12E.2 - DEFINITIONS.
12E.2 DEFINITIONS.
As used in this chapter, unless the context otherwise requires:
1. "Authority" means the tobacco settlement authority created
in this chapter.
2. "Board" means the governing board of the authority.
3. "Bonds" means bonds, notes, and other obligations and
financing arrangements issued or entered into by the authority
pursuant to this chapter.
4. "Financial institution" means a bank or credit union as
defined in section 12C.1.
5. "Interest rate agreement" means an interest rate swap or
exchange agreement, an agreement establishing an interest rate floor
or ceiling or both, or any similar agreement. Any such agreement may
include the option to enter into or cancel the agreement or to
reverse or extend the agreement.
6. "Master settlement agreement" means the master settlement
agreement as defined in section 453C.1.
7. "Net proceeds" means the amount of proceeds remaining
following each sale of bonds which are not required by the authority
to establish and fund reserve funds and to pay the costs of issuance
and other expenses and fees directly related to the authorization and
issuance of bonds.
8. "Notes" means notes, warrants, loan agreements, and all
other forms of evidence of indebtedness authorized under this
chapter.
9. "Program plan" means the tobacco settlement program plan
dated February 14, 2001, including exhibits to the program plan,
submitted by the authority to the legislative council and the
executive council, to provide the state with a secure and stable
source of funding for the purposes designated by section 12E.3A and
other provisions of this chapter.
10. "Qualified investments" means investments of the
authority authorized pursuant to this chapter.
11. "Sales agreement" means any agreement authorized pursuant
to this chapter in which the state provides for the sale of all or a
portion of the state's share to the authority.
12. "State's share" means all of the following:
a. All payments required to be made by tobacco product
manufacturers to the state, and the state's rights to receive such
payments, under the master settlement agreement.
b. To the extent that such amounts have been assigned to the
state, all payments of attorney fees required to be made by tobacco
product manufacturers under the master settlement agreement, and all
rights to receive such attorney fees.
13. "Tax-exempt bonds" means bonds issued by the authority
that are accompanied by a written opinion of legal counsel to the
authority that the bonds are excluded from the gross income of the
recipients for federal income tax purposes.
14. "Taxable bonds" means bonds issued by the authority that
are not accompanied by a written opinion of legal counsel to the
authority that the bonds are excluded from the gross income of the
recipients for federal income tax purposes.
15. "Tobacco settlement trust fund" means the tobacco
settlement trust fund created in this chapter. Section History: Recent Form
2000 Acts, ch 1208, §2, 25; 2000 Acts, ch 1232, §13, 15; 2001
Acts, ch 164, §2--5, 21; 2008 Acts, ch 1186, §9, 10, 19