AN
ACT Relating to refunding obligations; amending RCW 39.53.010, 39.53.020,
39.53.030, 39.53.040, 39.53.050, 39.53.060, 39.53.070, 39.53.080, 39.53.090,
39.53.110, 39.53.120, and 39.53.140; and creating a new section.
BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF WASHINGTON:
Sec.
1. RCW
39.53.010 and 1984 c 186 s 68 are each amended to read as follows:
Except
where the context otherwise requires, the ((terms defined)) definitions
in this section ((shall for all purposes have the meanings herein specified))
apply throughout this chapter:
(1)
(("Governing body" means the council, commission, board of
commissioners, board of directors, board of trustees, board of regents, or
other legislative body of the public body designated herein in which body the
legislative powers of the public body are vested: PROVIDED, That with respect
to the state it shall mean the state finance committee.
(2)
"Public body" means the state of Washington, its agencies,
institutions, political subdivisions, and municipal and quasi municipal
corporations now or hereafter existing under the laws of the state of
Washington.
(3)))
"Bond" means any revenue bond or general obligation bond.
(((4)
"Revenue bond" means any bond, note, warrant, certificate of
indebtedness, or other obligation for the payment of money issued by a public
body or any predecessor of any public body and which is payable from designated
revenues, special assessments, or a special fund but excluding any obligation
constituting an indebtedness within the meaning of the constitutional debt
limitation.
(5))) (2)
"General obligation bond" means any bond, note, warrant, certificate
of indebtedness, or other obligation of a public body which constitutes an
indebtedness within the meaning of the constitutional debt limitation.
(((6)
"Advance refunding bonds" means bonds issued for the purpose of
refunding bonds first subject to redemption or maturing one year or more from
the date of the advance refunding bonds.
(7))) (3)
"Governing body" means the council, commission, board of
commissioners, board of directors, board of trustees, board of regents, or
other legislative body of the public body designated herein in which the
legislative powers of the public body are vested. With respect to the state,
"governing body" means the state finance committee.
(4)
"Government obligations" means any of the following: (a) Direct
obligations of, or obligations the principal of and interest on which are
unconditionally guaranteed by the United States of America and bank
certificates of deposit secured by such obligations; (b) bonds, debentures,
notes, participation certificates, or other obligations issued by the banks for
cooperatives, the federal intermediate credit bank, the federal home loan bank
system, the export-import bank of the United States, federal land banks, or the
federal national mortgage association; (c) public housing bonds and project
notes fully secured by contracts with the United States; and (d) obligations of
financial institutions insured by the federal deposit insurance corporation or
the federal savings and loan insurance corporation, to the extent insured or to
the extent guaranteed as permitted under any other provision of state law.
(5)
"Issuer" means the public body issuing any bond or bonds.
(((8)))
(6) "Ordinance" means an ordinance of a city or town,
or ordinance, resolution or other instrument by which the governing body
of the public body exercising any power ((hereunder)) under this
chapter takes formal action and adopts legislative provisions and matters
of some permanency.
(((9)
"Government obligations" means any of the following: (a) Direct
obligations of, or obligations the principal of and interest on which are
unconditionally guaranteed by the United States of America and bank
certificates of deposit secured by such obligations; (b) bonds, debentures,
notes, participation certificates, or other obligations issued by the banks for
cooperatives, the federal intermediate credit bank, the federal home loan bank
system, the export-import bank of the United States, federal land banks, or the
federal national mortgage association; (c) public housing bonds and project
notes fully secured by contracts with the United States; and (d) obligations of
financial institutions insured by the federal deposit insurance corporation or
the federal savings and loan insurance corporation, to the extent insured or to
the extent guaranteed as permitted under any other provision of state law.
(10)
Words used herein importing singular or plural number may be construed so that
one number includes both.)) (7) "Public
body" means the state of Washington, its agencies, institutions, political
subdivisions, and municipal and quasi-municipal corporations now or hereafter
existing under the laws of the state of Washington.
(8)
"Refunding bonds" means bonds issued for the purpose of paying the
principal of or redemption premiums or interest on any outstanding bonds of the
issuer, its predecessor, or a related public body.
(9)
"Refunding plan" means the plan adopted by an ordinance of a public
body to issue refunding bonds and redeem the bonds to be refunded.
