Missouri Revised Statutes

Chapter 360
Missouri Health and Educational Facilities Act

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Short title.

360.010. Sections 360.010 to 360.140 may be referred to and cited as the "Missouri Health and Educational Facilities Authority Act".

(L. 1975 H.B. 70 § 27)

Definitions.

360.015. As used in sections 360.010 to 360.140, unless the context clearly requires otherwise, the following terms mean:

(1) "Authority", the health and educational facilities authority of the state of Missouri created by sections 360.010 to 360.140;

(2) "Costs", as applied to health or educational facilities financed in whole or in part pursuant to the provisions of sections 360.010 to 360.140 includes the sum total of all reasonable or necessary expenses incidental to the acquisition, construction, reconstruction, repair, alteration, improvement, and extension of the facilities, including without limitation the expense of studies and surveys; land title and mortgage guaranty policies; architectural and engineering services; legal, organizational, marketing, or other special services; financing, acquiring, demolishing existing structures, constructing, equipping, and developing the sites of new and rehabilitated buildings; rehabilitating, reconstructing, repairing, or remodeling existing buildings; provisions for working capital; reserves for principal and interest and for extensions, enlargements, additions, replacements, renovations, and improvements; and all other necessary and incidental expenses including interest during construction on bonds issued to finance the facilities and for a period subsequent to the estimated date of completion of the facilities;

(3) "Educational facilities", a structure or building, whether such structure or building is located within the state of Missouri or outside the state of Missouri, suitable for use as a dormitory or other housing, including housing for staff members, dining hall, student union, administration building, academic building, library, laboratory, place in which to conduct research, classroom, place for athletic activities, place in which to provide health care, place in which to house maintenance equipment and supplies, storage place, and place in which to locate utilities, as well as other structures or appurtenances related thereto required or useful for the instruction of students in the conducting of research at, or the operation of an educational institution, as defined in sections 360.010 to 360.140, including parking lots, garages, and other buildings or structures essential or convenient for the orderly conduct of such an institution and also including all necessary, useful or related furnishings, equipment, machinery, and appurtenances necessary or convenient for the operation of a particular service or structure in the manner for which its use is intended, including, without limitation, the acquisition, preparation and development of all lands necessary or convenient as a site or sites for any of the foregoing, but shall not include such items as books, fuel, supplies, or other items which customarily are deemed to constitute a current operating expense, and shall not include any property used or to be used for sectarian instruction or study or as a place for religious worship or any property used or to be used primarily in connection with any part of a program of a school or department of divinity of any religious denomination;

(4) "Educational institution", any public or private association, corporation, institution, partnership, limited partnership, joint venture or other entity, or any public association, corporation or institution which is, or is owned and operated by, a political subdivision of the state of Missouri, not operated for private or corporate profit, or any public association, corporation or institution which is, or is owned and operated by or on behalf of, a political subdivision of the state of Missouri, authorized by law to provide or operate educational facilities and to provide a program of education in the state of Missouri; and any of the foregoing described entities which are authorized by law to provide or operate educational facilities, and to provide a program of education outside the state of Missouri if such entity, or an affiliate of such entity, also operates an educational facility within the state of Missouri or maintains a regional or national headquarters within the state of Missouri, and any state educational institution as defined in subdivision (5) of section 176.010, and "participating educational institution", any such educational institution which, pursuant to the provisions of sections 360.010 to 360.140, undertakes the financing and construction or acquisition of educational facilities or undertakes the refunding or refinancing of outstanding obligations, of a mortgage, or of advances or loans as provided in and permitted by sections 360.010 to 360.140 with respect to an educational facility;

(5) "Health facilities", a structure or building, whether such structure or building is located within the state of Missouri or outside the state of Missouri, suitable for use as a hospital, clinic, nursing home, home for the aged or infirm, congregate, life, senior, extended care or elderly housing or care facility, or other health care facility, laboratory, pharmacy, laundry, residence facility or housing for nurses, doctors, interns, staff members, employees, students at such health facilities or their immediate families, and for physically or mentally handicapped persons, place for administrative offices, place in which to conduct research, place in which to house maintenance equipment and supplies, storage place, place in which to locate utilities, auditorium, dining hall, place for food service and preparation, place in which to house fire-fighting equipment, place in which to provide mental and physical health care and dental care, nursing, technical or paraprofessional school, medical or dental teaching school, and place in which to house offices; parking lots, garages, and buildings or structures in which to house supporting services; or any other structure or facilities required or useful for the operation of a health institution; mental, emotional or physical rehabilitation facility; alcohol, drug or substance abuse diagnosis, counseling, treatment or rehabilitation facility; child care or child welfare facility; and all necessary, useful, and related furnishings, equipment, machinery, and appurtenances, or other assets, tangible or intangible, including but not limited to assets related to health delivery systems or networks which are necessary or useful in the development, establishment or operation of a participating health institution; including without limitation the acquisition, preparation, and development of all lands necessary or convenient as a site or sites for any of the foregoing, but shall not include any property used or to be used for sectarian instruction or study or as a place for religious worship or any property used or to be used primarily in connection with any part of a program of a school or department of divinity of any religious denomination;

(6) "Health institution", any of the following entities authorized by law to provide or operate health facilities in the state of Missouri, or outside the state of Missouri if such entity or an affiliate of such entity also operates a health facility within the state of Missouri or maintains a regional or national headquarters within the state of Missouri:

(a) Any public or private association, corporation, institution, partnership, limited partnership, joint venture or other entity, not operated for private or corporate profit authorized by law to provide or operate health facilities;

(b) Any network or organization of health care providers, however organized; any integrated health care delivery system; any joint venture, partnership or similar arrangement between or among health care providers; any health care purchasing alliance; any health insurers and third-party administrators which are participants in a system, network, joint venture, or partnership that provides health services; any organization which, as its primary purpose, provides supporting services to one or more health institutions; and any foundation which supports a health institution or promotes and encourages health policy or medical research and public health; and

(c) Any of the entities listed in paragraph (a) or (b) of this subdivision whether operated for profit or not operated for private or corporate profit;

(7) "Missouri college savings bonds", bonds, notes or other evidences of indebtedness issued pursuant to sections 360.010 to 360.140 and designated as such;

(8) "Participating health institution", any health institution which, pursuant to the provisions of sections 360.010 to 360.140, undertakes the financing and construction or acquisition of health facilities or undertakes the refunding or refinancing of outstanding obligations, of a mortgage, or of advances or loans as provided in and permitted by sections 360.010 to 360.140 with respect to a health institution;

(9) "Revenues", with respect to health or educational facilities, the rents, fees, charges, and other income derived from the operation of the facilities.

