HB 179: "An Act transferring the assets, liabilities, and responsibilities of the Alaska Municipal Bond Bank Authority and of the Alaska Student Loan Corporation to the Alaska Housing Finance Corporation; and relating to the Alaska Housing Finance Corporation."
00 HOUSE BILL NO. 179 01 "An Act transferring the assets, liabilities, and responsibilities of the Alaska Municipal 02 Bond Bank Authority and of the Alaska Student Loan Corporation to the Alaska 03 Housing Finance Corporation; and relating to the Alaska Housing Finance 04 Corporation." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 09.38.015(c) is amended to read: 07 (c) Property of the state, a municipality, or a [AND OF THE ALASKA 08 MUNICIPAL BOND BANK AUTHORITY OR ANOTHER] state public corporation 09 is exempt. 10 * Sec. 2. AS 14.40.956 is amended to read: 11 Sec. 14.40.956. Cooperation with other authorities. In issuing a bond, the 12 corporation may request the assistance of and work with the Alaska Industrial 13 Development and Export Authority and the Alaska Housing Finance Corporation 14 [MUNICIPAL BOND BANK AUTHORITY]. The Alaska Industrial Development
01 and Export Authority may invest in and issue bonds for space-related projects of the 02 Alaska Aerospace Development Corporation. The Alaska Industrial Development and 03 Export Authority and the Alaska Housing Finance Corporation [MUNICIPAL 04 BOND BANK AUTHORITY] may purchase and market bonds of the Alaska 05 Aerospace Development Corporation. 06 * Sec. 3. AS 14.42.110 is amended to read: 07 Sec. 14.42.110. Purpose of corporation. The purpose of the corporation 08 under this chapter, AS 14.43, and AS 14.44 is to improve postsecondary educational 09 opportunities of eligible students through the 10 (1) centralized administration of financial aid and loan programs; 11 (2) coordination of the state's administrative effort in student financial 12 aid and loan programs with those of other government authorities; and 13 (3) support of the administration by the federal government, other 14 states, and institutions of postsecondary education of the federal guaranteed student 15 loan program. 16 * Sec. 4. AS 14.42.130(b) is amended to read: 17 (b) Public notice of a meeting of the board at which the issuance of 18 corporation bonds under AS 14.42.220 is authorized shall be provided at least 24 19 hours before the meeting. 20 * Sec. 5. AS 14.42.140 is amended to read: 21 Sec. 14.42.140. Minutes of meetings. The board shall keep minutes of each 22 meeting held to carry out its responsibilities under this chapter, AS 14.43, and 23 AS 14.44 and send a certified copy to the governor and to the Legislative Budget and 24 Audit Committee. 25 * Sec. 6. AS 14.42.150 is amended to read: 26 Sec. 14.42.150. Administration of affairs. The board shall manage the assets 27 and business of the corporation and may adopt bylaws and regulations, in accordance 28 with AS 44.62 (Administrative Procedure Act), governing the manner in which the 29 business of the corporation under this chapter, AS 14.43, and AS 14.44 is conducted 30 and the manner in which its powers under those chapters are exercised. The board 31 shall delegate supervision of the administration of the corporation to the executive
01 director [OFFICER] of the corporation. 02 * Sec. 7. AS 14.42.170 is amended to read: 03 Sec. 14.42.170. Staff. The employees of the Alaska Commission on 04 Postsecondary Education shall serve as staff for the corporation in connection with 05 the exercise of its responsibilities under this chapter, AS 14.43, and AS 14.44. 06 * Sec. 8. AS 14.42.190 is amended to read: 07 Sec. 14.42.190. Budget. The portion of the operating budget of the 08 corporation used in connection with the exercise of its responsibilities under this 09 chapter, AS 14.43, and AS 14.44 is subject to AS 37.07 (Executive Budget Act). 10 * Sec. 9. AS 14.42.200 is amended to read: 11 Sec. 14.42.200. General powers. In addition to other powers granted in this 12 chapter, the corporation, in the exercise of its power and functions under this 13 chapter, AS 14.43, and AS 14.44, may 14 (1) sue and be sued in its own name; 15 (2) adopt an official seal; 16 (3) adopt regulations under AS 44.62 (Administrative Procedure Act) 17 to carry out the purposes of this chapter; 18 (4) make and execute agreements, contracts, and other instruments 19 necessary or convenient in the exercise of the powers and functions of the corporation 20 under this chapter, AS 14.43, and AS 14.44, including contracts with a person or 21 governmental entity; 22 (5) receive, take, hold, and administer, on behalf of the corporation and 23 for any of its purposes, any appropriation, gift, grant, bequest, devise, or donation of 24 real property or personal property if that obligation of the corporation is not a debt of 25 the state; in this paragraph, "property" includes 26 (A) money; and 27 (B) life estates, leases, or other interests in property; 28 (6) borrow money as provided in AS 14.42.220 [THIS CHAPTER] to 29 carry out its corporate purposes under this chapter, AS 14.43, and AS 14.44 and 30 issue its obligations as evidence of the borrowing; 31 (7) include in a borrowing under AS 14.42.220 the amounts to pay
