33-5308. BACKUP LIQUIDITY ARRANGEMENTS. (1) If, at the time the state is required to make a debt service payment under its guaranty on behalf of a school district, sufficient moneys of the state are not on hand and available for that purpose, the state treasurer shall gather sufficient funds to make the debt service payment by using one (1) or more of the following:

(a) Intercepting all or a portion of any payments from any source of operating moneys provided by the state to the school district that issued the bonds that would otherwise be paid to the school district by the state;

(b) Requesting the state controller transfer to the public school guarantee fund established by section 33-5309, Idaho Code, moneys from the state general fund established by section 67-1205, Idaho Code, representing sales tax receipts of the state in an amount not to exceed the scheduled debt service payment and using such funds to make all or a portion of the required payment;

(c) Issuing state notes, subject to the terms of section 33-5308A, Idaho Code; or

(d) Negotiating a voluntary loan from funds administered by the endowment fund investment board to make all or a portion of the required payment, provided that nothing in this subsection (1)(d) requires the endowment fund investment board to lend moneys to the state treasurer.

(2) The state has no obligation to the school district or to any person or entity to replace any moneys intercepted under the authority of this section. Any school district whose operating funds were intercepted pursuant to this section may replace those funds from other school district moneys or from property taxes, subject to the limitations provided in section 33-5307, Idaho Code.

(3) If the sources of funds set forth in subsection (1) of this section are insufficient to make a debt service payment and the school district bond is guaranteed by the credit enhancement program established pursuant to section 57-728, Idaho Code, the state treasurer shall make a request for the purchase of notes in the amount of the deficiency by the endowment fund investment board on behalf of the public school endowment as set forth in section 57-728, Idaho Code.

History:

[33-5308, added 1999, ch. 328, sec. 1, p. 846; am. 2010, ch. 295, sec. 3, p. 797.]