Text: HF00405 Text: HF00407 Text: HF00400 - HF00499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 12C.7, subsection 2, Code 1995, is 1 2 amended to read as follows: 1 3 2. Interest or earnings on investments and time deposits 1 4 made in accordance with the provisions of sections 12.8, 1 5 12B.10, 12C.1 and 12C.6 shall be credited to the general fund 1 6 of the governmental body making the investment or deposit, 1 7 with the exception of specific funds for which investments are 1 8 otherwise provided by law, constitutional funds, or when 1 9 legally diverted to the state sinking fund for public 1 10 deposits. Funds so excepted shall receive credit for interest 1 11 or earnings derived from such investments or time deposits 1 12 made from such funds.Such interest or earnings on any fund1 13created by direct vote of the people shall be credited to the1 14fund to retire any such indebtedness after which the fund1 15itself shall be credited.1 16 Sec. 2. Section 12C.9, Code 1995, is amended to read as 1 17 follows: 1 18 12C.9 INVESTMENT OF SINKING FUNDS &endash; BOND PROCEEDS. 1 19 1. The treasurer of state and all other state agencies 1 20 authorized to invest funds and the treasurer or other 1 21 designated financial officer of each political subdivisionmay1 22 including each school corporation shall invest the proceeds of 1 23public bonds or obligationsnotes, bonds, refunding bonds, and 1 24 other evidences of indebtedness, and funds being accumulated 1 25 for the payment of principal and interest or reserves in 1 26 investments set out in section 12B.10, subsection 4, 1 27 paragraphs "a" through "g", section 12B.10, subsection 5, 1 28 paragraphs "a" through "g", an investment contract, or tax 1 29 exempt bonds. The investment shall be as defined and 1 30 permitted by section 148 of the Internal Revenue Code and 1 31 applicable regulations under that section. An investment 1 32 contract or tax exempt bonds shall be rated within the two 1 33 highest classifications as established by at least one of the 1 34 standard rating services approved by the superintendent of 1 35 banking by rule adopted pursuant to chapter 17A. 2 1 2. Earnings and interest from investments pursuant to 2 2 subsection 1 shall be used to pay the principal or interest as 2 3 the principal or interest comes due on the indebtedness or to 2 4 fund the construction of the project for which the 2 5 indebtedness was issued, or shall be credited to the capital 2 6 project fund for which the indebtedness was issued. 2 7 Sec. 3. REPEAL. Section 12C.14, Code 1995, is repealed. 2 8 EXPLANATION 2 9 This bill provides that the proceeds from the sale of 2 10 notes, bonds, and other evidences of indebtedness shall be 2 11 invested if not immediately needed and the interest earned 2 12 shall be credited to the project fund for which the bonds were 2 13 sold or used to reduce indebtedness. 2 14 The bill strikes section 12C.4 which provides separate 2 15 provisions for the investment of proceeds from the issue of 2 16 school corporation bonds. The school corporations are 2 17 included with other political subdivisions of the state 2 18 regarding the investment of idle funds or the proceeds of bond 2 19 issues. 2 20 LSB 1789HV 76 2 21 tj/jj/8
Text: HF00405 Text: HF00407 Text: HF00400 - HF00499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
Iowa General Assembly
Search: House Bills and Amendments (76th General Assembly)
© 1996 Cornell College and League of Women Voters of Iowa
Comments? webmaster@legis.state.ia.us.
Last update: Mon Mar 4 09:34:06 CST 1996
URL: http://www2.legis.state.ia.us/GA/76GA/Legislation/HF/00400/HF00406/950313.html
jhf