Idaho State Statutes - Idaho Attorney Directory

STATE FINANCIAL ASSISTANCE INTERCEPT MECHANISM -- STATE
TREASURER DUTIES -- INTEREST AND PENALTY PROVISIONS.
(1) (a) If one (1) or more payments on bonds are made by the state
treasurer as provided in this chapter, the state treasurer shall:
(i) Immediately intercept any payments from the public school
permanent endowment fund or from any other source of operating moneys
provided by the state to the board that issued the bonds that would
otherwise be paid to the board by the state; and
(ii) Apply the intercepted payments to reimburse the state for
payments made pursuant to the state's guaranty until all obligations
of the board to the state arising from those payments, including
interest and penalties, are paid in full.
(b) The state has no obligation to the district or to any person or
entity to replace any moneys intercepted under the authority of this
subsection.
(2) The school district that issued bonds for which the state has made
all or part of a debt service payment shall:
(a) Reimburse all moneys drawn by the state treasurer on its behalf;
(b) Pay interest to the state on all moneys paid by the state from the
date the moneys drawn to the date they are repaid at a rate not less than
the average prime rate for national money center banks plus one percent
(1%); and
(c) Pay all penalties required by this chapter.
(3) (a) The state treasurer shall establish the reimbursement interest
rate after considering the circumstances of any prior draws by the
district on the state, market interest and penalty rates, and the cost of
funds, if any, that were required to be borrowed by the state to make
payments on the bonds.
(b) The state treasurer may, after considering the circumstances giving
rise to the failure of the board to make payment on its bonds in a timely
manner, impose on the board a penalty of not more than five percent (5%)
of the amount paid by the state pursuant to its guaranty for each instance
in which a payment by the state is made.
(4) (a) (i) If the state treasurer determines that amounts obtained
under this section will not reimburse the state in full within one
(1) year from the state's payment of a district's scheduled debt
service payment, the state treasurer shall pursue any legal action,
including mandamus, against the district and its board to compel it
to:
1. Levy and provide tax revenues to pay debt service on its
bonds when due; and
2. Meet its repayment obligations to the state.
(ii) In pursuing its rights under paragraph (a) of this subsection,
the state shall have the same substantive and procedural rights as
would a holder of the bonds of a school district.
(b) The attorney general shall assist the state treasurer in these
duties.
(c) The school district shall pay the attorney's fees, expenses, and
costs of the state treasurer and the attorney general.
(5) (a) Except as provided in paragraph (c) of this subsection, any
district whose operating funds were intercepted under this section may
replace those funds from other district moneys or from property taxes,
subject to the limitations provided in this subsection.
(b) A district may use property taxes or other moneys to replace
intercepted funds only if the property taxes or other moneys were derived
from:
(i) Taxes originally levied to make the payment but which were not
timely received by the district;
(ii) Taxes from a supplemental levy made to make the missed payment
or to replace the intercepted moneys;
(iii) Moneys transferred from the undistributed reserve, if any, of
the district; or
(iv) Any other source of money on hand and legally available.
(c) Notwithstanding the provisions of paragraphs (a) and (b) of this
subsection, a district may not replace operating funds intercepted by the
state with moneys collected and held to make payments on bonds if that
replacement would divert moneys from the payment of future debt service on
the bonds and increase the risk that the state's guaranty would be called
upon a second time.

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