01 financing charges, interest on the obligations for a period not exceeding one year after 02 the date on which the corporation estimates funds will otherwise be available to pay 03 the interest, consultant, advisory, and legal fees, and other expenses necessary or 04 incident to the borrowing; 05 (8) invest or reinvest, subject to its contracts with noteholders and 06 bondholders, money held under this chapter, AS 14.43, or AS 14.44 by the 07 corporation as set out in AS 37.10.071; 08 (9) set and collect interest, fees, and charges in connection with 09 education loans or repayment obligations held by the corporation and its servicing 10 agents under this chapter, AS 14.43, or AS 14.44; in this paragraph, "charges" 11 includes costs of financing by the corporation, service charges, insurance premiums, 12 and other costs incurred by the corporation in carrying out its corporate purposes; 13 (10) gather information on postsecondary education financial resources 14 available to residents of this state and disseminate the information to reasonably assure 15 that qualified residents are aware of those financial resources; 16 (11) service education loans and repayment obligations held by the 17 corporation under this chapter, AS 14.43, or AS 14.44; 18 (12) purchase or participate in the purchase of education loans; 19 (13) contract in advance for the purchase or sale of education loans; 20 (14) sell or participate in the sale, either public or private and on terms 21 authorized by the board, of education loans to the Student Loan Marketing Association 22 or to other purchasers; 23 (15) collect and pay reasonable fees and charges in connection with the 24 purchase, sale, and servicing of education loans and repayment obligations; 25 (16) enter into agreements with the federal government, including 26 guaranty agreements and supplemental guaranty agreements as described in 20 U.S.C. 27 1001 - 1155, as amended, as necessary to provide for the receipt by the corporation of 28 administrative allowances and other benefits available under 20 U.S.C. 1001 - 1155, 29 as amended; 30 (17) administer federal money allotted to the state involving insured 31 education loans and related administrative costs and other matters;
01 (18) enter into agreements with the commission relating to education 02 loans and repayment obligations, the administration of the financial aid and loan 03 programs under AS 14.43.091 - 14.43.750, 14.43.990, and AS 14.44, and the payment 04 of and security for bonds of the corporation issued under AS 14.42.220; 05 (19) to the extent permitted under contracts with bondholders, consent 06 to the modification of the rate of interest, time of payment of an installment of 07 principal or interest, or other terms of an education loan or repayment obligation held 08 by the corporation under this chapter, AS 14.43, or AS 14.44; 09 (20) procure insurance against any loss in connection with the 10 operation of its programs under this chapter, AS 14.43, or AS 14.44; 11 (21) provide advisory services to borrowers and other participants in 12 the corporation's programs under this chapter or AS 14.43; 13 (22) enter into credit facility agreements to carry out the 14 corporation's responsibilities under this chapter, AS 14.43, and AS 14.44 and 15 make pledges, covenants, and agreements with respect to the repayment of borrowings 16 under the credit facility agreements; 17 (23) develop and implement education financing programs; in this 18 paragraph, "programs" includes 19 (A) programs listed in AS 14.42.030(b)(1); 20 (B) programs for the guaranteeing, servicing, originating, and 21 financing of education loans for borrowers located both inside and outside the 22 state; and 23 (C) federal financial aid programs made under federal law; and 24 (24) perform acts that may be necessary or appropriate to carry out 25 effectively the general objectives and purposes of the corporation under this chapter, 26 AS 14.43, and AS 14.44 [AS 14.42.100 - 14.42.990]. 27 * Sec. 10. AS 14.42.210(a) is amended to read: 28 (a) The education loan fund is established in the corporation. The education 29 loan fund is a trust fund to be used to carry out the purposes of AS 14.42.110 - 30 14.42.990 [AS 14.42.100 - 14.42.990], AS 14.43.091 - 14.43.175, 14.43.600 - 31 14.43.700, 14.43.710 - 14.43.750, 14.43.990, and AS 14.44.025. The fund consists of
01 money or assets appropriated or transferred to the corporation for the fund and money 02 or assets deposited in it by the corporation. The corporation may establish separate 03 accounts in the fund. 04 * Sec. 11. AS 14.42.210(b) is amended to read: 05 (b) Money and other assets of the education loan fund may be used to 06 (1) secure bonds of the corporation issued under AS 14.42.220; 07 (2) pay the costs of administration of the fund; 08 (3) invest in education loans and investments under AS 37.10.071; 09 (4) finance programs approved under AS 14.43.091 - 14.43.175, 10 14.43.600 - 14.43.700, 14.43.710 - 14.43.750, or AS 14.44.040; and 11 (5) pay the costs of administering and collecting the loans and 12 repayment obligations under the financial aid programs listed in (4) of this subsection. 13 * Sec. 12. AS 14.42.210 is amended by adding a new subsection to read: 14 (d) At the end of each fiscal year, the corporation shall determine whether 15 assets of the student loan fund exceed the amount necessary to carry out the purposes 16 of the fund under (a) and (b) of this section. If the corporation determines that there 17 are excess assets in the student loan fund, it shall notify the legislature of the amount 18 of the excess, and the legislature may appropriate that amount to the power cost 19 equalization and rural electric capitalization fund (AS 42.45.100). 20 * Sec. 13. AS 14.42.220(f) is amended to read: 21 (f) The corporation may not issue bonds under this section, other than 22 refunding bonds, during any two consecutive fiscal years in an aggregate amount 23 greater than $200,000,000 unless the legislature, by law, approves issuance of a 24 greater amount. 25 * Sec. 14. AS 14.42.270 is amended to read: 26 Sec. 14.42.270. Pledge and agreement of state. The state pledges to and 27 agrees with holders of bonds issued by the former Alaska Student Loan 28 Corporation or by the Alaska Housing Finance Corporation under AS 14.42.220 29 [CORPORATION] that the state will not limit or alter the rights and powers vested in 30 the corporation under AS 14.42.110 - 14.42.990 [AS 14.42.100 - 14.42.990] to fulfill 31 the terms of a contract made by the former Alaska Student Loan Corporation or by
