173.14B - BONDS AND NOTES.
173.14B BONDS AND NOTES.
1. The board may issue and sell negotiable revenue bonds of the
authority in denominations and amounts as the board deems for the
best interests of the fair. However, the board must first submit a
list of the purposes ranked by priority and a purpose must be
authorized by a constitutional majority of each house of the general
assembly and approved by the governor. A purpose must be one of the
following:
a. To acquire real estate to be devoted to uses for the fair.
b. To pay any expenses or costs incidental to a building or
repair project.
c. To provide sufficient funds for the advancement of any of
its corporate purposes.
2. The board may issue negotiable bonds and notes of the
authority in principal amounts which are necessary to provide
sufficient funds for achievement of its corporate purposes, the
payment of interest on its bonds and notes, the establishment of
reserves to secure its bonds and notes, and all other expenditures of
the board incident to and necessary or convenient to carry out its
purposes and powers, subject to authorization and approval required
under subsection 1. However, the total principal amount of bonds and
notes outstanding at any time under subsection 1 and this subsection
shall not exceed twenty-five million dollars. The bonds and notes
are deemed to be investment securities and negotiable instruments
within the meaning of and for all purposes of the uniform commercial
code, chapter 554.
3. Bonds and notes are payable solely out of the moneys, assets,
or revenues of the authority and as provided in the agreement with
bondholders or noteholders pledging any particular moneys, assets, or
revenues. Bonds or notes are not an obligation of this state or its
political subdivisions other than the authority within the meaning of
any constitutional or statutory debt limitations, but are special
obligations of the authority payable solely from sources provided in
this chapter, and the authority shall not pledge the credit or taxing
power of this state or its political subdivisions other than the
authority or make its debts payable out of any moneys except those of
the authority.
4. Bonds shall:
a. State the date and series of the issue, be consecutively
numbered, and state on their face that they are payable both as to
principal and interest solely out of the assets of the authority and
do not constitute an indebtedness of this state or its political
subdivisions other than the authority within the meaning of any
constitutional or statutory debt limit.
b. Be either registered, registered as to principal only, or
in coupon form, issued in denominations as the board prescribes,
fully negotiable instruments under the laws of this state, signed on
behalf of the authority with the manual or facsimile signature of the
president or vice president, attested by the manual or facsimile
signature of the secretary, have impressed or imprinted on it the
seal of the authority or facsimile of it, and coupons attached shall
be signed with the facsimile signature of the president or vice
president, be payable as to interest at rates and at times as the
authority determines, be payable as to principal at times over a
period not to exceed fifty years from the date of issuance, at places
and with reserved rights of prior redemption, as the board
prescribes, be sold at prices, at public or private sale, and in a
manner as the board prescribes, and the board may pay all expenses,
premiums, and commissions which it deems necessary or advantageous in
connection with the issuance and sale; and be issued subject to the
terms, conditions, and covenant 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, as are found to be
necessary by the board for the most advantageous sale, which may
include, but are not limited to, covenants with the holders of the
bonds as to those matters set forth in section 16.26, subsection 4,
paragraph "b".
5. The board may issue bonds of the authority for the purpose of
refunding any bonds or notes of the authority then outstanding,
including the payment of any redemption premiums and any interest
accrued or to accrue to the date of redemption of the outstanding
bonds or notes. Until the proceeds of the 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 this
chapter. 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 to the authority for use by it in any
lawful manner. All refunding bonds shall be issued and secured and
subject to this chapter in the same manner and to the same extent as
other bonds.
6. The board may issue negotiable bond anticipation notes of the
authority and may renew them from time to time but the maximum
maturity of the notes, including renewals, shall not exceed ten years
from the date of issue of the original notes. Notes are payable from
any available moneys of the authority not otherwise pledged or from
the proceeds of the sale of bonds in anticipation of which the notes
were issued. Notes may be issued for any corporate purpose of the
authority. Notes shall be issued in the same manner as bonds and
notes and the resolution of the board may contain any provisions,
conditions, or limitations, not inconsistent with this subsection,
which the bonds or a bond resolution of the board may contain. Notes
may be sold at public or private sale. In case of default on its
notes or violation of any obligations of the authority to the
noteholders, the noteholders have all the remedies provided in this
chapter for bondholders. Notes shall be as fully negotiable as bonds
of the authority.
7. A copy of each pledge agreement by or to the authority,
including without limitation each bond resolution, indenture of
trust, or similar agreement, or any revisions or supplements to it
shall be filed with the secretary of state and no further filing or
other action under article 9 of the uniform commercial code as
provided in chapter 554, or any other law of the state is required to
perfect the security interest in the collateral or any additions to
it or substitutions for it, and the lien and trust so created is
binding from and after the time it is made against all parties having
claims of any kind in tort, contract, or otherwise against the
pledgor.
8. Members of the board and any person executing the authority's
bonds, notes, or other obligations are not liable personally on the
bonds, notes, or other obligations or subject to personal liability
or accountability by reason of the issuance of the authority's bonds
or notes.
9. The board shall publish a notice of intention to issue bonds
or notes in a newspaper published and of general circulation in the
state. The notice shall include a statement of the maximum amount of
bonds or notes proposed to be issued, and in general, what net
revenues will be pledged to pay the bonds or notes and interest on
them. An action shall not be brought questioning the legality of the
bonds or notes, the power of the board to issue the bonds or notes,
or the legality of any proceedings in connection with the
authorization or issuance of the bonds or notes after sixty days from
the date of publication of the notice. Section History: Recent Form
87 Acts, ch 233, § 230; 91 Acts, ch 268, §228, 229; 94 Acts, ch
1198, §36; 2005 Acts, ch 3, §44