Bill Text: MN HF368 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Loans to development authorities modified.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2013-05-06 - HF indefinitely postponed [HF368 Detail]
Download: Minnesota-2013-HF368-Introduced.html
1.2relating to economic development; modifying loans to development authorities;
1.3amending Minnesota Statutes 2012, section 116J.5764, subdivision 1.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2012, section 116J.5764, subdivision 1, is amended to
1.6read:
1.7 Subdivision 1. Terms. Loans to development authorities for demolition costs may
1.8be made by the commissioner subject to the following terms and conditions:
1.9(1) the agreement to repay the loanmust may be a general obligation of the
1.10development authority, payable primarily from a dedicated source of revenue, or other
1.11security subject to review and approval by the commissioner, and the development
1.12authority must deliver its bond or note to the commissioner to secure the loan;
1.13(2) the term of the loan may not exceed 15 years;
1.14(3) the loan shall bear interest at a rate equal to two percent, but interest will not
1.15accrue during the first two years of the loan term;
1.16(4) the development authority shall make semiannual interest payments and annual
1.17principal payments beginning in the third year of the loan until the end of the term;
1.18(5) the principal amount of a loan may not exceed $1,000,000;
1.19(6) loan proceeds shall be disbursed for eligible demolition costs as incurred or paid
1.20by the borrower and upon submission of invoices and other supporting documentation
1.21satisfactory to the commissioner; and
1.22(7) an eligible borrower shall establish a dedicated source of revenue for repayment
1.23of the loan.
1.3amending Minnesota Statutes 2012, section 116J.5764, subdivision 1.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2012, section 116J.5764, subdivision 1, is amended to
1.6read:
1.7 Subdivision 1. Terms. Loans to development authorities for demolition costs may
1.8be made by the commissioner subject to the following terms and conditions:
1.9(1) the agreement to repay the loan
1.10development authority, payable primarily from a dedicated source of revenue, or other
1.11security subject to review and approval by the commissioner, and the development
1.12authority must deliver its bond or note to the commissioner to secure the loan;
1.13(2) the term of the loan may not exceed 15 years;
1.14(3) the loan shall bear interest at a rate equal to two percent, but interest will not
1.15accrue during the first two years of the loan term;
1.16(4) the development authority shall make semiannual interest payments and annual
1.17principal payments beginning in the third year of the loan until the end of the term;
1.18(5) the principal amount of a loan may not exceed $1,000,000;
1.19(6) loan proceeds shall be disbursed for eligible demolition costs as incurred or paid
1.20by the borrower and upon submission of invoices and other supporting documentation
1.21satisfactory to the commissioner; and
1.22(7) an eligible borrower shall establish a dedicated source of revenue for repayment
1.23of the loan.