01 the Alaska Housing Finance Corporation [CORPORATION] with the bondholders 02 or in any way impair the rights and remedies of the bondholders until the bonds, 03 together with the interest on them with interest on unpaid installments of interest, and 04 all costs and expenses in connection with an action or proceeding by or on behalf of 05 the bondholders, are fully met and discharged. The corporation may include this 06 pledge and agreement of the state in a contract with bondholders. 07 * Sec. 15. AS 14.42.280 is amended to read: 08 Sec. 14.42.280. Exemption from taxation. The real and personal property of 09 the corporation and its assets, income, and receipts are declared to be the property of a 10 political subdivision of the state and devoted to an essential public and governmental 11 function and purpose, and the property, assets, income, receipts, and other interests of 12 the corporation are exempt from all taxes and special assessments of the state or a 13 political subdivision of the state, including municipalities, school districts, public 14 utility districts, and other governmental units. Bonds of the corporation issued under 15 AS 14.42.220 are declared to be issued by a political subdivision of the state and for 16 an essential public and governmental purpose, and the bonds, interest on them, income 17 from them, and transfer of them, and all assets, income, and receipts pledged to pay or 18 secure the payment of the bonds, or interest on them, are exempt from taxation by or 19 under the authority of the state, except for inheritance and estate taxes and taxes on 20 transfers by or in contemplation of death. 21 * Sec. 16. AS 14.42.290 is amended to read: 22 Sec. 14.42.290. Bonds legal investments for fiduciaries. The bonds of the 23 corporation issued under AS 14.42.220 are securities in which public officers and 24 bodies of the state, municipalities, insurance companies, insurance associations, other 25 persons carrying on an insurance business, banks, bankers, trust companies, savings 26 banks, savings associations, building and loan associations, investment companies, 27 other persons carrying on a banking business, administrators, guardians, executors, 28 trustees, other fiduciaries, and other persons who are authorized to invest in bonds or 29 other obligations of the state [,] may properly and legally invest funds including 30 capital in their control or belonging to them. Notwithstanding any other provisions of 31 law, the bonds of the corporation issued under AS 14.42.220 are also securities that
01 may be deposited with and may be received by public officers and bodies of the state 02 and municipalities for any purpose for which the deposit of bonds or other obligations 03 of the state is not or may be authorized. 04 * Sec. 17. AS 14.42.300 is amended to read: 05 Sec. 14.42.300. Operation of certain statutes excepted. (a) In the exercise 06 of its powers and functions under this chapter, AS 14.43, and AS 14.44, the [THE] 07 corporation 08 (1) is not a municipality as the term is defined in AS 01.10.060; 09 (2) except [. EXCEPT] as provided in AS 14.42.190, [THE 10 CORPORATION] is not subject to AS 37; and 11 (3) for [. FOR] all other purposes, [THE CORPORATION] is a 12 political subdivision and an instrumentality of the state. 13 (b) The funds, income, and receipts of the corporation that are obtained by it 14 in the exercise of its powers and functions under this chapter, AS 14.43, and 15 AS 14.44 are not money of the state, nor may real property in which the corporation 16 has an interest be considered land owned in fee by the state or to which the state may 17 become entitled or in any way land belonging to the state, or state land referred to in 18 art. VIII of the Alaska Constitution. 19 * Sec. 18. AS 14.42.310 is amended to read: 20 Sec. 14.42.310. Annual audit. The financial records of the corporation that 21 relate to its exercise of its powers and functions under this chapter, AS 14.43, and 22 AS 14.44 shall be audited annually by the legislative auditor or by a certified public 23 accountant approved by the legislative auditor. The legislative auditor may prescribe 24 the form and content of these [THE] financial records of the corporation and shall 25 have access to these records at any time. 26 * Sec. 19. AS 14.42.990(3) is amended to read: 27 (3) "corporation" means the Alaska Housing Finance [STUDENT 28 LOAN] Corporation created in AS 18.56.020 [AS 14.42.100]; 29 * Sec. 20. AS 14.43.120(f) is amended to read: 30 (f) Interest on a loan made under AS 14.43.091 - 14.43.160 is equal to the 31 interest rate
