1.1                          A bill for an act 
  1.2             relating to education; modifying the maximum effort 
  1.3             school loan amount limit; amending Minnesota Statutes 
  1.4             1994, section 124.431, subdivision 8. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 1994, section 124.431, 
  1.7   subdivision 8, is amended to read: 
  1.8      Subd. 8.  [LOAN AMOUNT LIMITS.] (a) A loan must not be 
  1.9   recommended for approval for a district exceeding an amount 
  1.10  computed as follows: 
  1.11     (1) the amount requested by the district under subdivision 
  1.12  5; 
  1.13     (2) plus the aggregate principal amount of general 
  1.14  obligation bonds of the district outstanding on June 30 of the 
  1.15  year following the year the application was received, not 
  1.16  exceeding the limitation on net debt of the district in section 
  1.17  475.53, subdivision 4, or 305 200 percent of its adjusted net 
  1.18  tax capacity as most recently determined, whichever is less; 
  1.19     (3) less the maximum net debt permissible for the district 
  1.20  on December 1 of the year the application is received, under the 
  1.21  limitation in section 475.53, subdivision 4, or 305 percent of 
  1.22  its adjusted net tax capacity as most recently determined, 
  1.23  whichever is less; 
  1.24     (4) less any amount by which the amount voted exceeds the 
  1.25  total cost of the facilities for which the loan is granted.  
  2.1      (b) The loan may be approved in an amount computed as 
  2.2   provided in paragraph (a), clauses (1) to (3), subject to later 
  2.3   reduction according to paragraph (a), clause (4).