Authority to sell or assign state's share of tobacco settlement.
8.535. 1. (1) The governor or the governor's designee shall beauthorized to sell and assign to the authority, pursuant to one or more salesagreements, not to exceed thirty percent of the state's share to implementsections 8.500 to 8.565; provided, the net proceeds of bonds issued toimplement sections 8.500 to 8.565 shall not exceed six hundred milliondollars. The attorney general shall assist the governor in the preparation,modification and review of all documentation as may be necessary to effectsuch a sale and to implement the provisions of sections 8.500 to 8.565.
(2) Any sales agreement shall be consistent with sections 8.500 to8.565. The terms and conditions of the sale established in such salesagreement may include but are not limited to any of the following:
(a) A requirement that the state enforce and pay the expenses ofenforcing the provisions of the master settlement agreement that requirepayment of the state's share that has been sold to the authority under a salesagreement which obligation shall constitute a material covenant of the state;
(b) A requirement that the state not agree to any amendment of themaster settlement agreement that materially and adversely affects theauthority's ability to receive the state's share that has been sold to theauthority under a sales agreement;
(c) A statement that the net proceeds from the sale of bonds shall bedeposited in the tobacco securitization settlement trust fund establishedunder section 8.550 and that in no event shall the amounts in the trust fundbe available or be applied for payment of bonds or any claim against theauthority or any debt or obligation of the authority; and
(d) An agreement that the effective date of the sale is the date ofreceipt of the bond proceeds by the authority.
2. Any sales made under this section shall be irrevocable during thetime when bonds are outstanding under sections 8.500 to 8.565, and shall be apart of the contractual obligation owed to the bondholders. The sale shallconstitute and be treated as a true sale and absolute transfer of the propertyso transferred and not as a pledge or other security interest for anyborrowing. The characterization of such a sale as an absolute transfer shallnot be negated or adversely affected by the fact that only a portion of thestate's share is being sold, or by the state's acquisition or retention of anownership interest in the residual assets.
3. On or after the effective date of such sale, the state shall not haveany right, title, or interest in the portion of the master settlementagreement sold and such portion shall be the property of the authority and notthe state, and shall be owned, received, held, and disbursed by the authorityor its trustee or assignee, and not the state.
4. On or before the effective date of the sale, the state shall notifythe escrow agent or its assignee under the master settlement agreement of thesale and shall instruct the escrow agent or its assignee that subsequent tothat date, all payments constituting the portion sold shall be made directlyto the authority.
5. The authority shall report to the** board of public buildings on orbefore the date of the sale, advising it of the status of the sale, its terms,and conditions.
(L. 2002 S.B. 1191)
Effective 6-07-02
*Section terminates upon satisfaction of all outstanding notes and obligations issued pursuant to sections 8.500 to 8.590. See section 8.589.
Authority to sell or assign state's share of tobacco settlement.
8.535. 1. (1) The governor or the governor's designee shall beauthorized to sell and assign to the authority, pursuant to one or more salesagreements, not to exceed thirty percent of the state's share to implementsections 8.500 to 8.565; provided, the net proceeds of bonds issued toimplement sections 8.500 to 8.565 shall not exceed six hundred milliondollars. The attorney general shall assist the governor in the preparation,modification and review of all documentation as may be necessary to effectsuch a sale and to implement the provisions of sections 8.500 to 8.565.
(2) Any sales agreement shall be consistent with sections 8.500 to8.565. The terms and conditions of the sale established in such salesagreement may include but are not limited to any of the following:
(a) A requirement that the state enforce and pay the expenses ofenforcing the provisions of the master settlement agreement that requirepayment of the state's share that has been sold to the authority under a salesagreement which obligation shall constitute a material covenant of the state;
(b) A requirement that the state not agree to any amendment of themaster settlement agreement that materially and adversely affects theauthority's ability to receive the state's share that has been sold to theauthority under a sales agreement;
(c) A statement that the net proceeds from the sale of bonds shall bedeposited in the tobacco securitization settlement trust fund establishedunder section 8.550 and that in no event shall the amounts in the trust fundbe available or be applied for payment of bonds or any claim against theauthority or any debt or obligation of the authority; and
(d) An agreement that the effective date of the sale is the date ofreceipt of the bond proceeds by the authority.
