Impact aid revenue bonds; issuance; requirements

(1) Pursuant to an agreement between a school district board and the governing body of an Indian tribe whose reservation is located partly or wholly within the district, a school district board, by resolution, may issue negotiable impact aid revenue bonds pursuant to this section. (2)(a) As used in paragraph (b) of this subsection, the average amount of impact aid revenues that a school district receives equals the total amount of impact aid revenues received by the school district for the five years immediately preceding the year the bonds are issued, divided by five. (b) The aggregate principal sum of impact aid revenue bonds that may be issued by a school district board may not exceed five times the average amount of impact aid revenues that the school district receives annually from the federal government. (3) A school district may use bond proceeds from impact aid revenue bonds to: (a) Pay the cost of school capital construction projects on the Indian reservation where the students reside for which the school district received impact aid revenues; (b) Pay the cost of bond-related expenses incurred by the school district; and (c) Fund any reserves or sinking accounts established by the resolution that authorized the issuance of the bonds.