12.91 - UTILITIES BOARD AND CONSUMER ADVOCATE BUILDING PROJECT -- BOND ISSUE.
12.91 UTILITIES BOARD AND CONSUMER ADVOCATE BUILDING
PROJECT -- BOND ISSUE.
1. For purposes of this section:
a. "Bonds" means bonds, notes, or other evidences of
indebtedness issued under this section.
b. "Chargeable expenses" means expenses charged by the
utilities board and the consumer advocate division of the department
of justice under section 476.10.
c. "Chargeable expenses fund" means the fund created in the
state treasury under this section.
d. "Project" means a building and related improvements and
furnishings authorized under section 476.10B.
2. The treasurer of state may issue bonds and do all things
necessary in order to finance the costs of the project. The
treasurer of state shall have all of the powers which are necessary
to issue and secure bonds to provide the financing for the project.
The treasurer of state may issue bonds in principal amounts which, in
the opinion of the treasurer, are necessary to provide sufficient
funds for the costs of the project, 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, and all other expenditures of the utilities board and the
department of administrative services in connection with the
construction of the project. The bonds are investment securities and
negotiable instruments within the meaning of and for purposes of the
Iowa uniform commercial code, chapter 554.
3. Bonds issued under this section are payable solely and only
out of the moneys, assets, or revenues of the chargeable expenses
fund and any bond reserve funds established pursuant to this section,
all of which may be held by the treasurer of state or 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 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 chargeable expenses fund and any bond reserve funds
established pursuant to this section.
4. 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 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.
5. 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.
6. 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.
7. Bonds must be authorized by a trust indenture, resolution, or
other instrument of the treasurer of state.
8. 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.
9. 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.
10. Subject to the terms of any bond documents, moneys in the
chargeable expenses fund may be expended for administration expenses
of the treasurer of state in connection with the bonds.
11. The treasurer of state may issue bonds for the purpose of
refunding any bonds 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. Until the proceeds of bonds issued for the
purpose of refunding outstanding bonds are applied to the purchase or
retirement of outstanding bonds or the redemption of outstanding
bonds, 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 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 treasurer of state for deposit in the chargeable
expenses fund unless all bonds issued under the provisions of this
section have been retired, in which case the proceeds shall be
deposited in the general fund of the state. 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.
12. A chargeable expenses fund is created and established as a
separate and distinct fund in the state treasury. The moneys in the
fund are appropriated for payment of the principal of, premium, and
interest on any bonds issued under this section. Moneys in the fund
shall not be subject to appropriation for any other purpose by the
general assembly, but shall be used only for the purposes of the
chargeable expenses fund. The treasurer of state shall act as
custodian of the fund and disburse moneys contained in the fund for
payment of the principal of, premium, and interest on any bonds
issued under this section. Notwithstanding section 476.10, there
shall in each fiscal year be deposited in the chargeable expenses
fund from amounts collected by the utilities board as chargeable
expenses an amount equal to the principal of, premium, if any, and
interest on any bonds issued under this section to become due,
whether at maturity, by call for optional redemption or by sinking
fund redemption, in such fiscal year. The treasurer of state is
authorized to pledge any amounts in the chargeable expenses fund as
security for the payment of the principal of, premium, and interest
on any bonds issued under this section. The treasurer of state may
provide in the trust indenture, resolution, or other instrument
authorizing the issuance of bonds for the transfer to the general
fund of the state of any amounts on deposit in the chargeable
expenses fund that are not necessary for the payment of the principal
of, premium, and interest on any bonds issued under this section.
13. Moneys in the chargeable expenses fund are not subject to
section 8.33. Notwithstanding section 12C.7, subsection 2, interest
or earnings on moneys in the fund shall be credited to the fund.
14. a. The treasurer of state may create and establish one or
more special funds, to be known as "bond reserve funds", to
secure one or more issues of bonds issued pursuant to this section.
The treasurer of state shall pay into each bond reserve fund any
moneys appropriated and made available by the state or the treasurer
of state for the purpose of the fund, any proceeds of sale of bonds
to the extent provided in the resolutions authorizing their issuance,
and any other moneys which may be available to the treasurer of state
for the purpose of the fund from any other sources. All moneys held
in a bond reserve fund, except as otherwise provided in this chapter,
shall be used as required solely for the payment of the principal of
bonds secured in whole or in part by the fund or of the sinking fund
payments with respect to the bonds, the purchase or redemption of the
bonds, the payment of interest on the bonds, or the payments of any
redemption premium required to be paid when the bonds are redeemed
prior to maturity.
b. Moneys in a bond reserve fund shall not be withdrawn from
it at any time in an amount that will reduce the amount of the fund
to less than the bond reserve fund requirement established for the
fund, as provided in this subsection, except for the purpose of
making, with respect to bonds secured in whole or in part by the
fund, payment when due of principal, interest, redemption premiums,
and the sinking fund payments with respect to the bonds for the
payment of which other moneys of the treasurer of state are not
available. Any income or interest earned by, or incremental to, a
bond reserve fund due to the investment of it may be transferred by
the treasurer of state to other funds or accounts to the extent the
transfer does not reduce the amount of that bond reserve fund below
the bond reserve fund requirement for that bond reserve fund. For
the purposes of this subsection, the term "bond reserve fund
requirement" means, as of any particular date of computation, an
amount of money, as provided in the resolutions authorizing the bonds
with respect to which the fund is established.
c. The treasurer of state shall comply with the provisions of
section 476.10B in order to assure the maintenance of any bond
reserve funds established under this section.
15. It is the intent of the general assembly that a pledge made
in respect of bonds issued under this section shall be valid and
binding from the time the pledge is made, that the money or property
so pledged and received after the pledge by the treasurer of state
shall immediately be subject to the lien of the pledge without
physical delivery or further act, and that the lien of the pledge
shall be valid and binding as against all parties having claims of
any kind in tort, contract, or otherwise against the treasurer of
state whether or not the parties have notice of the lien.
16. Bonds issued pursuant to this section are not debts of the
state, nor of any political subdivision of the state, and do not
constitute a pledge of the faith and credit of the state or a charge
against the general credit or general fund of the state. The
issuance of any bonds pursuant to this section by the treasurer of
state does not directly, indirectly, or contingently obligate the
state or a political subdivision of the state to apply moneys from,
or to levy or pledge any form of taxation whatever to, the payment of
the bonds. Bonds issued under this section are payable solely and
only from the sources and special fund provided in this section.
17. This section, being necessary for the welfare of this state
and its inhabitants, shall be liberally construed to effect its
purposes. Section History: Recent Form
2006 Acts, ch 1179, §70; 2007 Acts, ch 22, §6; 2008 Acts, ch 1119,
§3
Referred to in § 422.7, 476.10B