261A.45 - OBLIGATIONS ISSUED TO ACQUIRE FEDERALLY GUARANTEED SECURITIES.

        261A.45  OBLIGATIONS ISSUED TO ACQUIRE FEDERALLY
      GUARANTEED SECURITIES.
         The authority may finance the cost of a project, refund
      outstanding indebtedness, or reimburse advances from an endowment or
      similar fund of an institution as authorized by this division, by
      issuing its obligations pursuant to a plan of financing involving the
      acquisition of a federally guaranteed security or the acquisition or
      entering into of commitments to acquire a federally guaranteed
      security.  For the purposes of this section, "federally guaranteed
      security" means any direct obligation of, or obligation the
      principal of and interest on which are fully guaranteed or insured by
      the United States, or an obligation issued by, or the principal of
      and interest on which are fully guaranteed or insured by any agency
      or instrumentality of the United States, including without limitation
      an obligation that is issued pursuant to the National Housing Act, or
      any successor provision of law.
         The authority may acquire or enter into commitments to acquire a
      federally guaranteed security and pledge or otherwise use the
      federally guaranteed security in the manner the authority deems in
      its best interest to secure or otherwise provide a source of
      repayment of its obligations issued to finance or refinance a
      project, or may enter into an appropriate agreement with an
      institution whereby the authority may make a loan to the institution
      for the purpose of acquiring or entering into commitments to acquire
      a federally guaranteed security.  An agreement entered into pursuant
      to this section may contain provisions deemed necessary or desirable
      by the authority for the security or protection of the authority or
      the holders of the obligations, except that the authority, prior to
      making an acquisition, commitment, or loan, shall determine and enter
      into an agreement with the institution or another appropriate
      institution to require that the proceeds derived from the acquisition
      of a federally guaranteed security will be used, directly or
      indirectly, for the purpose of financing or refinancing a project.
         The obligations issued pursuant to this section shall not exceed
      in principal amount the cost of financing or refinancing the project
      as determined by the participating institution and approved by the
      authority, except that the costs may include, without limitation, all
      costs and expenses necessary or incidental to the acquisition of or
      commitment to acquire a federally guaranteed security and to the
      issuance and obtaining of insurance or guarantee of an obligation
      issued or incurred in connection with a federally guaranteed
      security.  In other respects the bonds are subject to this division,
      and the trust agreement creating the bonds may contain provisions set
      forth in this division as the authority deems appropriate.
         If a project is financed or refinanced pursuant to this section,
      the title to the project shall remain in the participating
      institution owning the project, subject to the lien of a mortgage or
      security interest securing, directly or indirectly, the federally
      guaranteed securities being purchased or to be purchased.  
         Section History: Recent Form
         85 Acts, ch 210, §15
         Referred to in § 261A.42