Text: HF00624 Text: HF00626 Text: HF00600 - HF00699 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. Section 307A.2, Code 2003, is amended by adding
1 2 the following new subsection:
1 3 NEW SUBSECTION. 15. Construct, reconstruct, and improve
1 4 four-lane projects on United States highways 63, 20, and 30.
1 5 The commission shall issue revenue bonds for funding the four-
1 6 lane projects in accordance with sections 307A.3 through
1 7 307A.5.
1 8 Sec. 2. NEW SECTION. 307A.3 BONDS AND NOTES.
1 9 1. The commission may issue up to three hundred million
1 10 dollars of its negotiable bonds and notes in principal amounts
1 11 as, in the opinion of the commission, are necessary to provide
1 12 sufficient funds for purposes of funding the four-lane
1 13 projects specified in section 307A.2, subsection 15, the
1 14 payment of interest on its bonds and notes, the establishment
1 15 of reserves to secure its bonds and notes, and all other
1 16 expenditures of the commission incident to and necessary or
1 17 convenient to carry out that purpose. The bonds and notes
1 18 shall be deemed to be investment securities and negotiable
1 19 instruments within the meaning of and for all purposes of the
1 20 uniform commercial code.
1 21 2. Bonds and notes issued by the commission are payable
1 22 solely and only out of the moneys credited to the road use tax
1 23 fund, and as provided in the agreement with bondholders or
1 24 noteholders pledging those moneys. Bonds or notes are not an
1 25 obligation of this state or any political subdivision of this
1 26 state other than the commission within the meaning of any
1 27 constitutional or statutory debt limitations, but are special
1 28 obligations of the commission payable solely and only from the
1 29 sources provided in this chapter, and the commission may not
1 30 pledge the credit or taxing power of this state or any
1 31 political subdivision of this state other than the commission,
1 32 or make its debts payable out of any moneys except the road
1 33 use tax fund.
1 34 3. Bonds and notes must be authorized by a resolution of
1 35 the commission. However, a resolution authorizing the
2 1 issuance of bonds or notes may delegate to an officer of the
2 2 commission or department the power to negotiate and fix the
2 3 details of an issue of bonds or notes by an appropriate
2 4 certificate of the authorized officer.
2 5 4. Bonds shall:
2 6 a. State the date and series of the issue, be
2 7 consecutively numbered, and state on their face that they are
2 8 payable both as to principal and interest solely out of the
2 9 road use tax fund and do not constitute an indebtedness of
2 10 this state or any political subdivision of this state other
2 11 than the road use tax fund within the meaning of any
2 12 constitutional or statutory debt limit.
2 13 b. Be either registered, registered as to principal only,
2 14 or in coupon form, issued in denominations as the commission
2 15 prescribes, fully negotiable instruments under the laws of
2 16 this state, signed on behalf of the commission with the manual
2 17 or facsimile signature of the chairperson, attested by the
2 18 manual or facsimile signature of the secretary, have impressed
2 19 or imprinted thereon the seal of the commission or a facsimile
2 20 of it, and the coupons attached shall be signed with the
2 21 facsimile signature of the chairperson, be payable as to
2 22 interest at rates and at times as the commission determines,
2 23 be payable as to principal at times over a period not to
2 24 exceed twenty years from the date of issuance, at places, and
2 25 with reserved rights of prior redemption, as the commission
2 26 prescribes, be sold at prices, at public or private sale, and
2 27 in a manner as the commission prescribes, and the commission
2 28 may pay all expenses, premiums, and commissions which it deems
2 29 necessary or advantageous in connection with the issuance and
2 30 sale, and be issued under and subject to the terms,
2 31 conditions, and covenants providing for the payment of the
2 32 principal, redemption premiums, if any, interest, and other
2 33 terms, conditions, covenants, and protective provisions
2 34 safeguarding payment, not inconsistent with this chapter, as
2 35 are found to be necessary by the commission for the most
3 1 advantageous sale, which may include, but are not limited to,
3 2 covenants with the holders of the bonds as to:
3 3 (1) Pledging or creating a lien, to the extent provided by
3 4 the resolution, on moneys of the road use tax fund.
3 5 (2) Providing for the custody, collection, securing,
3 6 investment, and payment of any moneys of the road use tax
3 7 fund.
3 8 (3) The setting aside of reserves or sinking funds and the
3 9 regulation or disposition of them.
3 10 (4) Limitations on the purpose to which the proceeds of
3 11 sale of an issue of bonds then or thereafter to be issued may
3 12 be applied.