2. Any sales made under this section shall be irrevocable during thetime when bonds are outstanding under sections 8.500 to 8.565, and shall be apart of the contractual obligation owed to the bondholders. The sale shallconstitute and be treated as a true sale and absolute transfer of the propertyso transferred and not as a pledge or other security interest for anyborrowing. The characterization of such a sale as an absolute transfer shallnot be negated or adversely affected by the fact that only a portion of thestate's share is being sold, or by the state's acquisition or retention of anownership interest in the residual assets.
3. On or after the effective date of such sale, the state shall not haveany right, title, or interest in the portion of the master settlementagreement sold and such portion shall be the property of the authority and notthe state, and shall be owned, received, held, and disbursed by the authorityor its trustee or assignee, and not the state.
4. On or before the effective date of the sale, the state shall notifythe escrow agent or its assignee under the master settlement agreement of thesale and shall instruct the escrow agent or its assignee that subsequent tothat date, all payments constituting the portion sold shall be made directlyto the authority.
5. The authority shall report to the** board of public buildings on orbefore the date of the sale, advising it of the status of the sale, its terms,and conditions.
(L. 2002 S.B. 1191)
Effective 6-07-02
*Section terminates upon satisfaction of all outstanding notes and obligations issued pursuant to sections 8.500 to 8.590. See section 8.589.
Authority to sell or assign state's share of tobacco settlement.
8.535. 1. (1) The governor or the governor's designee shall beauthorized to sell and assign to the authority, pursuant to one or more salesagreements, not to exceed thirty percent of the state's share to implementsections 8.500 to 8.565; provided, the net proceeds of bonds issued toimplement sections 8.500 to 8.565 shall not exceed six hundred milliondollars. The attorney general shall assist the governor in the preparation,modification and review of all documentation as may be necessary to effectsuch a sale and to implement the provisions of sections 8.500 to 8.565.
(2) Any sales agreement shall be consistent with sections 8.500 to8.565. The terms and conditions of the sale established in such salesagreement may include but are not limited to any of the following:
(a) A requirement that the state enforce and pay the expenses ofenforcing the provisions of the master settlement agreement that requirepayment of the state's share that has been sold to the authority under a salesagreement which obligation shall constitute a material covenant of the state;
(b) A requirement that the state not agree to any amendment of themaster settlement agreement that materially and adversely affects theauthority's ability to receive the state's share that has been sold to theauthority under a sales agreement;
(c) A statement that the net proceeds from the sale of bonds shall bedeposited in the tobacco securitization settlement trust fund establishedunder section 8.550 and that in no event shall the amounts in the trust fundbe available or be applied for payment of bonds or any claim against theauthority or any debt or obligation of the authority; and
(d) An agreement that the effective date of the sale is the date ofreceipt of the bond proceeds by the authority.
2. Any sales made under this section shall be irrevocable during thetime when bonds are outstanding under sections 8.500 to 8.565, and shall be apart of the contractual obligation owed to the bondholders. The sale shallconstitute and be treated as a true sale and absolute transfer of the propertyso transferred and not as a pledge or other security interest for anyborrowing. The characterization of such a sale as an absolute transfer shallnot be negated or adversely affected by the fact that only a portion of thestate's share is being sold, or by the state's acquisition or retention of anownership interest in the residual assets.
3. On or after the effective date of such sale, the state shall not haveany right, title, or interest in the portion of the master settlementagreement sold and such portion shall be the property of the authority and notthe state, and shall be owned, received, held, and disbursed by the authorityor its trustee or assignee, and not the state.
4. On or before the effective date of the sale, the state shall notifythe escrow agent or its assignee under the master settlement agreement of thesale and shall instruct the escrow agent or its assignee that subsequent tothat date, all payments constituting the portion sold shall be made directlyto the authority.
5. The authority shall report to the** board of public buildings on orbefore the date of the sale, advising it of the status of the sale, its terms,and conditions.
(L. 2002 S.B. 1191)
Effective 6-07-02
*Section terminates upon satisfaction of all outstanding notes and obligations issued pursuant to sections 8.500 to 8.590. See section 8.589.
