Text: SF00266 Text: SF00268 Text: SF00200 - SF00299 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 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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