01 (1) paid in each year on bonds issued by the former Alaska Student 02 Loan Corporation or the Alaska Housing Finance Corporation under AS 14.42.220; 03 and 04 (2) necessary to pay the administrative cost of the education loan 05 program that is represented by the loan. 06 * Sec. 21. AS 14.43.120(r) is amended to read: 07 (r) The rate of interest, time of payment of an installment of principal or 08 interest, or other terms of an education loan may be modified if required to establish or 09 maintain tax-exempt status under 26 U.S.C. 103 (Internal Revenue Code of 1986), as 10 amended, for the interest on bonds issued by the former Alaska Student Loan 11 Corporation or the Alaska Housing Finance Corporation under AS 14.42.220. 12 * Sec. 22. AS 14.43.120(t) is amended to read: 13 (t) Payment of interest under (l) of this section and forgiveness under (s) of 14 this section are subject to appropriation by the legislature. Money obtained from the 15 sale of bonds by the former Alaska Student Loan Corporation or the Alaska 16 Housing Finance Corporation under AS 14.42.220 may not be appropriated for the 17 payment of interest or the forgiveness of loans. 18 * Sec. 23. AS 14.43.120(u) is amended to read: 19 (u) The commission by regulation shall set a loan origination fee, not to 20 exceed five percent of the total education loan amount, to be assessed upon an 21 education loan that is funded from the education loan fund of the Alaska Housing 22 Finance [STUDENT LOAN] Corporation. The loan origination fee shall be deducted 23 at the time the loan is disbursed. Subject to appropriation, the loan origination fees 24 shall be deposited into an origination fee account within the education loan fund of the 25 Alaska Housing Finance [STUDENT LOAN] Corporation, and subsequently used by 26 the corporation to offset losses incurred as a result of death, disability, default, or 27 bankruptcy of the borrower. 28 * Sec. 24. AS 14.43.620 is amended to read: 29 Sec. 14.43.620. Teacher education revolving loan fund. (a) There is 30 created a teacher education revolving loan fund. The fund shall be used to make 31 education loans to students selected under AS 14.43.600 - 14.43.700. Unless the
01 instrument evidencing the teacher education loan has been sold or assigned to the 02 former Alaska Student Loan Corporation or the Alaska Housing Finance 03 Corporation, repayments of principal and interest on a teacher education loan shall be 04 paid into the teacher education revolving loan fund and shall be used to make new 05 teacher education loans. If estimated funds available are inadequate to fully fund 06 estimated teacher education loans for any fiscal year, additional funding from the 07 general fund may be requested and appropriated for that year. 08 (b) The commission may sell or assign notes and other instruments evidencing 09 teacher education loans to the Alaska Housing Finance [STUDENT LOAN] 10 Corporation and enter into agreements with the corporation relating to loans, the 11 administration of the education loan fund created under AS 14.42.210 and the 12 payment of and security for bonds of the corporation issued under AS 14.42.220. 13 Proceeds from the sale or assignment of the notes or other instruments shall be 14 deposited in the teacher education revolving loan fund. 15 * Sec. 25. AS 14.43.720 is amended to read: 16 Sec. 14.43.720. Family education loan account. (a) The family education 17 loan account is created within the education loan fund (AS 14.42.210). The account 18 shall be used to make family education loans to families selected under AS 14.43.710 19 - 14.43.750, to pay the costs of collecting family education loans that are in default if 20 those costs are not recovered from the family, and to pay the costs of administering the 21 account. Unless the instrument evidencing the family education loan has been sold or 22 assigned to the former Alaska Student Loan Corporation or the Alaska Housing 23 Finance Corporation, repayments of principal and interest on family education loans 24 shall be paid into the family education loan account. If estimated funds available from 25 family education loan repayments are inadequate to fully fund estimated family 26 education loans in a fiscal year, additional funding from the general fund may be 27 requested and appropriated for that year. 28 (b) The commission may sell or assign notes and other instruments evidencing 29 family education loans to the Alaska Housing Finance [STUDENT LOAN] 30 Corporation and enter into agreements with the corporation relating to loans, the 31 administration of the education loan fund created under AS 14.42.210, and the
01 payment of and security for bonds of the corporation issued under AS 14.42.220. 02 Proceeds from the sale or assignment of notes and other instruments shall be deposited 03 in the family education loan account. 04 * Sec. 26. AS 14.43.990(3) is amended to read: 05 (3) "corporation" means the Alaska Housing Finance [STUDENT 06 LOAN] Corporation created in AS 18.56.020 [AS 14.42.100]; 07 * Sec. 27. AS 21.76.080(b) is amended to read: 08 (b) An expenditure may be made from a joint insurance fund only to 09 (1) pay claims, losses, or benefits, including interest on them, and the 10 administrative and adjustment expenses incurred in connection with them, involving 11 the types of protection for which the fund provides coverage as specified in the joint 12 insurance agreement; 13 (2) pay contractual obligations of a joint insurance fund established by 14 a municipal joint insurance arrangement to the Alaska Housing Finance Corporation 15 [MUNICIPAL BOND BANK AUTHORITY] or other lender; and 16 (3) purchase insurance coverage for members of a municipal joint 17 insurance arrangement on a group basis. 