enter into interest rate exchange or swap
agreements, hedges, forward purchase or sale agreements, loan sale or pooling agreements or
trusts, or other similar agreements in connection with:
(1) the issuance or proposed issuance of bonds;
(2) the making, proposed making, or sale of loans or other financial assistance or investments;
(3) outstanding bonds, loans, or other financial assistance; or
(4) existing similar agreements.
(b) The agreements authorized by this subdivision include, without limitation, master
agreements, options or contracts to enter into those agreements in the future and related
agreements, including, without limitation, agreements to provide credit enhancement, liquidity, or
remarketing; valuation; monitoring; or administrative services currently or in the future. However,
the term of an option to enter into an interest rate swap, exchange, hedge, or other similar
agreement and the term of a contract to sell, buy, or refund bonds in the future must not exceed
five years and the authorization of the authority to enter into option agreements with respect to
interest rate swap agreements expires on December 31, 2008; provided that the option agreements
entered into prior to that date remain valid agreements of the authority after that date.
(c) The agreements authorized by this subdivision or supplements to master agreements may
be entered into on the basis of negotiation with a qualified third party or through a competitive
proposal process on terms and conditions and with covenants and provisions approved by the
authority and may include, without limitation:
(1) provisions establishing reserves;
(2) pledging assets or revenues of the authority for current or other payments or termination
payments;
(3) contracting with the other parties to the agreements to provide for the custody, collection,
securing, investment, and payment of money of the authority or money held in trust; or
(4) requiring the issuance of bonds or entering into loans or other agreements authorized by
this subdivision in the future.
(d) Subject to the terms of the agreement and other agreements of the authority with
bondholders or other third parties, the agreements authorized by this subdivision may be general
or limited obligations of the authority payable from all available or certain specified funds
appropriated to the authority. The agreements authorized by this subdivision do not constitute
debt of the authority for the purposes of the limits on bonds or notes of the authority set forth
in section 446A.12, subdivision 1.
(e) The authority may issue bonds to provide funds to make payments, including, without
limitation, termination payments pursuant to an agreement authorized by this subdivision.
(f) The aggregate notional amount of interest rate swap or exchange agreements in effect at
any time must not exceed an amount equal to ten percent of the aggregate principal amount of
bonds the authority is authorized to have outstanding pursuant to section 446A.12, subdivision
1 , including the notional amount of interest rate swap or exchange agreements with respect to
which a reversing agreement has been entered into, the effect of which is to terminate the original
agreement or a portion thereof, and reversing agreements with respect to all or a portion of
existing agreements.
    Subd. 2. Powers of authority. For the purposes of this section, the authority may exercise all
powers provided in this chapter. The authority may consent, whenever it considers it necessary or
desirable in connection with agreements entered into under this subdivision, to modifications,
amendments, or waivers of the terms of the agreements. The proceeds of any agreements entered
into pursuant to this subdivision are appropriated to the authority pursuant to section 446A.04,
subdivision 20 . The agreements entered into pursuant to this subdivision are not subject to
sections 16C.03, subdivision 4, and 16C.05.
History: 1988 c 546 s 7; 2004 c 272 art 4 s 2; 2007 c 96 art 1 s 15

446A.15 BOND FUND.
    Subdivision 1. Creation and contents. The authority may establish a special fund or funds
for the security of one or more or all series of its bonds. The funds must be known as debt service
reserve funds. The authority may pay into each debt service reserve fund:
(1) any money appropriated by the state only for the purposes of the fund;
(2) the proceeds of sale of bonds to the extent provided in the resolution or indenture
authorizing the issuance of them;
(3) funds directed to be transferred by the authority to the debt service reserve fund; and
(4) other money made available to the authority from any other source only for the purpose
of the fund.
    Subd. 2. Use of funds. Except as provided in this section, the money credited to each debt
service reserve fund must be used only for the payment of the principal of bonds of the authority
as they mature, the purchase of the bonds, the payment of interest on them, or the payment of any
premium required when the bonds are redeemed before maturity. Money in a debt service reserve
fund must not be withdrawn at a time and in an amount that reduces the amount of the fund to less
than the amount the authority determines to be reasonably necessary for the purposes of the fund.
However, money may be withdrawn to pay principal or interest due on bonds secured by the fund
if other money of the authority is not available.
    Subd. 3. Investment. Money in a debt service reserve fund not required for immediate use
may be invested in accordance with section 446A.04, subdivision 16, paragraph (b).
    Subd. 4. Minimum amount of reserve at issuance. If the authority establishes a debt
service reserve fund for the security of any series of bonds, it shall not issue additional bonds
that are similarly secured if the amount of any of the debt service reserve funds at the time of
issuance does not equal or exceed the minimum amount required by the resolution creating the
fund, unless the authority deposits in each fund at the time of issuance, from the proceeds of
the bonds, or otherwise, an amount that when added together with the amount then in the fund
will be at least the minimum amount required.
    Subd. 5. Transfer of excess. To the extent consistent with the resolutions and indentures
securing outstanding bonds, the authority may at the close of a fiscal year transfer to any other
fund or account from any debt service reserve fund any excess in that reserve fund over the
amount determined by the authority to be reasonably necessary for the purpose of the reserve fund.
    Subd. 6.[Repealed, 2007 c 96 art 1 s 16]
History: 1988 c 546 s 8; 1994 c 632 art 2 s 53; 2007 c 96 art 1 s 15

