Text: S05466                            Text: S05468
Text: S05400 - S05499                   Text: S Index
Bills and Amendments: General Index     Bill History: General Index



Senate Amendment 5467

Amendment Text

PAG LIN
  1  1    Amend Senate File 2447 as follows:
  1  2    #1.  Page 16, by inserting after line 7 the
  1  3 following:
  1  4    "Sec.    .  NEW SECTION.  12.81  GENERAL AND
  1  5 SPECIFIC BONDING POWERS – SCHOOL INFRASTRUCTURE
  1  6 PROGRAM.
  1  7    1.  The treasurer of state may issue bonds for
  1  8 purposes of the school infrastructure program
  1  9 established in section 292.2.  Excluding the issuance
  1 10 of refunding bonds, the treasurer of state shall not
  1 11 issue bonds which result in the deposit of bond
  1 12 proceeds of more than fifty million dollars into the
  1 13 school infrastructure fund.  The treasurer of state
  1 14 shall have all of the powers which are necessary to
  1 15 issue and secure bonds and carry out the purposes of
  1 16 the fund.  The treasurer of state may issue bonds in
  1 17 principal amounts which are necessary to provide funds
  1 18 for the fund as provided by this section, the payment
  1 19 of interest on the bonds, the establishment of
  1 20 reserves to secure the bonds, the costs of issuance of
  1 21 the bonds, other expenditures of the treasurer of
  1 22 state incident to and necessary or convenient to carry
  1 23 out the bond issue for the fund, and all other
  1 24 expenditures of the treasurer of state necessary or
  1 25 convenient to administer the fund.  The bonds are
  1 26 investment securities and negotiable instruments
  1 27 within the meaning of and for purposes of the uniform
  1 28 commercial code.
  1 29    2.  Bonds issued under this section are payable
  1 30 solely and only out of the moneys, assets, or revenues
  1 31 of the school infrastructure fund and any bond reserve
  1 32 funds, all of which may be deposited with trustees or
  1 33 depositories in accordance with bond or security
  1 34 documents and pledged by the treasurer of state to the
  1 35 payment thereof.  Bonds issued under this section
  1 36 shall contain on their face a statement that the bonds
  1 37 do not constitute an indebtedness of the state.  The
  1 38 treasurer of state shall not pledge the credit or
  1 39 taxing power of this state or any political
  1 40 subdivision of this state or make bonds issued
  1 41 pursuant to this section payable out of any moneys
  1 42 except those in the school infrastructure fund.
  1 43    3.  The proceeds of bonds issued by the treasurer
  1 44 of state and not required for immediate disbursement
  1 45 may be deposited with a trustee or depository as
  1 46 provided in the bond documents and invested or
  1 47 reinvested in any investment approved by the treasurer
  1 48 of state and specified in the trust indenture,
  1 49 resolution, or other instrument pursuant to which the
  1 50 bonds are issued without regard to any limitation
  2  1 otherwise provided by law.
  2  2    4.  The bonds shall be:
  2  3    a.  In a form, issued in denominations, executed in
  2  4 a manner, and payable over terms and with rights of
  2  5 redemption, and be subject to such other terms and
  2  6 conditions as prescribed in the trust indenture,
  2  7 resolution, or other instrument authorizing their
  2  8 issuance.
  2  9    b.  Negotiable instruments under the laws of the
  2 10 state and may be sold at prices, at public or private
  2 11 sale, and in a manner, as prescribed by the treasurer
  2 12 of state.  Chapters 73A, 74, 74A, and 75 do not apply
  2 13 to the sale or issuance of the bonds.
  2 14    c.  Subject to the terms, conditions, and covenants
  2 15 providing for the payment of the principal, redemption
  2 16 premiums, if any, interest, and other terms,
  2 17 conditions, covenants, and protective provisions
  2 18 safeguarding payment, not inconsistent with this
  2 19 section and as determined by the trust indenture,
  2 20 resolution, or other instrument authorizing their
  2 21 issuance.
  2 22    5.  The bonds are securities in which public
  2 23 officers and bodies of this state; political