(L. 1975 H.B. 70 § 1, A.L. 1988 H.B. 1456, A.L. 1995 S.B. 301, A.L. 1998 H.B. 971, A.L. 1999 S.B. 276)

Authority established--membership, terms--vacancy, how filled--removalof member, when.

360.020. There is hereby created a body politic and corporate to be known as the "Health and Educational Facilities Authority of the State of Missouri". The authority is hereby constituted a public instrumentality and body corporate, and the exercise by the authority of the powers conferred by sections 360.010 to 360.140 shall be deemed and held to be the performance of an essential public function. The authority shall consist of seven members to be appointed by the governor, by and with the advice and consent of the senate, each of whom shall be a resident of the state. Not more than four out of the seven members of the authority shall be of the same political party. In making appointments to the authority, the governor shall take into consideration nominees recommended to him for appointment by professional organizations of hospitals, operators of long term health care facilities, higher education associations, investment bankers, and architects. The members of the authority first appointed by the governor shall be appointed as follows: Two for a term of one year, two for a term of two years, and one each for terms of three, four, and five years, respectively, from the date of appointment, or until their successors shall have been appointed and shall have qualified. The initial term of each such member is to be designated by the governor at the time of making the appointment. Upon the expiration of the initial terms of office, successor members shall be appointed for terms of five years and shall serve until their successors shall have been appointed and shall have qualified. Any member shall be eligible for reappointment. The governor shall fill any vacancy for the remainder of any unexpired term. Any member of the authority may be removed by the governor for misfeasance, malfeasance, willful neglect of duty, or other cause after notice and a public hearing unless the notice or hearing shall be expressly waived in writing.

(L. 1975 H.B. 70 § 2)

Meetings to be open--quorum--notice--expenses of members.

360.025. Four members of the authority shall constitute a quorum for the purpose of conducting business. The exercise of the powers of the authority and action may be taken by the authority upon the affirmative vote of the lesser of four members or a majority of the members present as long as a quorum is present. Each meeting of the authority for any purpose whatsoever shall be open to the public, except as otherwise provided by law. Notice of meetings shall be given as provided in the bylaws of the authority. The proceedings and actions of the authority shall comply with all statutory requirements respecting the conduct of public business by a public agency. Members of the authority shall receive no compensation for services but shall be entitled to reimbursement for necessary expenses, including traveling and lodging expenses, incurred in the discharge of their duties. Any payment for expenses shall be paid from funds of the authority.

(L. 1975 H.B. 70 § 3, A.L. 1988 H.B. 1456)

Officers of authority, how selected--powers and duties, how fixed.

360.030. The member of the authority designated by the governor for the purpose shall call and convene the initial organizational meeting of the authority and shall serve as its chairman pro tem. At the initial meeting and annually thereafter, the authority shall elect one of its members as chairman and one as vice chairman. In addition, at the initial meeting and annually thereafter, the authority shall appoint a secretary and a treasurer either of whom may be a member of the authority and, if not a member of the authority, shall receive such compensation as shall be fixed from time to time by action of the authority. The authority may appoint an executive director who shall not be a member of the authority and who shall serve at its pleasure. If an executive director is appointed, he shall receive such compensation as shall be fixed from time to time by action of the authority. The authority may designate the secretary to act in lieu of the executive director. The secretary shall keep a record of the proceedings of the authority and shall be the custodian of all books, documents, and papers filed with the authority, the minute books or journal thereof, and its official seal. The secretary may cause copies to be made of all minutes and other records and documents of the authority and may give certificates under the official seal of the authority to the effect that the copies are true and correct copies, and all persons dealing with the authority may rely on such certificates. The authority, by resolution duly adopted, shall fix the powers and duties of its executive director as it may from time to time deem proper and necessary.

(L. 1975 H.B. 70 § 4)

Bond required, amount of.

360.035. Each member of the authority shall execute a surety bond in the penal sum of fifty thousand dollars or, in lieu thereof, the chairman of the authority shall execute a blanket bond covering each member and the employees or other officers of the authority, each surety bond to be conditioned upon the faithful performance of the duties of the office or offices covered, to be executed by a surety company authorized to transact business in this state as surety, and to be approved by the attorney general and filed in the office of the secretary of state. The cost of each such bond shall be paid by the authority.

(L. 1975 H.B. 70 § 5)

Conflict of interest not applicable, when.

360.040. Any other provision of the law to the contrary notwithstanding, it shall not be or constitute a conflict of interest for a trustee, director, officer, employee, owner or partner of any health institution, educational institution, financial institution, investment banking firm, brokerage firm, commercial bank or trust company, architecture firm, insurance company, or any other firm, person, or corporation to serve as a member of the authority, provided such trustee, director, officer, employee, owner or partner shall abstain from deliberation, action, and vote by the authority in each instance where the business affiliation or any such trustee, director, officer, employee, owner or partner is involved.

(L. 1975 H.B. 70 § 6, A.L. 1988 H.B. 1456)

Powers of authority--transfer of moneys to rebuild damagedinfrastructure fund.

360.045. 1. The authority shall have the following powers together with all powers incidental thereto or necessary for the performance thereof:

(1) To have perpetual succession as a body politic and corporate;

(2) To adopt bylaws for the regulation of its affairs and the conduct of its business;

(3) To sue and be sued and to prosecute and defend, at law or in equity, in any court having jurisdiction of the subject matter and of the parties;

(4) To have and to use a corporate seal and to alter the same at pleasure;

(5) To maintain an office at such place or places in the state of Missouri as it may designate;

(6) To determine the location and construction of any facility to be financed under the provisions of sections 360.010 to 360.140, and to construct, reconstruct, repair, alter, improve, extend, maintain, lease, and regulate the same; and to designate a participating health institution or a participating educational institution, as the case may be, as its agent to determine the location and construction of a facility undertaken by such participating health institution or participating educational institution, as the case may be, under the provisions of sections 360.010 to 360.140, to construct, reconstruct, repair, alter, improve, extend, maintain, and regulate the same, and to enter into contracts for any and all of such purposes including contracts for the management and operation of the facility;