3 13 (5) Limitations on the issuance of additional bonds and on
3 14 the refunding of outstanding or other bonds.
3 15 (6) The procedure by which the terms of a contract with
3 16 the holders of bonds may be amended or abrogated, the amount
3 17 of bonds the holders of which must consent thereto, and the
3 18 manner in which consent may be given.
3 19 (7) The creation of special funds into which moneys of the
3 20 road use tax fund may be deposited.
3 21 (8) Vesting in a trustee properties, rights, powers, and
3 22 duties in trust as the commission determines, which may
3 23 include the rights, powers, and duties of the trustee
3 24 appointed for the holders of any issue of bonds pursuant to
3 25 section 307A.5, in which event the provisions of that section
3 26 authorizing appointment of a trustee by the holders of bonds
3 27 shall not apply, or limiting or abrogating the right of the
3 28 holders of bonds to appoint a trustee under that section, or
3 29 limiting the rights, duties, and powers of the trustee.
3 30 (9) Defining the acts or omissions which constitute a
3 31 default in the obligations and duties of the commission and
3 32 providing for the rights and remedies of the holders of bonds
3 33 in the event of a default. However, rights and remedies shall
3 34 be consistent with the laws of this state and other provisions
3 35 of this chapter.
4 1 (10) Any other matters which affect the security and
4 2 protection of the bonds and the rights of the holders.
4 3 5. The commission may issue its bonds for the purpose of
4 4 refunding any bonds or notes of the commission then
4 5 outstanding, including the payment of any redemption premiums
4 6 thereon and any interest accrued or to accrue to the date of
4 7 redemption of the outstanding bonds or notes. Until the
4 8 proceeds of bonds issued for the purpose of refunding
4 9 outstanding bonds or notes are applied to the purchase or
4 10 retirement of outstanding bonds or notes or the redemption of
4 11 outstanding bonds or notes, the proceeds may be placed in
4 12 escrow and be invested and reinvested in accordance with the
4 13 provisions of this chapter. The interest, income, and profits
4 14 earned or realized on an investment may also be applied to the
4 15 payment of the outstanding bonds or notes to be refunded by
4 16 purchase, retirement, or redemption. After the terms of the
4 17 escrow have been fully satisfied and carried out, any balance
4 18 of proceeds and interest earned or realized on the investments
4 19 may be returned to the commission for use by it in any lawful
4 20 manner. All refunding bonds shall be issued and secured and
4 21 subject to the provisions of this chapter in the same manner
4 22 and to the same extent as other bonds issued pursuant to this
4 23 chapter.
4 24 6. The commission may issue negotiable bond anticipation
4 25 notes and may renew them from time to time but the maximum
4 26 maturity of the notes, including renewals, shall not exceed
4 27 ten years from the date of issue of the original notes. Notes
4 28 are payable from any available moneys from the road use tax
4 29 fund not otherwise pledged, or from the proceeds of the sale
4 30 of bonds of the commission in anticipation of which the notes
4 31 were issued. Notes shall be issued in the same manner as
4 32 bonds, and notes and the resolution authorizing them may
4 33 contain any provisions, conditions, or limitations, not
4 34 inconsistent with the provisions of this subsection, which the
4 35 bonds or a bond resolution of the commission may contain.
5 1 Notes may be sold at public or private sale. In case of
5 2 default on its notes or violation of any obligations of the
5 3 commission to the noteholders, the noteholders shall have all
5 4 the remedies provided in this chapter for bondholders. Notes
5 5 shall be as fully negotiable as bonds of the commission.
5 6 7. A copy of each pledge agreement by or to the
5 7 commission, including without limitation each bond resolution,
5 8 indenture of trust or similar agreement, or any revisions or
5 9 supplements to it shall be filed with the secretary of state
5 10 and no further filing or other action under chapter 554,
5 11 article 9, of the uniform commercial code, or any other law of
5 12 the state shall be required to perfect the security interest
5 13 in the collateral or any additions to it or substitutions for
5 14 it, and the lien and trust so created shall be binding from
5 15 and after the time made against all parties having claims of
5 16 any kind in tort, contract, or otherwise against the pledgor.
5 17 8. Neither the members of the commission nor any person
5 18 executing its bonds, notes, or other obligations shall be
5 19 liable personally on the bonds, notes, or other obligations or
5 20 be subject to any personal liability or accountability by
5 21 reason of the issuance of the commission's bonds or notes.
5 22 9. The maximum amount of bonds or notes that may be issued
5 23 for construction, reconstruction, or improvement of four-lane
5 24 projects pursuant to this section is equal to three hundred
5 25 million dollars.