18 * Sec. 28. AS 44.85.010 is amended to read: 19 Sec. 44.85.010. Legislative policy. (a) It is the policy of the state 20 (1) to foster and promote by all reasonable means the provision of 21 adequate capital markets and facilities for borrowing money by municipalities in the 22 state to finance capital improvements or for other authorized purposes, to assist these 23 municipalities in fulfilling their capital needs and requirements by use of borrowed 24 money within statutory interest rate or cost of borrowing limitations, to the greatest 25 extent possible to reduce costs of borrowed money to taxpayers and residents of the 26 state, and equally to encourage continued investor interest in the purchase of bonds or 27 notes of municipalities as sound and preferred securities for investment; 28 (2) to encourage municipalities to continue their independent 29 undertakings and financing of capital improvements and other authorized purposes 30 and to assist them by making capital funds available at reduced interest costs for 31 orderly financing of capital improvements and other purposes especially during
01 periods of restricted credit or money supply, particularly for those municipalities not 02 otherwise able to borrow for capital needs; 03 (3) to assist municipalities to provide for adequate insurance coverage 04 by authorizing the Alaska Housing Finance Corporation [MUNICIPAL BOND 05 BANK AUTHORITY] to issue negotiable or nonnegotiable revenue bonds, notes, or 06 certificates of participation either directly or through an entity it may create for the 07 purpose of providing a self-insurance program for municipalities or municipal joint 08 insurance arrangements organized under AS 21.76. 09 (b) The legislature further declares that 10 (1) the exercise of the powers of the state in the interest of its 11 municipalities is required to further and implement the policies declared in (a) of this 12 section by authorizing the Housing Finance Corporation to exercise [CREATION 13 OF A STATE BOND BANK AUTHORITY AS A BODY CORPORATE AND 14 POLITIC THAT WILL HAVE] full powers to borrow money and to issue its bonds 15 and notes to make capital funds available for borrowing by municipalities and by 16 granting broad powers to the corporation to function as a bond bank authority to 17 carry out the declared policies, which are in the public interest of the state and its 18 taxpayers and residents; 19 (2) state funds should be applied or authorized to be paid to a state 20 corporation in its capacity as a bond bank authority only to provide adequate 21 assurance and security to the holders of the bonds or notes of the bond bank authority; 22 (3) the Alaska Housing Finance Corporation [BOND BANK 23 AUTHORITY] should conduct its operations to provide the lowest rates in terms of 24 borrowing to municipalities as is consistent with a self-supporting operation with no 25 expectation of subsidization with state funds; the legislature does not intend that the 26 bond bank authority be utilized as a means to finance municipalities beyond their 27 capability to meet repayment schedules and debt service requirements of bonds or 28 notes. 29 * Sec. 29. AS 44.85.070 is amended to read: 30 Sec. 44.85.070. Staff. [THE BOND BANK AUTHORITY SHALL 31 EMPLOY AN EXECUTIVE SECRETARY WHO MAY WITH THE APPROVAL
01 OF THE BOND BANK AUTHORITY SELECT AND EMPLOY ADDITIONAL 02 STAFF AS NECESSARY. EMPLOYEES AND AGENTS OF THE BOND BANK 03 AUTHORITY OTHER THAN LEGAL COUNSEL AND THE EXECUTIVE 04 SECRETARY ARE IN THE CLASSIFIED SERVICE UNDER AS 39.25.] In 05 addition to its staff of regular employees, the bond bank authority may contract for and 06 engage the services of the bond counsel, consultants, experts, and financial advisors 07 the bond bank authority considers necessary for the purpose of developing 08 information, or conducting studies, investigations, hearings, or other proceedings. 09 * Sec. 30. AS 44.85.080 is amended to read: 10 Sec. 44.85.080. Powers of bond bank authority. The bond bank authority 11 may 12 (1) sue and be sued; 13 (2) adopt and alter an official seal; 14 (3) make and enforce bylaws and regulations for the conduct of its 15 business and for the use of its services and facilities; 16 (4) maintain an office at any place in the state; 17 (5) acquire, hold, use, and dispose of its income, revenues, funds, and 18 money to carry out the purposes of this chapter; 19 (6) acquire, rent, lease, hold, use, and dispose of other personal 20 property for its purposes under this chapter; 21 (7) subject to AS 44.85.100(b), borrow money and issue its negotiable 22 bonds or notes under this chapter and provide for and secure their payment, provide 23 for the rights of their holders and purchase, hold and dispose of any [OF ITS] bonds or 24 notes issued under this chapter; 25 (8) fix and revise from time to time and charge and collect fees and 26 charges for the use of its services or facilities; 27 (9) to carry out the purposes of this chapter, accept gifts or grants 28 from the United States, or from any governmental unit or person, firm, or corporation, 29 carry out the terms or provisions or make agreements with respect to the gifts or 30 grants, and do all things necessary, useful, desirable, or convenient in connection with 31 procuring, accepting, or disposing of the gifts or grants;