(7) To lease to a participating health institution or a participating educational institution, as the case may be, the particular health or educational facility or facilities, as the case may be, upon such terms and conditions as the authority shall deem proper; to charge and collect rent therefor; to terminate any such lease upon the failure of the lessee to comply with any of the obligations thereof; to include in any such lease, if desired, provisions that the lessee thereof shall have options to renew the term of the lease for such period or periods at such rent as shall be determined by the authority or to purchase any or all of the particular leased facility or facilities; and, upon payment of all of the indebtedness incurred by the authority for the financing of the facility or facilities, to convey any or all of such facility or facilities to the lessee or lessees thereof. Every lease agreement between the authority and an institution must contain a clause obligating the institution not to use the leased land, nor any facility located thereon, for sectarian instruction or study or as a place of religious worship, or in connection with any part of the program of a school or department of divinity of any religious denomination; to insure that this covenant is honored, each lease agreement shall allow the authority to conduct inspections, and every conveyance of title to an institution shall contain a restriction against use for any sectarian purpose;

(8) To issue its bonds, notes, or other obligations for any of its corporate purposes and to refund the same, all as provided in sections 360.010 to 360.140;

(9) To transfer assets of the authority to the rebuild damaged infrastructure fund created in section 33.295;

(10) To fix and revise from time to time and make and collect rates, rents, fees, and charges for the use of and services furnished or to be furnished by any facility or facilities or any portion thereof and to contract with any person, firm, or corporation or other body, public or private, in respect thereof; except that the authority shall have no jurisdiction over rates, rents, fees, and charges established by a participating educational institution for its students or established by a participating health institution for its patients other than to require that such rates, rents, fees, and charges by such an institution be sufficient to discharge the institution's obligations to the authority;

(11) To establish rules and regulations for review by or on behalf of the authority of the retention or employment by a participating health institution or by a participating educational institution, as the case may be, of consulting engineers, architects, attorneys, accountants, construction and finance experts, superintendents, managers, and such other employees and agents as shall be determined to be necessary in connection with any such facility or facilities and for review by or on behalf of the authority of all reports, studies, or other material prepared in connection with any bond issue of the authority for any such facility or facilities. The costs incurred or to be incurred by a participating health institution or by a participating educational institution in connection with the review shall be deemed, where appropriate, an expense of constructing the facility or facilities or, where appropriate, shall be deemed an annual expense of operation and maintenance of the facility or facilities;

(12) To receive and accept from any public agency loans or grants for or in aid of the construction of a facility or facilities, or any portion thereof, or for equipping the same and to receive and accept grants, gifts, or other contributions from any source;

(13) To mortgage or pledge all or any portion of any facility or facilities, including any other health or educational facility or facilities conveyed to the authority for such purpose and the site or sites thereof, whether then owned or thereafter acquired, for the benefit of the holders of the bonds of the authority issued to finance such facility or facilities or any portion thereof or issued to refund or refinance outstanding indebtedness of a private health institution or a private institution of higher education as permitted by sections 360.010 to 360.140;

(14) To make loans to any participating health institution or participating educational institution, as the case may be, for the cost of any facility or facilities in accordance with an agreement between the authority and such participating health institution or participating educational institution, as the case may be; except that no such loan shall exceed the total cost of such facility or facilities as determined by the participating health institution or participating educational institution, as the case may be, and approved by the authority;

(15) To make loans to a participating health institution or participating educational institution, as the case may be, to refund outstanding obligations, mortgages, or advances issued, made, or given by the institution for the cost of its facility or facilities, including the power to issue bonds and make loans to a participating health institution or participating educational institution, as the case may be, to refinance indebtedness incurred for facilities undertaken and completed prior to or after September 28, 1975, whenever the authority finds that the financing is in the public interest, alleviates a financial hardship upon the participating health institution or participating educational institution, as the case may be, and results in a lesser cost of patient care or cost of education and a saving to third parties, including state or federal governments, and to others who must pay for the care or education;

(16) To inspect any and all facilities assisted by the authority in any way to enforce the prohibition against sectarian or religious use at any time; and

(17) To do all things necessary and convenient to carry out the purposes of sections 360.010 to 360.140.

2. Notwithstanding any provision of law to the contrary, including section 360.115, the authority shall transfer four million dollars of the assets of the authority to the rebuild damaged infrastructure fund created in section 33.295 on July 1, 2013.

(L. 1975 H.B. 70 § 7, A.L. 2013 H.B. 1035 merged with S.B. 23)

Effective 7-05-13 (S.B. 23)

9-11-13 (H.B. 1035)

*H.B. 1035 was vetoed July 12, 2013. The veto was overridden on September 11, 2013.

*Revisor's Note: Article III, Sections 29 and 32 of the Missouri Constitution, and Sections 1.130 and 21.250, RSMo, do not specifically address the effective date of a section subject to an emergency clause which is overridden by the general assembly.

Missouri college savings bonds, purpose, guidelines established byauthority.

360.046. 1. Other provisions of law to the contrary notwithstanding, whenever the authority issues its bonds, notes or other evidences of indebtedness pursuant to sections 360.010 to 360.140, the authority may designate all or a portion of such bonds, notes or other evidences of indebtedness as Missouri college savings bonds.

2. Upon such designation, the authority may elect to structure the terms of such Missouri college savings bonds in order to effectuate the following purposes:

(1) To encourage Missouri residents to save for higher education; and

(2) To encourage attendance at institutions of higher education by providing tax exempt investment alternatives to enhance the same.

3. The authority is hereby authorized to establish guidelines for structuring the terms of and for marketing and effecting the sale of any Missouri college savings bonds.

(L. 1988 H.B. 1456)

Power of authority in issuance of bonds, notes orindebtedness--authority to conduct public hearings, when.

360.047. 1. The authority shall have the power to assist, coordinate and participate with governmental authorities and issuers of states other than the state of Missouri (out-of-state issuers) in connection with issuance of bonds, notes or other evidence of indebtedness by such out-of-state issuers for educational facilities and health facilities located within the state of Missouri.

2. In connection with such financing by out-of-state issuers, the authority is designated as the only entity in the state of Missouri which may conduct the public hearing of the applicable governmental unit required by Section 147(f) of the Internal Revenue Code of 1986, as amended, and the governor of the state of Missouri is designated as the only person or entity in the state of Missouri who may serve as the elected representative which must give approval on behalf of the applicable governmental unit pursuant to Section 147(f) of the Internal Revenue Code of 1986, as amended.

