State’S Guaranty — Monitoring Of Financial Solvency Contract With Bondholders — Guaranty — Limitation As To Certain Refunded Bonds

TITLE 33 EDUCATION CHAPTER 53 IDAHO SCHOOL BOND GUARANTY ACT 33-5303. State’s guaranty — Monitoring of financial solvency contract with bondholders — guaranty — Limitation as to certain refunded bonds. (1)  (a) The state of Idaho pledges to and agrees with the holders of any bonds that the state will not alter, impair, or limit the rights vested by the default avoidance program with respect to the bonds until the bonds, together with applicable interest, are fully paid and discharged. (b)  Notwithstanding paragraph (a) of this subsection, nothing contained in this chapter precludes an alteration, impairment, or limitation if adequate provision is made by law for the protection of the holders of the bonds. (c)  Each school district may refer to this pledge and undertaking by the state in its bonds. (2)  (a) The sales tax of the state is pledged to guarantee full and timely payment of the principal of, either at the stated maturity or by any advancement of maturity pursuant to a mandatory sinking fund payment, and interest on, refunding bonds issued on and after March 1, 1999, for voter-approved bonds which were voted on by the electorate prior to March 1, 1999, and voter-approved bonds which were voted on by the electorate on and after March 1, 1999, as such payments shall become due, except that in the event of any acceleration of the due date of such principal by reason of mandatory or optional redemption or acceleration resulting from default or otherwise, other than any advancement of maturity pursuant to a mandatory sinking fund payment, the payments guaranteed shall be made in such amounts and at such times as such payments of principal would have been due had there not been any such acceleration. (b)  This guaranty does not extend to the payment of any redemption premium. (c)  Reference to this chapter by its title on the face of any bond conclusively establishes the guaranty provided to that bond under provisions of this chapter. (3)  (a) Any bond guaranteed under this chapter that is currently refunded and considered paid for no longer has the benefit of the guaranty provided by this chapter from and after the date on which that bond was considered to be paid. (b)  In accordance with section 57-504 (7), Idaho Code, any bond guaranteed under this chapter that is advance refunded and is itself secured by bond proceeds held in escrow no longer has the benefit of the guaranty provided by this chapter from and after the date on which the proceeds from the advance refunding have been placed in an irrevocable escrow. (4)  Only validly issued bonds issued after the effective date of this chapter are guaranteed under this chapter.