01 (10) do anything authorized by this chapter, through its officers, 02 agents, or employees or by contracts with a person; 03 (11) make, enter into, and enforce all contracts necessary, convenient, 04 or desirable for the purposes of the bond bank authority or pertaining to a loan to a 05 political subdivision, a purchase or sale of municipal bonds or other investments, or 06 the performance of its duties and execution of any of its powers under this chapter; 07 (12) purchase or hold municipal bonds at prices and in a manner the 08 bond bank authority considers advisable, and sell municipal bonds acquired or held by 09 it at prices without relation to cost and in a manner the bond bank authority considers 10 advisable; 11 (13) invest funds or money of the bond bank authority not required at 12 the time of investment for loan to political subdivisions for the purchase of municipal 13 bonds, in the same manner as permitted for investment of funds belonging to the state, 14 except as otherwise provided in this chapter; 15 (14) prescribe the form of application or procedure required of a 16 political subdivision for a loan or purchase of its municipal bonds, fix the terms and 17 conditions of the loan or purchase, and enter into agreements with political 18 subdivisions with respect to loans or purchases; 19 (15) render services to a political subdivision in connection with a 20 public or private sale of its municipal bonds, including advisory and other services, 21 and charge for services rendered; 22 (16) charge for its costs and services in review or consideration of a 23 proposed loan to a political subdivision or purchase by the bond bank authority of 24 municipal bonds of the political subdivision, whether or not the loan is made or the 25 municipal bonds purchased; 26 (17) fix and establish terms and provisions with respect to a purchase 27 of municipal bonds by the bond bank authority, including date and maturities of the 28 bonds, provisions as to redemption or payment before maturity, and any other matters 29 that, [WHICH] in connection with the purchase, are necessary, desirable, or advisable 30 in the judgment of the bond bank authority; 31 (18) procure insurance against any losses in connection with its
01 property, operations, or assets in amounts and from insurers as it considers desirable; 02 (19) to the extent permitted under [ITS] contracts with the holders of 03 bonds or notes issued under this chapter [OF THE BOND BANK AUTHORITY], 04 consent to modification of the rate of interest, time and payment of installment of 05 principal or interest, security or any other term of a bond or note, contract or 06 agreement of any kind to which the bond bank authority is a party; 07 (20) by regulation, create a new entity for the purpose of issuing 08 negotiable or nonnegotiable revenue bonds, notes, or certificates of participation to 09 finance a self-insurance program for municipalities or municipal joint insurance 10 arrangements organized under AS 21.76; the powers, duties, and membership of the 11 new entity shall be limited to the powers, duties, and membership of the authority and 12 stated in the regulation; the new entity shall be a public corporation and an 13 instrumentality of the state with the same legal existence and continuing succession as 14 the bond bank authority; and 15 (21) do all acts and things necessary, convenient, or desirable to carry 16 out the powers expressly granted or necessarily implied in this chapter. 17 * Sec. 31. AS 44.85.100 is amended to read: 18 Sec. 44.85.100. Annual report and audit. (a) Before October 1 of each year 19 the bond bank authority shall make a report of its activities under this chapter for the 20 preceding fiscal year to the governor and notify the legislature that the report is 21 available. The report must [SHALL] set out a complete operating and financial 22 statement covering its operations under this chapter during the year. The bond bank 23 authority must have an audit of its books and accounts kept under this chapter made 24 at least once in each year by certified public accountants. The [AND THE] cost of the 25 audit shall be considered an expense of the bond bank authority, and a copy of the 26 audit shall be filed with the commissioner of revenue and the legislature. 27 (b) The bond bank authority shall include in the report required by (a) of this 28 section an estimate of the amount of revenue bonds of the bond bank authority to be 29 issued under this chapter during the fiscal year following the fiscal year in which the 30 report is submitted. Under this chapter, the [THE] bond bank authority may not 31 issue revenue bonds, other than refunding bonds, in excess of $50,000,000 during any
01 fiscal year beginning after June 30, 1981, unless the legislature, by law, approves the 02 estimate required by this subsection for that fiscal year. 03 * Sec. 32. AS 44.85.110 is amended to read: 04 Sec. 44.85.110. Annual budget. The bond bank authority shall prepare and 05 submit [AN ANNUAL BUDGET] under AS 37.07 (Executive Budget Act) the 06 portion of the Alaska Housing Finance Corporation budget used in connection 07 with the exercise of its responsibilities under this chapter. 