  2 24 subdivisions of this state; insurance companies and
  2 25 associations and other persons carrying on an
  2 26 insurance business; banks, trust companies, savings
  2 27 associations, savings and loan associations, and
  2 28 investment companies; administrators, guardians,
  2 29 executors, trustees, and other fiduciaries; and other
  2 30 persons authorized to invest in bonds or other
  2 31 obligations of the state, may properly and legally
  2 32 invest funds, including capital, in their control or
  2 33 belonging to them.
  2 34    6.  Bonds must be authorized by a trust indenture,
  2 35 resolution, or other instrument of the treasurer of
  2 36 state.  However, a trust indenture, resolution, or
  2 37 other instrument authorizing the issuance of bonds may
  2 38 delegate to an officer of the issuer the power to
  2 39 negotiate and fix the details of an issue of bonds.
  2 40    7.  Neither the resolution, trust agreement, nor
  2 41 any other instrument by which a pledge is created
  2 42 needs to be recorded or filed under the Iowa uniform
  2 43 commercial code to be valid, binding, or effective.
  2 44    8.  Bonds issued under the provisions of this
  2 45 section are declared to be issued for a general public
  2 46 and governmental purpose and all bonds issued under
  2 47 this section shall be exempt from taxation by the
  2 48 state of Iowa and the interest on the bonds shall be
  2 49 exempt from the state income tax and the state
  2 50 inheritance and estate tax.
  3  1    9.  Subject to the terms of any bond documents,
  3  2 moneys in the school infrastructure fund may be
  3  3 expended for administration expenses.
  3  4    10.  The treasurer of state may issue bonds for the
  3  5 purpose of refunding any bonds or notes issued
  3  6 pursuant to this section then outstanding, including
  3  7 the payment of any redemption premiums thereon and any
  3  8 interest accrued or to accrue to the date of
  3  9 redemption of the outstanding bonds or notes.  Until
  3 10 the proceeds of bonds issued for the purpose of
  3 11 refunding outstanding bonds or notes are applied to
  3 12 the purchase or retirement of outstanding bonds or
  3 13 notes or the redemption of outstanding bonds or notes,
  3 14 the proceeds may be placed in escrow and be invested
  3 15 and reinvested in accordance with the provisions of
  3 16 this section.  The interest, income, and profits
  3 17 earned or realized on an investment may also be
  3 18 applied to the payment of the outstanding bonds or
  3 19 notes to be refunded by purchase, retirement, or
  3 20 redemption.  After the terms of the escrow have been
  3 21 fully satisfied and carried out, any balance of
  3 22 proceeds and interest earned or realized on the
  3 23 investments may be returned and deposited in the
  3 24 school infrastructure fund.  All refunding bonds shall
  3 25 be issued and secured and subject to the provisions of
  3 26 this chapter in the same manner and to the same extent
  3 27 as other bonds issued pursuant to this section.
  3 28    Sec.    .  NEW SECTION.  12.82  SCHOOL
  3 29 INFRASTRUCTURE AND RESERVE FUNDS.
  3 30    1.  A school infrastructure fund is created and
  3 31 established as a separate and distinct fund in the
  3 32 state treasury.  The fund shall be used for purposes
  3 33 of the school infrastructure program established in
  3 34 section 292.2.
  3 35    2.  Revenue for the school infrastructure fund
  3 36 shall include, but is not limited to, the following,
  3 37 which shall be deposited with the treasurer of state
  3 38 or its designee as provided by any bond or security
  3 39 documents and credited to the fund:
  3 40    a.  The proceeds of bonds issued to capitalize and
  3 41 pay the costs of the fund and investment earnings on
  3 42 the proceeds.
  3 43    b.  Interest attributable to investment of money in
  3 44 the fund or an account of the fund.
  3 45    c.  Moneys in the form of a devise, gift, bequest,
  3 46 donation, federal or other grant, reimbursement,
  3 47 repayment, judgment, transfer, payment, or
  3 48 appropriation from any source intended to be used for
