2025 Session Last amended: 1987 session

§ 41B.15 — State Pledge Against Impairment of Contracts

Plain-Language Summary

This section is the state's promise to bondholders that it will not change the law to take away the Rural Finance Authority's ability to pay its bonds. The state will not limit the authority's rights or hurt bondholders' ability to collect until all bonds and interest are fully paid.

41B.15 STATE PLEDGE AGAINST IMPAIRMENT OF CONTRACTS.

The state pledges and agrees with the holders of any bonds issued under section 41B.08, 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 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. The authority may include this pledge and agreement of the state in any agreement with the holders of bonds issued under section 41B.08.

History:

1986 c 398 art 6 s 15; 1987 c 396 art 1 s 31

History: History: 1986 c 398 art 6 s 15; 1987 c 396 art 1 s 31

Practical Notes

This pledge gives investors confidence that the state will not pass new laws that weaken their security or reduce the authority’s ability to repay. It makes the bonds more attractive to investors, which helps the authority borrow at lower interest rates for its farm lending programs.

Source: Minnesota Office of the Revisor of Statutes