5 26 Sec. 3. NEW SECTION. 307A.4 RESERVE FUNDS AND
5 27 APPROPRIATIONS.
5 28 1. The commission may create and establish one or more
5 29 special funds, to be known as "bond reserve funds", and shall
5 30 pay into each bond reserve fund any moneys appropriated and
5 31 made available by the state for the purpose of the fund, any
5 32 proceeds of sale of notes or bonds to the extent provided in
5 33 the resolutions of the commission authorizing their issuance,
5 34 and any other moneys which may be available to the commission
5 35 for the purpose of the fund from any other sources. All
6 1 moneys held in a bond reserve fund, except as otherwise
6 2 provided in this chapter, shall be used as required solely for
6 3 the payment of the principal of bonds secured in whole or in
6 4 part by the fund or of the sinking fund payments with respect
6 5 to the bonds, the purchase or redemption of the bonds, the
6 6 payment of interest on the bonds or the payments of any
6 7 redemption premium required to be paid when the bonds are
6 8 redeemed prior to maturity.
6 9 2. Moneys in a bond reserve fund shall not be withdrawn
6 10 from it at any time in an amount that will reduce the amount
6 11 of the fund to less than the bond reserve fund requirement
6 12 established for the fund, as provided in this section, except
6 13 for the purpose of making, with respect to bonds secured in
6 14 whole or in part by the fund, payment when due of principal,
6 15 interest, redemption premiums and the sinking fund payments
6 16 with respect to the bonds for the payment of which other
6 17 moneys of the commission are not available. Any income or
6 18 interest earned by, or incremental to, a bond reserve fund due
6 19 to the investment of it may be transferred by the commission
6 20 to other funds or accounts of the commission to the extent the
6 21 transfer does not reduce the amount of that bond reserve fund
6 22 below the bond reserve fund requirement for it.
6 23 3. The commission shall not at any time issue bonds,
6 24 secured in whole or in part by a bond reserve fund if, upon
6 25 the issuance of the bonds, the amount in the bond reserve fund
6 26 will be less than the bond reserve fund requirement for the
6 27 fund, unless the commission at the time of issuance of the
6 28 bonds deposits in the fund from the proceeds of the bonds
6 29 issued or from other sources an amount which, together with
6 30 the amount then in the fund will not be less than the bond
6 31 reserve fund requirement for the fund. For the purposes of
6 32 this section, the term "bond reserve fund requirement" means,
6 33 as of any particular date of computation, an amount of money,
6 34 as provided in the resolutions of the commission authorizing
6 35 the bonds with respect to which the fund is established, equal
7 1 to not more than ten percent of the outstanding principal
7 2 amount of bonds of the commission secured in whole or in part
7 3 by the fund.
7 4 4. To assure the continued operation and solvency of the
7 5 commission for the carrying out of its purposes, provision is
7 6 made in subsection 1 for the accumulation in each bond reserve
7 7 fund of an amount equal to the bond reserve fund requirement
7 8 for the fund. In order further to assure maintenance of the
7 9 bond reserve funds, the chairperson of the commission shall,
7 10 on or before July 1 of each calendar year, make and deliver to
7 11 the governor the chairperson's certificate stating the sum, if
7 12 any, required to restore each bond reserve fund to the bond
7 13 reserve fund requirement for that fund. Within thirty days
7 14 after the beginning of the session of the general assembly
7 15 next following the delivery of the certificate, the governor
7 16 may submit to both houses printed copies of a budget including
7 17 the sum, if any, required to restore each bond reserve fund to
7 18 the bond reserve fund requirement for that fund. Any sums
7 19 appropriated by the general assembly and paid to the
7 20 commission pursuant to this section shall be deposited by the
7 21 commission in the applicable bond reserve fund.
7 22 5. All amounts paid over to the commission by the state
7 23 pursuant to the provisions of this section shall constitute
7 24 and be accounted for as advances by the state to the
7 25 commission and, subject to the rights of the holders of any
7 26 bonds or notes of the commission theretofore or thereafter
7 27 issued, shall be repaid to the state without interest from all
7 28 available operating revenues of the commission in excess of
7 29 amounts required for the payment of bonds, notes, or
7 30 obligations of the commission, the bond reserve fund, and
7 31 operating expenses.
