Authorizing the Board of Commissioners of Public Lands to make revenue obligation trust fund loans to certain municipalities, authorizing the Board of Commissioners of Public Lands to make certain investments, application requirements for certain state trust fund loans, persons authorized to execute certificates of indebtedness, and collection procedures for outstanding state trust fund loans

This bill authorizes BCPL, in addition to its authority under current law to make loans that are the general obligation of the borrower, to make loans that are secured by the revenue generated by the activity for which the loan is made (revenue obligation loans). Under the bill, BCPL may make a revenue obligation loan only if it is made for the purpose of financing, or refinancing, a project that is secured by a pledge and first priority assignment of the revenue that the municipality will receive from moneys generated by the project or for the purpose of financing, or refinancing, project costs that are secured by a pledge and first priority assignment of tax increments that will be allocated to the municipality for those costs by the Department of Revenue under the tax incremental financing program. The bill provides that a revenue obligation loan may be made for any term not exceeding 30 years and may be made payable in installments. The bill further specifies that if a revenue obligation loan is secured by a pledge and assignment of tax increments, then the loan may not exceed an amount that would require the municipality to make annual payments of more than 80 percent of the municipality's shared revenue payments received in the previous year.

The bill also does the following:

1. Provides that, in addition to BCPL's authority under current law to invest in bonds issued by this state, or by a town, village, city, county, or school district, it may also invest in notes or other instruments of indebtedness issued by any of those entities.

2. Authorizes BCPL to invest in bonds, notes, and other instruments of indebtedness issued by a metropolitan sewerage district or a technical college district.

3. Authorizes BCPL to invest in financial institution accounts that are insured by a deposit insurance corporation.

4. Specifies that all bonds, notes, or other instruments of indebtedness and securities purchased by BCPL must be deposited in a manner determined by the board. Under current law, the deposit must be made with the secretary of administration.

5. Provides that if BCPL makes a loan for the purpose of paying off existing indebtedness, the making of the loan and the payment of the existing indebtedness must be treated as if they occur simultaneously.