Missouri Revised Statutes













Chapter 360

Missouri Health and Educational Facilities Act

←360.105

Section 360.106.1

360.107→

August 28, 2015

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 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 or

other agreement between the authority and a participating district under this

section, providing for the use of proceeds of, security for, and the

repayment of, school district bonds, and shall include a complete waiver by

the participating district of all powers, rights and privileges conferred

upon the participating district to institute any action authorized by any act

of the Congress of the United States relating to bankruptcy on the part of the

participating district;



(2) "Participating district", with respect to a particular issue of

bonds, notes or other financial obligations, any school district and any

public community college in this state which voluntarily enters into a funding

agreement with the authority pursuant to this section;



(3) "School district bonds", any bonds, notes or other obligations

issued by the authority for the purpose of making loans to, purchasing the

bonds or notes of or otherwise by agreement using or providing for the use of

the proceeds of the obligations by a participating district under this section

and all related costs of issuance of the obligations including, but not

limited to, all costs, charges, fees and expenses of underwriters, financial

advisors, attorneys, consultants, accountants and of the authority.



2. In addition to other powers granted to the authority by sections

360.010 to 360.140, the authority shall have the power to issue school

district bonds or notes for the purpose of making loans to, or purchasing the

bonds, notes or other financial instruments of:



(1) Any school district or any public community college in this state

for the use of the various funds of such school district or public community

college for any lawful purpose; and



(2) Any school district in this state with respect to obligations issued

by such school district pursuant to sections 164.121 to 164.301 or otherwise

by law.



3. In connection with the issuance of school district bonds pursuant to

the powers granted in this section, the authority shall have all powers as

set forth elsewhere in sections 360.010 to 360.140, and the provisions of

sections 360.010 to 360.140 shall be applicable to the issuance of school

district bonds to the extent that they are not inconsistent with the

provisions of this section.



4. School district bonds issued pursuant to this section may be secured

by 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 such

payments, bonds or notes of two or more of such participating districts or as

otherwise set forth in the funding agreements.



5. The authority may invest any funds held pursuant to powers granted

under this section, which are not required for immediate disbursement, in any

investment approved by the authority and specified in the trust indenture or

resolution pursuant to which such bonds or notes are issued without regard to

any limitation otherwise imposed by section 360.120 or otherwise by law;

provided, however, that each participating district shall receive the

earnings, or a credit for such earnings, to the extent any such amounts

invested are attributable to a particular participating district.



6. (1) In connection with school district bonds, upon certification by

the authority to the commissioner of education and the state treasurer that

the funding agreement provides for consent by a participating district for

direct deposit of its state payments to the trustee, the state treasurer shall

transfer, but only out of funds described in this section, directly to the

trustee for such school district bonds, the amounts needed to pay the

principal and interest when due on the school district bonds attributable to a

particular participating district. Such transfers for any school district

bonds attributable to a particular participating district shall only be made

out of, and to the extent of, the state payments and distributions from all

funds to be made by the state to such participating district pursuant to

sections 163.011 to 163.195. Any such transfer by the state on behalf of a

participating district shall discharge the state's obligation to make such

state payments to such participating district to the extent of such transfer;



(2) A participating district shall withdraw amounts from any of its

funds established pursuant to section 165.011 to the extent such amounts

could have been used to make the payments made on its behalf by the state

treasurer as provided in subdivision (1) of this subsection. Notwithstanding

any provisions of section 108.180 to the contrary, such amounts shall be

deposited into the participating district's funds as provided by law in lieu

of the state payments transferred to the trustee under the funding agreement;



(3) The authority shall from time to time develop guidelines containing

certain criteria with respect to participating school districts and with

respect to the issuance of school district bonds;



(4) Transfers made under this subsection pursuant to a school district's

participation in a funding agreement under this section shall be made at no

cost 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 the

issuance of any school district bonds other than reserve funds, out of the

proceeds thereof or out of amounts distributed annually to the authority

pursuant to sections 160.534 and 164.303. The authority shall annually submit

a request for funding of such costs to the commissioner of education in such

form and at such time as he may request. A copy of such request shall be

forwarded to the commissioner of administration. The authority shall provide

for the payment of costs pursuant to this subsection only for bonds issued

for the purpose of financing construction or renovation projects approved by

voters after January 1, 1995, or refinancing construction or renovation

projects or for refinance of lease purchase obligations with general

obligation bonds.