3. Following such hearing, the authority shall determine whether the financing should proceed with respect to educational facilities or health facilities located within the state of Missouri by an out-of-state issuer. If the authority determines that the financing should not proceed, the financing shall not proceed relative to the Missouri facilities.

(L. 1998 H.B. 971, A.L. 1999 S.B. 276)

Authority must act as lessor only--term of lease--rentals, howset.

360.050. The authority shall not have the power to operate any facility or facilities as a business other than as a lessor. Any lease of any facility or facilities entered into pursuant to the provisions of sections 360.010 to 360.140 shall be for a term not shorter than the longest maturity of any bonds issued to finance the facility or facilities or a portion thereof and shall provide for rentals adequate to pay the principal of and interest on the bonds as the same fall due and to create and maintain such reserves and accounts for depreciation as the authority shall determine to be necessary.

(L. 1975 H.B. 70 § 8)

Acquisition of property authorized--participating health oreducational institution, power to borrow funds from authority.

360.055. 1. The authority is authorized and empowered directly, or by or through a participating health institution or participating educational institution, as the case may be, acting as an agent of the authority, to acquire by purchase, lease, gift, devise, or otherwise such lands, structures, real or personal property, rights-of-way, franchises, easements, and other interests in lands, including lands lying under water and riparian rights which are located within or without the state, as the authority may deem necessary or convenient for the construction or acquisition or operation of any facility or facilities, but only upon such terms as may be considered by the authority to be reasonable, and to take title thereto in the name of the authority or in the name of the participating health institution or the participating educational institution, as the case may be, as the agent of the authority.

2. Notwithstanding any other provisions of law to the contrary, all partnerships, limited partnerships, joint ventures or other entities or any public association, corporation or institution which is, or is owned or operated by, any political subdivision of the state of Missouri, which constitutes a participating educational institution or a participating health institution pursuant to section 360.015 shall have the power to borrow funds from the authority or otherwise finance through the authority pursuant to sections 360.010 to 360.140, to furnish a security interest in any of their revenues or properties to secure the borrowings, to issue notes or other evidence of indebtedness to evidence thereof upon such terms as such borrowing entity shall determine and to enter into leases, contracts, loan agreements and other instruments with the authority in connection therewith.

(L. 1975 H.B. 70 § 9, A.L. 1988 H.B. 1456)

Bonds, form of, terms--how sold.

360.060. Bonds of the authority may be issued as serial bonds, as term bonds, or as a combination of both types. All bonds issued by the authority shall be payable solely out of the revenues and receipts derived from the leasing or sale by the authority of, or the loan by the authority with respect to, the facility or facilities concerned or of any thereof as may be designated in the resolution or resolutions of the authority under which bonds shall be authorized to be issued or as may be designated in a trust indenture authorized by the authority. The bonds may be executed and delivered by the authority at any time and from time to time may be in such form and denomination or denominations and of such terms and maturities, may be in fully registered form or in bearer form, registrable either as to principal or interest or both, may bear such conversion privileges, may be payable in such installment or installments and at such time or times not exceeding sixty years from the date of the issuance thereof, may be payable at such place or places whether within or without the state of Missouri, may bear interest at such rate or rates per annum either initially or thereafter, as shall be determined by the authority or as shall be determined in any manner approved by the authority in its resolution, including, but not limited to, the delegation thereof to its chairman, vice chairman, executive director or a third party pursuant to a formula set forth therein, notwithstanding the provisions of section 108.170, may be made payable at such time or times and at such place or places, may be evidenced in such manner, may be executed by such officers of the authority, may have attached thereto, in the case of bearer bonds or bonds registrable as to principal only, interest coupons bearing the facsimile signature of the secretary of the authority, and may contain such provisions not inconsistent herewith, all as shall be provided in the resolution or resolutions of the authority whereunder the bonds shall be authorized to be issued or as shall be provided in a trust indenture authorized by the authority. If deemed advisable by the authority, there may be retained in the resolution or the trust indenture under which any bonds of the authority are authorized to be issued an option to call for redemption in advance of maturity all or any part of such bonds as may be specified in the resolution or in the trust indenture, at such price or prices, upon the giving of such notice or notices, and upon such terms and conditions as may be set forth in the resolution or in the trust indenture and as may be recited on the face of the bond, but nothing in this section shall be construed to confer upon the authority the right or option to call for redemption in advance of maturity any bonds except as may be provided in the resolution or in the trust indenture under which they shall be issued. The bonds of the authority may be sold at public or private sale for such price, in such manner, and from time to time as may be determined by the authority notwithstanding the provisions of section 108.170, and the authority may pay all expenses, premiums, and commissions which it may deem necessary or advantageous in connection with the issuance thereof from the proceeds of the bonds.

(L. 1975 H.B. 70 § 10, A.L. 1980 H.B. 1582 & 1277, A.L. 1988 H.B. 1456, A.L. 1999 S.B. 276)

Subsequent or additional issues of bonds, when--refunding bonds, when.

360.065. Issuance by the authority of one or more series of bonds for one or more than one purpose shall not preclude it from issuing other bonds in connection with the same facility or facilities, any other facility or facilities, or any other purpose hereunder, but the resolution or trust indenture whereunder any subsequent bonds may be issued shall recognize and protect any prior pledge or mortgage made for any prior issue of bonds. Any issue of bonds of the authority at any time outstanding may be refunded at any time and from time to time by the authority by the issuance of its refunding bonds in such amount as the authority may deem necessary, but not exceeding the amount sufficient to refund the principal of the bonds so to be refunded together with any unpaid interest thereon and any premiums, commissions, service fees, and other expenses necessary to be paid in connection with the refunding. Any such refunding may be effected whether the bonds to be refunded then shall have matured or thereafter shall mature, either by sale of the refunding bonds and the application of the proceeds thereof to the payment of the bonds being refunded or by the exchange of the refunding bonds for the bonds being refunded with the consent of the holder or holders of the bonds being refunded, regardless of whether or not the bonds being refunded were issued in connection with the same facility or facilities, or a separate facility or facilities, or any other purpose hereunder and regardless of whether or not the bonds proposed to be refunded shall be payable on the same date or different dates or shall be due serially or otherwise.

(L. 1975 H.B. 70 § 11, A.L. 1988 H.B. 1456)

Bonds and interest coupons declared negotiable instruments.

360.070. All bonds of the authority and the interest coupons applicable thereto are hereby made and shall be construed to be negotiable instruments.

