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H0658...........................................................by BUSINESS
HEALTH FACILITIES AUTHORITY - Amends existing law to provide for
designation of a trustee within or without the state of Idaho for bonds or
trust agreements issued by the Idaho Health Facilities Authority.
02/22 House intro - 1st rdg - to printing
02/23 Rpt prt - to Bus
03/08 Rpt out - rec d/p - to 2nd rdg
03/09 2nd rdg - to 3rd rdg
03/14 3rd rdg - PASSED - 59-0-11
AYES -- Alltus, Barraclough, Barrett, Bell, Bieter, Black, Boe,
Bruneel, Callister, Campbell, Chase, Cheirrett, Clark, Deal, Denney,
Ellsworth, Field(13), Field(20), Gagner, Gould, Hadley, Hansen(23),
Hansen(29), Henbest, Hornbeck, Jaquet, Judd, Kellogg, Kendell, Kunz,
Lake, Linford, Marley, Meyer, Montgomery, Mortensen, Moss, Moyle,
Pearce, Pischner, Pomeroy, Reynolds, Ridinger, Ringo, Robison, Sali,
Schaefer, Sellman, Shepherd, Smith, Smylie, Stevenson, Stoicheff,
Taylor, Tilman, Trail, Wheeler, Wood, Zimmermann
NAYS -- None
Absent and excused -- Crow, Cuddy, Geddes, Hammond, Jones, Kempton,
Loertscher, Mader, McKague, Stone, Mr Speaker
Floor Sponsor - Black
Title apvd - to Senate
03/15 Senate intro - 1st rdg - to Com/HuRes
03/17 Rpt out - rec d/p - to 2nd rdg
03/20 2nd rdg - to 3rd rdg
03/23 3rd rdg - PASSED - 30-4-1
AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Crow,
Danielson, Darrington, Davis, Deide, Dunklin, Frasure, Geddes,
Ingram, Ipsen, Keough, King-Barrutia, Lee, Noh, Richardson, Riggs,
Risch, Sandy, Schroeder, Sorensen, Stegner, Stennett, Thorne,
Wheeler, Williams
NAYS--Cameron, Hawkins, Parry, Whitworth
Absent and excused--McLaughlin
Floor Sponsor - Davis
Title apvd - to House
03/24 To enrol
03/27 Rpt enrol - Sp signed
03/28 Pres signed
03/29 To Governor
03/30 Governor signed
Session Law Chapter 125
Effective: 07/01/00
H0658
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-fifth Legislature Second Regular Session - 2000
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 658
BY BUSINESS COMMITTEE
1 AN ACT
2 RELATING TO BONDS OR TRUST AGREEMENTS OF THE IDAHO HEALTH FACILITIES AUTHOR-
3 ITY; AMENDING SECTION 39-1449, IDAHO CODE, TO PROVIDE FOR DESIGNATION OF A
4 TRUSTEE WITHIN OR WITHOUT THE STATE OF IDAHO AND TO MAKE TECHNICAL CORREC-
5 TIONS; AND AMENDING SECTION 39-1450D, IDAHO CODE, TO PROVIDE FOR DESIGNA-
6 TION OF A TRUSTEE WITHIN OR WITHOUT THE STATE OF IDAHO AND TO MAKE A TECH-
7 NICAL CORRECTION.
8 Be It Enacted by the Legislature of the State of Idaho:
9 SECTION 1. That Section 39-1449, Idaho Code, be, and the same is hereby
10 amended to read as follows:
11 39-1449. BONDS. (a) The authority is authorized from time to time to
12 issue its bonds in such principal amount as the authority shall determine for
13 the purpose of financing all or a part of the cost of any facilities autho-
14 rized hereby or for the refinancing of outstanding obligations. In anticipa-
15 tion of the sale of such bonds, the authority may issue bond anticipation
16 notes and may renew the same from time to time. Such notes shall be paid from
17 any revenues of the authority or other moneys available therefor and not
18 otherwise pledged, or from the proceeds of sale of the bonds of the authority
19 in anticipation of which they were issued. The notes shall be issued in the
20 same manner as bonds. Such notes and the resolution or resolutions authorizing
21 the same may contain any provisions, conditions or limitations which a bond
22 resolution of the authority may contain.
