2009 Iowa Code
Title 2 - Elections and Official Duties
Subtitle 3 - Public Contracts and Bonds
CHAPTER 74 - PUBLIC OBLIGATIONS NOT PAID FOR WANT OF FUNDS
74.9 - PAYMENT IN CASE OF DEFAULT BY SCHOOL.

        74.9  PAYMENT IN CASE OF DEFAULT BY SCHOOL.
         In the event a school corporation which has issued anticipatory
      warrants fails to pay principal or interest of its anticipatory
      warrants when due, upon certification by the trustee or the paying
      agent designated pursuant to section 76.10 to the director of the
      department of administrative services, the director of the department
      of administrative services shall withhold and directly apply, from
      any state appropriation to which the school corporation is entitled,
      so much as is certified to the trustee or the paying agent to the
      payment of the principal and interest on the anticipatory warrants of
      the school corporation then due.  The obligation of the director of
      the department of administrative services to withhold and directly
      apply moneys from any state appropriation to which the school
      corporation is entitled does not create any moral or legal
      obligations of the state to pay, when due, the principal and interest
      on the anticipatory warrants of a school corporation.  All
      appropriations for school corporations shall be subject to the
      provisions of this section.  

         89 Acts, ch 319, §37; 2003 Acts, ch 145, §286