(L. 1975 H.B. 70 § 12)

Bonds, how secured.

360.075. 1. The principal of and interest on any bonds issued by the authority shall be secured by a pledge of the revenues, rentals, and receipts out of which the same shall be made payable and may be secured by a trust indenture or mortgage or deed of trust, including assignment of leases or other contract rights of the authority thereunder, covering all or any part of the facilities from which the revenues, rentals, or receipts so pledged may be derived, including any enlargements of and additions to any such facilities thereafter made. The resolution under which the bonds are authorized to be issued and any such trust indenture, mortgage, or deed of trust may contain any agreements and provisions respecting the maintenance of the properties covered thereby, the fixing and collecting of rentals for any portions thereof leased by the authority to others, the creation and maintenance of special funds from such revenues, rentals, or receipts, and the rights and remedies available in the event of default, including the designation of a trustee, all as the authority shall deem advisable and not in conflict with the provisions hereof. Each pledge, agreement, lease, indenture, mortgage, and deed of trust made for the benefit or security of any of the bonds of the authority shall continue effective until the principal of and interest on the bonds for the benefit of which the same were made shall have been fully paid or provisions for such payment duly made. In the event of a default in the payment or in any agreement of the authority made as a part of the contract under which the bonds were issued, whether contained in the resolution authorizing the bonds or in any trust indenture, mortgage, or deed of trust executed as security therefor, the payment or agreement may be enforced by suit, mandamus, the appointment of a receiver in equity, foreclosure of any mortgage or deed of trust, or any one or more of these remedies.

2. In addition to the provisions of subsection 1 of this section, bonds of the authority may be secured by a pooling of leases whereby the authority may assign its rights, as lessor, and pledge rents under two or more leases of facilities with two or more participating health institutions or participating educational institutions, as lessees respectively, upon such terms as may be provided in the resolutions of the authority or as may be provided in a trust indenture authorized by the authority.

(L. 1975 H.B. 70 § 13)

Bonds not an obligation of the state.

360.080. Bonds issued under the provisions of sections 360.010 to 360.140 shall not be deemed to constitute a debt or liability of the state or of any political subdivision thereof or a pledge of the full faith and credit of the state or of any such political subdivision, but the bonds shall be payable solely from the funds provided for in sections 360.010 to 360.140. The issuance of bonds under the provisions of sections 360.010 to 360.140 shall not, directly, indirectly, or contingently, obligate the state or any political subdivision thereof to levy any form of taxation therefor or to make any appropriation for their payment. Nothing in this section shall prevent or be construed to prevent the authority from pledging the full faith and credit of a participating health institution or participating educational institution, as the case may be, to the payment of bonds authorized pursuant to sections 360.010 to 360.140. Nothing in sections 360.010 to 360.140 shall be construed to authorize the authority to create a debt of the state within the meaning of the constitution or statutes of the state of Missouri, and each bond issued by the authority pursuant to the provisions of sections 360.010 to 360.140 shall be payable and shall state on its face that it is payable solely from the funds pledged for its payment in accordance with the resolution authorizing its issuance or any trust indenture or mortgage or deed of trust executed as security therefor. The state shall not be liable in any event for the payment of the principal of or interest on any bonds of the authority or for the performance of any pledge, mortgage, obligation, or agreement of any kind whatsoever which may be undertaken by the authority. No breach of any such pledge, mortgage, obligation, or agreement may impose any pecuniary liability upon the state or any charge upon the general credit or taxing power of the state.

(L. 1975 H.B. 70 § 14)

Income of authority tax exempt--bonds deemed to be securitiesissued by public instrumentality.

360.085. The authority is hereby declared to be performing a public function in behalf of the state and to be a public instrumentality of the state. Accordingly, the income of the authority and all properties at any time owned by the authority shall be exempt from all taxation in the state of Missouri. For the purposes of section 409.402, all bonds issued by the authority shall be deemed to be securities issued by a public instrumentality or political subdivision of the state of Missouri.

(L. 1975 H.B. 70 § 15)

Authority to be self-supporting, exception.

360.090. All expenses of the authority incurred in carrying out the provisions of sections 360.010 to 360.140 shall be payable solely from funds provided under the provisions of sections 360.010 to 360.140, and no liability shall be incurred by the authority beyond the extent to which moneys shall have been provided under sections 360.010 to 360.140, except that, for the purpose of meeting the necessary expenses of initial organization and operation until such date as the authority derives moneys from funds provided hereunder. The authority shall be empowered to borrow such moneys as may be required for the necessary expenses of initial organization and operation. The borrowed moneys shall be repaid within a reasonable time after the authority receives funds as provided in sections 360.010 to 360.140 and shall be repaid solely from such funds.

(L. 1975 H.B. 70 § 16)

Initial planning service fee, amount of, how determined--proration offee, when.

360.095. 1. When an application is made to the authority by any health institution or educational institution for financial assistance, the application shall be accompanied by an "initial planning service fee" in an amount determined by the authority, but in no event exceeding the lesser of ten thousand dollars or one-fourth of one percent of the principal amount of bonds contemplated to be issued pursuant to the application. The initial planning service fee shall be included in the cost of the facilities to be financed and shall not be refundable by the authority whether or not such application is approved. In addition to the foregoing, the authority may require each participating health institution and each participating educational institution to pay directly, or as part of the cost of the acquisition of any facility or facilities, an additional annual service fee in an amount which shall be fixed from time to time by the authority, but which shall not exceed one-tenth of one percent of the principal amount of any bonds issued by the authority and then outstanding on behalf of any such institution. The additional annual service fee shall be paid in such installments as shall be fixed by the authority. It is anticipated that the fees shall be used for necessary administrative expenses and for necessary expenses incurred in determining the need for facilities in the area concerned, and, to that end, the authority may utilize recognized voluntary and official health planning and educational planning organizations and agencies at local, regional, and state levels as well as the state statutory bodies having health or educational facilities planning responsibilities.

2. In the event bonds are issued by the authority for the concurrent benefit of two or more participating health institutions or two or more participating educational institutions, the fees to be paid to the authority under this section shall be prorated among the institutions involved in accordance with the amount of bond proceeds allocated to each participating institution.

(L. 1975 H.B. 70 § 17)

Conveyance to participating institution, when made.