7 32 6. The commission shall cause to be delivered to the
7 33 legislative fiscal committee within ninety days of the close
7 34 of its fiscal year its annual report certified by an
7 35 independent certified public accountant, who may be the
8 1 accountant or a member of the firm of accountants who
8 2 regularly audits the books and accounts of the commission,
8 3 selected by the commission. In the event that the principal
8 4 amount of any bonds or notes deposited in a bond reserve fund
8 5 is withdrawn for payment of principal or interest thereby
8 6 reducing the amount of that fund to less than the bond reserve
8 7 fund requirement, the commission shall immediately notify the
8 8 general assembly of this event and shall thereafter take steps
8 9 to restore such bond reserve to the bond reserve fund
8 10 requirement for that fund from any amounts available, other
8 11 than principal of a bond issue, which are not pledged to the
8 12 payment of other bonds or notes.
8 13 Sec. 4. NEW SECTION. 307A.5 REMEDIES OF BONDHOLDERS AND
8 14 NOTEHOLDERS.
8 15 1. If the commission defaults in the payment of principal
8 16 or interest on an issue of bonds or notes after they become
8 17 due, whether at maturity or upon call for redemption, and the
8 18 default continues for a period of thirty days, or if the
8 19 commission fails or refuses to comply with the provisions of
8 20 this chapter, or defaults in an agreement made with the
8 21 holders of an issue of bonds or notes, the holders of twenty-
8 22 five percent in aggregate principal amount of bonds or notes
8 23 of the issue then outstanding, by instrument filed in the
8 24 office of the clerk of the county in which the principal
8 25 office of the commission is located, and proved or
8 26 acknowledged in the same manner as a deed to be recorded, may
8 27 appoint a trustee to represent the holders of the bonds or
8 28 notes for the purposes provided in this section.
8 29 2. The commission or any trustee appointed under the
8 30 indenture under which the bonds are issued may, and upon
8 31 written request of the holders of twenty-five percent in
8 32 aggregate principal amount of the issue of bonds or notes then
8 33 outstanding shall:
8 34 a. Enforce all rights of the bondholders or noteholders,
8 35 including the right to require the commission to carry out its
9 1 agreements with the holders and to perform its duties under
9 2 this chapter.
9 3 b. Bring suit upon the bonds or notes.
9 4 c. By action require the commission to account as if it
9 5 were the trustee of an express trust for the holders.
9 6 d. By action enjoin any acts or things which are unlawful
9 7 or in violation of the rights of the holders.
9 8 e. Declare all the bonds or notes due and payable and if
9 9 all defaults are made good then with the consent of the
9 10 holders of twenty-five percent of the aggregate principal
9 11 amount of the issue of bonds or notes then outstanding, annul
9 12 the declaration and its consequences.
9 13 The bondholders or noteholders, to the extent provided in
9 14 the resolution by which the bonds or notes were issued or in
9 15 their agreement with the commission, may enforce any of the
9 16 remedies in paragraphs "a" to "e" or the remedies provided in
9 17 those agreements for and on their own behalf.
9 18 3. The trustee shall also have and possess all powers
9 19 necessary or appropriate for the exercise of functions
9 20 specifically set forth or incident to the general
9 21 representation of bondholders or noteholders in the
9 22 enforcement and protection of their rights.
9 23 4. Before declaring the principal of bonds or notes due
9 24 and payable, the trustee shall first give thirty days' notice
9 25 in writing to the governor, the commission, and the attorney
9 26 general of the state.
9 27 5. The district court has jurisdiction of any action by
9 28 the trustee on behalf of bondholders or noteholders. The
9 29 venue of the action shall be in the county in which the
9 30 principal office of the commission is located.
9 31 Sec. 5. Section 312.2, Code 2003, is amended by adding the
9 32 following new subsection:
9 33 NEW SUBSECTION. 19. The treasurer of state, before making
9 34 the allotments and transfers as provided for in subsections 1
9 35 through 18, shall credit to the state transportation
10 1 commission for each fiscal year the amount needed to pay
10 2 principal and interest on bonds or notes issued pursuant to
10 3 section 307A.3 or to restore each bond reserve fund to the
10 4 bond reserve fund requirement for that fund as may be provided
10 5 in section 307A.4.
10 6 EXPLANATION
10 7 This bill authorizes the state transportation commission to
10 8 issue bonds to construct, reconstruct, and improve four-lane
10 9 highway projects on U.S. highways 63, 20, and 30. The bill
10 10 authorizes the commission to issue up to $300 million in bonds
10 11 or notes to fund these four-lane highway projects. The bill
10 12 also provides that the bonds are to be repaid from the road
10 13 use tax fund before any other allotments or transfers are
10 14 made.
10 15 LSB 2907YH 80
10 16 mg/cf/24
Text: HF00624 Text: HF00626 Text: HF00600 - HF00699 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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