08 * Sec. 33. AS 44.85.120 is amended to read: 09 Sec. 44.85.120. Care and custody of bonds. The bond bank authority, in 10 accordance with AS 36.30 (State Procurement Code), may enter into agreements or 11 contracts with a bank, trust company, banking or financial institution inside or outside 12 the state as may be necessary, desirable, or convenient, in the opinion of the bond 13 bank authority, for rendering services in connection with the care, custody, or 14 safekeeping of municipal bonds or other investments held or owned by the bond bank 15 authority under this chapter, for rendering services in connection with the payment 16 or collection of amounts payable as to principal or interest, and for rendering services 17 in connection with the delivery to the bond bank authority of municipal bonds or other 18 investments purchased by it or sold by it under this chapter, and to pay the cost of 19 those services. The bond bank authority may also, in connection with any of the 20 services to be rendered by a bank, trust company, or banking or financial institution as 21 to the custody and safekeeping of its municipal bonds or investments under this 22 chapter, require security in the form of collateral bonds, surety agreements, or 23 security agreements in such form and amount as, in the opinion of the bond bank 24 authority, is necessary or desirable. 25 * Sec. 34. AS 44.85.180(a) is amended to read: 26 (a) Subject to AS 44.85.100(b), the bond bank authority may issue its bonds or 27 notes in principal amounts that it considers necessary to provide funds for any 28 purposes under this chapter, including 29 (1) the purchase of municipal bonds; 30 (2) the making of loans through the purchase of municipal bonds, 31 notes, or certificates of participation secured by an agreement between the bond bank
01 authority and a municipality or a municipal joint insurance arrangement organized 02 under AS 21.76; 03 (3) the payment, funding, or refunding of the principal of, or interest or 04 redemption premiums on, bonds or notes issued under this chapter [BY IT] whether 05 the bonds or notes or interest to be funded or refunded have or have not become due; 06 (4) the establishment or increase of reserves to secure or to pay bonds 07 or notes or interest on bonds or notes and all other costs or expenses of the bond bank 08 authority incident to and necessary or convenient to carry out its corporate purposes 09 and powers under this chapter. 10 * Sec. 35. AS 44.85.180(b) is amended to read: 11 (b) Except as otherwise provided in this chapter or by the bond bank authority, 12 every issue of bonds or notes under this chapter shall be general obligations payable 13 out of the revenues or funds of the bond bank authority, subject only to agreements 14 with the holders of particular bonds or notes pledging a particular revenue or fund. 15 Bonds or notes may be additionally secured by a pledge of a grant or contributions 16 from the United States or the state or a political subdivision or a person, firm, or 17 corporation, or a pledge of income or revenues, funds or money of the bond bank 18 authority from any source whatsoever. 19 * Sec. 36. AS 44.85.180(c) is amended to read: 20 (c) Notwithstanding the provisions of (a) and (b) of this section, the total 21 amount of [BOND BANK AUTHORITY] bonds and notes issued under this chapter 22 outstanding at any one time, except bonds or notes issued to fund or refund bonds or 23 notes, may not exceed $300,000,000. 24 * Sec. 37. AS 44.85.230 is amended to read: 25 Sec. 44.85.230. Purchase and disposition of own obligations. The bond 26 bank authority may purchase bonds or notes issued under this chapter [OF THE 27 BOND BANK AUTHORITY] out of its funds or money [AVAILABLE FOR THE 28 PURCHASE OF ITS OWN BONDS AND NOTES]. The bond bank authority may 29 hold, cancel, or resell the bonds or notes subject to and in accordance with agreements 30 with holders of its bonds or notes. 31 * Sec. 38. AS 44.85.260 is amended to read:
01 Sec. 44.85.260. Presumption of validity. After issuance under this chapter, 02 all bonds or notes [OF THE BOND BANK AUTHORITY] shall be conclusively 03 presumed to be fully authorized and issued under the laws of the state, and a person or 04 a municipality is estopped from questioning their authorization, sale, issuance, 05 execution, or delivery by the bond bank authority or the former Alaska Municipal 06 Bond Bank Authority. 07 * Sec. 39. AS 44.85.270(a) is amended to read: 08 (a) The bond bank authority shall establish and maintain a special fund called 09 the "Alaska municipal bond bank authority reserve fund" in which there shall be 10 deposited or transferred 11 (1) all money appropriated by the legislature for the purpose of the 12 fund in accordance with the provisions of (g) of this section; 13 (2) all proceeds of bonds required to be deposited in the fund by terms 14 of a contract between the bond bank authority or the former Alaska Municipal Bond 15 Bank Authority and [ITS] bondholders or a resolution of the bond bank authority or 16 the former Alaska Municipal Bond Bank Authority with respect to the proceeds of 17 bonds; 18 (3) all other money appropriated by the legislature to the reserve fund; 19 and 20 (4) any other money or funds of the bond bank authority that it decides 21 to deposit in the fund. 22 * Sec. 40. AS 44.85.270(b) is amended to read: 23 (b) Subject to the provisions of (h) of this section, money in the reserve fund 24 shall be held and applied solely to the payment of the interest on and principal of 25 bonds issued under this chapter [OF THE BOND BANK AUTHORITY] as the 26 interest and principal become due and payable and for the retirement of bonds; and the 27 money may not be withdrawn if a withdrawal would reduce the amount in the reserve 28 fund to an amount less than the required debt service reserve except for payment of 29 interest then due and payable on bonds and the principal of bonds then maturing and 30 payable and for the retirement of bonds in accordance with the terms of a contract 31 between the bond bank authority or the former Alaska Municipal Bond Bank
