Current through Register Vol. 48, No. 39, March 25, 2024
Subpart 1.
Collateral requirements.
When providing financial assistance, the authority may require
collateral as it considers necessary in accordance with generally accepted
commercial lending practices to protect the interests of the authority. The
collateral may take one or more of the following forms:
A. mortgage on real property;
B. security interest in personal
property;
C. guarantees or other
assurances of repayment of applicant, affiliates of the applicant, shareholders
or partners who have 20 percent or more ownership in the applicant, or other
interested parties with respect thereto;
D. bond insurance or other credit
enhancements;
E. assignments of
leases or rents on property of equipment, or of contracts and other assets of
the applicant;
F. letters of
credit;
G. escrow account;
and
H. any other form of collateral
that the authority deems necessary and appropriate.
Subp. 2.
Additional information or
certifications.
The following additional information, as applicable, is
required by the authority before providing financial assistance, as well as any
other information or item that the authority in its sole discretion considers
advisable for prudent financial management of the authority's financial
assistance:
A. a lease agreement on
property or equipment;
B. a listing
of property, including serial numbers for machinery and equipment, that will
serve as collateral for the financial assistance;
C. certification of insurance for workers'
compensation and employer's liability;
D. a statement provided by the Internal
Revenue Service of tax clearance;
E. an appraisal of collateral offered to the
authority for the financial assistance; and
F. a certificate of the insurers of
collateral that insurance is in force and effect. Prior to expiration of any
insurance policy, the applicant shall furnish the authority with evidence that
the policy has been renewed, replaced, or is no longer required.
Statutory Authority: MS s
41B.07
