§325.1.  State treasurer may invest in or purchase certain local bonds or certificates of indebtedness

A.  The state treasurer may invest in or purchase from time to time general obligation or revenue bonds or certificates of indebtedness of a local school board, from such monies as are available for investment out of the free school investment funds, the state police retirement fund, and the interest and bond redemption account of the Transportation Trust Fund.  For purposes of this Section, the term "bonds" shall mean general obligation or revenue bonds or certificates of indebtedness of a local school board.

B.  The interest earned on bonds purchased for these funds shall be credited by the state treasurer to the respective fund for which the bonds were acquired.

C.  The state treasurer may purchase the bonds of a local school board only when:

(1)  The bonds have been authorized at an election duly called for that purpose;

(2)  A portion of the bonds have already been sold on the market;

(3)  The percentage of completion of the building or other construction for which the bonds have been authorized is sixty percent or more;

(4)  The remainder of the bonds are not saleable because of market conditions; and

(5)  The interest rate authorized for the bonds is eight percent or less, or the interest authorized for the certificates of indebtedness is nine percent or less.

D.  The state treasurer may also at any time that he may deem advisable, cash and liquidate any or all of the bonds purchased for either fund, and the proceeds of the liquidation shall be credited to the fund from which the bonds were originally purchased.

Added by Acts 1980, No. 685, §1; Acts 1999, No. 897, §3, eff. July 2, 1999.