8. Any refunding or refinancing of existing bonds of a school district

under this section shall have a net present value savings of at least one and

one-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 exercise of powers

granted pursuant to this section.



10. Nothing in this section or sections 360.111 to 360.118 shall be

construed to relieve a school district or public community college of its

obligation to levy a debt service levy or capital projects levy sufficient to

retire any obligation of the district or college as otherwise provided by law.



11. Any professional services provided in connection with the sale of

such bonds pursuant to this section, including, but not limited to,

underwriters, bond counsel, underwriters' counsel, trustee and financial

advisors, shall be obtained through competitive bidding. The initial bid for

professional services shall be for a period of not longer than two years, and

thereafter such bids shall be awarded for a period not longer than one year.



12. The authority shall review the cost effectiveness of the program

established under this section and sections 360.111 to 360.118 and shall, on

or before the fifteenth of August of each year, provide a report to the

general assembly which shall contain a report on the program, the authority's

findings and a recommendation of whether this section should be repealed,

strengthened or otherwise amended.



(L. 1985 H.B. 691, A.L. 1995 S.B. 301, A.L. 1999 S.B. 276, A.L. 2002

H.B. 1477, et al. merged with S.B. 947, A.L. 2005 S.B. 287)



Effective 7-01-06





2002

1999

1999



2002



360.106. In addition to other powers granted to the

authority by sections 360.010 to 360.140, the authority shall

have the power to issue bonds or notes for the purpose of making

loans to, or purchasing the notes of, any school district or any

public community junior college in this state for the use of the

various funds of such school district or public community junior

college for any lawful purpose. Bonds or notes issued pursuant

to this section may be secured by a pledge of payments made to

the authority by the school district or public community junior

college, by the notes of the school district or public community

junior college, or by a pooling of such payments or notes of two

or more participating school districts or public community junior

colleges. The authority may invest any funds held pursuant to

powers granted under this section, which are not required for

immediate disbursement, in any investment approved by the

authority and specified in the trust indenture or resolution

pursuant to which such bonds or notes are issued without regard

to any limitation otherwise imposed by section 360.120. The

commissioner of education shall serve as an ex officio,

nonvoting, advisory member of the authority solely with regard to

the exercise of powers granted pursuant to this section.



1999



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 or

other agreement between the authority and a participating district under

this section, providing for the use of proceeds of, security for, and the

repayment of, school district bonds, and shall include a complete waiver by

the participating district of all powers, rights and privileges conferred

upon the participating district to institute any action authorized by any

act of the Congress of the United States relating to bankruptcy on the part

of the participating district;



(2) "Participating district", with respect to a particular issue of

bonds, notes or other financial obligations, any school district and any

public community junior college in this state which voluntarily enters into

a funding agreement with the authority pursuant to this section;



(3) "School district bonds", any bonds, notes or other obligations

issued by the authority for the purpose of making loans to, purchasing the

bonds or notes of or otherwise by agreement using or providing for the use

of the proceeds of the obligations by a participating district under this

section and all related costs of issuance of the obligations including, but

not limited to, all costs, charges, fees and expenses of underwriters,

financial advisors, attorneys, consultants, accountants and of the

authority.



2. In addition to other powers granted to the authority by sections

360.010 to 360.140, the authority shall have the power to issue school

district bonds or notes for the purpose of making loans to, or purchasing

the bonds, notes or other financial instruments of:



(1) Any school district or any public community junior college in

this state for the use of the various funds of such school district or

public community junior college for any lawful purpose; and



(2) Any school district in this state with respect to obligations

issued by such school district pursuant to sections 164.121 to 164.301,

RSMo, or otherwise by law.



3. In connection with the issuance of school district bonds pursuant

to the powers granted in this section, the authority shall have all powers

as set forth elsewhere in sections 360.010 to 360.140, and the provisions

of sections 360.010 to 360.140 shall be applicable to the issuance of

school district bonds to the extent that they are not inconsistent with the

provisions of this section.



4. School district bonds issued pursuant to this section may be

secured by 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 such payments, bonds or notes of two or more of such

participating districts or as otherwise set forth in the funding

agreements.



5. The authority may invest any funds held pursuant to powers granted

under this section, which are not required for immediate disbursement, in

any investment approved by the authority and specified in the trust

indenture or resolution pursuant to which such bonds or notes are issued

without regard to any limitation otherwise imposed by section 360.120 or

otherwise by law; provided, however, that each participating district shall

receive the earnings, or a credit for such earnings, to the extent any such

amounts invested are attributable to a particular participating district.



