This text of Iowa § 261A.45 (Obligations issued to acquire federally guaranteed securities) is published on Counsel Stack Legal Research, covering Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
1.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 subchapter, 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 a
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1. 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 subchapter, 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.
2. 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
agreementwithaninstitutionwherebytheauthoritymaymakealoantotheinstitutionforthe
purposeofacquiringorenteringintocommitmentstoacquireafederallyguaranteedsecurity.
Anagreemententeredintopursuanttothissectionmaycontainprovisionsdeemednecessary
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.
3. 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
§261A.45, HIGHER EDUCATION LOAN AUTHORITY (PRIVATE INSTITUTIONS) 18
an obligation issued or incurred in connection with a federally guaranteed security. In other
respects the bonds are subject to this subchapter, and the trust agreement creating the bonds
may contain provisions set forth in this subchapter as the authority deems appropriate.
4. Ifaprojectisfinancedorrefinancedpursuanttothissection, thetitletotheprojectshall
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.