§ 384.24A — Loan agreements

Iowa § 384.24A

• Jurisdiction: Iowa
• Title IX: LOCAL GOVERNMENT
• Ch. 384: CITY FINANCE

Text

A city may enter into loan agreements to borrow money for any public purpose in
accordance with the following terms and procedures:
1. A loan agreement entered into by a city may contain provisions similar to those
sometimes found in loan agreements between private parties, including, but not limited to,
the issuance of notes to evidence its obligations.
2. A provision of a loan agreement which stipulates that a portion of the payments be
applied as interest is subject to chapter 74A. Other laws relating to interest rates do not apply.
Chapter 75 is not applicable. A city utility or city enterprise is a separate entity under this
section whether it is governed by the governing body of the city or another governing body.
3. The governing body shall follow substantially the same authorization procedure
required for the issuance of general obligation bonds issued for the same purpose to
authorize a loan agreement made payable from the debt service fund.
4. The governing body may authorize a loan agreement which is payable from the
general fund if the loan agreement would not cause the total of scheduled annual payments
of principal or interest or both principal and interest due from the general fund in any single
future fiscal year with respect to all loan agreements in force on the date of the authorization
to exceed ten percent of the last certified general fund budget amount in accordance with
the following procedures:
a. The governing body must follow substantially the authorization procedures of section
§384.24A, CITY FINANCE 22