360.100. When the principal of and interest on bonds issued by the authority to finance the cost of facilities or to refinance outstanding indebtedness of one or more participating health institutions or participating educational institutions, as the case may be, including any bonds issued to refund and refinance such bonds, shall have been fully paid and retired or when adequate provision shall have been made fully to pay and retire the same and all other conditions of the resolution, the lease, the trust indenture, and the mortgage or deed of trust, if any, authorizing and securing the same shall have been satisfied, the lien of the mortgage or deed of trust, if any, authorizing and securing the same shall have been satisfied, and the lien of the mortgage or deed of trust shall have been released in accordance with the provisions thereof, the authority promptly shall do all things and execute such deeds and conveyances as are necessary and required to convey its right, title, and interest in the facilities so financed and any other facilities mortgaged to secure the bonds to the participating health institution or institutions or to the participating educational institution or institutions, as the case may be.

(L. 1975 H.B. 70 § 18)

Financing by purchase of securities of participating institutionauthorized--such securities to be secured, how.

360.105. 1. Any other provision of sections 360.010 to 360.140 to the contrary notwithstanding, the authority may finance the cost of a health or educational facility or of health or educational facilities or refund outstanding indebtedness incurred prior to or after September 28, 1975, for the construction or acquisition of a health or educational facility or of health or educational facilities by issuing its bonds for the purpose of purchasing the securities of a participating health institution or a participating educational institution. Any such securities shall have the same principal amounts, maturities, and interest rate or rates as the bonds so being issued, shall be secured by a first mortgage lien on the health or educational facility or facilities so being financed, subject to such exceptions as the authority may approve, and created by a mortgage instrument satisfactory to the authority, and may be insured or guaranteed by others. Any such bonds shall be secured by a pledge of the securities under the trust indenture or mortgage and deed of trust creating such bonds, shall be payable solely out of the payments to be made on the securities, and shall not exceed in principal amount the cost of the health or educational facility or facilities as determined by the participating health institution or the participating educational institution, as the case may be, and approved by the authority. In other respects any such bonds shall be subject to the provisions of section 360.060 and the trust indenture or mortgage and deed of trust creating such bonds may contain such of the provisions set forth in section 360.075 as the authority may deem appropriate.

2. In the event that a health or educational facility is financed pursuant to this section, the title to the facility shall remain in the participating health institution or the participating educational institution owning the same, subject to the lien of the mortgage securing the securities then being purchased, and there shall be no lease of the facility between the authority and the institution.

3. The provisions of section 360.100 shall not apply to any health facility or educational facility financed pursuant to this section, but the authority shall return the securities purchased through the issuance of bonds hereunder to the participating health institution or the participating educational institution, as the case may be, issuing the securities when such bonds shall have been fully paid and retired or when adequate provision shall have been made to pay and retire the same fully, and all other conditions of the trust agreement or indenture creating such bonds shall have been satisfied and the lien thereof shall have been released in accordance with the provisions thereof.

(L. 1975 H.B. 70 § 19)

Definitions--bonds or notes issued for loans to or purchase of notesof school districts and community colleges--howsecured--investment of funds--bids required for professionalservices 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

Bonds or notes to finance working capital, security for--workingcapital defined.

360.107. 1. Notwithstanding any other provision of law to the contrary, 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 educational institution or health institution for the purpose of financing working capital and all related costs of such financing, including, but not limited to, all costs, charges, fees and expenses of underwriters, advisory lawyers, consultants, accountants and of the authority. "Working capital" as used in this section means moneys to be used by, or on behalf of, an educational institution or health institution to pay or prepay maintenance or operation expenses or any other costs that would be treated as an expense item, under generally accepted accounting principles, in connection with the ownership or operation of an educational facility or health facility, including, but not limited to, reserves for maintenance or operation expenses, interest for not to exceed one year on any loan for working capital made pursuant to this part, and reserves for debt service with respect to, and any costs necessary or incidental to, that financing.

2. Bonds or notes issued pursuant to this section may be secured by a pledge of payments made to the authority by the educational institution or health institution, by the notes of the educational institution or health institution, or by a pooling of such payments or notes of two or more such entities. In connection with any financing pursuant to the power granted in this section, the authority shall have all power as set forth elsewhere by sections 360.010 to 360.140.

(L. 1988 H.B. 1456)

Bonds or notes to finance self-insurance or risk management programs,effect of programs.

360.108. 1. Notwithstanding any other provision of law to the contrary, 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 educational institution or health institution for the purpose of funding any self-insurance program or obligation or risk management program for the educational institution or health institution for the educational institution or health institution relative to professional liability, general liability, tort claims, and related fees and expenses incurred in the defense and settlement thereof, including attorney's fees, including, but not limited to, the funding of any reserves under an indenture with respect to same and all related costs of such financing, including, but not limited to, all costs, charges, fees and expenses of underwriters, advisory lawyers, consultants, accountants and of the authority. Bonds or notes issued pursuant to this section may be secured by a pledge of payments made to the authority by the educational institution or health institution, by the notes of the educational institution or health institution, or by pooling of such payments or notes of two or more such entities. In connection with any financing pursuant to the power granted in this section, the authority shall have all power as set forth elsewhere in sections 360.010 to 360.140.

2. Any self-insurance program or obligation or risk management program funded pursuant to this section shall have the same effect as the purchase of insurance by the entity as otherwise provided by law, and, as to partnerships, limited partnerships, joint ventures or other entities or any public association, corporation or institution which is, or is owned or operated by, any political subdivision of the state which constitutes a participating educational institution or participating health institution shall have the same effect as a self-insurance plan adopted by the governing body of any political subdivision of the state.

(L. 1988 H.B. 1456)

Bonds or notes to finance desegregation of schools, powers ofauthority.

360.109. 1. Notwithstanding any other provision of law to the contrary, 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 or other evidences of indebtedness for the purpose of making loans to, or purchasing the notes of, or owning and leasing to or otherwise assisting the state of Missouri or its agencies, departments or boards for the purpose of financing any of the following which the state of Missouri or its agencies, departments or boards is required, permitted, or deems it necessary to provide, pursuant to or in compliance with, any past, present or future order, ruling, decree, settlement or other directive of any court of the United States of America or of the state of Missouri in connection with or in any way related to any court case involving desegregation of schools located in the state of Missouri: The cost of all or any portion of structures, buildings, fixtures, materials, equipment and any and all other capital items used in connection with the providing of primary, elementary or secondary education at or below the high school level in the state of Missouri, including, without in any way limiting the generality of the foregoing, academic structures or buildings, libraries, classrooms, places for athletic activities, places of learning, laboratories, places in which to provide health care, places in which to house maintenance equipment and supplies, storage places, places in which to locate utilities, administration facilities, student union facilities, communication or technological facilities, as well as other structures or appurtenances related thereto required or useful for the instruction or training of students and related research and activities, and also for the cost of all or any portion of student, teacher, counselor, employee, administrator, or other individual's school transportation, and salaries and other benefits and costs of teachers, counselors, employees, administrators or other individuals, and all related costs of such financings, including, but not limited to, all costs, charges, fees and expenses of underwriters, attorneys, consultants, accountants and the authority.

