04-10-2019 Council Packet - Laserfiche WebLink

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RELEVANT LINKS: League of Minnesota Cities Handbook for Minnesota Cities 10/15/2018 Expenditures, Purchasing, and Contracts Chapter 22 | Page 10 • For payment of bond principal, bond interest and a fiscal agent service charge from the debt redemption fund. 2. Declaration of claim Minn. Stat. § 412.271, subd. 3. Minn. Stat. § 471.391, subd. 2. As discussed above, the order-check may have the following statement printed on its reverse side, above the space for the payee’s signature: “The undersigned payee, in endorsing this order-check, declares that the same is received in payment of a just and correct claim against the City of _____, and that no part of such claim has heretofore been paid.” A.G. Op. 469a-16 (May 21, 1965). When the payee signs the order-check, this statement acts as the declaration of claim. The council may approve such a claim without first receiving a declaration from the claimant. 3. Facsimile signatures Minn. Stat. § 47.41. State law specifically allows the use of facsimile signatures (produced by rubber stamp or machine). Public officers may authorize their banks to honor instruments signed by facsimile. Minn. Stat. § 47.42. A public officer does not have personal liability for any loss that results from the use of the facsimile signature if all the following circumstances are met: • The city council has passed a resolution approving the use of a facsimile signature. • The city council has insured the depositor against losses from the unauthorized use of the facsimile signature. • The loss did not result from a wrongful act of the public officer. 4. Prepayment of claims A.G. Op. 159-C-9 (Mar. 24, 1953). A city council also has discretion to pay for a contract for goods or services in advance of receiving the good or services. E. Prompt payment Contractors Edge, Inc. v. City of Kilkenny, No. C0-02- 802 (Minn. Ct. App. Jan. 28, 2003) (unpublished decision). Cities must promptly pay their obligations, unless a good faith dispute exists. Generally, cities must pay their bills within the terms of the contract. If no contractual terms apply, state statutes provide a standard payment period, calculated from the date of receipt. Minn. Stat. § 471.425, subd. 1(b). Minn. Stat. § 471.425, subd. 2. The “date of receipt” represents the date of the completed delivery of the goods or services, the satisfactory installation or assembly, or the receipt of the invoice for the delivery of goods (whichever is later). The following time requirements apply to payments: