12.28 CENTRALIZED FINANCING FOR STATE AGENCY PURCHASE
OF REAL AND PERSONAL PROPERTY.
1. As used in this section, unless the context otherwise
requires:
a. "Financing agreement" means any lease, lease-purchase
agreement, or installment acquisition contract in which the lessee
may purchase the leased property at a price which is less than the
fair market value of the property at the end of the lease term, or
any lease, agreement, or transaction which would be considered under
criteria established by the internal revenue service to be a
conditional sale agreement for tax purposes.
b. "State agency" means a board, commission, bureau,
division, office, department, or branch of state government.
However, state agency does not mean the state board of regents,
institutions governed by the board of regents, or authorities created
under chapter 16, 175, 257C, or 261A.
2. The treasurer of state shall have sole authority to enter into
financing agreements on behalf of state agencies. The treasurer of
state may enter into financing agreements, including master
lease-purchase agreements, for the purpose of funding state agency
requests for the financing of real or personal property, wherever
located within the state, including equipment, buildings, facilities,
and structures, or additions or improvements to existing buildings,
facilities, and structures. Subject to the selection procedures of
section 12.30, the treasurer may employ financial consultants, banks,
trustees, insurers, underwriters, accountants, attorneys, and other
advisors or consultants as necessary to implement the provisions of
this section. The costs of professional services and any other costs
of entering into the financing agreements may be included in the
financing agreement as a cost of the property being financed.
3. The financing agreement may provide for ultimate ownership of
the property by the state. Title to all property acquired in this
manner shall be taken and held in the name of the state. The state
shall be the lessee or contracting party under all financing
agreements entered into pursuant to this section. The financing
agreements may contain provisions pertaining, but not limited to,
interest, term, prepayment, and the state's obligation to make
payments on the financing agreement beyond the current budget year
subject to availability of appropriations. All projects financed
under this section shall be deemed to be for an essential
governmental purpose.
4. The treasurer of state may contract for additional security or
liquidity for a financing agreement and may enter into agreements for
letters of credit, lines of credit, insurance, or other forms of
security with respect to rental and other payments due under a
financing agreement. Fees for the costs of additional security or
liquidity are a cost of entering into the financing agreement and may
be paid from funds annually appropriated by the general assembly to
the state agency for which the property is being obtained, from other
funds legally available, or from proceeds of the financing agreement.
The provision of a financing agreement which provides that a portion
of the periodic rental or lease payment be applied as interest is
subject to chapter 74A. Other laws relating to interest rates do not
apply. Chapter 75 does not apply to financing agreements entered
into pursuant to this section.
5. Payments and other costs due under financing agreements
entered into pursuant to this section shall be payable from funds
annually appropriated by the general assembly to the state agency for
which the property is being obtained or from other funds legally
available. The treasurer of state, in cooperation with the
department of administrative services, shall implement procedures to
ensure that state agencies are timely in making payments due under
the financing agreements.
6. The maximum principal amount of financing agreements which the
treasurer of state can enter into shall be one million dollars per
state agency in a fiscal year, subject to the requirements of section
8.46. For the fiscal year, the treasurer of state shall not enter
into more than one million dollars of financing agreements per state
agency, not considering interest expense. However, the treasurer of
state may enter into financing agreements in excess of the one
million dollar per agency per fiscal year limit if a constitutional
majority of each house of the general assembly, or the legislative
council if the general assembly is not in session, and the governor,
authorize the treasurer of state to enter into additional financing
agreements above the one million dollar authorization contained in
this section. The treasurer of state shall not enter into a
financing agreement for real or personal property which is to be
constructed for use as a prison or prison-related facility without
prior authorization by a constitutional majority of each house of the
general assembly and approval by the governor of the use, location,
and maximum cost, not including interest expense, of the real or
personal property to be financed. However, financing agreements for
an energy conservation measure, as defined in section 7D.34, for an
energy management improvement, as defined in section 473.19, or for
costs associated with projects under section 473.13A, are exempt from
the provisions of this subsection, but are subject to the
requirements of section 7D.34. In addition, financing agreements
funded through the materials and equipment revolving fund established
in section 307.47 are exempt from the provisions of this subsection.
7. The treasurer of state shall decide upon the most economical
method of financing a state agency's request for funds. The
treasurer of state may utilize master lease-purchase agreements,
issue certificates of participation in lease-purchase agreements, or
use any other financing method or method of sale which the treasurer
believes will provide savings to the state in issuance or interest
costs.
8. A financing agreement to which the state is a party is an
obligation of the state for purposes of chapters 502 and 636, and is
a lawful investment for banks, trust companies, building and loan
associations, savings and loan associations, investment companies,
insurance companies, insurance associations, executors, guardians,
trustees, and other fiduciaries responsible for the investment of
funds.
9. Publication of any notice, whether under section 73A.12 or
otherwise, and other or further proceedings with respect to the
financing agreements referred to in this section are not required
except as set forth in this section, notwithstanding any provisions
of other statutes of the state to the contrary.
12.28 CENTRALIZED FINANCING FOR STATE AGENCY PURCHASE
OF REAL AND PERSONAL PROPERTY.
1. As used in this section, unless the context otherwise
requires:
a. "Financing agreement" means any lease, lease-purchase
agreement, or installment acquisition contract in which the lessee
may purchase the leased property at a price which is less than the
fair market value of the property at the end of the lease term, or
any lease, agreement, or transaction which would be considered under
criteria established by the internal revenue service to be a
conditional sale agreement for tax purposes.
b. "State agency" means a board, commission, bureau,
division, office, department, or branch of state government.
However, state agency does not mean the state board of regents,
institutions governed by the board of regents, or authorities created
under chapter 16, 175, 257C, or 261A.
2. The treasurer of state shall have sole authority to enter into
financing agreements on behalf of state agencies. The treasurer of
state may enter into financing agreements, including master
lease-purchase agreements, for the purpose of funding state agency
requests for the financing of real or personal property, wherever
located within the state, including equipment, buildings, facilities,
and structures, or additions or improvements to existing buildings,
facilities, and structures. Subject to the selection procedures of
section 12.30, the treasurer may employ financial consultants, banks,
trustees, insurers, underwriters, accountants, attorneys, and other
advisors or consultants as necessary to implement the provisions of
this section. The costs of professional services and any other costs
of entering into the financing agreements may be included in the
financing agreement as a cost of the property being financed.
3. The financing agreement may provide for ultimate ownership of
the property by the state. Title to all property acquired in this
manner shall be taken and held in the name of the state. The state
shall be the lessee or contracting party under all financing
agreements entered into pursuant to this section. The financing
agreements may contain provisions pertaining, but not limited to,
interest, term, prepayment, and the state's obligation to make
payments on the financing agreement beyond the current budget year
subject to availability of appropriations. All projects financed
under this section shall be deemed to be for an essential
governmental purpose.
4. The treasurer of state may contract for additional security or
liquidity for a financing agreement and may enter into agreements for
letters of credit, lines of credit, insurance, or other forms of
security with respect to rental and other payments due under a
financing agreement. Fees for the costs of additional security or
liquidity are a cost of entering into the financing agreement and may
be paid from funds annually appropriated by the general assembly to
the state agency for which the property is being obtained, from other
funds legally available, or from proceeds of the financing agreement.
The provision of a financing agreement which provides that a portion
of the periodic rental or lease payment be applied as interest is
subject to chapter 74A. Other laws relating to interest rates do not
apply. Chapter 75 does not apply to financing agreements entered
into pursuant to this section.
5. Payments and other costs due under financing agreements
entered into pursuant to this section shall be payable from funds
annually appropriated by the general assembly to the state agency for
which the property is being obtained or from other funds legally
available. The treasurer of state, in cooperation with the
department of administrative services, shall implement procedures to
ensure that state agencies are timely in making payments due under
the financing agreements.
6. The maximum principal amount of financing agreements which the
treasurer of state can enter into shall be one million dollars per
state agency in a fiscal year, subject to the requirements of section
8.46. For the fiscal year, the treasurer of state shall not enter
into more than one million dollars of financing agreements per state
agency, not considering interest expense. However, the treasurer of
state may enter into financing agreements in excess of the one
million dollar per agency per fiscal year limit if a constitutional
majority of each house of the general assembly, or the legislative
council if the general assembly is not in session, and the governor,
authorize the treasurer of state to enter into additional financing
agreements above the one million dollar authorization contained in
this section. The treasurer of state shall not enter into a
financing agreement for real or personal property which is to be
constructed for use as a prison or prison-related facility without
prior authorization by a constitutional majority of each house of the
general assembly and approval by the governor of the use, location,
and maximum cost, not including interest expense, of the real or
personal property to be financed. However, financing agreements for
an energy conservation measure, as defined in section 7D.34, for an
energy management improvement, as defined in section 473.19, or for
costs associated with projects under section 473.13A, are exempt from
the provisions of this subsection, but are subject to the
requirements of section 7D.34. In addition, financing agreements
funded through the materials and equipment revolving fund established
in section 307.47 are exempt from the provisions of this subsection.
7. The treasurer of state shall decide upon the most economical
method of financing a state agency's request for funds. The
treasurer of state may utilize master lease-purchase agreements,
issue certificates of participation in lease-purchase agreements, or
use any other financing method or method of sale which the treasurer
believes will provide savings to the state in issuance or interest
costs.
8. A financing agreement to which the state is a party is an
obligation of the state for purposes of chapters 502 and 636, and is
a lawful investment for banks, trust companies, building and loan
associations, savings and loan associations, investment companies,
insurance companies, insurance associations, executors, guardians,
trustees, and other fiduciaries responsible for the investment of
funds.
9. Publication of any notice, whether under section 73A.12 or
otherwise, and other or further proceedings with respect to the
financing agreements referred to in this section are not required
except as set forth in this section, notwithstanding any provisions
of other statutes of the state to the contrary.
12.28 CENTRALIZED FINANCING FOR STATE AGENCY PURCHASE
OF REAL AND PERSONAL PROPERTY.
1. As used in this section, unless the context otherwise
requires:
a. "Financing agreement" means any lease, lease-purchase
agreement, or installment acquisition contract in which the lessee
may purchase the leased property at a price which is less than the
fair market value of the property at the end of the lease term, or
any lease, agreement, or transaction which would be considered under
criteria established by the internal revenue service to be a
conditional sale agreement for tax purposes.
b. "State agency" means a board, commission, bureau,
division, office, department, or branch of state government.
However, state agency does not mean the state board of regents,
institutions governed by the board of regents, or authorities created
under chapter 16, 175, 257C, or 261A.
2. The treasurer of state shall have sole authority to enter into
financing agreements on behalf of state agencies. The treasurer of
state may enter into financing agreements, including master
lease-purchase agreements, for the purpose of funding state agency
requests for the financing of real or personal property, wherever
located within the state, including equipment, buildings, facilities,
and structures, or additions or improvements to existing buildings,
facilities, and structures. Subject to the selection procedures of
section 12.30, the treasurer may employ financial consultants, banks,
trustees, insurers, underwriters, accountants, attorneys, and other
advisors or consultants as necessary to implement the provisions of
this section. The costs of professional services and any other costs
of entering into the financing agreements may be included in the
financing agreement as a cost of the property being financed.
3. The financing agreement may provide for ultimate ownership of
the property by the state. Title to all property acquired in this
manner shall be taken and held in the name of the state. The state
shall be the lessee or contracting party under all financing
agreements entered into pursuant to this section. The financing
agreements may contain provisions pertaining, but not limited to,
interest, term, prepayment, and the state's obligation to make
payments on the financing agreement beyond the current budget year
subject to availability of appropriations. All projects financed
under this section shall be deemed to be for an essential
governmental purpose.
4. The treasurer of state may contract for additional security or
liquidity for a financing agreement and may enter into agreements for
letters of credit, lines of credit, insurance, or other forms of
security with respect to rental and other payments due under a
financing agreement. Fees for the costs of additional security or
liquidity are a cost of entering into the financing agreement and may
be paid from funds annually appropriated by the general assembly to
the state agency for which the property is being obtained, from other
funds legally available, or from proceeds of the financing agreement.
The provision of a financing agreement which provides that a portion
of the periodic rental or lease payment be applied as interest is
subject to chapter 74A. Other laws relating to interest rates do not
apply. Chapter 75 does not apply to financing agreements entered
into pursuant to this section.
5. Payments and other costs due under financing agreements
entered into pursuant to this section shall be payable from funds
annually appropriated by the general assembly to the state agency for
which the property is being obtained or from other funds legally
available. The treasurer of state, in cooperation with the
department of administrative services, shall implement procedures to
ensure that state agencies are timely in making payments due under
the financing agreements.
6. The maximum principal amount of financing agreements which the
treasurer of state can enter into shall be one million dollars per
state agency in a fiscal year, subject to the requirements of section
8.46. For the fiscal year, the treasurer of state shall not enter
into more than one million dollars of financing agreements per state
agency, not considering interest expense. However, the treasurer of
state may enter into financing agreements in excess of the one
million dollar per agency per fiscal year limit if a constitutional
majority of each house of the general assembly, or the legislative
council if the general assembly is not in session, and the governor,
authorize the treasurer of state to enter into additional financing
agreements above the one million dollar authorization contained in
this section. The treasurer of state shall not enter into a
financing agreement for real or personal property which is to be
constructed for use as a prison or prison-related facility without
prior authorization by a constitutional majority of each house of the
general assembly and approval by the governor of the use, location,
and maximum cost, not including interest expense, of the real or
personal property to be financed. However, financing agreements for
an energy conservation measure, as defined in section 7D.34, for an
energy management improvement, as defined in section 473.19, or for
costs associated with projects under section 473.13A, are exempt from
the provisions of this subsection, but are subject to the
requirements of section 7D.34. In addition, financing agreements
funded through the materials and equipment revolving fund established
in section 307.47 are exempt from the provisions of this subsection.
7. The treasurer of state shall decide upon the most economical
method of financing a state agency's request for funds. The
treasurer of state may utilize master lease-purchase agreements,
issue certificates of participation in lease-purchase agreements, or
use any other financing method or method of sale which the treasurer
believes will provide savings to the state in issuance or interest
costs.
8. A financing agreement to which the state is a party is an
obligation of the state for purposes of chapters 502 and 636, and is
a lawful investment for banks, trust companies, building and loan
associations, savings and loan associations, investment companies,
insurance companies, insurance associations, executors, guardians,
trustees, and other fiduciaries responsible for the investment of
funds.
9. Publication of any notice, whether under section 73A.12 or
otherwise, and other or further proceedings with respect to the
financing agreements referred to in this section are not required
except as set forth in this section, notwithstanding any provisions
of other statutes of the state to the contrary.
