455G.6 - IOWA COMPREHENSIVE PETROLEUM UNDERGROUND STORAGE TANK FUND -- GENERAL AND SPECIFIC POWERS.

        455G.6  IOWA COMPREHENSIVE PETROLEUM UNDERGROUND      STORAGE TANK FUND -- GENERAL AND SPECIFIC POWERS.         In administering the fund, the board has all of the general powers      reasonably necessary and convenient to carry out its purposes and      duties and may do any of the following, subject to express      limitations contained in this chapter:         1.  Guarantee secured and unsecured loans, and enter into      agreements for corrective action, acquisition and construction of      tank improvements, and provide for the insurance program.  The loan      guarantees may be made to a person or entity owning or operating a      tank.  The board may take any action which is reasonable and lawful      to protect its security and to avoid losses from its loan guarantees.         2.  Acquire, hold, and mortgage personal property and real estate      and interests in real estate to be used.         3.  Purchase, construct, improve, furnish, equip, lease, option,      sell, exchange, or otherwise dispose of one or more improvements      under the terms it determines.         4.  Grant a mortgage, lien, pledge, assignment, or other      encumbrance on one or more improvements, revenues, asset of right,      accounts, or funds established or received in connection with the      fund, including revenues derived from the moneys credited under      section 321.145, subsection 2, paragraph "a", and deposited in      the fund or an account of the fund.         5.  Provide that the interest on bonds may vary in accordance with      a base or formula.         6.  Contract for the acquisition, construction, or both of one or      more improvements or parts of one or more improvements and for the      leasing, subleasing, sale, or other disposition of one or more      improvements in a manner it determines.         7.  The board may contract with the authority for the authority to      issue bonds and do all things necessary with respect to the purposes      of the fund, as set out in the contract between the board and the      authority.  The board may delegate to the authority and the authority      shall then have all of the powers of the board which are necessary to      issue and secure bonds and carry out the purposes of the fund, to the      extent provided in the contract between the board and the authority.      The authority may issue the authority's bonds in principal amounts      which, in the opinion of the board, are necessary to provide      sufficient funds for the fund, 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 authority 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.  The bonds are investment securities and      negotiable instruments within the meaning of and for purposes of the      uniform commercial code, chapter 554.         8.  Bonds issued under this section are payable solely and only      out of the moneys, assets, or revenues of the fund, 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,      and are not an indebtedness of this state or the authority, or a      charge against the general credit or general fund of the state or the      authority, and the state shall not be liable for any financial      undertakings with respect to the fund.  Bonds issued under this      chapter shall contain on their face a statement that the bonds do not      constitute an indebtedness of the state or the authority.         9.  The proceeds of bonds issued by the authority and not required      for immediate disbursement may be deposited with a trustee or      depository as provided in the bond documents and invested in any      investment approved by the authority 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.         10.  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 authority.  Chapters 73A, 74, 74A and 75 do not      apply to their 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 chapter      and as determined by the trust indenture, resolution, or other      instrument authorizing their issuance.         11.  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.         12.  Bonds must be authorized by a trust indenture, resolution, or      other instrument of the authority, approved by the board.  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.         13.  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.         14.  Bonds issued under the provisions of this section are      declared to be issued for an essential public and governmental      purpose and all bonds issued under this chapter 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.         15. a.  Subject to the terms of any bond documents, moneys in      the fund or fund accounts may be expended for administration      expenses, civil penalties, moneys paid under an agreement,      stipulation, or settlement, for the costs associated with sites      within a community remediation project, for costs related to      contracts entered into with a state agency or university, costs for      activities relating to litigation, or for the costs of any other      activities as the board may determine are necessary and convenient to      facilitate compliance with and to implement the intent of federal      laws and regulations and this chapter.  For purposes of this chapter,      administration expenses include expenses incurred by the underground      storage tank section of the department of natural resources in      relation to tanks regulated under this chapter.         b.  The authority granted under this subsection which allows      the board to expend fund moneys on an activity the board determines      is necessary and convenient to facilitate compliance with and to      implement the intent of federal laws and regulations and this      chapter, shall only be used in accordance with the following:         (1)  Prior board approval shall be required before expenditure of      moneys pursuant to this authority shall be made.         (2)  If the expenditure of fund moneys pursuant to this authority      would result in the board establishing a policy which would      substantially affect the operation of the program, rules shall be      adopted pursuant to chapter 17A prior to the board or the      administrator taking any action pursuant to this proposed policy.         16.  The board shall cooperate with the department of natural      resources in the implementation and administration of this chapter to      assure that in combination with existing state statutes and rules      governing underground storage tanks, the state will be, and continue      to be, recognized by the federal government as having an "approved      state account" under the federal Resource Conservation and Recovery      Act, especially by compliance with the Act's subtitle I financial      responsibility requirements as enacted in the federal Superfund      Amendments and Reauthorization Act of 1986 and the financial      responsibility regulations adopted by the United States environmental      protection agency at 40 C.F.R. pts. 280 and 281.  Whenever possible      this chapter shall be interpreted to further the purposes of, and to      comply, and not to conflict, with such federal requirements.         17.  The board may adopt rules pursuant to chapter 17A providing      for the transfer of all or a portion of the liabilities of the board      under this chapter.  Notwithstanding other provisions to the      contrary, the board, upon such transfer, shall not maintain any duty      to reimburse claimants under this chapter for those liabilities      transferred.  
         Section History: Recent Form
         89 Acts, ch 131, § 47; 90 Acts, ch 1235, § 20; 92 Acts, ch 1018, §      1; 92 Acts, ch 1217, § 6; 95 Acts, ch 215, §13; 98 Acts, ch 1065, §2;      2000 Acts, ch 1226, §14, 30; 2003 Acts, ch 44, §114; 2003 Acts, ch      110, §5; 2003 Acts, 1st Ex, ch 2, §199, 205; 2008 Acts, ch 1113,      §118; 2008 Acts, ch 1119, §9 
         Footnotes
         Section repealed effective July 1, 2010; exception for outstanding      bonds; 89 Acts, ch 131, § 63; 2009 Acts, ch 184, §39         Board to authorize authority to defease all bonds issued pursuant      to this chapter prior to June 30, 2008, and authority to so defease      from funds available in the Iowa comprehensive petroleum underground      storage tank fund; 2008 Acts, ch 1124, §39, 41