39.98.040 - Certificate issued by state treasurer evidence of guaranty -- Limitations on issuance of guaranteed bonds -- Fees.

Certificate issued by state treasurer evidence of guaranty — Limitations on issuance of guaranteed bonds — Fees.

(1)(a) Any district, by resolution of its board of directors, may request that the state treasurer issue a certificate evidencing the state's guaranty, under this chapter, of its bonds.

     (b) After reviewing the request, if the state treasurer determines that the district is eligible under rules adopted by the state finance committee, the state treasurer shall promptly issue the certificate as to specific bonds of the district and provide it to the requesting district.

     (c)(i) The district receiving the certificate and all other persons may rely on the certificate as evidencing the guaranty for bonds issued within one year from and after the date of the certificate, without making further inquiry during that year.

     (ii) The certificate of eligibility is valid for one year even if the state treasurer later determines that the school district is ineligible.

     (2) Any district that chooses to forego the benefits of the guaranty provided by this chapter for a particular issue of bonds may do so by not referring to this chapter on the face of its bonds.

     (3) Any district that has bonds, the principal of or interest on which has been paid, in whole or in part, by the state under this chapter, may not issue any additional bonds guaranteed by this chapter until:

     (a) All payment obligations of the district to the state under the credit enhancement program are satisfied; and

     (b) The state treasurer and the state superintendent of public instruction each certify in writing, to be kept on file by the state treasurer and the state superintendent of public instruction, that the district is fiscally solvent.

     (4) The state finance committee may establish by rule fees sufficient to cover the costs of administering this chapter.

[1999 c 273 § 4.]