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Senate Amendment 3247

Amendment Text

PAG LIN
  1  1    Amend Senate File 464 as follows:
  1  2    #1.  Page 24, by inserting after line 12 the
  1  3 following:
  1  4    "Sec.    .  NEW SECTION.  16.110  IOWA SCHOOL
  1  5 DISTRICT REVOLVING LOAN FUND PROGRAM – DEFINITIONS.
  1  6    1.  The Iowa school district revolving loan fund
  1  7 program is established for the purpose of making loans
  1  8 available to school districts to finance all or part
  1  9 of the costs of a project.  The purpose of the program
  1 10 is to provide a means for Iowa schools to reduce their
  1 11 long-term borrowing costs and thus reduce costs to
  1 12 taxpayers.
  1 13    2.  The authority shall process, review, and
  1 14 approve loan applications which satisfy the rules
  1 15 adopted by the authority in implementing the Iowa
  1 16 school district revolving loan fund program.  The
  1 17 school districts to which loans are to be made, the
  1 18 purposes of the loan, the amount of each loan, the
  1 19 interest rate of the loan, and the repayment terms of
  1 20 the loan shall be determined by the authority in
  1 21 accordance with its rules.
  1 22    3.  For purposes of this section and sections
  1 23 16.111 through 16.114, "project" means any undertaking
  1 24 by a school district for which financing is authorized
  1 25 under chapter 296 or 298 to the extent the project
  1 26 replaces or repairs a school building that is a danger
  1 27 to public health or safety, or is otherwise dangerous
  1 28 to human life, including all costs and expenses
  1 29 associated with authorization for, and commencement
  1 30 of, a project.  However, "school district" means a
  1 31 public school district as governed by chapter 274.
  1 32    Sec.    .  NEW SECTION.  16.111  REVOLVING LOAN
  1 33 FUND ESTABLISHED.
  1 34    1.  The Iowa school district revolving loan fund is
  1 35 established in the state treasury under the control of
  1 36 the authority.  The revolving loan fund shall include
  1 37 sums appropriated to the fund by the general assembly
  1 38 and all receipts from loans made to school districts
  1 39 by the authority, and any other sums designated for
  1 40 deposit in the revolving loan fund from any public or
  1 41 private source.  All moneys appropriated to and
  1 42 deposited in the revolving loan fund are appropriated
  1 43 and shall be used for the sole purpose of making loans
  1 44 to school districts to finance all or part of the cost
  1 45 of projects.  Moneys in the fund may also be used to
  1 46 pay the costs and expenses associated with
  1 47 administration of the Iowa school district revolving
  1 48 loan fund program.  A loan made to a school district
  1 49 from the revolving loan fund is an indebtedness of the
  1 50 school district within the meaning of any
  2  1 constitutional or statutory school district debt
  2  2 limitation in effect at the time the loan agreement is
  2  3 made.
  2  4    2.  The moneys in the revolving loan fund are not
  2  5 considered part of the general fund of the state, are
  2  6 not subject to appropriation for any other purpose by
  2  7 the general assembly, and in determining a general
  2  8 fund balance shall not be included in the general fund
  2  9 of the state but shall remain in the revolving loan
  2 10 fund to be used for its respective purposes.  The Iowa
  2 11 school district revolving loan fund is a separate
  2 12 dedicated fund under the administration and control of
  2 13 the authority and subject to section 16.31.  Moneys on
  2 14 deposit in the fund shall be invested by the treasurer
  2 15 of state in cooperation with the authority, and the
  2 16 income from the investments shall be credited to and
  2 17 deposited in the fund.
  2 18    3.  The authority may establish and maintain other
  2 19 funds or accounts determined to be necessary to carry
  2 20 out the purposes of sections 16.110 through 16.114 and
  2 21 shall provide for the funding, administration,
  2 22 investment, restrictions, and disposition of the funds
  2 23 and accounts.
  2 24    Sec.    .  NEW SECTION.  16.112  BONDS AND NOTES
  2 25 ISSUED BY AUTHORITY.
  2 26    1.  The authority may issue its bonds and notes for
  2 27 the purpose of funding the revolving loan fund
  2 28 established in section 16.111.  The authority may
  2 29 enter into one or more lending agreements or purchase
  2 30 agreements with one or more bondholders or noteholders
  2 31 containing the terms and conditions of the repayment
  2 32 of and the security for the bonds or notes.  The
  2 33 authority and the bondholders or noteholders or a
  2 34 trustee agent designated by the authority may enter
  2 35 into agreements to provide for any of the following:
  2 36    a.  That the proceeds of the bonds and notes and
  2 37 the investments of the proceeds may be received, held,
  2 38 and disbursed by the authority or by a trustee or
  2 39 agent designated by the authority.
  2 40    b.  That the bondholders or noteholders or a
  2 41 trustee or agent designated by the authority may
  2 42 collect, invest, and apply the amount payable under
  2 43 the loan agreements or any other instruments securing
  2 44 the debt obligations under the loan agreements.
  2 45    c.  That the bondholders or noteholders may enforce
  2 46 the remedies provided in the loan agreements or other
  2 47 instruments on their own behalf without the
  2 48 appointment or designation of a trustee.  If there is
  2 49 a default in the principal of or interest on the bonds
  2 50 or notes or in the performance of any agreement
  3  1 contained in the loan agreements or other instruments,
  3  2 the payment or performance may be enforced in
  3  3 accordance with the loan agreement or other
  3  4 instrument.
  3  5    d.  Other terms and conditions as deemed necessary
  3  6 or appropriate by the authority.
  3  7    2.  The powers granted the authority under this
