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PAG LIN
1 1 Amend Senate File 459 as follows:
1 2 #1. Page 1, by inserting before line 1 the
1 3 following:
1 4 "Section 1. 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 16.115, "project" means any undertaking
1 24 by a school district for which financing is authorized
1 25 under chapter 296 or 298, including all costs and
1 26 expenses associated with authorization for, and
1 27 commencement of, a project. "School district" means a
1 28 public school district as governed by chapter 274.
1 29 Sec. . NEW SECTION. 16.111 REVOLVING LOAN
1 30 FUND ESTABLISHED.
1 31 1. The Iowa school district revolving loan fund is
1 32 established in the state treasury under the control of
1 33 the authority. The revolving loan fund shall include
1 34 sums appropriated to the fund by the general assembly
1 35 and all receipts from loans made to school districts
1 36 by the authority, and any other sums designated for
1 37 deposit in the revolving loan fund from any public or
1 38 private source. All moneys appropriated to and
1 39 deposited in the revolving loan fund are appropriated
1 40 and shall be used for the sole purpose of making loans
1 41 to school districts to finance all or part of the cost
1 42 of projects. Moneys in the fund may also be used to
1 43 pay the costs and expenses associated with
1 44 administration of the Iowa school district revolving
1 45 loan fund program. A loan made to a school district
1 46 from the revolving loan fund is an indebtedness of the
1 47 school district within the meaning of any
1 48 constitutional or statutory school district debt
1 49 limitation in effect at the time the loan agreement is
1 50 made.
2 1 2. The moneys in the revolving loan fund are not
2 2 considered part of the general fund of the state, are
2 3 not subject to appropriation for any other purpose by
2 4 the general assembly, and in determining a general
2 5 fund balance shall not be included in the general fund
2 6 of the state but shall remain in the revolving loan
2 7 fund to be used for its respective purposes. The Iowa
2 8 school district revolving loan fund is a separate
2 9 dedicated fund under the administration and control of
2 10 the authority and subject to section 16.31. Moneys on
2 11 deposit in the fund shall be invested by the treasurer
2 12 of state in cooperation with the authority, and the
2 13 income from the investments shall be credited to and
2 14 deposited in the fund.
2 15 3. The authority may establish and maintain other
2 16 funds or accounts determined to be necessary to carry
2 17 out the purposes of sections 16.110 through 16.115 and
2 18 shall provide for the funding, administration,
2 19 investment, restrictions, and disposition of the funds
2 20 and accounts.
2 21 Sec. . NEW SECTION. 16.112 BONDS AND NOTES
2 22 ISSUED BY AUTHORITY.
2 23 1. The authority may issue its bonds and notes for
2 24 the purpose of funding the revolving loan fund
2 25 established in section 16.111. The authority may
2 26 enter into one or more lending agreements or purchase
2 27 agreements with one or more bondholders or noteholders
2 28 containing the terms and conditions of the repayment
2 29 of and the security for the bonds or notes. The
2 30 authority and the bondholders or noteholders or a
2 31 trustee agent designated by the authority may enter
2 32 into agreements to provide for any of the following:
2 33 a. That the proceeds of the bonds and notes and
2 34 the investments of the proceeds may be received, held,
2 35 and disbursed by the authority or by a trustee or
2 36 agent designated by the authority.
2 37 b. That the bondholders or noteholders or a
2 38 trustee or agent designated by the authority may
2 39 collect, invest, and apply the amount payable under
2 40 the loan agreements or any other instruments securing
2 41 the debt obligations under the loan agreements.
2 42 c. That the bondholders or noteholders may enforce
2 43 the remedies provided in the loan agreements or other
2 44 instruments on their own behalf without the
2 45 appointment or designation of a trustee. If there is
2 46 a default in the principal of or interest on the bonds
2 47 or notes or in the performance of any agreement
2 48 contained in the loan agreements or other instruments,
2 49 the payment or performance may be enforced in
2 50 accordance with the loan agreement or other
3 1 instrument.
3 2 d. Other terms and conditions as deemed necessary
3 3 or appropriate by the authority.
3 4 2. The powers granted the authority under this
3 5 section are in addition to other powers contained in
3 6 this chapter. All other provisions of this chapter,
3 7 except section 16.28, subsection 4, apply to bonds or
3 8 notes issued and powers granted to the authority under
3 9 this section except to the extent they are
3 10 inconsistent with this section.
3 11 3. All bonds or notes issued by the authority in
3 12 connection with the program are exempt from taxation
3 13 by this state and the interest on the bonds or notes
3 14 is exempt from state income tax.
3 15 Sec. . NEW SECTION. 16.113 SECURITY –
3 16 RESERVE FUNDS – PLEDGES – NONLIABILITY –
3 17 IRREVOCABLE CONTRACTS.
