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A development authority or a municipality may advance or loan money to a tax increment financing (TIF) district from its general fund or other authorized fund to finance expenditures. Loans and advances made after July 31, 2001, must be authorized by a resolution adopted by the entity having jurisdiction over the funds.

The terms and conditions for repayment, including the principal amount, the interest rate, and the maximum term of the loan must be in writing. The maximum interest rate allowed is the greater of the rates specified under Minnesota Statutes sections 270C.40 or 549.09, as of the date of the loan. Tables showing the interest rates can be found at:

http://www.revenue.state.mn.us/individuals/individ_income/Pages/Interest_Rates.aspx

and at:

http://www.mncourts.gov/mncourtsgov/media/scao_library/2016-Interest-Rates-on-State-Court-Judgements-12-16-15.pdf.


Date this Avoiding Pitfall was most recently published: 09/05/2008 Updated: 09/01/2016

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