12.71 - GENERAL AND SPECIFIC BONDING POWERS -- VISION IOWA PROGRAM.
12.71 GENERAL AND SPECIFIC BONDING POWERS -- VISION
IOWA PROGRAM.
1. The treasurer of state may issue bonds upon the request of the
vision Iowa board created in section 15F.102 and do all things
necessary with respect to the purposes of the vision Iowa fund. The
treasurer of state shall have all of the powers which are necessary
to issue and secure bonds and carry out the purposes of the fund.
The treasurer of state may issue bonds in principal amounts which, in
the opinion of the board, are necessary to provide sufficient funds
for the vision Iowa fund created in section 12.72, the payment of
interest on the bonds, the establishment of reserves to secure the
bonds, the costs of issuance of the bonds, other expenditures of the
treasurer of state incident to and necessary or convenient to carry
out the bond issue for the fund, and all other expenditures of the
board necessary or convenient to administer the fund; provided,
however, excluding the issuance of refunding bonds, bonds issued
pursuant to this section shall not be issued in an aggregate
principal amount which exceeds three hundred million dollars. The
bonds are investment securities and negotiable instruments within the
meaning of and for purposes of the uniform commercial code, chapter
554.
2. Bonds issued under this section are payable solely and only
out of the moneys, assets, or revenues of the vision Iowa fund and
any bond reserve funds established pursuant to section 12.72, all of
which may be deposited with trustees or depositories in accordance
with bond or security documents and pledged by the board to the
payment thereof. Bonds issued under this section shall contain on
their face a statement that the bonds do not constitute an
indebtedness of the state. The treasurer of state shall not pledge
the credit or taxing power of this state or any political subdivision
of this state or make bonds issued pursuant to this section payable
out of any moneys except those in the vision Iowa fund.
3. The proceeds of bonds issued by the treasurer of state and not
required for immediate disbursement may be deposited with a trustee
or depository as provided in the bond documents and invested or
reinvested in any investment as directed by the board and specified
in the trust indenture, resolution, or other instrument pursuant to
which the bonds are issued without regard to any limitation otherwise
provided by law.
4. The bonds shall be:
a. In a form, issued in denominations, executed in a manner,
and payable over terms and with rights of redemption, and be subject
to such other terms and conditions as prescribed in the trust
indenture, resolution, or other instrument authorizing their
issuance.
b. Negotiable instruments under the laws of the state and may
be sold at prices, at public or private sale, and in a manner, as
prescribed by the treasurer of state. Chapters 73A, 74, 74A, and 75
do not apply to the sale or issuance of the bonds.
c. Subject to the terms, conditions, and covenants providing
for the payment of the principal, redemption premiums, if any,
interest, and other terms, conditions, covenants, and protective
provisions safeguarding payment, not inconsistent with this section
and as determined by the trust indenture, resolution, or other
instrument authorizing their issuance.
5. The bonds are securities in which public officers and bodies
of this state; political subdivisions of this state; insurance
companies and associations and other persons carrying on an insurance
business; banks, trust companies, savings associations, savings and
loan associations, and investment companies; administrators,
guardians, executors, trustees, and other fiduciaries; and other
persons authorized to invest in bonds or other obligations of the
state, may properly and legally invest funds, including capital, in
their control or belonging to them.
6. Bonds must be authorized by a trust indenture, resolution, or
other instrument of the treasurer of state approved by the board.
However, a trust indenture, resolution, or other instrument
authorizing the issuance of bonds may delegate to an officer of the
board the power to negotiate and fix the details of an issue of
bonds.
7. Neither the resolution, trust agreement, nor any other
instrument by which a pledge is created needs to be recorded or filed
under the Iowa uniform commercial code, chapter 554, to be valid,
binding, or effective.
8. Bonds issued under the provisions of this section are declared
to be issued for a general public and governmental purpose and all
bonds issued under this section shall be exempt from taxation by the
state of Iowa and the interest on the bonds shall be exempt from the
state income tax and the state inheritance tax.
9. Subject to the terms of any bond documents, moneys in the
vision Iowa fund may be expended for administration expenses.
10. The treasurer of state may issue bonds for the purpose of
refunding any bonds or notes issued pursuant to this section then
outstanding, including the payment of any redemption premiums thereon
and any interest accrued or to accrue to the date of redemption of
the outstanding bonds or notes. Until the proceeds of bonds issued
for the purpose of refunding outstanding bonds or notes are applied
to the purchase or retirement of outstanding bonds or notes or the
redemption of outstanding bonds or notes, the proceeds may be placed
in escrow and be invested and reinvested in accordance with the
provisions of this section. The interest, income, and profits earned
or realized on an investment may also be applied to the payment of
the outstanding bonds or notes to be refunded by purchase,
retirement, or redemption. After the terms of the escrow have been
fully satisfied and carried out, any balance of proceeds and interest
earned or realized on the investments may be returned to the board
for deposit in the vision Iowa fund established in section 12.72.
All refunding bonds shall be issued and secured and subject to the
provisions of this chapter in the same manner and to the same extent
as other bonds issued pursuant to this section. Section History: Recent Form
2000 Acts, ch 1174, §15; 2005 Acts, ch 3, §8; 2008 Acts, ch 1119,
§1
Referred to in § 12.72, 12.75, 12.76, 12.77