TITLE 67

STATE GOVERNMENT AND STATE AFFAIRS

CHAPTER 87

IDAHO BOND BANK AUTHORITY

67-8710.  Issuance of bonds — Form of issuance — Sale price — Payment or refunding of bonds — Terms of agreement with bondholder. (1) The authority may issue its bonds from time to time in principal amounts that it considers necessary to provide funds for any purpose under this chapter, including, without limitations, to purchase municipal bonds, to fund reserves or to pay costs of issuance, refunding, including redemption premium, credit enhancement, or other matters related to the purpose, structure or marketing of the bonds.

(2)  Bonds shall be authorized by resolution of the authority and shall bear the date, mature at the time or times, bear interest at the rate or rates of fixed or variable interest, payable at the times, be in the denominations, be in the forms, carry the conversion or registration privileges, have the rank or priority, be executed in the manner, be payable from the sources in the medium of payment at the place or places inside or outside the state, and be subject to the terms of redemption, with or without premium, rights of holders to tender for purchase and other terms and conditions as the resolution of the authority provides.

(3)  Bonds of the authority may be issued in one (1) or more series.

(4)  Bonds of the authority may be sold at public or private sale at the price or prices the authority determines.

(5)  The authority may, from time to time, issue its bonds under this chapter and pay and retire, or fund or refund previously issued bonds from proceeds of refunding bonds, or from other funds or money of the authority available for that purpose.

(6)  By resolution, the authority may authorize entering into an indenture or trust agreement with a corporate trustee located within or outside the state in order:

(a)  To provide for the issuance of the bonds with such terms, including without limitation those terms referred to in subsection (2) of this section, as the authority may determine;

(b)  To pledge or assign to the trustee for the benefit of holders of the bonds all or any part of the proceeds of the bonds, any municipal bonds purchased from municipalities or other sellers, any other assets or revenues of or received by or pledged to the authority, and the income or other proceeds from any or all of the foregoing;

(c)  To provide for the establishment of reserves and any other funds or accounts that the authority determines to be necessary or appropriate, in addition to or in lieu of the reserve fund established pursuant to section 67-8713, Idaho Code, which will secure all bonds issued by the authority unless the resolution of the authority providing for issuance of the bonds provides otherwise;

(d)  To provide for the custody, safekeeping and enforcement of the municipal bonds acquired;

(e)  To provide for the right to sell or otherwise dispose of property of any kind, including municipal bonds;

(f)  To provide for the investment of bond proceeds or other moneys held by the trustee in such securities or obligations as may be described in the indenture or trust agreement;

(g)  To provide for amending the indenture or trust agreement, with or without the consent of the holders of the bonds;

(h)  To provide for the replacement of lost, stolen, destroyed or mutilated bonds;

(i)  To provide for the issuance or limitations on issuance of additional bonds;

(j)  To provide for the rights, liabilities, powers and duties arising upon the breach of any covenant, condition or obligation, to limit the rights of bondholders to enforce covenants, conditions or obligations, and to prescribe the events of default and the terms and conditions upon which any or all of the bonds become or may be declared due and payable before maturity, and the terms and conditions upon which the declaration and its consequences may be waived;

(k)  To appoint and to provide for the duties and obligations of a paying agent or agents or other fiduciaries inside or outside the state;

(l)  To make covenants to do or refrain from doing acts, including to enter into any contract, and to provide any other terms and conditions which the authority may determine to be necessary or appropriate in order to better secure the bonds or improve their marketability; and

(m)  To intercept certain payments, and to impose interest and penalties, as provided in section 67-8725, Idaho Code.

History:

[67-8710, added 2001, ch. 130, sec. 1, p. 455; am. 2002, ch. 148, sec. 2, p. 427; am. 2005, ch. 389, sec. 3, p. 1251.]