§ 384.25 — General obligation bonds for essential purposes

Iowa § 384.25

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

Text

fund. The governing body must follow substantially the authorization procedures of section
384.25toauthorizealoanagreementforrealpropertywhichispayablefromthegeneralfund
if the principal amount of the loan agreement does not exceed the following limits:
(1) Five hundred twenty thousand dollars in a city having a population of five thousand
or less.
(2) Nine hundred ten thousand dollars in a city having a population of more than five
thousand but not more than seventy-five thousand.
(3) One million three hundred thousand dollars in a city having a population of more than
seventy-five thousand.
b. The governing body must follow the following procedures to authorize a loan
agreement for real property which is payable from the general fund if the principal amount
of the loan agreement exceeds the limits set forth in paragraph “a”:
(1) The governing body must institute proceedings to enter into a loan agreement payable
from the general fund by causing a notice of the meeting to discuss entering into the loan
agreement, including a statement of the principal amount and purpose of the loan agreement
andtherighttopetitionforanelection,tobepublishedatleastonceinanewspaperofgeneral
circulation within the city at least ten days prior to the discussion meeting. No sooner than
thirtydaysfollowingthediscussionmeetingshallthegoverningbodyholdameetingatwhich
it is proposed to take action to enter into the loan agreement.
(2) (a) If at any time before the end of the thirty-day period after which a meeting may be
held to take action to enter into the loan agreement, a petition is filed with the clerk of the city
in the manner provided by section 362.4, asking that the question of entering into the loan
agreement be submitted to the registered voters of the city, the governing body shall either by
resolution declare the proposal to enter into the loan agreement to have been abandoned or
shall direct the county commissioner of elections to call a special election upon the question
of entering into the loan agreement. However, for purposes of this paragraph, the petition
shall not require signatures in excess of one thousand persons.
(b) The question to be placed on the ballot shall be stated affirmatively in substantially
the following manner:
Shall the city of ................ enter into a loan agreement in amount
of $ ................ for the purpose of ................?
(c) Noticeoftheelectionanditsconductshallbeinthemannerprovidedinsection384.26,
subsections 2 through 4.
(3) If a petition is not filed or if a petition is filed and the proposition of entering into the
loan agreement is approved at an election, the governing body may proceed and enter into
the loan agreement.
5. The governing body may authorize a loan agreement payable from the net revenues of
acityutility, combinedutilitysystem, cityenterprise, orcombinedcityenterprisebyfollowing
the authorization procedures of section 384.83.
6. A loan agreement to which a city is a party or in which the city has a participatory
interest is an obligation of a political subdivision of this state for the purposes of chapters
502 and 636, and is a lawful investment for banks, trust companies, savings associations,
investment companies, insurance companies, insurance associations, executors, guardians,
trustees, and any other fiduciaries responsible for the investment of funds.

Legislative History

[R60, §1060; C73, §458; C97, §697; S13, §716-d, 840-e, 849-h, -j, 912, 912-a, 1056-a43, -a63, -a64; SS15, §758-b, -e, 840-g, -p, 997-a, -c; C24, §5750, 5878 – 5881, 6103, 6126, 6261 – 6263, 6265, 6576, 6594, 6595, 6608, 6744, 6746; C27, 31, 35, §5750, 5878 – 5881, 6066-a11, 6103, 6126, 6261 – 6263, 6265, 6594, 6595, 6608, 6744, 6746; C39, §5750, 5878 – 5881, 6066.13, 6103, 6126, 6261, 6261.1, 6261.2, 6262, 6263, 6265, 6576, 6594, 6595, 6608, 6744, 6746; C46, 50, §368.13, 381.5 – 381.8, 392.11, 395.25, 396.22, 408.10 – 408.14, 408.16, 416.101, 416.104, 416.122, 416.123, 416.138, 420.55, 420.57; C54, 58, §368.16, 368.29, 368.32, 381.7, 392.11, 395.25, 396.22, 404.18, 408.17; C62, 66, 71, 73, §368.16, 368.29, 368.32, 381.7, 392.11, 395.25, 396.22, 404.19, 408.17; C75, 77, 79, 81, §384.25]