6. (1) In connection with school district bonds, upon certification

by the authority to the commissioner of education and the state treasurer

that the funding agreement provides for consent by a participating district

for direct deposit of its state payments to the trustee, the state

treasurer shall transfer, but only out of funds described in this section,

directly to the trustee for such school district bonds, the amounts needed

to pay the principal and interest when due on the school district bonds

attributable to a particular participating district. Such transfers for

any school district bonds attributable to a particular participating

district shall only be made out of, and to the extent of, the state

payments and distributions from all funds to be made by the state to such

participating district pursuant to sections 163.011 to 163.195, RSMo, and

the distributions from the fair share fund to be made by the state to such

participating district pursuant to section 149.015, RSMo. Any such

transfer by the state on behalf of a participating district shall discharge

the state's obligation to make such state payments to such participating

district to the extent of such transfer;



(2) A participating district shall withdraw amounts from any of its

funds established pursuant to section 165.011, RSMo, to the extent such

amounts could have been used to make the payments made on its behalf by the

state treasurer as provided in subdivision (1) of this subsection.

Notwithstanding any provisions of section 108.180, RSMo, to the contrary,

such amounts shall be deposited into the participating district's funds as

provided by law in lieu of the state payments transferred to the trustee

under the funding agreement;



(3) The authority shall from time to time develop guidelines

containing certain criteria with respect to participating school districts

and with respect to the issuance of school district bonds;



(4) Transfers made under this subsection pursuant to a school

district's participation in a funding agreement under this section shall be

made at no cost 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 the

issuance of any school district bonds other than reserve funds, out of the

proceeds thereof or out of amounts distributed annually to the authority

pursuant to sections 160.534 and 164.303, RSMo. The authority shall

annually submit a request for funding of such costs to the commissioner of

education in such form and at such time as he may request. A copy of such

request shall be forwarded to the commissioner of administration. The

authority shall provide for the payment of costs pursuant to this

subsection only for bonds issued for the purpose of financing construction

or renovation projects approved by voters after January 1, 1995, or

refinancing construction or renovation projects or for refinance of lease

purchase obligations with general obligation bonds.



8. Any refunding or refinancing of existing bonds of a school

district under this section shall have a net present value savings of at

least one and one-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

exercise of powers granted pursuant to this section.



10. Nothing in this section or sections 360.111 to 360.118 shall be

construed to relieve a school district of its obligation to levy a debt

service levy or capital projects levy sufficient to retire any obligation

of the district as otherwise provided by law.



11. Any professional services provided in connection with the sale of

such bonds pursuant to this section, including, but not limited to,

underwriters, bond counsel, underwriters' counsel, trustee and financial

advisors, shall be obtained through competitive bidding. The initial bid

for professional services shall be for a period of not longer than two

years, and thereafter such bids shall be awarded for a period not longer

than one year.



12. The authority shall review the cost effectiveness of the program

established under this section and sections 360.111 to 360.118 and shall,

on or before the fifteenth of August of each year, provide a report to the

general assembly which shall contain a report on the program, the

authority's findings and a recommendation of whether this section should be

repealed, strengthened or otherwise amended.



1999



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 or

other agreement between the authority and a participating district under

this section, providing for the use of proceeds of, security for, and the

repayment of, school district bonds, and shall include a complete waiver by

the participating district of all powers, rights and privileges conferred

upon the participating district to institute any action authorized by any

act of the Congress of the United States relating to bankruptcy on the part

of the participating district;



(2) "Participating district", with respect to a particular issue of

bonds, notes or other financial obligations, any school district and any

public community junior college in this state which voluntarily enters into

a funding agreement with the authority pursuant to this section;



(3) "School district bonds", any bonds, notes or other obligations

issued by the authority for the purpose of making loans to, purchasing the

bonds or notes of or otherwise by agreement using or providing for the use

of the proceeds of the obligations by a participating district under this

section and all related costs of issuance of the obligations including, but

not limited to, all costs, charges, fees and expenses of underwriters,

financial advisors, attorneys, consultants, accountants and of the

authority.



