Idaho State Statutes - Idaho Attorney Directory

STATE'S GUARANTEE -- MONITORING OF FINANCIAL SOLVENCY CONTRACT
WITH BONDHOLDERS -- GUARANTEE -- LIMITATION AS TO CERTAIN REFUNDED BONDS.
(1) (a) The state of Idaho pledges to and agrees with the holders of any
bonds that the state will not alter, impair, or limit the rights vested by
the default avoidance program with respect to the bonds until the bonds,
together with applicable interest, are fully paid and discharged.
(b) Notwithstanding subsection (1)(a) of this section, nothing contained
in this chapter precludes an alteration, impairment, or limitation if
adequate provision is made by law for the protection of the holders of the
bonds.
(c) Each school district may refer to this pledge and undertaking by the
state in its bonds.
(2) (a) The sales tax of the state is pledged to guarantee full and
timely payment of the principal of (either at the stated maturity or by
any advancement of maturity pursuant to a mandatory sinking fund payment)
and interest on, refunding bonds issued on and after March 1, 1999, for
voter approved bonds which were voted on by the electorate prior to March
1, 1999, and voter approved bonds which were voted on by the electorate on
and after March 1, 1999, as such payments shall become due (except that in
the event of any acceleration of the due date of such principal by reason
of mandatory or optional redemption or acceleration resulting from default
or otherwise, other than any advancement of maturity pursuant to a
mandatory sinking fund payment, the payments guaranteed shall be made in
such amounts and at such times as such payments of principal would have
been due had there not been any such acceleration).
(b) This guaranty does not extend to the payment of any redemption
premium.
(c) Reference to this chapter by its title on the face of any bond
conclusively establishes the guaranty provided to that bond under
provisions of this chapter.
(3) (a) Any bond guaranteed under this chapter that is refunded and
considered paid for, no longer has the benefit of the guaranty provided by
this chapter from and after the date on which that bond was considered to
be paid.
(b) Any refunding bond issued by a board that is itself secured by
government obligations until the proceeds are applied to pay refunded
bonds is not guaranteed under the provisions of this chapter, until the
refunding bonds cease to be secured by government obligations.
(4) Only validly issued bonds issued after the effective date of this
chapter are guaranteed under this chapter.

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