360.106. Definitions--bonds or notes issued for loans to or purchase of notes of school districts and community colleges--how secured--investment of funds--bids required for professional services furn

MISSOURI STATUTES AND CODES

360.106. Definitions--bonds or notes issued for loans to or purchase of notes of school districts and community colleges--how secured--investment of funds--bids required for professional services furn

Definitions--bonds or notes issued for loans to or purchase of notesof school districts and community colleges--howsecured--investment of funds--bids required for professionalservices furnished--report by authority due when.

360.106. 1. As used in this section and sections 360.111 to 360.118,the following terms mean:

(1) "Funding agreement", any loan agreement, financing agreement orother agreement between the authority and a participating district under thissection, providing for the use of proceeds of, security for, and the repaymentof, school district bonds, and shall include a complete waiver by theparticipating district of all powers, rights and privileges conferred upon theparticipating district to institute any action authorized by any act of theCongress of the United States relating to bankruptcy on the part of theparticipating district;

(2) "Participating district", with respect to a particular issue ofbonds, notes or other financial obligations, any school district and anypublic community college in this state which voluntarily enters into a fundingagreement with the authority pursuant to this section;

(3) "School district bonds", any bonds, notes or other obligationsissued by the authority for the purpose of making loans to, purchasing thebonds or notes of or otherwise by agreement using or providing for the use ofthe proceeds of the obligations by a participating district under this sectionand all related costs of issuance of the obligations including, but notlimited to, all costs, charges, fees and expenses of underwriters, financialadvisors, attorneys, consultants, accountants and of the authority.

2. In addition to other powers granted to the authority by sections360.010 to 360.140, the authority shall have the power to issue schooldistrict bonds or notes for the purpose of making loans to, or purchasing thebonds, notes or other financial instruments of:

(1) Any school district or any public community college in this statefor the use of the various funds of such school district or public communitycollege for any lawful purpose; and

(2) Any school district in this state with respect to obligations issuedby such school district pursuant to sections 164.121 to 164.301, RSMo, orotherwise by law.

3. In connection with the issuance of school district bonds pursuant tothe powers granted in this section, the authority shall have all powers as setforth elsewhere in sections 360.010 to 360.140, and the provisions of sections360.010 to 360.140 shall be applicable to the issuance of school districtbonds to the extent that they are not inconsistent with the provisions of thissection.

4. School district bonds issued pursuant to this section may be securedby a pledge of payments made to the authority by the participating district,by the bonds or notes of the participating district, or by a pooling of suchpayments, bonds or notes of two or more of such participating districts or asotherwise set forth in the funding agreements.

5. The authority may invest any funds held pursuant to powers grantedunder this section, which are not required for immediate disbursement, in anyinvestment approved by the authority and specified in the trust indenture orresolution pursuant to which such bonds or notes are issued without regard toany limitation otherwise imposed by section 360.120 or otherwise by law;provided, however, that each participating district shall receive theearnings, or a credit for such earnings, to the extent any such amountsinvested are attributable to a particular participating district.

6. (1) In connection with school district bonds, upon certification bythe authority to the commissioner of education and the state treasurer thatthe funding agreement provides for consent by a participating district fordirect deposit of its state payments to the trustee, the state treasurer shalltransfer, but only out of funds described in this section, directly to thetrustee for such school district bonds, the amounts needed to pay theprincipal and interest when due on the school district bonds attributable to aparticular participating district. Such transfers for any school districtbonds attributable to a particular participating district shall only be madeout of, and to the extent of, the state payments and distributions from allfunds to be made by the state to such participating district pursuant tosections 163.011 to 163.195, RSMo. Any such transfer by the state on behalfof a participating district shall discharge the state's obligation to makesuch state payments to such participating district to the extent of suchtransfer;

(2) A participating district shall withdraw amounts from any of itsfunds established pursuant to section 165.011, RSMo, to the extent suchamounts could have been used to make the payments made on its behalf by thestate treasurer as provided in subdivision (1) of this subsection.Notwithstanding any provisions of section 108.180, RSMo, to the contrary, suchamounts shall be deposited into the participating district's funds as providedby law in lieu of the state payments transferred to the trustee under thefunding agreement;

(3) The authority shall from time to time develop guidelines containingcertain criteria with respect to participating school districts and withrespect to the issuance of school district bonds;

(4) Transfers made under this subsection pursuant to a school district'sparticipation in a funding agreement under this section shall be made at nocost to the school district.

7. The authority shall provide for the payment of costs of issuance,costs of credit enhancement and any other costs or fees related to theissuance of any school district bonds other than reserve funds, out of theproceeds thereof or out of amounts distributed annually to the authoritypursuant to sections 160.534 and 164.303, RSMo. The authority shall annuallysubmit a request for funding of such costs to the commissioner of education insuch form and at such time as he may request. A copy of such request shall beforwarded to the commissioner of administration. The authority shall providefor the payment of costs pursuant to this subsection only for bonds issued forthe purpose of financing construction or renovation projects approved byvoters after January 1, 1995, or refinancing construction or renovationprojects or for refinance of lease purchase obligations with generalobligation bonds.

8. Any refunding or refinancing of existing bonds of a school districtunder this section shall have a net present value savings of at least one andone-half percent of the par amount of the refunded bonds.

9. The commissioner of education shall serve as an ex officio,nonvoting, advisory member of the authority solely with regard to the exerciseof powers granted pursuant to this section.

10. Nothing in this section or sections 360.111 to 360.118 shall beconstrued to relieve a school district or public community college of itsobligation to levy a debt service levy or capital projects levy sufficient toretire any obligation of the district or college as otherwise provided by law.

11. Any professional services provided in connection with the sale ofsuch bonds pursuant to this section, including, but not limited to,underwriters, bond counsel, underwriters' counsel, trustee and financialadvisors, shall be obtained through competitive bidding. The initial bid forprofessional services shall be for a period of not longer than two years, andthereafter such bids shall be awarded for a period not longer than one year.

12. The authority shall review the cost effectiveness of the programestablished under this section and sections 360.111 to 360.118 and shall, onor before the fifteenth of August of each year, provide a report to thegeneral assembly which shall contain a report on the program, the authority'sfindings and a recommendation of whether this section should be repealed,strengthened or otherwise amended.