2. The authority shall have the power to cooperate with and assist the state of Missouri or its agencies, departments or boards in providing the financing described herein. In connection with any financing pursuant to the power granted in this section, the authority shall have all powers as set forth elsewhere in sections 360.010 to 360.040.

(L. 1988 H.B. 1456)

Sections 360.010 to 360.140 not exclusive of other provisions oflaw.

360.110. 1. Neither sections 360.010 to 360.140 nor anything in sections 360.010 to 360.140 shall be construed as a restriction or limitation upon any powers which the authority might otherwise have under any laws of this state, but shall be construed as cumulative of any such powers. Nothing in sections 360.010 to 360.140 shall be construed to deprive the state and its governmental subdivisions of their respective police powers over properties of the authority or to impair any power thereover of any official or agency of the state and its governmental subdivisions which otherwise may be provided by law.

2. All facilities shall be subject to the planning, zoning, sanitary, and building laws, ordinances, and regulations applicable to the locality in which any such facilities are situated or are to be situated.

3. The powers conferred by sections 360.010 to 360.140 shall be in addition and supplementary to, and the limitations imposed by sections 360.010 to 360.140 shall not affect the powers conferred by any other law. Facilities may be acquired, purchased, constructed, reconstructed, improved, bettered, and extended, and bonds may be issued under sections 360.010 to 360.140 for said purposes notwithstanding the fact that any other law may provide for the acquisition, purchase, construction, reconstruction, improvement, betterment, and extension of like facilities or the issuance of bonds for like purposes, without regard to the requirements, restrictions, limitations, or other provisions contained in any other law.

(L. 1975 H.B. 70 §§ 20, 21, 26)

School districts or public community colleges may participate in adirect deposit agreement--participation a waiver of right tobankruptcy.

360.111. Any school district or public community college which is not a participating district, as defined in section 360.106, with respect to a particular issue of its bonds, notes or other financial obligations may participate with the authority in a direct deposit agreement with respect to such issue of bonds, notes or other financial obligations. A direct deposit agreement under sections 360.111 to 360.118 shall satisfy all requirements of subsection 6 of section 360.106 with regard to funding agreements of participating districts, and such school district shall be subject to all requirements applicable to participating districts under subsections 6 and 9 of section 360.106 and shall have all powers granted to participating districts under subsection 6 of section 360.106. A direct deposit agreement under sections 360.111 to 360.118 shall include a complete waiver by the school district or public community college of all powers, rights and privileges conferred upon the school district or public community college to institute any action authorized by any act of the Congress of the United States relating to bankruptcy on the part of the school district or public community college. No school district or public community college shall be precluded from participation with the authority pursuant to section 360.106 with respect to any particular issue of bonds, notes or other financial obligations on the basis of the district's or college's participation with the authority in a direct deposit agreement pursuant to sections 360.111 to 360.118 with respect to any other issue of bonds, notes or other financial obligations.

(L. 1995 S.B. 301 § 360.111 subsec. 1, A.L. 2002 H.B. 1477, et al. merged with S.B. 947)

Authority to serve as administrator for issuance--commissioner ofeducation and state treasurer's authority.

360.112. The authority shall serve as administrator for any issuance pursuant to sections 360.111 to 360.118. The authority, the commissioner of education and the state treasurer shall be authorized to take all actions with regard to a school district or public community college which has a direct deposit agreement under sections 360.111 to 360.118 as such persons are authorized to take such actions with respect to a participating district under subsection 6 of section 360.106.

(L. 1995 S.B. 301 § 360.111 subsec. 2, A.L. 2002 H.B. 1477, et al. merged with S.B. 947)

Districts with direct deposit agreement eligible for one-time grantfor each issue for construction or to refinance lease purchase grant,amount.

360.113. 1. Any school district which has a direct deposit agreement with the authority pursuant to sections 360.111 to 360.118 shall be eligible to receive a one-time grant for each issue based upon the par amount of general obligation 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.

2. Until July 1, 1997, the grant amount for a school district under subsection 1 of this section shall be the lesser of two percent of the par amount of the bonds issued or the actual costs of issuance as determined by the authority.

(L. 1995 S.B. 301 § 360.111 subsecs. 3, 4)

Effective 6-27-95

Authority to determine grant amount, actual cost of issuance,when--transfers to be at no cost to school district.

360.114. 1. On or before July 1, 1997, and every two years thereafter, the authority shall determine the weighted average, actual cost of issuance percentage for issuances under section 360.106 during the two years immediately preceding the date such determination is required.

2. On and after July 1, 1997, the grant amount for a school district under subsection 1 of section 360.113 shall be the lesser of the most recent weighted average, actual cost of issuance percentage, as determined by the authority pursuant to subsection 1 of this section, times the par amount of the bonds issued or the actual costs of issuance as determined by the authority.

3. Transfers made pursuant to a school district's participation in a direct deposit agreement under sections 360.111 to 360.118 shall be made at no cost to the school district.

(L. 1995 S.B. 301 § 360.111 subsecs. 5, 6, 7)

Effective 6-27-95

Proceeds of bond sales and fees collected are not revenue of thestate.

360.115. The proceeds of all bonds issued by the authority and of all fees permitted to be charged by the authority under sections 360.010 to 360.140 shall not be considered to be part of the revenue of the state within the meaning of Article III, Section 36, of the Constitution of Missouri, shall not be required to be deposited into the state treasury, and shall not be subject to appropriation by the general assembly. The proceeds and fees shall remain under the exclusive control and management of the authority to be used as required pursuant to sections 360.010 to 360.140.

(L. 1975 H.B. 70 § 22)

Payment of grants, procedure--refunding or refinancing existingbonds, net present value savings amount.

