§ 173.14B — Bonds and notes

Iowa § 173.14B

• Jurisdiction: Iowa
• Title V: AGRICULTURE
• Ch. 173: STATE FAIR

Text

1. The board may issue and sell negotiable revenue bonds of the authority in
denominations and amounts as the board deems for the best interests of the fair. However,
the board must first submit a list of the purposes ranked by priority and a purpose must be
authorized by a constitutional majority of each house of the general assembly and approved
by the governor. A purpose must be one of the following:
a. To acquire real estate to be devoted to uses for the fair.
b. To pay any expenses or costs incidental to a building or repair project.
c. To provide sufficient funds for the advancement of any of its corporate purposes.
2. The board may issue negotiable bonds and notes of the authority in principal amounts
whicharenecessarytoprovidesufficientfundsforachievementofitscorporatepurposes, the
§173.14B, STATE FAIR 6
payment of interest on its bonds and notes, the establishment of reserves to secure its bonds
and notes, and all other expenditures of the board incident to and necessary or convenient
to carry out its purposes and powers, subject to authorization and approval required under
subsection 1. However, the total principal amount of bonds and notes outstanding at any
time under subsection 1 and this subsection shall not exceed twenty-five million dollars. The
bonds and notes are deemed to be investment securities and negotiable instruments within
the meaning of and for all purposes of the uniform commercial code, chapter 554.
3. Bonds and notes are payable solely out of the moneys, assets, or revenues of the
authority and as provided in the agreement with bondholders or noteholders pledging any
particular moneys, assets, or revenues. Bonds or notes are not an obligation of this state or
its political subdivisions other than the authority within the meaning of any constitutional or
statutory debt limitations, but are special obligations of the authority payable solely from
sources provided in this chapter, and the authority shall not pledge the credit or taxing
power of this state or its political subdivisions other than the authority or make its debts
payable out of any moneys except those of the authority.
4. Bonds shall:
a. Statethedateandseriesoftheissue,beconsecutivelynumbered,andstateontheirface
that they are payable both as to principal and interest solely out of the assets of the authority
and do not constitute an indebtedness of this state or its political subdivisions other than the
authority within the meaning of any constitutional or statutory debt limit.
b. Be either registered, registered as to principal only, or in coupon form, issued in
denominations as the board prescribes, fully negotiable instruments under the laws of
this state, signed on behalf of the authority with the manual or facsimile signature of the
president or vice president, attested by the manual or facsimile signature of the secretary,
have impressed or imprinted on it the seal of the authority or facsimile of it, and coupons
attached shall be signed with the facsimile signature of the president or vice president, be
payable as to interest at rates and at times as the authority determines, be payable as to
principal at times over a period not to exceed fifty years from the date of issuance, at places
and with reserved rights of prior redemption, as the board prescribes, be sold at prices, at
public or private sale, and in a manner as the board prescribes, and the board may pay
all expenses, premiums, and commissions which it deems necessary or advantageous in
connection with the issuance and sale; and be issued subject to the terms, conditions, and
covenant providing for the payment of the principal, redemption premiums, if any, interest,
and other terms, conditions, covenants, and protective provisions safeguarding payment,
not inconsistent with this chapter, as are found to be necessary by the board for the most
advantageous sale, which may include, but are not limited to, covenants with the holders of
the bonds as to those matters set forth in section 16.26, subsection 4, paragraph “b”.
5. The board may issue bonds of the authority for the purpose of refunding any bonds or
notes of the authority then outstanding, including the payment of any redemption premiums
and any interest accrued or to accrue to the date of redemption of the outstanding bonds
or notes. Until the proceeds of the bonds issued for the purpose of refunding outstanding
bonds or notes are applied to the purchase or retirement of outstanding bonds or notes or
the redemption of outstanding bonds or notes, the proceeds may be placed in escrow and be
invested and reinvested in accordance with this chapter. The interest, income, and profits
earned or realized on an investment may also be applied to the payment of the outstanding
bonds or notes to be refunded by purchase, retirement, or redemption. After the terms of the
escrow have been fully satisfied and carried out, any balance of proceeds and interest earned
or realized on the investments may be returned to the authority for use by it in any lawful
manner. All refunding bonds shall be issued and secured and subject to this chapter in the
same manner and to the same extent as other bonds.
6. Theboardmayissuenegotiablebondanticipationnotesoftheauthorityandmayrenew
them from time to time but the maximum maturity of the notes, including renewals, shall
not exceed ten years from the date of issue of the original notes. Notes are payable from
any available moneys of the authority not otherwise pledged or from the proceeds of the
sale of bonds in anticipation of which the notes were issued. Notes may be issued for any
corporate purpose of the authority. Notes shall be issued in the same manner as bonds and

notes and the resolution of the board may contain any provisions, conditions, or limitations,
not inconsistent with this subsection, which the bonds or a bond resolution of the board may
contain. Notes may be sold at public or private sale. In case of default on its notes or violation
of any obligations of the authority to the noteholders, the noteholders have all the remedies
provided in this chapter for bondholders. Notes shall be as fully negotiable as bonds of the
authority.
7. A copy of each pledge agreement by or to the authority, including without limitation
each bond resolution, indenture of trust, or similar agreement, or any revisions or
supplements to it shall be filed with the secretary of state and no further filing or other action
under article 9 of the uniform commercial code as provided in chapter 554, or any other law
of the state is required to perfect the security interest in the collateral or any additions to it
or substitutions for it, and the lien and trust so created is binding from and after the time it
is made against all parties having claims of any kind in tort, contract, or otherwise against
the pledgor.
8. Members of the board and any person executing the authority’s bonds, notes, or other
obligations are not liable personally on the bonds, notes, or other obligations or subject to
personalliabilityoraccountabilitybyreasonoftheissuanceoftheauthority’sbondsornotes.
9. The board shall publish a notice of intention to issue bonds or notes in a newspaper
published and of general circulation in the state. The notice shall include a statement of the
maximum amount of bonds or notes proposed to be issued, and in general, what net revenues
will be pledged to pay the bonds or notes and interest on them. An action shall not be brought
questioning the legality of the bonds or notes, the power of the board to issue the bonds or
notes, or the legality of any proceedings in connection with the authorization or issuance of
the bonds or notes after sixty days from the date of publication of the notice.