23 (b) The bonds may be issued as serial bonds or as term bonds or a combi-
24 nation of both types. All bonds issued by the authority shall be payable
25 solely out of the revenues and receipts derived from the leasing, mortgaging
26 or sale by the authority of the facilities concerned or of any part thereof as
27 may be designated in the resolutions of the authority under which the bonds
28 shall be authorized to be issued or as may be designated in a trust indenture
29 authorized by the authority, which such trust indenture shall name a bank or
30 trust company in within or without the state of Idaho as trustee or from other
31 moneys available therefor and not otherwise pledged. Such bonds may be exe-
32 cuted and delivered by the authority at any time and from time to time, may be
33 in such form and denominations and of such terms and maturities, may be in
34 fully registered form or in bearer form registerable either as to principal or
35 interest or both, may bear such conversion privileges and be payable in such
36 instalments and at such time or times not exceeding forty (40) years from the
37 date thereof, may be payable at such place or places whether within or without
38 the state of Idaho, may bear interest at such rate or rates per annum as shall
39 be determined by the authority and without regard to any interest rate limita-
40 tion appearing in any other law, payable at such time or times and at such
41 place or places and evidenced in such manner, may be executed by such officers
42 of the authority, either manually or by facsimile, and coupon bonds shall have
43 attached thereto interest coupons bearing the facsimile signature of an autho-
2
1 rized officer of the authority and may contain such provisions not inconsis-
2 tent herewith, all as shall be provided in the resolutions of the authority
3 whereunder the bonds shall be authorized to be issued or as shall be provided
4 in a trust indenture authorized by the authority. Notwithstanding any provi-
5 sion of this section to the contrary, in the case of obligations maturing not
6 later than one (1) year from the date of issuance thereof, the authority may
7 authorize the executive director, associate executive director or any officer
8 of the authority to fix principal amounts, maturity dates, interest rates, and
9 purchase prices of any particular issue of such short-term obligations, sub-
10 ject to such limitations as to maximum term, maximum principal amount out-
11 standing, and maximum interest rates as the authority shall prescribe by reso-
12 lution. Any such authorization shall remain effective for the period of time
13 designated in the resolution, regardless of whether the composition of the
14 authority changes in the interim.
15 (c) If deemed advisable by the authority there may be retained in the
16 resolutions or the trust indenture under which any bonds of the authority are
17 authorized to be issued an option to redeem all or any part thereof as may be
18 specified in such resolutions or in such trust indenture, at such price or
19 prices and after such notice or notices and on such terms and conditions as
20 may be set forth in such resolutions or in such trust indenture, and as may be
21 briefly recited on the face of the bonds, but nothing herein contained shall
22 be construed to confer on the authority the right or option to redeem any
23 bonds except as may be provided in the resolutions or in such trust indenture
24 under which they shall be issued.
25 (d) The bonds or notes of the authority may be sold at public or private
26 sale for such price or prices and in such manner and from time to time as may
27 be determined by the authority, and the authority may pay all expenses, pre-
28 miums and commissions which it may deem necessary or advantageous in connec-
29 tion with the issuance thereof. The power to fix the date of sale of bonds and
30 notes, to receive bids or proposals, to award and sell bonds and notes, and to
31 take all other necessary action to sell and deliver bonds and notes may be
32 delegated to the executive director of the authority by resolution of the
33 authority. Pending preparation of the definitive bonds, the authority may
34 issue interim receipts or certificates which shall be exchanged for such
35 definitive bonds.
36 (e) Issuance by the authority of one (1) or more series of bonds for one
37 (1) or more purposes shall not preclude it from issuing other bonds in connec-
38 tion with the same facilities or any other facilities or any other purpose
39 hereunder, but the resolutions or trust indenture whereunder any subsequent
40 bonds may be issued shall recognize and protect any prior pledge or mortgage
41 made for any prior issue of bonds. Any bonds of the authority at any time out-
42 standing may at any time and from time to time be refunded by the authority by
43 the issuance of its bonds for such purpose in such amount as the authority may
44 deem necessary and, if deemed advisable by the authority, for the additional
45 purpose of paying all or any part of the cost of constructing and acquiring
46 additions, improvements, extensions or enlargements of a facility or any por-
47 tion thereof.
