I-1 - Preliminary Official Statement - UR Loan Agreement

purchaser is entitled to a deed which in general conveys the title free and clear of all liens except future installment of taxes and assessments. For properties that have previously been advertised, offered for one year or more, and remain unsold for want of bidders, a public sale is held which results in the county acquiring a tax sale certificate on such properties. After twelve months’ time, and after proper notification of any interested parties, the county is issued the deed. The county may then resell the property for whatever price the market will bear and the proceeds of the sale are credited to the county general fund. The sale eliminates liens of past due installments of taxes and assessments but the property remains subject to future installments. DEBT LIMITATIONS Article XI, Section 3 of the Constitution of the State of Iowa limits the amount of debt outstanding at any time of any county, municipality, school district or other political subdivision to no more than 5% of the actual value, as shown by the last certified state or county tax list, of all taxable property within such county, municipality, school district or other political subdivision. For the purpose of computing the debt limitation, the term “actual value” is the actual value of taxable property without application of any percentage reduction or rollback, and after deduction of the military exemption on taxable property. (Remainder of page intentionally left blank) – 20 –