Text: HF02580 Text: HF02582 Text: HF02500 - HF02599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 261A.27, Code 1999, is amended by 1 2 adding the following new unnumbered paragraph: 1 3 NEW UNNUMBERED PARAGRAPH. Obligations issued by the 1 4 authority on or after July 1, 2000, pursuant to either 1 5 division of this chapter, their transfer, and income therefrom 1 6 are exempt from taxation of any kind by the state or any 1 7 political subdivision of the state. 1 8 Sec. 2. Section 261A.34, subsection 3, Code 1999, is 1 9 amended to read as follows: 1 10 3. "Project" means any property located within the state, 1 11 constructed or acquired before or after July 1, 1985, that may 1 12 be used or will be useful in connection with the instruction, 1 13 feeding, or recreation of students, the conducting of 1 14 research, administration, or other work of an institution, or 1 15 any combination of the foregoing. "Project" includes, but is 1 16 not limited to, any academic facility, administrative 1 17 facility, assembly hall, athletic facility, instructional 1 18 facility, laboratory, library, maintenance facility, student 1 19 health facility, recreational facility, research facility, 1 20 student union, or other facility suitable for the use of an 1 21 institution. "Project" also means the refunding or 1 22 refinancing of outstanding obligations, mortgages, or 1 23 advances, including advances from an endowment or similar 1 24 fund, originally issued, made, or given by the institution to 1 25 finance the cost of a project. "Project" also includes a 1 26 project that is to be leasedby the authorityto an 1 27 institution. 1 28 Sec. 3. Section 261A.35, Code 1999, is amended to read as 1 29 follows: 1 30 261A.35 GENERAL POWER OF AUTHORITY. 1 31 The authority is authorized to assist institutions in the 1 32 constructing, financing, and refinancing of projects, and the 1 33 authority may take action authorized by this division. The 1 34 authority is authorized to be a member of limited liability 1 35 companies organized for the purpose of leasing projects to 2 1 institutions. 2 2 Sec. 4. Section 261A.36, Code 1999, is amended to read as 2 3 follows: 2 4 261A.36 ISSUANCE OF OBLIGATIONS. 2 5 The authority may issue obligations of the authority for 2 6 any of its corporate purposes as provided for in this division 2 7 including the issuing of obligations to finance projects to be 2 8 leasedby the authorityto an institution, and fund or refund 2 9 the obligations pursuant to this division. 2 10 Sec. 5. Section 261A.37, Code 1999, is amended to read as 2 11 follows: 2 12 261A.37 LOANS AUTHORIZED. 2 13 The authority may make loans to an institution for the cost 2 14 of a project or in anticipation of the receipt of tuition by 2 15 the institution in accordance with an agreement between the 2 16 authority and the institution, except that a loan for the cost 2 17 of a project shall not exceed the total cost of the project, 2 18 as determined by the institution and approved by the authority 2 19 and except that loans in anticipation of the receipt of 2 20 tuition shall not exceed the anticipated amount of tuition to 2 21 be received by the institution in the one-year period 2 22 following the date of the loan. The authority may lease 2 23 projects to institutions under the terms of lease agreements 2 24 determined by the institution and the authority, except that 2 25 the term of the lease shall not exceed the estimated useful 2 26 economic life of the project. The authority may make loans to 2 27 an entity other than an institution in accordance with an 2 28 agreement between the authority and the entity for the cost of 2 29 a project if the project is to be leased to an institution. 2 30 Sec. 6. Section 261A.38, Code 1999, is amended to read as 2 31 follows: 2 32 261A.38 ISSUANCE OF OBLIGATIONS – CONDITIONS. 2 33 The authority may issue obligations and make loans to an 2 34 institution or another entity if the project is to be leased 2 35 to an institution or may issue obligations to finance projects 3 1 to be leased by the authority to an institution and refund, 3 2 refinance, or reimburse outstanding obligations, indebtedness, 3 3 mortgages, or advances, including advances from an endowment 3 4 or any similar fund, issued, made, or given by the 3 5 institution, whether before or after July 1, 1985, for the 3 6 cost of a project, when the authority finds that the financing 3 7 prescribed in this section is in the public interest, and 3 8 either alleviates a financial hardship upon the institution, 3 9 results in a lesser cost of education, or enables the 3 10 institution to offer greater security for a loan or loans to 3 11 finance a new project or projects or to effect savings in 3 12 interest costs or more favorable amortization terms. 3 13 EXPLANATION 3 14 This bill authorizes the Iowa higher education loan 3 15 authority to issue obligations of the authority to make loans 3 16 to entities other than educational institutions for the cost 3 17 of capital projects if these projects are to be leased to 3 18 educational institutions. 3 19 The bill also provides for a tax exemption from all state 3 20 and local taxes of the obligations and income from the 3 21 obligations which are issued on or after July 1, 2000. 3 22 HF 2581 3 23 mg/jg/25
Text: HF02580 Text: HF02582 Text: HF02500 - HF02599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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