33-5304. PROGRAM ELIGIBILITY — OPTION TO FOREGO GUARANTY.
(1) (a) Any school district through its board of trustees or its superintendent may apply to the state treasurer for the state’s guaranty of its eligible bonds under this chapter. Where voter approval of a bond issuance is required by law, the school district must have such voter approval prior to its application for the state’s guaranty.
(b) The state treasurer may charge the school district an application fee equal to the greater of the estimated costs to the state treasurer to process the application or five hundred dollars ($500), which shall be payable at the time the school district applies for a guaranty under this chapter. The state treasurer may charge a transaction fee of not more than five one-hundredths of one percent (.05%) of the total principal and interest payable on the school district’s bonds. Such transaction fee shall be payable to the state treasurer at the time the school district issues the bonds guaranteed under this chapter and the application fee paid by the school district shall be credited against such transaction fee.
(c) There is hereby created in the state treasury the "Idaho School Bond Guaranty Administrative Fund" which shall be credited:
(i) Fees collected pursuant to this section;
(ii) Interest earned on the investment of idle moneys in the fund, which shall be paid to the fund; and
(iii) All other moneys as may be provided by law.
Moneys in the fund shall be continuously appropriated to the state treasurer, and any moneys remaining in the fund at the end of each fiscal year shall not be appropriated to any other fund. Moneys in the fund shall be used to defray costs associated with the implementation, administration, and oversight of the Idaho school bond guaranty act.
(d) The state superintendent of public instruction shall provide an analysis of an applicant school district’s fiscal solvency upon the request of the state treasurer.
(e) After reviewing the request, the analysis of the superintendent of public instruction, the reports submitted by the school district pursuant to section 33-5305, Idaho Code, and other information available to the state treasurer, the state treasurer shall determine in good faith whether or not the financial affairs and condition of a school district are such that it would be imprudent for the state to guarantee the bonds of that school district. The state treasurer shall also determine in good faith whether the guarantee of the bonds of the school district will adversely impact the credit rating of the state of Idaho or other financing programs benefiting the state of Idaho.
(f) Unless the state treasurer finds that the criteria set forth in subsection (1)(e) of this section prevents the issuance of a certificate of eligibility, the state treasurer shall promptly issue a certificate of eligibility and provide it to the requesting school district.
(g) (i) The school district receiving the certificate and all other persons may rely on the certificate as evidencing eligibility for the guaranty for one (1) year from and after the date of the certificate, without making further inquiry of the state treasurer during the year. The certificate of eligibility shall state that the guaranty is good for the life of the bond. This guaranty shall be printed on all bonds guaranteed pursuant to this chapter or shall be an addendum attached to all bonds guaranteed pursuant to this chapter.
(ii) The certificate of eligibility is valid for the life of the bond, even if the state treasurer later determines that the school district is ineligible for future guaranties.
(2) Any school district that chooses to forego the benefits of the guaranty provided by this chapter for a particular issue of bonds may do so by not referring to this chapter on the face of its bonds.
(3) Any school district that has bonds, the principal of or interest on which has been paid, in whole or in part, by the state under this chapter may not issue any additional bonds guaranteed by this act until:
(a) All payment obligations of the school district to the state under the default avoidance program are satisfied; and
(b) The state treasurer certifies in writing, to be kept on file by the state treasurer, that the school district is fiscally solvent.
(4) Bonds not guaranteed by this chapter are not included in the definition of "bond" in section 33-5302, Idaho Code, as used generally in this chapter, are not subject to the requirements of and do not receive the benefits of this chapter.
History:
[33-5304, added 1999, ch. 328, sec. 1, p. 842; am. 2009, ch. 185, sec. 2, p. 602.]