260E.6 - CERTIFICATES.
260E.6 CERTIFICATES.
To provide funds for the present payment of the costs of new jobs
training programs, a community college may borrow money and issue and
sell certificates payable from a sufficient portion of the future
receipts of payments authorized by the agreement. The receipts shall
be pledged to the payment of principal of and interest on the
certificates.
1. Certificates may be sold at public sale or at private sale at
par, premium, or discount at the discretion of the board of
directors. Chapter 75 does not apply to the issuance of these
certificates.
2. Certificates may be issued with respect to a single project or
multiple projects and may contain terms or conditions as the board of
directors may provide by resolution authorizing the issuance of the
certificates.
3. Certificates issued to refund other certificates may be sold
at public sale or at private sale as provided in this section with
the proceeds from the sale to be used for the payment of the
certificates being refunded. The refunding certificates may be
exchanged in payment and discharge of the certificates being
refunded, in installments at different times or an entire issue or
series at one time. Refunding certificates may be sold or exchanged
at any time on, before, or after the maturity of the outstanding
certificates to be refunded, may be issued for the purpose of
refunding a like, greater, or lesser principal amount of certificates
and may bear a higher, lower, or equivalent rate of interest than the
certificates being renewed or refunded.
4. To further secure the payment of the certificates, the board
of directors shall, by resolution, provide for the assessment of an
annual levy of a standby tax upon all taxable property within the
merged area. A copy of the resolution shall be sent to the county
auditor of each county in which the merged area is located. The
revenues from the standby tax shall be deposited in a special fund
and shall be expended only for the payment of principal of and
interest on the certificates issued as provided in this section, when
the receipt of payment for program costs as provided in the agreement
is insufficient. If payments are necessary and made from the special
fund, the amount of the payments shall be promptly repaid into the
special fund from the first available payments received for program
costs as provided in the agreement which are not required for the
payment of principal of or interest on certificates due. No reserves
may be built up in this fund in anticipation of a projected default.
The board of directors shall adjust the annual standby tax levy for
each year to reflect the amount of revenues in the special fund and
the amount of principal and interest which is due in that year.
5. Before certificates are issued, the board of directors shall
publish once a notice of its intention to issue the certificates,
stating the amount, the purpose, and the project or projects for
which the certificates are to be issued. A person may, within
fifteen days after the publication of the notice by action in the
district court of a county in the area within which the community
college is located, appeal the decision of the board of directors in
proposing to issue the certificates. The action of the board of
directors in determining to issue the certificates is final and
conclusive unless the district court finds that the board of
directors has exceeded its legal authority. An action shall not be
brought which questions the legality of the certificates, the power
of the board of directors to issue the certificates, the
effectiveness of any proceedings relating to the authorization of the
project, or the authorization and issuance of the certificates from
and after fifteen days from the publication of the notice of
intention to issue.
6. The board of directors shall determine if revenues are
sufficient to secure the faithful performance of obligations in the
agreement. Section History: Recent Form
83 Acts, ch 171, § 6, 8
CS83, § 280B.6
88 Acts, ch 1158, § 58; 90 Acts, ch 1253, § 81
C93, § 260E.6
Referred to in § 15A.7, 15A.8, 15A.9, 15E.197, 260C.58, 260E.2