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1 1 IOWA SCHOOL DISTRICT REVOLVING LOAN FUND PROGRAM
1 2 Section 1. NEW SECTION. 16.110 IOWA SCHOOL DISTRICT
1 3 REVOLVING LOAN FUND PROGRAM – DEFINITIONS.
1 4 1. The Iowa school district revolving loan fund program is
1 5 established for the purpose of making loans available to
1 6 school districts to finance all or part of the costs of a
1 7 project. The purpose of the program is to provide a means for
1 8 Iowa schools to reduce their long-term borrowing costs and
1 9 thus reduce costs to taxpayers.
1 10 2. The authority shall process, review, and approve loan
1 11 applications which satisfy the rules adopted by the authority
1 12 in implementing the Iowa school district revolving loan fund
1 13 program. The school districts to which loans are to be made,
1 14 the purposes of the loan, the amount of each loan, the
1 15 interest rate of the loan, and the repayment terms of the loan
1 16 shall be determined by the authority in accordance with its
1 17 rules.
1 18 3. For purposes of this section and sections 16.111
1 19 through 16.114, "project" means any undertaking by a school
1 20 district for which financing is authorized under chapter 296
1 21 or 298, including all costs and expenses associated with
1 22 authorization for, and commencement of, a project. "School
1 23 district" means a public school district as governed by
1 24 chapter 274.
1 25 Sec. 2. NEW SECTION. 16.111 REVOLVING LOAN FUND
1 26 ESTABLISHED.
1 27 1. The Iowa school district revolving loan fund is
1 28 established in the state treasury under the control of the
1 29 authority. The revolving loan fund shall include sums
1 30 appropriated to the fund by the general assembly and all
1 31 receipts from loans made to school districts by the authority,
1 32 and any other sums designated for deposit in the revolving
1 33 loan fund from any public or private source. All moneys
1 34 appropriated to and deposited in the revolving loan fund are
1 35 appropriated and shall be used for the sole purpose of making
2 1 loans to school districts to finance all or part of the cost
2 2 of projects. Moneys in the fund may also be used to pay the
2 3 costs and expenses associated with administration of the Iowa
2 4 school district revolving loan fund program. A loan made to a
2 5 school district from the revolving loan fund is an
2 6 indebtedness of the school district within the meaning of any
2 7 constitutional or statutory school district debt limitation in
2 8 effect at the time the loan agreement is made.
2 9 2. The moneys in the revolving loan fund are not
2 10 considered part of the general fund of the state, are not
2 11 subject to appropriation for any other purpose by the general
2 12 assembly, and in determining a general fund balance shall not
2 13 be included in the general fund of the state but shall remain
2 14 in the revolving loan fund to be used for its respective
2 15 purposes. The Iowa school district revolving loan fund is a
2 16 separate dedicated fund under the administration and control
2 17 of the authority and subject to section 16.31. Moneys on
2 18 deposit in the fund shall be invested by the treasurer of
2 19 state in cooperation with the authority, and the income from
2 20 the investments shall be credited to and deposited in the
2 21 fund.
2 22 3. The authority may establish and maintain other funds or
2 23 accounts determined to be necessary to carry out the purposes
2 24 of sections 16.110 through 16.114 and shall provide for the
2 25 funding, administration, investment, restrictions, and
2 26 disposition of the funds and accounts.
2 27 Sec. 3. NEW SECTION. 16.112 BONDS AND NOTES ISSUED BY
2 28 AUTHORITY.
2 29 1. The authority may issue its bonds and notes for the
2 30 purpose of funding the revolving loan fund established in
2 31 section 16.111. The authority may enter into one or more
2 32 lending agreements or purchase agreements with one or more
2 33 bondholders or noteholders containing the terms and conditions
2 34 of the repayment of and the security for the bonds or notes.
2 35 The authority and the bondholders or noteholders or a trustee
3 1 agent designated by the authority may enter into agreements to
3 2 provide for any of the following:
3 3 a. That the proceeds of the bonds and notes and the
3 4 investments of the proceeds may be received, held, and
3 5 disbursed by the authority or by a trustee or agent designated
3 6 by the authority.
3 7 b. That the bondholders or noteholders or a trustee or
3 8 agent designated by the authority may collect, invest, and
3 9 apply the amount payable under the loan agreements or any
3 10 other instruments securing the debt obligations under the loan
3 11 agreements.
3 12 c. That the bondholders or noteholders may enforce the
3 13 remedies provided in the loan agreements or other instruments
3 14 on their own behalf without the appointment or designation of
3 15 a trustee. If there is a default in the principal of or
3 16 interest on the bonds or notes or in the performance of any
3 17 agreement contained in the loan agreements or other
3 18 instruments, the payment or performance may be enforced in
3 19 accordance with the loan agreement or other instrument.
3 20 d. Other terms and conditions as deemed necessary or
3 21 appropriate by the authority.
3 22 2. The powers granted the authority under this section are
3 23 in addition to other powers contained in this chapter. All
3 24 other provisions of this chapter, except section 16.28,
3 25 subsection 4, apply to bonds or notes issued and powers
3 26 granted to the authority under this section except to the
3 27 extent they are inconsistent with this section.