48 Any such refunding may be effected whether the bonds to be refunded shall
49 have then matured or shall thereafter mature, either by sale of the refunding
50 bonds and the application of the proceeds thereof for the payment of the bonds
51 to be refunded thereby, or by the exchange of the refunding bonds for the
52 bonds to be refunded thereby with the consent of the holders of the bonds so
53 to be refunded, and regardless of whether or not the bonds to be refunded were
54 issued in connection with the same facilities or separate facilities or for
55 any other purpose hereunder, and regardless of whether or not the bonds pro-
3
1 posed to be refunded shall be payable on the same date or different dates or
2 shall be due serially or otherwise. The proceeds of any such bonds issued for
3 the purpose of refunding outstanding bonds may, in the discretion of the
4 authority, be applied to the purchase or retirement at maturity or redemption
5 of such outstanding bonds either on their earliest or any subsequent redemp-
6 tion date or upon the purchase or at the maturity thereof and may, pending
7 such application, be placed in escrow to be applied to such purchase or
8 retirement at maturity or redemption on such date as may be determined by the
9 authority. Any such escrowed proceeds, pending such use, may be invested and
10 reinvested in obligations determined by the authority. The interest, income
11 and profits, if any, earned or realized on any such investment may also be
12 applied to the payment of the outstanding bonds or notes to be so refunded, to
13 the payment of principal or interest on the refunding bonds or may be used by
14 the authority in any lawful manner. After the terms of the escrow have been
15 fully satisfied and carried out, any balance of such proceeds and interest,
16 income and profits, if any, earned or realized on the investments thereof may
17 be returned to the authority for use by it in any lawful manner. The portion
18 of the proceeds of any such bonds issued for the additional purpose of paying
19 all or any part of the cost of constructing and acquiring additions, improve-
20 ments, extensions or enlargements of a facility may be invested and reinvested
21 in obligations determined by the authority. The interest, income and profits,
22 if any, earned or realized on such investment may be applied to the payment of
23 all or any part of such cost or may be used by the authority in any lawful
24 manner. All such bonds shall be subject to the provisions of this act in the
25 same manner and to the same extent as other bonds issued pursuant to this act.
26 All bonds and the interest coupons applicable thereto are hereby made and
27 shall be construed to be negotiable instruments within the meaning of and for
28 all the purposes of article 8, uniform commercial code, subject only to the
29 provisions of such bonds, notes or other obligations for registration.
30 SECTION 2. That Section 39-1450D, Idaho Code, be, and the same is hereby
31 amended to read as follows:
32 39-1450D. TRUST AGREEMENT TO SECURE BONDS. In the discretion of the
33 authority any bonds issued under this act may be secured by a trust agreement
34 by and between the authority and a corporate trustee or trustees, which may be
35 any trust company or bank having the powers of a trust company in within or
36 without the state of Idaho. Such trust agreement or the resolution providing
37 for the issuance of such bonds may pledge or assign the revenues to be
38 received or proceeds of any contract or contracts pledged and may convey or
39 mortgage the project or any portion thereof. Such trust agreement or resolu-
40 tion providing for the the issuance of such bonds may contain such provisions
41 for protecting and enforcing the rights and remedies of the bondholders as may
42 be reasonable and proper, and not in violation of law, including particularly
43 such provisions as have been specifically authorized to be included in any
44 resolution or resolutions of the authority authorizing bonds thereof. Any bank
45 or trust company incorporated under the laws of this state, which may act as
46 depository of the proceeds of bonds or of revenues or other moneys, may fur-
47 nish such indemnifying bonds or pledge such securities as may be required by
48 the authority. Any such trust agreement may set forth the rights and remedies
49 of the bondholders and of the trustee or trustees, and may restrict the indi-
50 vidual right of action by bondholders. In addition, any such trust agreement
51 or resolution may contain such other provisions as the authority may deem rea-
52 sonable and proper for the security of the bondholders. All expenses incurred
53 in carrying out such trust agreement or resolution may be treated as a part of
4
1 the cost of the operation of a facility.
STATEMENT OF PURPOSE
RS 10106
This legislation makes trustee requirements for the Idaho Health Facilities
Authority similar to other statutes concerning trustee requirements applicable to
certain state and local bond issuers. The legislation authorizes the Idaho Health
Facilities Authority to utilize trustees inside and outside the state of Idaho to
insure that the Idaho Health Facilities Authority obtains the most competitive
trustee services available in the rapidly evolving finance marketplace.
FISCAL IMPACT
No fiscal impact.
Contact: Rep. Max Black 332-1000
Phil Barber 371-8484
Neil P. Moss 342-8772
Idaho Facilities Authorities
STATEMENT OF PURPOSE/FISCAL NOTE H 658