287.919. Company not to receive state appropriation, exception--revenue bonds, authorization, terms, execution, procedures. - Missouri Statutes

Company not to receive state appropriation, exception--revenue bonds,authorization, terms, execution, procedures.

287.919. 1. The Missouri employers mutual insurancecompany shall not receive any state appropriation, directly orindirectly, except as provided in section 287.690.

2. In order to provide funds for the creation, continueddevelopment and operation of the company, the board is authorizedto issue revenue bonds from time to time, in a principal amountoutstanding not to exceed forty million dollars at any giventime, payable solely from premiums received from insurancepolicies and other revenues generated by the company.

3. The board may issue bonds to refund other bonds issuedpursuant to this section.

4. The bonds shall have a maturity of no more than tenyears from the date of issuance. The board shall determine allother terms, covenants and conditions of the bonds, except thatno bonds may be redeemed prior to maturity unless the company hasestablished adequate reserves for the risks it has insured.

5. The bonds shall be executed with the manual or facsimilesignature of the administrator or the chairman of the board andattested by another member of the board. The bonds may bear theseal, if any, of the company.

6. The proceeds of the bonds and the earnings on thoseproceeds shall be used by the board for the development andoperation of the Missouri employers mutual insurance company, topay expenses incurred in the preparation, issuance and sale ofthe bonds and to pay any obligations relating to the bonds andthe proceeds of the bonds under the United States InternalRevenue Code of 1986, as amended.

7. The bonds may be sold at a public sale or a privatesale. If the bonds are sold at a public sale, the notice of saleand other procedures for the sale shall be determined by theadministrator or the company.

8. This section is full authority for the issuance and saleof the bonds and the bonds shall not be invalid for anyirregularity or defect in the proceedings for their issuance andsale and shall be incontestable in the hands of bona fidepurchasers or holders of the bonds for value.

9. An amount of money from the sources specified insubsection 2 of this section sufficient to pay the principal ofand any interest on the bonds as they become due each year shallbe set aside and is hereby pledged for the payment of theprincipal and interest on the bonds.

10. The bonds shall be legal investments for any person orboard charged with the investment of public funds and may beaccepted as security for any deposit of public money, and thebonds and interest thereon are exempt from taxation by the stateand any political subdivision or agency of the state.

11. The bonds shall be payable by the company, which shallkeep a complete record relating to the payment of the bonds.

12. Not more than fifty percent of the bonds sold shall besold to public entities.

(L. 1993 S.B. 251 § 10)