(10) "Revenue bond" means any bond, note, warrant,
certificate of indebtedness, or other obligation for the payment of money that
is payable from designated revenues, special assessments, or a special fund but
excluding any obligation constituting an indebtedness within the meaning of the
constitutional debt limitation.
Sec.
2. RCW
39.53.020 and 1977 ex.s. c 262 s 1 are each amended to read as follows:
The governing body of any public body may by ordinance provide for
the issuance of refunding bonds without an election ((to refund
outstanding bonds heretofore or hereafter issued by such public body or its
predecessor, only)) (1) in order to pay or discharge all or any part of ((such))
an outstanding series or issue of bonds, including any redemption
premiums or interest thereon, in arrears or about to become due, and
for which sufficient funds are not available, (2) when necessary or in the best
interest of the public body ((in order)) to modify debt service or
reserve requirements, sources of payment, covenants, or other terms of the
bonds to be refunded, or (3) in order to effect a saving to the public body.
To determine whether or not a saving will be effected, consideration shall be
given to the interest to fixed maturities of the refunding bonds and the bonds
to be refunded, the costs of issuance of the refunding bonds, including any
sale discount, the redemption premiums, if any, to be paid, and the known
earned income from the investment of the refunding bond proceeds pending
redemption of the bonds to be refunded.
Sec.
3. RCW
39.53.030 and 1973 1st ex.s. c 25 s 2 are each amended to read as follows:
Any
refunding bonds issued ((for refunding purposes)) may be
delivered in exchange for the ((outstanding)) bonds ((being)) to
be refunded or may be sold in such manner and at such price as the
governing body may in its discretion determine advisable.
Sec.
4. RCW
39.53.040 and 1977 ex.s. c 262 s 2 are each amended to read as follows:
Bonds
may be refunded ((hereunder)) under this chapter or under any
other law of this state which authorizes the issuance of refunding bonds. In
any ((advance)) refunding plan under this chapter the governing body
shall provide irrevocably in the ordinance authorizing the issuance of the
advance refunding bonds for the redemption or payment of the bonds to be
refunded.
The ordinance authorizing the issuance of ((advance))
refunding bonds ((pursuant to)) under this chapter may contain
such provisions for the redemption of the refunding bonds prior to maturity and
for payment of a premium upon such redemption as the governing body ((shall
determine)) in its discretion may determine advisable.
Sec.
5. RCW
39.53.050 and 1983 1st ex.s. c 69 s 1 are each amended to read as follows:
((Refunding bonds may be issued in a)) The principal
amount ((in excess of)) of refunding bonds may exceed the
principal amount of the bonds to be refunded ((in)) by an amount
deemed reasonably required to effect such refunding. The principal amount of
the refunding bonds may be less than or the same as the principal amount of the
bonds ((being)) to be refunded so long as provision is duly and
sufficiently made for the retirement or redemption of such bonds to be
refunded. Any reserves held to secure the bonds to be refunded, or other
available money, may be used to accomplish the refunding in accordance with
the refunding plan. Reserves not so used shall be pledged as security for the
refunding bonds to the extent the reserves, if any, are required. The balance
of any such reserves may be used for any lawful purpose.
Sec.
6. RCW
39.53.060 and 1973 1st ex.s. c 25 s 4 are each amended to read as follows:
Prior
to the application of the proceeds derived from the sale of ((advance))
refunding bonds to the purposes for which such bonds ((shall)) have been
issued, such proceeds, together with any other funds the governing body may set
aside for the payment of the bonds to be refunded, may be invested and
reinvested only in government obligations maturing or having guaranteed
redemption prices at the option of the holder at such time or times as may be
required to provide funds sufficient to pay principal, interest and redemption
premiums, if any, in accordance with the ((advance)) refunding plan. To
the extent incidental expenses have been capitalized, such bond proceeds may be
used to defray such expenses.
Sec.
7. RCW
39.53.070 and 1973 1st ex.s. c 25 s 5 are each amended to read as follows:
The
governing body may contract with respect to the safekeeping and application of
the ((advance)) refunding bond proceeds and other funds included
therewith and the income therefrom including the right to appoint a trustee
which may be any trust company or state or national bank having powers of a
trust company within or without the state of Washington. The governing body
may provide in the refunding plan that until such moneys are required to redeem
or retire the ((general obligation or revenue)) bonds to be refunded,
the refunding bond proceeds and other funds, and the income therefrom shall be
used to pay and secure the payment of the principal of and interest on the ((advance))
refunding bonds. The governing body may additionally pledge for the payment of
((such)) revenue refunding bonds any revenues which might legally be
pledged for the payment of revenue bonds of the issuer of the type ((being))
to be refunded. Provisions must be made by the governing body for
moneys sufficient in amount to accomplish the refunding as scheduled.
