260C.72 - SECURITY -- RESERVE FUNDS -- PLEDGES -- NONLIABILITY.
260C.72 SECURITY -- RESERVE FUNDS -- PLEDGES --
NONLIABILITY.
1. The authority may provide in the resolution, trust agreement,
or other instrument authorizing the issuance of its bonds or notes
pursuant to section 260C.71 that the principal of, premium, and
interest on the bonds or notes are payable from any of the following
and may pledge the same to its bonds and notes:
a. From the net rents, profits, and income arising from the
project or property pledged or mortgaged.
b. From the net rents, profits, and income which has not been
pledged for other purposes arising from any similar housing facility
under the control and management of the community college or state
board for community colleges.
c. From the fees or charges established by the community
college or state board for community colleges for students attending
the institution who are living in the housing facility for which the
obligation was incurred.
d. From the income derived from gifts and bequests made to
the institutions under the control of the community college or state
board for community colleges for such purposes.
e. From the amounts on deposit in the name of a community
college or a private developer or operator of a community college
facility, including but not limited to revenues from a purchase,
rental, or lease agreement, loan agreement, or dormitory charges.
f. From the amounts payable to the authority, the community
college board of directors, the state board for community colleges,
or a private developer or operator, pursuant to a loan agreement,
lease agreement, or sale agreement.
g. From the other funds or accounts established by the
authority in connection with the program or the sale and issuance of
its bonds or notes.
No obligation created hereunder shall ever be or become a charge
against the state of Iowa but all such obligations, including
principal and interest, shall be payable solely as provided in this
section and section 260C.71.
2. The authority may establish reserve funds to secure one or
more issues of its bonds or notes. The authority may deposit in a
reserve fund established under this subsection, the proceeds of the
sale of its bonds or notes and other money which is made available
from any other source.
3. A pledge made in respect of bonds or notes is valid and
binding from the time the pledge is made. The money or property so
pledged and received after the pledge by the authority is immediately
subject to the lien of the pledge without physical delivery or
further act. The lien of the pledge is valid and binding as against
all persons having claims of any kind in tort, contract, or otherwise
against the authority whether or not the parties have notice of the
lien. Neither the resolution, trust agreement, or any other
instrument by which a pledge is created needs to be recorded, filed,
or perfected under chapter 554, to be valid, binding, or effective
against all persons.
4. The members of the authority or persons executing the bonds or
notes are not personally liable on the bonds or notes and are not
subject to personal liability or accountability by reason of the
issuance of the bonds or notes.
5. The bonds or notes issued by the authority are not an
indebtedness or other liability of the state or of a political
subdivision of the state within the meaning of any constitutional or
statutory debt limitations, but are special obligations of the
authority and are payable solely from the income and receipts or
other funds or property of the community college or private
developer, and the amounts on deposit in a community college bond
fund, and the amounts payable to the authority under its loan
agreements with a community college or private developer to the
extent that the amounts are designated in the resolution, trust
agreement, or other instrument of the authority authorizing the
issuance of the bonds or notes as being available as security for the
bonds or notes. The authority shall not pledge the faith or credit
of the state or of a political subdivision of the state to the
payment of any bonds or notes. The issuance of any bonds or notes by
the authority does not directly, indirectly, or contingently obligate
the state or a political subdivision of the state to apply money
from, or levy, or pledge any form of taxation whatever to the payment
of the bonds or notes. Section History: Recent Form
90 Acts, ch 1253, § 77; 90 Acts, ch 1254, § 7, 8
C91, § 280A.72
C93, § 260C.72
Referred to in § 16.162, 260C.71, 260C.73