34A.21 - SECURITY -- RESERVE FUNDS -- PLEDGES -- NONLIABILITY -- IRREVOCABLE CONTRACTS.
34A.21 SECURITY -- RESERVE FUNDS -- PLEDGES --
NONLIABILITY -- IRREVOCABLE CONTRACTS.
1. The authority may provide in the resolution, trust agreement,
or other instrument authorizing the issuance of its bonds or notes
pursuant to section 34A.20 that the principal of, premium, and
interest on the bonds or notes are payable from any of the following
and may pledge the same to its bonds and notes:
a. The income and receipts or other moneys derived from the
projects financed with the proceeds of the bonds or notes.
b. The income and receipts or other money derived from
designated projects whether or not the projects are financed in whole
or in part with the proceeds of the bonds or notes.
c. The amounts on deposit in the E911 service fund of a joint
E911 service board, including, but not limited to revenues from a
local option E911 service surcharge.
d. The amounts payable to the authority by jurisdictions
within service areas pursuant to loan agreements with service areas.
e. Any other funds or accounts established by the authority
in connection with the program or the sale and issuance of its bonds
or notes.
2. The authority may establish reserve funds to secure one or
more issues of its bonds or notes. The authority may deposit in a
reserve fund established under this subsection, the proceeds of the
sale of its bonds or notes and other money which is made available
from any other source.
3. A pledge made in respect of bonds or notes is valid and
binding from the time the pledge is made. The money or property so
pledged and received after the pledge by the authority is immediately
subject to the lien of the pledge without physical delivery or
further act. The lien of the pledge is valid and binding as against
all persons having claims of any kind in tort, contract, or otherwise
against the authority whether or not the parties have notice of the
lien. Neither the resolution, trust agreement, or any other
instrument by which a pledge is created needs to be recorded, filed,
or perfected under chapter 554, to be valid, binding, or effective
against all persons.
4. The members of the authority or persons executing the bonds or
notes are not personally liable on the bonds or notes and are not
subject to personal liability or accountability by reason of the
issuance of the bonds or notes.
5. The state pledges to and agrees with the holders of bonds or
notes issued under this subchapter that the state will not limit or
alter the rights and powers vested in the authority to fulfill the
terms of a contract made by the authority with respect to the bonds
or notes, or in any way impair the rights and remedies of the holders
until the bonds or notes, together with the interest on them
including interest on unpaid installments of interest, and all costs
and expenses in connection with an action or proceeding by or on
behalf of the holders, are fully met and discharged. The authority
is authorized to include this pledge and agreement of the state, as
it refers to holders of bonds or notes of the authority, in a
contract with the holders. Section History: Recent Form
90 Acts, ch 1144, §7
C91, § 477B.21
C93, § 34A.21
Referred to in §16.161, 34A.7