175.17 - BONDS AND NOTES.
175.17 BONDS AND NOTES.
1. The authority may issue its negotiable bonds and notes in
principal amounts which, in the opinion of the authority, 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 authority incident to and necessary or
convenient to carry out its purposes and powers. The bonds and notes
shall be deemed to be investment securities and negotiable
instruments within the meaning of and for all purposes of the uniform
commercial code, chapter 554.
2. Bonds and notes are payable solely and only 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 any political subdivision of this state other than the
authority within the meaning of any constitutional or statutory debt
limitations, but are special obligations of the authority payable
solely and only from the sources provided in this chapter, and the
authority shall not pledge the credit or taxing power of this state
or any political subdivision of this state other than the authority
or make its debts payable out of any moneys except those of the
authority.
3. Bonds and notes must be authorized by a resolution of the
authority. However, a resolution authorizing the issuance of bonds
or notes may delegate to an officer of the authority the power to
negotiate and fix the details of an issue of bonds or notes by an
appropriate certificate of the authorized officer.
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 any political
subdivision of this state 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 authority prescribes,
fully negotiable instruments under the laws of this state, signed on
behalf of the authority with the manual or facsimile signature of the
chairperson or vice chairperson, attested by the manual or facsimile
signature of the secretary, have impressed or imprinted thereon the
seal of the authority or a facsimile of it, and the coupons attached
shall be signed with the facsimile signature of the chairperson or
vice chairperson, 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 authority
prescribes, be sold at prices, at public or private sale, and in a
manner as the authority prescribes, and the authority may pay all
expenses, premiums and commissions which it deems necessary or
advantageous in connection with the issuance and sale, and be issued
under and 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,
as are found to be necessary by the authority 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 authority may issue its bonds 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 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 the provisions of 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 the
provisions of this chapter in the same manner and to the same extent
as other bonds.
6. The authority may issue negotiable bond anticipation notes 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 authorizing them may contain any provisions, conditions or
limitations, not inconsistent with the provisions of this subsection,
which the bonds or a bond resolution of the authority 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 shall 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 shall be 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 shall be
binding from and after the time made against all parties having
claims of any kind in tort, contract or otherwise against the
pledgor.
8. Members of the authority and any person executing its 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 authority 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
thereon. An action shall not be brought questioning the legality of
the bonds or notes or the power of the authority to issue the bonds
or notes or to 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.
10. Bonds and notes issued by the authority for purposes of
financing the beginning farmer loan program provided in section
175.12 are exempt from taxation by the state, and interest earned on
the bonds and notes is deductible in determining net income for
purposes of the state individual and corporate income tax under
divisions II and III of chapter 422. Section History: Early Form
[C81, § 175.17] Section History: Recent Form
87 Acts, ch 52, § 6; 89 Acts, ch 175, §1; 2005 Acts, ch 3, §45
Referred to in § 175.33, 175.34, 422.7, 422.35