§ 275.29 — Division of assets and liabilities after reorganization

Iowa § 275.29

• Jurisdiction: Iowa
• Title VII: EDUCATION, HISTORY, AND CULTURE
• Ch. 275: REORGANIZATION OF SCHOOL DISTRICTS

Text

1. Between July 1 and July 20, or on a date determined by agreement of the initial board
andtheboardsofdistrictsreceivingterritoryoftheschooldistrictsaffected, butnotlaterthan
August 30, the initial board shall meet with the boards of districts receiving territory of the
school districts affected, for the purpose of reaching joint agreement on an equitable division
of the assets and an equitable distribution of the liabilities of the school districts affected.
In addition, if outstanding general obligation indebtedness is in existence in any district, the
initial board of directors of the newly formed school district shall meet with the boards of
all school districts affected prior to April 30 prior to the school year the reorganization is
effectivetodeterminethedistributionofliabilityforpaymentofthegeneralobligationbonded
indebtedness between the districts so that the newly formed district may certify its budget
under the procedures specified in chapter 24. The boards shall consider the mandatory levy
requiredinsection76.2andshallassurethesatisfactionofoutstandingobligations. Ifaschool
district affected by the reorganization has outstanding bonds issued under section 423E.5*
or 423F.4, the joint agreement shall assure that the estimated revenue under section 423F.2
for each district to which liability for payment of such bonds is assigned is sufficient for the
payment of principal and interest on the outstanding bonds required to be paid in the budget
year following reorganization.
2. For bonds issued under section 423E.5* or 423F.4, the approval of the joint agreement
creates a lien on the revenues from the secure an advanced vision for education fund received
by the school district to which liability is assigned, subject to the same priority as provided
by the affected school district that issued the bonds.

Legislative History

[C73, §1715; C97, §2802; S13, §2802, 2820-g; C24, 27, 31, 35, 39, §4137; C46, 50, §274.19; C54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §275.29]