446A.16 MONEY OF THE AUTHORITY.
    Subdivision 1. Functions of commissioner of finance. Except as otherwise provided in this
section, money of the authority must be paid to the commissioner of finance as agent of the
authority and the commissioner shall not commingle the money with other money. The money
in the accounts of the authority must be paid out only on warrants drawn by the commissioner
of finance on requisition of the chair of the authority or of another officer or employee as the
authority authorizes. Deposits of the authority's money must, if required by the commissioner
or the authority, be secured by obligations of the United States or of the state of a market value
equal at all times to the amount of the deposit and all banks and trust companies are authorized to
give security for the deposits.
    Subd. 2. Contracts and security. Notwithstanding the provisions of this section, the
authority may, with the approval of the commissioner of finance, contract with the holders of
any of its bonds as to the custody, collection, securing, investment, and payment of money of
the authority or money held in trust or otherwise for the payment of bonds, and to carry out the
contract. Money held in trust or otherwise for the payment of bonds or in any way to secure bonds
and deposits of the money may be secured in the same manner as money of the authority, and all
banks and trust companies are authorized to give security for the deposits. All money paid to the
commissioner as agent of the authority is appropriated to the authority.
    Subd. 3. System of accounts. Subject to agreements with bondholders, the commissioner of
finance shall prescribe a system of accounts.
History: 1988 c 546 s 9; 2003 c 112 art 2 s 50

446A.17 NONLIABILITY.
    Subdivision 1. Nonliability of individuals. No member of the authority, staff of the
authority, or other person executing the bonds, loans, interest rate swaps, or other agreements or
contracts of the authority is liable personally on the bonds, loans, interest rate swaps, or other
agreements or contracts of the authority or is subject to any personal liability or accountability by
reason of their issuance, execution, delivery, or performance.
    Subd. 2. Nonliability of state. The state is not liable on bonds, loans, interest rate swaps,
or other agreements or contracts of the authority issued or entered into under this chapter and
the bonds, loans, interest rate swaps, or other agreements or contracts of the authority are not a
debt of the state. The bonds, loans, interest rate swaps, or other agreements or contracts of the
authority must contain on their face a statement to that effect.
History: 1988 c 546 s 10; 2004 c 272 art 4 s 3; 2007 c 96 art 1 s 14

446A.18 PURCHASE AND CANCELLATION BY AUTHORITY.
Subject to agreements with bondholders that may then exist, the authority may purchase
out of funds available for the purpose, bonds of the authority which shall then be canceled, at a
price not exceeding the following amounts:
(1) if the bonds are then redeemable, the redemption price then applicable plus accrued
interest to the next interest payment date of the bonds; or
(2) if the bonds are not redeemable, the redemption price applicable on the first date after the
purchase upon which the bonds become subject to redemption plus accrued interest to that date.
History: 1988 c 546 s 11

446A.19 STATE PLEDGE AGAINST IMPAIRMENT OF CONTRACTS.
The state pledges and agrees with the holders of bonds issued under sections 446A.051, and
446A.12 to 446A.20 or other parties to any loans, interest rate swaps, or other agreements or
contracts of the authority that the state will not limit or alter the rights vested in the authority to
fulfill the terms of any agreements made with the bondholders or parties to any loans, interest
rate swaps, or other agreements or contracts of the authority or in any way impair the rights
and remedies of the holders until the bonds, together with interest on them, with interest on
any unpaid installments of interest, and all costs and expenses in connection with any action or
proceeding by or on behalf of the bondholders, are fully met and discharged or, with respect to
any loans, interest rate swaps, or other agreements or contracts of the authority, the agreements
have been fully performed by the authority or otherwise terminated or discharged. The authority
may include this pledge and agreement of the state in any agreement with the holders of bonds
issued under sections 446A.051, and 446A.12 to 446A.20 or in any loans, interest rate swaps, or
other agreements or contracts of the authority.
History: 1988 c 546 s 12; 2004 c 272 art 4 s 4

446A.20 RESERVES; FUNDS; ACCOUNTS.
The authority may establish reserves, funds, or accounts necessary to carry out the purposes
of the authority or to comply with any agreement made by or any resolution passed by the
authority.
History: 1988 c 546 s 13

446A.21 [Repealed, 1999 c 231 s 207]