16.131 - IOWA WATER POLLUTION CONTROL WORKS AND DRINKING WATER FACILITIES FINANCING PROGRAM -- FUNDING -- BONDS AND NOTES.
16.131 IOWA WATER POLLUTION CONTROL WORKS AND
DRINKING WATER FACILITIES FINANCING PROGRAM -- FUNDING -- BONDS AND
NOTES.
1. The authority shall cooperate with the department of natural
resources in the creation, administration, and financing of the Iowa
water pollution control works and drinking water facilities financing
program established in sections 455B.291 through 455B.299.
2. The authority may issue its bonds and notes for the purpose of
funding the funds created under section 16.133A and the state
matching funds required pursuant to the Clean Water Act and the Safe
Drinking Water Act.
3. The authority may issue its bonds and notes for the purposes
established and may enter into one or more loan agreements or
purchase agreements with one or more bondholders or noteholders
containing the terms and conditions of the repayment of and the
security for the bonds or notes. The authority and the bondholders
or noteholders or a trustee agent designated by the authority may
enter into agreements to provide for any of the following:
a. That the proceeds of the bonds and notes and the
investments of the proceeds may be received, held, and disbursed by
the authority or by a trustee or agent designated by the authority.
b. That the bondholders or noteholders or a trustee or agent
designated by the authority may collect, invest, and apply the amount
payable under the loan agreements or any other instruments securing
the debt obligations under the loan agreements.
c. That the bondholders or noteholders may enforce the
remedies provided in the loan agreements or other instruments on
their own behalf without the appointment or designation of a trustee.
If there is a default in the principal of or interest on the bonds or
notes or in the performance of any agreement contained in the loan
agreements or other instruments, the payment or performance may be
enforced in accordance with the loan agreement or other instrument.
d. Other terms and conditions as deemed necessary or
appropriate by the authority.
4. The powers granted the authority under this section are in
addition to other powers contained in this chapter. All other
provisions of this chapter, except section 16.28, subsection 4, apply
to bonds or notes issued and powers granted to the authority under
this section except to the extent they are inconsistent with this
section.
5. All bonds or notes issued by the authority in connection with
the program are exempt from taxation by this state and the interest
on the bonds or notes is exempt from state income tax.
6. The authority shall determine the interest rate and repayment
terms for loans made under the program, in cooperation with the
department, and the authority shall enter into loan agreements with
eligible entities in compliance with and subject to the terms and
conditions of the Clean Water Act, the Safe Drinking Water Act, and
any other applicable federal law.
7. The authority shall process, review, and approve or deny loan
applications pursuant to eligibility requirements established by rule
of the authority and in accordance with the intended use plan
applications approved by the department.
8. The authority may charge loan recipients fees and assess costs
against such recipients necessary for the continued operation of the
program. Fees and costs collected pursuant to this subsection shall
be deposited in the appropriate fund or funds described in section
16.133A.
9. Notwithstanding any provision of this chapter to the contrary,
moneys received under the federal American Recovery and Reinvestment
Act of 2009, Pub. L. No. 111-5, and deposited in the revolving loan
funds may be used in any manner permitted or required by applicable
federal law. Section History: Recent Form
88 Acts, ch 1217, §20
C89, § 220.131
C93, § 16.131
97 Acts, ch 4, §1; 2002 Acts, 2nd Ex, ch 1003, §234, 262; 2009
Acts, ch 30, §1--4; 2009 Acts, ch 100, §3, 21
Referred to in § 16.131A, 16.132, 16.133, 16.134