360.116. 1. Payment of grants under sections 360.111 to 360.118 shall be made from funds appropriated for such purpose under section 164.303. Payment shall be authorized by the commissioner of education upon receipt of the closing legal opinion for the bonds by the commissioner of education and a certification by the school district that the funds will be used for costs relating to projects approved under and satisfying the qualifications and requirements of subsection 1 of section 360.113.

2. Any refunding or refinancing of existing bonds of a school district under sections 360.111 to 360.118 shall have a net present value savings of at least one and one-half percent of the par amount of the refunded bonds.

(L. 1995 S.B. 301 § 360.111 subsecs. 8, 9)

Effective 6-27-95

Funding for grants less than amount of grants distributable, firstpriority construction or renovation projects.

360.117. If the amount of funding available for grants under sections 360.111 to 360.118 is less than the total amount of grants distributable under sections 360.111 to 360.118 for qualifying issues, first priority for funding of grants shall be given to qualifying issues for financing of construction or renovation projects.

(L. 1995 S.B. 301 § 360.111 subsec. 10)

Effective 6-27-95

Authority's power to invest, when--earnings attributable to district,distribution--law not applicable to finance new lease purchaseagreement.

360.118. 1. The authority may invest any funds held pursuant to powers granted under sections 360.111 to 360.118, which are not required for immediate disbursement, in any investment approved by the authority; provided, however, that each school district shall receive the earnings, or a credit for such earnings, for any such amounts invested which are attributable to the district.

2. Nothing in sections 360.106 and 360.111 to 360.118 shall be construed to apply to obligations issued to finance new lease purchase agreements.

(L. 1995 S.B. 301 § 360.111 subsec. 11 & § 1)

Effective 6-27-95

Approved investments.

360.120. 1. The authority may invest any of its funds in:

(1) Bonds, notes, certificates of indebtedness, treasury bills, or other securities constituting direct obligations of, or obligations the principal of and interest on which are fully guaranteed by, the United States, including evidences of a direct ownership interest in future interests or principal payments on obligations issued or guaranteed by the United States, or securities which represent an undivided interest in such obligations, which obligations are held in a custody account by a custodian satisfactory to the authority;

(2) Bonds, notes or other obligations of any state of the United States or of any political subdivision of any state, which at the time of their purchase rated in either of the two highest rating categories by a nationally recognized rating service;

(3) Certificates of deposit or time deposits constituting direct obligations of any bank, bank holding company, savings and loan association, trust company, financial institution or other credit provider, except that investments may be made only in certificates of deposit or time deposits which are:

(a) Insured by the Federal Deposit Insurance Corporation or the Federal Savings and Loan Credit Corporation, if then in existence;

(b) Continuously and fully secured by securities described in subdivisions (1) and (2) of this subsection, which have a market value, exclusive of accrued interest, at all times at least equal to the principal amount of such certificates of deposit or time deposits; or

(c) Issued by a bank, bank holding company, savings and loan association, trust company, financial institution or other credit provider whose outstanding unsecured long-term debt is rated at the time of issuance in either of the two highest rating categories by a nationally recognized rating service;

(4) Repurchase agreements with any bank, bank holding company, savings and loan association, trust company, financial institution or other credit provider organized under the laws of the United States or any state, which are secured by any one or more of the securities described in subdivision (1) or (2) of this subsection and which have a market value, exclusive of accrued interest, at all times at least equal to the principal amount of such repurchase agreement;

(5) Investment agreements constituting an obligation of a bank, bank holding company, savings and loan association, trust company, financial institution or other credit provider whose outstanding unsecured long-term debt is rated at the time of such agreement in either of the two highest rating categories by a nationally recognized rating service; or

(6) Short-term discount obligations of the Federal National Mortgage Association and Government National Mortgage Association.

All such securities so purchased shall mature or be redeemable at the option of the holder on a date or dates prior to the time when, in the judgment of the authority, the funds so invested will be required for expenditure. The express judgment of the authority as to the time when any funds will be required for expenditure or be redeemable shall be final and conclusive.

2. The provisions of this section shall not apply to the investment of proceeds of any revenue bonds issued by the authority which proceeds are held by a trustee or escrow agent under a trust indenture, escrow agreement or similar agreement in a construction fund, acquisition fund, project fund or other similar such fund for disbursement to or on behalf of an identified educational institution or health institution pursuant to a loan agreement with the authority or in a debt service reserve fund or escrow fund established with such proceeds.

(L. 1975 H.B. 70 § 23, A.L. 1985 H.B. 691, A.L. 1988 H.B. 1456)

Bonds issued by authority, fiduciaries may invest in.

360.125. All banks, bankers, trust companies, savings banks and institutions, building and loan associations, savings and loan associations, investment companies, insurance companies and associations, and all executors, administrators, guardians, trustees, and other fiduciaries legally may invest any sinking funds, moneys or other funds belonging to them or within their control in any bonds issued pursuant to sections 360.010 to 360.140.

(L. 1975 H.B. 70 § 24)

Facilities not public buildings.

360.130. Facilities shall not be considered to be public buildings, structures, grounds, works, or improvements and shall not be subject to any requirements relating to public buildings, structures, grounds, works, or improvements imposed by the laws of this state or any other similar requirements which lawfully may be waived by this section, and any requirements of competitive bidding or other restriction imposed on the procedure for award of contracts for such purpose or the lease, sale, or other disposition of property of the authority is not applicable to any action taken pursuant to sections 360.010 to 360.140.

(L. 1975 H.B. 70 § 25)

Authority to be tax exempt--proceeds of bonds tax exempt, exception.

360.135. The authority is hereby declared to be performing a public function in behalf of the state and to be a public instrumentality of the state. Accordingly, the authority shall not be required to pay any taxes or assessments upon or in respect of a project or any property acquired or used by such authority under the provisions of sections 360.010 to 360.140, or upon the income therefrom, and the bonds issued under the provisions of this chapter, the interest thereon, the proceeds received by a holder from the sale of the bonds to the extent of the holder's cost of acquisition, or proceeds received upon redemption prior to maturity or proceeds received at maturity, and the receipt of such interest and proceeds shall be exempt from taxation in the state of Missouri for all purposes except the state estate tax.

(L. 1975 H.B. 70 § 28)

Authority assigned to the office of administration--report todirector required.

360.140. The health and educational facilities authority is assigned to the office of administration. The authority shall annually, on or before February first of each year, file with the office of administration a report of its previous year's income, expenditures and revenue bonds issued and outstanding.

(L. 1975 H.B. 70 § 29, A.L. 1986 S.B. 426)


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