PUBLIC FUNDS IN GENERAL
MUNICIPAL BOND LAW
57-234. Creation and perfection of government security interests. (1) The revenues, fees, rents, charges, taxes or other property pledged by a governmental unit for the purpose of securing its bonds, which pledge is hereby authorized, are immediately subject to the lien of the pledge, and the lien shall be a perfected lien upon the effective date of the security agreement. No physical delivery of any security agreement or any other act is required. Neither the security agreement nor a financing statement need be filed or recorded under the uniform commercial code or otherwise. The lien of any pledge is valid, binding, perfected and enforceable from the time the pledge is made. The lien of the pledge shall have priority based on the time of the creation of the pledge unless otherwise provided in the security agreement. The lien of the pledge shall have priority as against all parties having claims of any kind in tort, contract, or otherwise against the governing body, irrespective of whether the parties have notice of the lien. Each pledge and security agreement made for the benefit or security of any of the bonds shall continue to be effective until the principal, interest, and premium, if any, on the bonds have been fully paid or provision for payment has been made, or until the lien created by the security agreement has been released by agreement of the parties in interest or as provided by the security agreement that created the lien.
(2) As used in this section:
(a) "Bonds" means any bond, note, lease or other obligation of a governmental unit;
(b) "Governmental unit" has the meaning assigned in section 28-9-102, Idaho Code;
(c) "Pledge" means the creation of a security interest of any kind;
(d) "Property" means any property or interests therein, other than real property; and
(e) "Security agreement" means any resolution, ordinance, indenture, document, or other agreement or instrument under which the revenues, fees, rents, charges, taxes or other property are pledged to secure the bonds.
(3) This section expressly governs the creation, perfection, priority and enforcement of a security interest created by the state or a governmental unit of the state, notwithstanding any provisions in chapter 9, title 28, Idaho Code, to the contrary.
[(57-234) 57-232, added 2001, ch. 208, sec. 30, p. 830; am. and redesig. 2005, ch. 25, sec. 119, p. 131.]