257C.8 - ADVANCE FUNDING PROGRAM.
257C.8 ADVANCE FUNDING PROGRAM.
1. The authority shall establish a statewide advance funding
program for the purchase from schools of notes issued in anticipation
of the receipt of moneys for school purposes or for making loans to
schools to alleviate cash flow difficulties and to otherwise improve
the financial well-being of the schools.
2. The authority may issue its bonds and use the proceeds from
the bonds for the purpose of making loans to or purchasing the notes
of any school for the use of the various funds of the school for any
lawful school purpose excluding debt service. Bonds issued pursuant
to this section may be secured by a pledge of payments made to the
authority by the school, to be derived from the receipt of
anticipated funds evidenced by the notes of the school, including a
pooling of payments of notes from two or more participating schools.
The authority may also issue refunding bonds, including advance
refunding bonds, for the purpose of refunding previously issued
bonds.
3. The authority may issue its bonds 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, the establishment of reserves to secure its
bonds, the costs of issuance of its bonds, and all other expenditures
of the authority incident to and necessary or convenient to carry out
its purposes and powers. The bonds are investment securities and
negotiable instruments within the meaning of and for purposes of the
uniform commercial code, chapter 554.
4. Bonds issued under this section are payable solely and only
out of the moneys, assets, or revenues of the authority and are not
an indebtedness of this state, and this state is not liable on the
bonds. Bonds issued under this chapter shall contain on their face a
statement that the state is not liable.
5. The proceeds of bonds issued by the authority and not required
for immediate disbursement may be invested in any investment approved
by the board and specified in the trust indenture or resolution
pursuant to which the bonds are issued without regard to any
limitation otherwise provided by law.
6. The bonds of the authority shall be:
a. In a form, issued in denominations, executed in a manner,
and payable over terms and with rights of redemption, as the board
prescribes in the resolution 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 board. Chapters 73A, 74, 74A and 75 do not apply
to their sale or issuance.
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 resolution of the board.
7. The bonds of the authority 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.
8. Bonds must be authorized by a resolution of the board.
However, a resolution authorizing the issuance of bonds may delegate
to an officer of the authority the power to negotiate and fix the
details of an issue of bonds by an appropriate certificate of the
authorized officer. Section History: Recent Form
85 Acts, ch 34, §8
CS85, § 442A.8
C93, § 257C.8
2005 Acts, ch 3, §56
Referred to in § 257C.13