Text: HSB00663                          Text: HSB00665
Text: HSB00600 - HSB00699               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index

House Study Bill 664

Bill Text

  1  1    Section 1.  NEW SECTION.  359.45A  GENERAL OBLIGATION BONDS
  1  3    1.  As used in this section unless the context otherwise
  1  4 requires, "essential township purpose" means the equipping of
  1  5 a fire department, the acquisition of ambulances and ambulance
  1  6 equipment, including emergency medical service equipment, and
  1  7 the construction, reconstruction, and improvement of works and
  1  8 facilities to house and maintain fire protection, ambulance,
  1  9 or emergency medical service equipment.
  1 10    2.  A township which proposes to carry out an essential
  1 11 township purpose project and to contract indebtedness and
  1 12 issue general obligation bonds to provide funds to pay all or
  1 13 part of the cost of a project shall do so in accordance with
  1 14 this section.
  1 15    3.  Before the board of trustees may institute proceedings
  1 16 for the issuance of bonds for an essential township purpose, a
  1 17 notice of the proposed action, including a statement of the
  1 18 amount and purposes of the bonds, and the time and place of
  1 19 the meeting at which the board of trustees proposes to take
  1 20 action for the issuance of the bonds, shall be published as
  1 21 provided in section 331.305.  At the meeting, the board shall
  1 22 receive oral or written objections from any resident or
  1 23 property owner of the county.  After all objections have been
  1 24 received and considered, the board of trustees, at that
  1 25 meeting or a date to which it is adjourned, may take
  1 26 additional action for the issuance of the bonds or abandon the
  1 27 proposal to issue the bonds.  Any resident or property owner
  1 28 of the county may appeal the decision of the board of trustees
  1 29 to take additional action to the district court of the county,
  1 30 within fifteen days after the additional action is taken, but
  1 31 the additional action of the board of trustees is final and
  1 32 conclusive unless the court finds that the board of trustees
  1 33 exceeded its authority.  The provisions of this subsection,
  1 34 with respect to notice, hearing, and appeal, are in lieu of
  1 35 any other law.
  2  1    4.  A township may sell general obligation bonds at public
  2  2 or private sale in the manner prescribed by chapter 75.
  2  3    5.  General obligation funding or refunding bonds may bear
  2  4 interest at the same rate as, or at a higher or lower rate or
  2  5 rates of interest, than the indebtedness being funded or
  2  6 refunded.
  2  7    6.  As provided by resolution of the board of trustees,
  2  8 general obligation bonds may:
  2  9    a.  Bear dates.
  2 10    b.  Bear interest at rates not exceeding the limitations
  2 11 imposed by chapter 75.
  2 12    c.  Mature in one or more installments.
  2 13    d.  Be in either coupon or registered form.
  2 14    e.  Carry registration and conversion privileges.
  2 15    f.  Be payable as to principal and interest at times and
  2 16 places.
  2 17    g.  Be subject to terms of redemption prior to maturity
  2 18 with or without premium.
  2 19    h.  Be in one or more denominations.
  2 20    i.  Be designated with a brief reference to purpose, or if
  2 21 issued for a combination of purposes, be designated "township
  2 22 purpose bond".
  2 23    j.  Contain other provisions not in conflict with the laws
  2 24 of the state of Iowa.
  2 25    7.  General obligation bonds must be executed by the
  2 26 chairperson of the board of trustees and the township clerk.
  2 27 If coupons are attached to the bonds, they must be executed
  2 28 with the original or facsimile signature of the clerk.  A
  2 29 general obligation bond is valid and binding if it bears the
  2 30 signatures of the officers in office on the date of the
  2 31 execution of the bonds even though one or more of the persons
  2 32 whose signatures appear on the bonds have ceased to be
  2 33 officers prior to the delivery of the bonds.
  2 34    8.  General obligation bonds issued pursuant to this
  2 35 section are negotiable instruments.
  3  1    9.  Taxes for the payment of general obligation bonds must
  3  2 be levied in accordance with chapter 76, and the bonds are
  3  3 payable from the levy of unlimited ad valorem taxes on all the
  3  4 taxable property within the township through its debt service
  3  5 fund.  A township issuing general obligation bonds shall
  3  6 establish a debt service fund.
  3  7    10.  No action may be brought which questions the legality
  3  8 of general obligation bonds or the power of the township to
  3  9 issue the bonds or the effectiveness of any proceedings
  3 10 relating to the authorization and issuance of the bonds from
  3 11 and after sixty days from the time the bonds are ordered
  3 12 issued by the townships.  
  3 13                           EXPLANATION 
  3 14    This bill authorizes a township to issue general obligation
  3 15 bonds to finance the purchase of fire department equipment,
  3 16 ambulances and ambulance equipment including emergency medical
  3 17 equipment, and the construction, reconstruction, and
  3 18 improvement of works and facilities to house and maintain the
  3 19 fire protection, ambulance, or emergency medical service
  3 20 equipment.  The bonds are considered essential township
  3 21 purpose bonds similar to county or city essential corporate
  3 22 purpose bonds.
  3 23    This bill provides that a township shall use the same
  3 24 procedures to issue the bonds that a city or county are
  3 25 authorized to use.  Notice of the board's intent to issue
  3 26 bonds shall be given by publication in an official county
  3 27 newspaper at least four but not more than 20 days before the
  3 28 meeting and residents may give written or oral objections.  A
  3 29 resident or property owner may appeal the board's decision to
  3 30 issue bonds to the district court.  The bonds are to be sold
  3 31 as provided in Code chapter 75 and taxes to repay the
  3 32 principal and interest are determined as provided in Code
  3 33 chapter 76.  
  3 34 LSB 4326HC 77
  3 35 tj/jl/8

Text: HSB00663                          Text: HSB00665
Text: HSB00600 - HSB00699               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index

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