3 18 1. The authority may provide in the resolution,
3 19 trust agreement, or other instrument authorizing the
3 20 issuance of its bonds or notes pursuant to section
3 21 16.112 that the principal of, premium, and interest on
3 22 the bonds or notes are payable from any of the
3 23 following and may pledge the same to its bonds and
3 24 notes:
3 25 a. The income and receipts or other moneys derived
3 26 from the projects financed with the proceeds of the
3 27 bonds or notes.
3 28 b. The income and receipts or other moneys derived
3 29 from designated projects whether or not the projects
3 30 are financed in whole or in part with the proceeds of
3 31 the bonds or notes.
3 32 c. The authority's income and receipts or other
3 33 assets generally, or a designated part or parts of
3 34 them.
3 35 2. The authority may establish reserve funds to
3 36 secure one or more issues of its bonds or notes. The
3 37 authority may deposit in a reserve fund established
3 38 under this subsection the proceeds of the sale of its
3 39 bonds or notes and other moneys which are made
3 40 available from any other source.
3 41 3. It is the intention of the general assembly
3 42 that a pledge made in respect of bonds or notes shall
3 43 be valid and binding from the time the pledge is made,
3 44 that the moneys or property so pledged and received
3 45 after the pledge by the authority shall immediately be
3 46 subject to the lien of the pledge without physical
3 47 delivery or further act, and that the lien of the
3 48 pledge shall be valid and binding as against all
3 49 parties having claims of any kind in tort, contract,
3 50 or otherwise against the authority whether or not the
4 1 parties have notice of the lien. The resolution,
4 2 trust agreement, or any other instrument by which a
4 3 pledge is created does not need to be recorded or
4 4 filed under the Iowa uniform commercial code to be
4 5 valid, binding, or effective against the parties.
4 6 4. The members of the authority or persons
4 7 executing the bonds or notes are not personally liable
4 8 on the bonds or notes and are not subject to personal
4 9 liability or accountability by reason of the issuance
4 10 of the bonds or notes.
4 11 5. The bonds or notes issued by the authority are
4 12 not an indebtedness or other liability of the state or
4 13 of a political subdivision of the state within the
4 14 meaning of any constitutional or statutory debt
4 15 limitations but are special obligations of the
4 16 authority, and are payable solely from the income and
4 17 receipts or other funds or property of the authority,
4 18 and the amounts on deposit in the revolving loan fund,
4 19 and the amounts payable to the authority under its
4 20 loan agreements with a school district to the extent
4 21 that the amounts are designated in the resolution,
4 22 trust agreement, or other instrument of the authority
4 23 authorizing the issuance of the bonds or notes as
4 24 being available as security for such bonds or notes.
4 25 The authority shall not pledge the faith or credit of
4 26 the state or of a political subdivision of the state
4 27 to the payment of any bonds or notes. The issuance of
4 28 any bonds or notes by the authority does not directly,
4 29 indirectly, or contingently obligate the state or a
4 30 political subdivision of the state to apply moneys
4 31 from, or levy or pledge any form of taxation whatever
4 32 to, the payment of the bonds or notes.
4 33 6. The state pledges to and agrees with the
4 34 holders of bonds or notes issued under section 16.112
4 35 that the state will not limit or alter the rights and
4 36 powers vested in the authority to fulfill the terms of
4 37 a contract made by the authority with respect to the
4 38 bonds or notes, or in any way impair the rights and
4 39 remedies of the holders until the bonds or notes,
4 40 together with the interest on them, including interest
4 41 on unpaid installments of interest, and all costs and
4 42 expenses in connection with an action or proceeding by
4 43 or on behalf of the holders, are fully met and
4 44 discharged. The authority is authorized to include
4 45 this pledge and agreement of the state, as it refers
4 46 to holders of bonds or notes of the authority, in a
4 47 contract with the holders.
4 48 Sec. ___. NEW SECTION. 16.114 APPROPRIATION.
4 49 1. There is appropriated from the rebuild Iowa
4 50 infrastructure fund to the department of education for
5 1 each fiscal year the sum of ten million dollars for
5 2 deposit in the revolving loan fund established in
5 3 section 16.111.
5 4 2. It is the intent of the general assembly to
5 5 increase by ten million dollars annually the amount
5 6 appropriated in subsection 1 until the total amount
5 7 appropriated annually for purposes of the Iowa school
5 8 district revolving loan fund program reaches fifty
5 9 million dollars.
5 10 Sec. . NEW SECTION. 16.115 ADOPTION OF RULES.
5 11 The authority shall adopt rules pursuant to chapter
5 12 17A to implement sections 16.110 through 16.114."
5 13 #2. Title page, line 1, by inserting after the
5 14 word "Act" the following: "creating an Iowa school
5 15 district revolving loan fund program and an exemption
5 16 from state taxation, and".
5 17 #3. By renumbering as necessary.
5 18
5 19
5 20
5 21 MATT McCOY
5 22
5 23
5 24
5 25 DICK L. DEARDEN
5 26 SF 459.50
5 27 rn/cc/26
Text: S03469 Text: S03471 Text: S03400 - S03499 Text: S Index Bills and Amendments: General Index Bill History: General Index
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