  3  8 section are in addition to other powers contained in
  3  9 this chapter.  All other provisions of this chapter,
  3 10 except section 16.28, subsection 4, apply to bonds or
  3 11 notes issued and powers granted to the authority under
  3 12 this section except to the extent they are
  3 13 inconsistent with this section.
  3 14    3.  All bonds or notes issued by the authority in
  3 15 connection with the program are exempt from taxation
  3 16 by this state and the interest on the bonds or notes
  3 17 is exempt from state income tax.
  3 18    Sec.    .  NEW SECTION.  16.113  SECURITY –
  3 19 RESERVE FUNDS – PLEDGES – NONLIABILITY –
  3 20 IRREVOCABLE CONTRACTS.
  3 21    1.  The authority may provide in the resolution,
  3 22 trust agreement, or other instrument authorizing the
  3 23 issuance of its bonds or notes pursuant to section
  3 24 16.112 that the principal of, premium, and interest on
  3 25 the bonds or notes are payable from any of the
  3 26 following and may pledge the same to its bonds and
  3 27 notes:
  3 28    a.  The income and receipts or other moneys derived
  3 29 from the projects financed with the proceeds of the
  3 30 bonds or notes.
  3 31    b.  The income and receipts or other moneys derived
  3 32 from designated projects whether or not the projects
  3 33 are financed in whole or in part with the proceeds of
  3 34 the bonds or notes.
  3 35    c.  The authority's income and receipts or other
  3 36 assets generally, or a designated part or parts of
  3 37 them.
  3 38    2.  The authority may establish reserve funds to
  3 39 secure one or more issues of its bonds or notes.  The
  3 40 authority may deposit in a reserve fund established
  3 41 under this subsection the proceeds of the sale of its
  3 42 bonds or notes and other moneys which are made
  3 43 available from any other source.
  3 44    3.  It is the intention of the general assembly
  3 45 that a pledge made in respect of bonds or notes shall
  3 46 be valid and binding from the time the pledge is made,
  3 47 that the moneys or property so pledged and received
  3 48 after the pledge by the authority shall immediately be
  3 49 subject to the lien of the pledge without physical
  3 50 delivery or further act, and that the lien of the
  4  1 pledge shall be valid and binding as against all
  4  2 parties having claims of any kind in tort, contract,
  4  3 or otherwise against the authority whether or not the
  4  4 parties have notice of the lien.  The resolution,
  4  5 trust agreement, or any other instrument by which a
  4  6 pledge is created does not need to be recorded or
  4  7 filed under the Iowa uniform commercial code to be
  4  8 valid, binding, or effective against the parties.
  4  9    4.  The members of the authority or persons
  4 10 executing the bonds or notes are not personally liable
  4 11 on the bonds or notes and are not subject to personal
  4 12 liability or accountability by reason of the issuance
  4 13 of the bonds or notes.
  4 14    5.  The bonds or notes issued by the authority are
  4 15 not an indebtedness or other liability of the state or
  4 16 of a political subdivision of the state within the
  4 17 meaning of any constitutional or statutory debt
  4 18 limitations but are special obligations of the
  4 19 authority, and are payable solely from the income and
  4 20 receipts or other funds or property of the authority,
  4 21 and the amounts on deposit in the revolving loan fund,
  4 22 and the amounts payable to the authority under its
  4 23 loan agreements with a school district to the extent
  4 24 that the amounts are designated in the resolution,
  4 25 trust agreement, or other instrument of the authority
  4 26 authorizing the issuance of the bonds or notes as
  4 27 being available as security for such bonds or notes.
  4 28 The authority shall not pledge the faith or credit of
  4 29 the state or of a political subdivision of the state
  4 30 to the payment of any bonds or notes.  The issuance of
  4 31 any bonds or notes by the authority does not directly,
  4 32 indirectly, or contingently obligate the state or a
  4 33 political subdivision of the state to apply moneys
  4 34 from, or levy or pledge any form of taxation whatever
  4 35 to, the payment of the bonds or notes.
  4 36    6.  The state pledges to and agrees with the
  4 37 holders of bonds or notes issued under section 16.112
  4 38 that the state will not limit or alter the rights and
  4 39 powers vested in the authority to fulfill the terms of
  4 40 a contract made by the authority with respect to the
  4 41 bonds or notes, or in any way impair the rights and
  4 42 remedies of the holders until the bonds or notes,
  4 43 together with the interest on them, including interest
  4 44 on unpaid installments of interest, and all costs and
  4 45 expenses in connection with an action or proceeding by
  4 46 or on behalf of the holders, are fully met and
  4 47 discharged.  The authority is authorized to include
  4 48 this pledge and agreement of the state, as it refers
  4 49 to holders of bonds or notes of the authority, in a
  4 50 contract with the holders.
  5  1    Sec.    .  NEW SECTION.  16.114  ADOPTION OF RULES.
  5  2    The authority shall adopt rules pursuant to chapter
  5  3 17A to implement sections 16.110 through 16.113."
  5  4    #2.  Title page, line 4, by inserting after the
  5  5 word "regents," the following:  "creating an Iowa
  5  6 school district revolving loan fund program and an
  5  7 exemption from state taxation,".  
  5  8 
  5  9 
  5 10                               
  5 11 MICHAEL E. GRONSTAL 
  5 12 MATT McCOY 
  5 13 JOHN JUDGE 
  5 14 PATRICIA HARPER 
  5 15 JOE BOLKCOM 
  5 16 ROBERT E. DVORSKY 
  5 17 WALLY E. HORN 
  5 18 SF 464.305 78
  5 19 kh/cf
     

Text: S03246                            Text: S03248
Text: S03200 - S03299                   Text: S Index
Bills and Amendments: General Index     Bill History: General Index

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