3 28 3. All bonds or notes issued by the authority in
3 29 connection with the program are exempt from taxation by this
3 30 state and the interest on the bonds or notes is exempt from
3 31 state income tax.
3 32 Sec. 4. NEW SECTION. 16.113 SECURITY – RESERVE FUNDS –
3 33 PLEDGES – NONLIABILITY – IRREVOCABLE CONTRACTS.
3 34 1. The authority may provide in the resolution, trust
3 35 agreement, or other instrument authorizing the issuance of its
4 1 bonds or notes pursuant to section 16.112 that the principal
4 2 of, premium, and interest on the bonds or notes are payable
4 3 from any of the following and may pledge the same to its bonds
4 4 and notes:
4 5 a. The income and receipts or other moneys derived from
4 6 the projects financed with the proceeds of the bonds or notes.
4 7 b. The income and receipts or other moneys derived from
4 8 designated projects whether or not the projects are financed
4 9 in whole or in part with the proceeds of the bonds or notes.
4 10 c. The authority's income and receipts or other assets
4 11 generally, or a designated part or parts of them.
4 12 2. The authority may establish reserve funds to secure one
4 13 or more issues of its bonds or notes. The authority may
4 14 deposit in a reserve fund established under this subsection
4 15 the proceeds of the sale of its bonds or notes and other
4 16 moneys which are made available from any other source.
4 17 3. It is the intention of the general assembly that a
4 18 pledge made in respect of bonds or notes shall be valid and
4 19 binding from the time the pledge is made, that the moneys or
4 20 property so pledged and received after the pledge by the
4 21 authority shall immediately be subject to the lien of the
4 22 pledge without physical delivery or further act, and that the
4 23 lien of the pledge shall be valid and binding as against all
4 24 parties having claims of any kind in tort, contract, or
4 25 otherwise against the authority whether or not the parties
4 26 have notice of the lien. The resolution, trust agreement, or
4 27 any other instrument by which a pledge is created does not
4 28 need to be recorded or filed under the Iowa uniform commercial
4 29 code to be valid, binding, or effective against the parties.
4 30 4. The members of the authority or persons executing the
4 31 bonds or notes are not personally liable on the bonds or notes
4 32 and are not subject to personal liability or accountability by
4 33 reason of the issuance of the bonds or notes.
4 34 5. The bonds or notes issued by the authority are not an
4 35 indebtedness or other liability of the state or of a political
5 1 subdivision of the state within the meaning of any
5 2 constitutional or statutory debt limitations but are special
5 3 obligations of the authority, and are payable solely from the
5 4 income and receipts or other funds or property of the
5 5 authority, and the amounts on deposit in the revolving loan
5 6 fund, and the amounts payable to the authority under its loan
5 7 agreements with a school district to the extent that the
5 8 amounts are designated in the resolution, trust agreement, or
5 9 other instrument of the authority authorizing the issuance of
5 10 the bonds or notes as being available as security for such
5 11 bonds or notes. The authority shall not pledge the faith or
5 12 credit of the state or of a political subdivision of the state
5 13 to the payment of any bonds or notes. The issuance of any
5 14 bonds or notes by the authority does not directly, indirectly,
5 15 or contingently obligate the state or a political subdivision
5 16 of the state to apply moneys from, or levy or pledge any form
5 17 of taxation whatever to, the payment of the bonds or notes.
5 18 6. The state pledges to and agrees with the holders of
5 19 bonds or notes issued under section 16.112 that the state will
5 20 not limit or alter the rights and powers vested in the
5 21 authority to fulfill the terms of a contract made by the
5 22 authority with respect to the bonds or notes, or in any way
5 23 impair the rights and remedies of the holders until the bonds
5 24 or notes, together with the interest on them, including
5 25 interest on unpaid installments of interest, and all costs and
5 26 expenses in connection with an action or proceeding by or on
5 27 behalf of the holders, are fully met and discharged. The
5 28 authority is authorized to include this pledge and agreement
5 29 of the state, as it refers to holders of bonds or notes of the
5 30 authority, in a contract with the holders.
5 31 Sec. 5. NEW SECTION. 16.114 ADOPTION OF RULES.
5 32 The authority shall adopt rules pursuant to chapter 17A to
5 33 implement sections 16.110 through 16.113.
5 34 EXPLANATION
5 35 This bill creates the Iowa school district revolving loan
6 1 fund program, which allows the Iowa finance authority to make
6 2 loans available to school districts on projects for which
6 3 general obligation bonds may be issued. The purpose of the
6 4 revolving loan fund is to help lower the costs borne by school
6 5 districts in issuing bonds by providing a source for loans to
6 6 school districts to pay all or part of the costs associated
6 7 with a bond issuance.
6 8 The Iowa finance authority is given authority to issue
6 9 bonds and notes to fund the revolving fund. Moneys to be
6 10 deposited into the fund include state appropriations to the
6 11 fund and receipts from loans made to school districts from the
6 12 fund. Bonds and notes issued by the authority in association
6 13 with the revolving loan fund program are exempt from state
6 14 taxation and interest on the bonds and notes is exempt from
6 15 state income tax.
6 16 LSB 1530XS 78
6 17 sc/gg/8
Text: SF00266 Text: SF00268 Text: SF00200 - SF00299 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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