261A.45 - OBLIGATIONS ISSUED TO ACQUIRE FEDERALLY GUARANTEED SECURITIES.
261A.45 OBLIGATIONS ISSUED TO ACQUIRE FEDERALLY
GUARANTEED SECURITIES.
The authority may finance the cost of a project, refund
outstanding indebtedness, or reimburse advances from an endowment or
similar fund of an institution as authorized by this division, by
issuing its obligations pursuant to a plan of financing involving the
acquisition of a federally guaranteed security or the acquisition or
entering into of commitments to acquire a federally guaranteed
security. For the purposes of this section, "federally guaranteed
security" means any direct obligation of, or obligation the
principal of and interest on which are fully guaranteed or insured by
the United States, or an obligation issued by, or the principal of
and interest on which are fully guaranteed or insured by any agency
or instrumentality of the United States, including without limitation
an obligation that is issued pursuant to the National Housing Act, or
any successor provision of law.
The authority may acquire or enter into commitments to acquire a
federally guaranteed security and pledge or otherwise use the
federally guaranteed security in the manner the authority deems in
its best interest to secure or otherwise provide a source of
repayment of its obligations issued to finance or refinance a
project, or may enter into an appropriate agreement with an
institution whereby the authority may make a loan to the institution
for the purpose of acquiring or entering into commitments to acquire
a federally guaranteed security. An agreement entered into pursuant
to this section may contain provisions deemed necessary or desirable
by the authority for the security or protection of the authority or
the holders of the obligations, except that the authority, prior to
making an acquisition, commitment, or loan, shall determine and enter
into an agreement with the institution or another appropriate
institution to require that the proceeds derived from the acquisition
of a federally guaranteed security will be used, directly or
indirectly, for the purpose of financing or refinancing a project.
The obligations issued pursuant to this section shall not exceed
in principal amount the cost of financing or refinancing the project
as determined by the participating institution and approved by the
authority, except that the costs may include, without limitation, all
costs and expenses necessary or incidental to the acquisition of or
commitment to acquire a federally guaranteed security and to the
issuance and obtaining of insurance or guarantee of an obligation
issued or incurred in connection with a federally guaranteed
security. In other respects the bonds are subject to this division,
and the trust agreement creating the bonds may contain provisions set
forth in this division as the authority deems appropriate.
If a project is financed or refinanced pursuant to this section,
the title to the project shall remain in the participating
institution owning the project, subject to the lien of a mortgage or
security interest securing, directly or indirectly, the federally
guaranteed securities being purchased or to be purchased. Section History: Recent Form
85 Acts, ch 210, §15
Referred to in § 261A.42