- Alaska Statutes.
- Title 44. State Government
- Chapter 85. Alaska Municipal Bond Bank Authority
- Section 170. Loans to Political Subdivisions and Joint Insurance Arrangements.
previous: Section 160
. Tax Exemption.
next: Section 180
. Issuance of Bonds and Notes.
AS 44.85.170. Loans to Political Subdivisions and Joint Insurance Arrangements.
- (a) The bond bank authority, to carry out the purposes and policies of this chapter, may lend money to municipalities
through the purchase by the bond bank authority of municipal bonds of municipalities and if the purpose of the loan is
to provide financing for a municipal self-insurance program and the loan meets the credit standards of the bond bank
authority, may lend money to municipalities, or municipal joint insurance arrangements organized under AS 21.76. Notwithstanding a home rule charter provision requiring
public sale by a municipality of its municipal bonds, a municipality may sell its municipal bonds to the bond bank
authority at a negotiated, private sale. The bond bank authority, for this purpose, may issue its bonds and notes
payable solely from the revenues or funds available to the bond bank authority for such payment and may otherwise
assist municipalities as provided in this chapter.
- (b) Notwithstanding any other provision of law, to the extent that any department or agency of the state is the custodian
of money payable to a municipality, at any time after written notice to the department or agency head from the bond
bank authority that the municipality is in default on the payment of principal or interest on municipal bonds then held
or owned by the bond bank authority, or amounts due under an agreement between the bond bank authority and a
municipality or a municipal joint insurance arrangement organized under AS 21.76, the department or agency shall withhold the payment of that
money from that municipality and pay over the money to the bond bank authority for the purpose of paying principal of
and interest on the bonds or debt. The notice shall be given in each instance of default.
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