  3 49 the purposes of the fund.
  3 50    3.  Moneys in the school infrastructure fund are
  4  1 not subject to section 8.33.  Notwithstanding section
  4  2 12C.7, subsection 2, interest or earnings on moneys in
  4  3 the fund shall be credited to the fund.
  4  4    4.  The treasurer of state may establish reserve
  4  5 funds to secure one or more issues of bonds or notes
  4  6 issued pursuant to section 12.81.  The treasurer of
  4  7 state may deposit in a reserve fund established under
  4  8 this subsection the proceeds of the sale of its bonds
  4  9 or notes and other money which is made available from
  4 10 any other source.  The treasurer of state may allow a
  4 11 reserve fund established under this subsection to be
  4 12 depleted.
  4 13    Sec.    .  NEW SECTION.  12.83  PLEDGES.
  4 14    1.  It is the intention of the general assembly
  4 15 that a pledge made in respect of bonds or notes shall
  4 16 be valid and binding from the time the pledge is made,
  4 17 that the money or property so pledged and received
  4 18 after the pledge by the authority shall immediately be
  4 19 subject to the lien of the pledge without physical
  4 20 delivery or further act, and that the lien of the
  4 21 pledge shall be valid and binding as against all
  4 22 parties having claims of any kind in tort, contract,
  4 23 or otherwise against the treasurer of state whether or
  4 24 not the parties have notice of the lien.
  4 25    2.  The state pledges to and agrees with the
  4 26 holders of bonds or notes issued under section 12.81,
  4 27 that the state will not limit or alter the rights and
  4 28 powers vested in the treasurer of state to fulfill the
  4 29 terms of a contract made by the treasurer of state
  4 30 with respect to the bonds or notes, or in any way
  4 31 impair the rights and remedies of the holders until
  4 32 the bonds and notes, together with the interest on
  4 33 them including interest on unpaid installments of
  4 34 interest, and all costs and expenses in connection
  4 35 with an action or proceeding by or on behalf of the
  4 36 holders, are fully met and discharged.  The treasurer
  4 37 of state is authorized to include this pledge and
  4 38 agreement of the state, as it refers to holders of
  4 39 bonds or notes of the authority, in a contract with
  4 40 the holders.
  4 41    Sec.    .  NEW SECTION.  12.84  LIMITATIONS.
  4 42    Bonds or notes issued pursuant to section 12.81 are
  4 43 not debts of the state, or of any  political
  4 44 subdivision of the state and do not constitute a
  4 45 pledge of the faith and credit of the state or a
  4 46 charge against the general credit or general fund of
  4 47 the state.  The issuance of any bonds or notes
  4 48 pursuant to section 12.81 by the treasurer of state
  4 49 does not directly, indirectly, or contingently
  4 50 obligate the state or a political subdivision of the
  5  1 state to apply moneys from, or to levy or pledge any
  5  2 form of taxation whatever to, the payment of the bonds
  5  3 or notes.  Bonds and notes issued under section 12.81
  5  4 are payable solely and only from the sources and
  5  5 special fund provided in section 12.82.  Expenses
  5  6 incurred in carrying out sections 12.81 through 12.83,
  5  7 this section, and section 12.85 are payable solely
  5  8 from funds available under those sections.
  5  9    Sec.    .  NEW SECTION.  12.85  CONSTRUCTION.
  5 10    Sections 12.81 through 12.84, being necessary for
  5 11 the welfare of this state and its inhabitants, shall
  5 12 be liberally construed to effect its purposes."
  5 13    #2.  Page 16, line 20, by striking the figure
  5 14 "292.3", and inserting the following:  "12.82".
  5 15    #3.  Page 22, by striking lines 17 through 25.
  5 16    #4.  By renumbering as necessary.  
  5 17 
  5 18 
  5 19                               
  5 20 JEFF LAMBERTI
  5 21 SF 2447.505 78
  5 22 tm/as
     

Text: S05466                            Text: S05468
Text: S05400 - S05499                   Text: S Index
Bills and Amendments: General Index     Bill History: General Index

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