01 Authority and [ITS] bondholders and for which payments of other money of the bond 02 bank authority is not then available. In this subsection, "required debt service reserve" 03 means, as of the date of computation, the amount required to be on deposit in the 04 reserve fund as provided by resolution of the bond bank authority or the former 05 Alaska Municipal Bond Bank Authority. 06 * Sec. 41. AS 44.85.270(f) is amended to read: 07 (f) Notwithstanding any other provision of this chapter, bonds may not be 08 issued under this chapter [BY THE BOND BANK AUTHORITY] unless there is in 09 the reserve fund the required debt service reserve for all bonds then issued and 10 outstanding and for the bonds to be issued; however, the bond bank authority may 11 satisfy this requirement by depositing as much of the proceeds of the bonds to be 12 issued, upon their issuance, as is needed to meet the required debt service reserve. 13 The bond bank authority may at any time issue its bonds or notes for the purpose of 14 increasing the amount in the reserve fund to the required debt service reserve, or to 15 meet whatever higher or additional reserve that may be fixed by the bond bank 16 authority with respect to the fund. 17 * Sec. 42. AS 44.85.270(i) is amended to read: 18 (i) All references to the "reserve fund" in this section include special accounts 19 within the reserve fund that [WHICH] may be created [BY THE AUTHORITY] to 20 secure the payment of particular bonds. The commissioner of revenue may lend 21 surplus money in the general fund to the bond bank authority for deposit to any 22 account in the reserve fund in an amount equal to the required debt service reserve. 23 The loans shall be made on such terms and conditions as may be agreed upon by the 24 commissioner of revenue and the bond bank authority, including, without limitation, 25 terms and conditions providing that the loans need not be repaid until the obligations 26 of the corporation secured and to be secured by the account in the reserve fund are no 27 longer outstanding. 28 * Sec. 43. AS 44.85.290 is amended to read: 29 Sec. 44.85.290. Application of funds. Money or investments in a fund or 30 account of the bond bank authority established or held for bonds, notes, indebtedness, 31 or liability to be paid, funded, or refunded by issuance of bonds or notes issued under
01 this chapter, unless the resolution authorizing the bonds or notes provides otherwise, 02 shall be applied to the payment or retirement of the bonds, notes, indebtedness or 03 liability issued or incurred under this chapter, and to no other purpose. 04 * Sec. 44. AS 44.85.310 is amended to read: 05 Sec. 44.85.310. Default in payment. If the bond bank authority defaults in 06 the payment of principal of or interest on [AN ISSUE OF] notes or bonds issued 07 under this chapter [AFTER THEY BECOME DUE], whether at maturity or upon 08 call for redemption, and the default continues for 30 days, or if the bond bank 09 authority fails or refuses to comply with this chapter or defaults in an agreement made 10 with the holders of [AN ISSUE OF] notes or bonds issued under this chapter, the 11 holders of 25 percent in the aggregate principal amount of the outstanding notes or 12 bonds of that issue, by instrument filed in the office of the clerk of the district court of 13 the first judicial district and executed in the same manner as a deed to be recorded, 14 may appoint a trustee to represent the holders of those notes or bonds for the purposes 15 provided in this chapter. 16 * Sec. 45. AS 44.85.410(1) is amended to read: 17 (1) "bond bank authority" means the Alaska Housing Finance 18 Corporation (AS 18.56.020) in its capacity as a bond bank authority while 19 carrying out its functions under this chapter [MUNICIPAL BOND BANK 20 AUTHORITY ESTABLISHED BY AS 44.85.020]; 21 * Sec. 46. AS 44.85.420 is amended to read: 22 Sec. 44.85.420. Short title. This chapter may be cited as the Alaska 23 Municipal Bond Bank Authority Act or the Alaska Municipal Bond Bank Act. In 24 transactions involving general obligation bonds of municipalities, the Alaska Housing 25 Finance Corporation [MUNICIPAL BOND BANK AUTHORITY CREATED BY 26 THIS CHAPTER] may be referred to as the Alaska Municipal Bond Bank with the 27 same legal effect as if the reference were to the Alaska Housing Finance 28 Corporation [MUNICIPAL BOND BANK AUTHORITY]. 29 * Sec. 47. AS 14.42.100, 14.42.120, 14.42.160; AS 39.25.110(12); AS 39.50.200(b)(33); 30 AS 44.85.020, 44.85.030, 44.85.040, 44.85.060, 44.85.410(2); AS 44.99.030(a)(8), and 31 44.99.030(a)(13) are repealed.
01 * Sec. 48. The uncodified law of the State of Alaska is amended by adding a new section to 02 read: 03 TRANSITION. (a) The assets and liabilities of the Alaska Student Loan Corporation 04 and the Alaska Municipal Bond Bank Authority are transferred to the Alaska Housing 05 Finance Corporation on the effective date of this Act. 06 (b) Regulations of the Alaska Student Loan Corporation or the Alaska Municipal 07 Bond Bank Authority in effect on the effective date of this Act remain in effect until repealed 08 or amended by the Alaska Housing Finance Corporation. The regulations may be amended 09 by the Alaska Housing Finance Corporation any time after this Act takes effect.