1.A city may issue revenue bonds pursuant to a resolution of the governing body of the
city utility, combined utility system, city enterprise, or combined city enterprise, adopted
at a regular or special meeting by a majority of the total number of members to which the
governing body is entitled.
2.
a.Before the governing body institutes proceedings for the issuance of revenue bonds,
it shall fix a time and place of meeting at which it proposes to take action and give notice by
publication in the manner directed in section 362.3. The notice must include a statement of
the time and place of the meeting, the maximum amount of the proposed revenue bonds, the
purposeorpurposesforwhichtherevenuebondswillbeissued, andthecityutility, combined
utility system, city enterprise, or combined city en
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1. A city may issue revenue bonds pursuant to a resolution of the governing body of the
city utility, combined utility system, city enterprise, or combined city enterprise, adopted
at a regular or special meeting by a majority of the total number of members to which the
governing body is entitled.
2. a. Before the governing body institutes proceedings for the issuance of revenue bonds,
it shall fix a time and place of meeting at which it proposes to take action and give notice by
publication in the manner directed in section 362.3. The notice must include a statement of
the time and place of the meeting, the maximum amount of the proposed revenue bonds, the
purposeorpurposesforwhichtherevenuebondswillbeissued, andthecityutility, combined
utility system, city enterprise, or combined city enterprise whose net revenues will be used
to pay the revenue bonds and interest on them. The governing body shall at the meeting
receive oral or written objections from any resident or property owner of the city. After all
objections have been received and considered, the governing body may, at the meeting or any
adjournment of the meeting, take additional action for the issuance of the bonds or abandon
the proposal to issue bonds. Any resident or property owner of the city may appeal a decision
of the governing body to take additional action to the district court of the county in which
any part of the city is located within fifteen days after the additional action is taken, but the
additional action of the governing body is final and conclusive unless the court finds that
the governing body exceeded its authority. The provisions of this subsection with respect to
notice, hearing, and appeal in connection with the issuance of revenue bonds are in lieu of
those contained in chapter 73A or any other law.
b. Separate purposes may be incorporated in a single notice of intention to institute
proceedings or separate purposes may be incorporated in separate notices and, after an
opportunity for filing objections, the governing body may include in a single issue of revenue
bonds any number or combination of purposes.
3. Revenue bonds may bear dates, bear interest at rates not exceeding that permitted by
chapter 74A, mature in one or more installments, be in either coupon or registered form,
carry registration and conversion privileges, be payable as to principal and interest at times
and places, be subject to terms of redemption prior to maturity with or without premium,
and be in one or more denominations, all as provided by the resolution of the governing
body authorizing their issuance. The resolution may also prescribe additional provisions,
terms, conditions, and covenants which the governing body deems advisable, consistent with
the provisions of the city code, including provisions for creating and maintaining reserve
funds, the issuance of additional revenue bonds ranking on a parity with such revenue bonds
and additional revenue bonds junior and subordinate to such revenue bonds, and that such
revenue bonds shall rank on a parity with or be junior and subordinate to any revenue bonds
which may be then outstanding. Revenue bonds are a contract between the city and holders
and the resolution is a part of the contract.
4. If the governing body is a city council, the revenue bonds must be executed by the
mayor and clerk of the city. If the governing body is a utility board, the revenue bonds must
be executed by the chairperson and secretary of the board. If coupons are attached to the
revenue bonds, they must be executed with the original or facsimile signature of the clerk or
secretary. A revenue bond is valid and binding for all purposes if it bears the signatures of
the officers in office on the date of the execution of the bonds notwithstanding that any or all
persons whose signatures appear thereon have ceased to be such officers prior to the delivery
thereof. The issuance of revenue bonds must be recorded in the office of the city treasurer
or other financial officer designated by the council, and a certificate of the recording by the
treasurer or other officer must be printed on the back of each revenue bond.
5. Revenue bonds and pledge orders issued pursuant to this subchapter are negotiable
instruments.
6. A city may issue pledge orders pursuant to a resolution of the governing body of the
city utility, combined utility system, city enterprise, or combined city enterprise, adopted by a
majority of the total number of members to which the governing body is entitled, at a regular
or special meeting, ordering their issuance and delivery in payment for all or part of the cost
of a project. Pledge orders may bear interest at rates not exceeding that permitted by chapter
74A.
7. The physical properties of a city utility, combined utility system, city enterprise, or
combined city enterprise may not be pledged or mortgaged to secure the payment of revenue
bonds or pledge orders or the interest thereon.