2. In addition to other powers granted to the authority by sections

360.010 to 360.140, the authority shall have the power to issue school

district bonds or notes for the purpose of making loans to, or purchasing

the bonds, notes or other financial instruments of:



(1) Any school district or any public community junior college in

this state for the use of the various funds of such school district or

public community junior college for any lawful purpose; and



(2) Any school district in this state with respect to obligations

issued by such school district pursuant to sections 164.121 to 164.301,

RSMo, or otherwise by law.



3. In connection with the issuance of school district bonds pursuant

to the powers granted in this section, the authority shall have all powers

as set forth elsewhere in sections 360.010 to 360.140, and the provisions

of sections 360.010 to 360.140 shall be applicable to the issuance of

school district bonds to the extent that they are not inconsistent with the

provisions of this section.



4. School district bonds issued pursuant to this section may be

secured by 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 such payments, bonds or notes of two or more of such

participating districts or as otherwise set forth in the funding

agreements.



5. The authority may invest any funds held pursuant to powers granted

under this section, which are not required for immediate disbursement, in

any investment approved by the authority and specified in the trust

indenture or resolution pursuant to which such bonds or notes are issued

without regard to any limitation otherwise imposed by section 360.120 or

otherwise by law; provided, however, that each participating district shall

receive the earnings, or a credit for such earnings, to the extent any such

amounts invested are attributable to a particular participating district.



6. (1) In connection with school district bonds, upon certification

by the authority to the commissioner of education and the state treasurer

that the funding agreement provides for consent by a participating district

for direct deposit of its state payments to the trustee, the state

treasurer shall transfer, but only out of funds described in this section,

directly to the trustee for such school district bonds, the amounts needed

to pay the principal and interest when due on the school district bonds

attributable to a particular participating district. Such transfers for

any school district bonds attributable to a particular participating

district shall only be made out of, and to the extent of, the state

payments and distributions from all funds to be made by the state to such

participating district pursuant to sections 163.011 to 163.195, RSMo, and

the distributions from the fair share fund to be made by the state to such

participating district pursuant to section 149.015, RSMo. Any such

transfer by the state on behalf of a participating district shall discharge

the state's obligation to make such state payments to such participating

district to the extent of such transfer;



(2) A participating district shall withdraw amounts from any of its

funds established pursuant to section 165.011, RSMo, to the extent such

amounts could have been used to make the payments made on its behalf by the

state treasurer as provided in subdivision (1) of this subsection.

Notwithstanding any provisions of section 108.180, RSMo, to the contrary,

such amounts shall be deposited into the participating district's funds as

provided by law in lieu of the state payments transferred to the trustee

under the funding agreement;



(3) The authority shall from time to time develop guidelines

containing certain criteria with respect to participating school districts

and with respect to the issuance of school district bonds;



(4) Transfers made under this subsection pursuant to a school

district's participation in a funding agreement under this section shall be

made at no cost 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 the

issuance of any school district bonds other than reserve funds, out of the

proceeds thereof or out of amounts distributed annually to the authority

pursuant to sections 160.534 and 164.303, RSMo. The authority shall

annually submit a request for funding of such costs to the commissioner of

education in such form and at such time as he may request. A copy of such

request shall be forwarded to the commissioner of administration. The

authority shall provide for the payment of costs pursuant to this

subsection only for bonds issued for the purpose of financing construction

or renovation projects approved by voters after January 1, 1995, or

refinancing construction or renovation projects or for refinance of lease

purchase obligations with general obligation bonds.



8. Any refunding or refinancing of existing bonds of a school

district under this section shall have a net present value savings of at

least one and one-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

exercise of powers granted pursuant to this section.



10. Nothing in this section or sections 360.111 to 360.118 shall be

construed to relieve a school district of its obligation to levy a debt

service levy or capital projects levy sufficient to retire any obligation

of the district as otherwise provided by law.



11. Any professional services provided in connection with the sale of

such bonds pursuant to this section, including, but not limited to,

underwriters, bond counsel, underwriters' counsel, trustee and financial

advisors, shall be obtained through competitive bidding. The initial bid

for professional services shall be for a period of not longer than two

years, and thereafter such bids shall be awarded for a period not longer

than one year.



12. The authority shall review the cost effectiveness of the program

established under this section and sections 360.111 to 360.118 and shall,

on or before the fifteenth of August of each year, provide a report to the

general assembly which shall contain a report on the program, the

authority's findings and a recommendation of whether this section should be

repealed, strengthened or otherwise amended.



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