Sec.
8. RCW
39.53.080 and 1965 ex.s. c 138 s 9 are each amended to read as follows:
When
a public body has irrevocably set aside for and pledged to the payment of
revenue bonds to be refunded ((advance)) refunding bond proceeds and
other moneys in amounts which together with known earned income from the
investment thereof are sufficient in amount to pay the principal of and
interest and any redemption premiums on such revenue bonds as the same become
due and to accomplish the refunding as scheduled, the governing body may
provide that the ((advance)) refunding revenue bonds shall be payable
from any source which, either at the time of the issuance of the ((advance))
refunding bonds or the revenue bonds to be refunded, might legally be or have
been pledged for the payment of the revenue bonds to be refunded to the
extent it may legally do so, notwithstanding the pledge of such revenues for
the payment of the ((outstanding)) revenue bonds ((being)) to
be refunded.
Sec.
9. RCW
39.53.090 and 1965 ex.s. c 138 s 10 are each amended to read as follows:
The
various annual maturities of general obligation refunding bonds issued
to refund voted general obligation bonds shall not extend over a longer period
of time than the bonds to be refunded. Such maturities may be changed in
amount or shortened in term if the estimated respective annual principal and
interest requirements of the refunding bonds, computed upon the anticipated
effective interest rate the governing body shall in its discretion determine
will be borne by such bonds, will not exceed the respective annual principal
and interest requirements of the bonds ((being)) to be refunded((:
PROVIDED, That)), except the issuer may increase the principal
amount of annual maturities for the purpose of rounding out maturities to the
nearest five thousand dollars.
Sec.
10. RCW
39.53.110 and 1965 ex.s. c 138 s 12 are each amended to read as follows:
((Bonds
for refunding)) Refunding bonds and bonds for any other purpose or
purposes authorized may be issued separately or issued in combination in one or
more series or issues by the same issuer.
Sec.
11. RCW
39.53.120 and 1965 ex.s. c 138 s 13 are each amended to read as follows:
Except
as specifically provided in this chapter, refunding bonds issued ((hereunder))
under this chapter shall be issued in accordance with the provisions of
law applicable to the type of bonds of the issuer ((being)) to be
refunded, ((either)) at the time of the issuance of either the
refunding bonds or the bonds to be refunded.
Sec.
12. RCW
39.53.140 and 1974 ex.s. c 111 s 4 are each amended to read as follows:
((The
state)) Any public body may issue general obligation refunding
bonds to refund any ((special revenue or limited obligations of the state))
general obligation or revenue bonds of such issuer or its agencies ((at
or prior to the date they mature or are subject to redemption)) or
instrumentalities. The payment of ((such refunding)) general
obligation refunding bonds may be additionally secured by a pledge of
the revenues pledged to the payment of the ((special revenue or limited
obligations)) revenue bonds to be refunded.
If
the payment of ((such special revenue obligations)) revenue bonds
to be refunded ((as)) by general obligation bonds of the state is
secured by (1) fees collected by the state as license fees for motor vehicles,
or (2) excise taxes collected by the state on the sale, distribution or use of
motor vehicle fuel, or (3) interest on the permanent school fund, then the state
shall also pledge to the payment of such refunding bonds the same fees, excise
taxes, or interest that were pledged to the payment of the ((special revenue
obligations being)) revenue bonds to be refunded.
Any
public body may issue revenue refunding bonds to refund any general obligation
of such issuer or its agencies or instrumentalities if the bonds to be refunded
were issued for purposes for which those revenue refunding bonds could be
issued.
NEW
SECTION. Sec. 13. The authority
of a public body to issue refunding bonds pursuant to this act is additional to
any existing authority to issue such bonds and nothing in this act shall
prevent the issuance of such bonds pursuant to any other law, and this act
shall not be construed to amend any existing law authorizing the issuance of
refunding bonds by a public body.
NEW SECTION. Sec. 14. If
any provision of this act or its application to any person or circumstance is
held invalid, the remainder of the act or the application of the provision to
other persons or circumstances is not affected.
