12.81 - GENERAL AND SPECIFIC BONDING POWERS -- SCHOOL INFRASTRUCTURE PROGRAM.
12.81 GENERAL AND SPECIFIC BONDING POWERS -- SCHOOL
INFRASTRUCTURE PROGRAM.
1. The treasurer of state may issue bonds for purposes of the
school infrastructure program established in section 292.2.
Excluding the issuance of refunding bonds, the treasurer of state
shall not issue bonds which result in the deposit of bond proceeds of
more than fifty million dollars into the school infrastructure 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 are necessary to provide funds for the fund as provided by this
section, 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 treasurer of state necessary or
convenient to administer the fund. 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 school infrastructure
fund and any bond reserve funds, all of which may be deposited with
trustees or depositories in accordance with bond or security
documents and pledged by the treasurer of state 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 school infrastructure 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 approved by the treasurer of state 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. However, a trust
indenture, resolution, or other instrument authorizing the issuance
of bonds may delegate to an officer of the issuer 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
school infrastructure 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 and deposited
in the school infrastructure fund. 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, §21; 2005 Acts, ch 3, §9; 2008 Acts, ch 1119,
§2
Referred to in § 8.57, 12.82, 12.85, 12.86