357H.8 - CERTIFICATES, CONTRACTS, AND OTHER OBLIGATIONS -- STANDBY TAX.

        357H.8  CERTIFICATES, CONTRACTS, AND OTHER OBLIGATIONS      -- STANDBY TAX.         To provide funds for the payment of the costs of improvement      projects and for the payment of other activities authorized pursuant      to section 357H.7, the board of trustees may borrow money and issue      and sell certificates or may enter into contracts or other      obligations payable from a sufficient portion of the future receipts      of tax revenue authorized pursuant to section 357H.9 and the standby      tax in subsection 4 of this section.  The receipts shall be pledged      to the payment of principal of and interest on the certificates,      contracts, or other obligations.         1.  Certificates may be sold at public sale or at private sale at      par, premium, or discount at the discretion of the board of trustees.      Chapter 75 does not apply to the issuance of these certificates.         2.  Certificates may be issued with respect to a single      improvement project or multiple projects and may contain terms or      conditions as the board of trustees may provide by resolution      authorizing the issuance of the certificates.  However, certificates      shall not be issued after January 1, 2007, except to refund other      certificates as provided in subsection 3.         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 rate of interest higher or lower than,      or equivalent to, the rate of interest on certificates being renewed      or refunded.         4.  To further secure the payment of the certificates, the board      of trustees shall, by resolution, provide for the assessment of an      annual levy of a standby tax upon all taxable property within the      rural improvement zone.  The rate of the standby tax shall be not      less than fifty cents per thousand dollars of the assessed value of      the taxable property and not more than two dollars and fifty cents      per thousand dollars of the assessed value of the taxable property.      A copy of the resolution shall be sent to the county auditor.  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 tax revenues pursuant to section 357H.9 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 which are not      required for the payment of principal of or interest on certificates      due.  No reserves may be built up in the special fund in anticipation      of a projected default.  The board of trustees 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, contracts, or other obligations are      issued or entered into, the board of trustees shall publish a notice      of its intention, stating the amount, the purpose, and the      improvement project or projects for which the certificates,      contracts, or other obligations are to be issued or entered into.  A      person may, within fifteen days after the publication of the notice,      appeal the decision of the board of trustees in proposing to issue      the certificates or to enter into the contracts or other obligations      to the district court in the county in which the rural improvement      zone exists.  The action of the board of trustees in determining to      issue the certificates or to enter into the contracts or other      obligations is final and conclusive unless the district court finds      that the board of trustees has exceeded its legal authority.  An      action shall not be brought which questions the legality of the      certificates, contracts, or other obligations, the power of the board      of trustees to issue the certificates or to enter into the contracts      or other obligations, the effectiveness of any proceedings relating      to the authorization of the project, or the authorization and      issuance of the certificates or entrance into the contracts or other      obligations after fifteen days from the publication of the notice of      intention to issue certificates or enter into contracts or other      obligations.         6.  The board of trustees shall determine if revenues are      sufficient to secure the faithful performance of obligations.  
         Section History: Recent Form
         97 Acts, ch 152, §8; 98 Acts, ch 1168, §3; 2000 Acts, ch 1190, §2