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11-721. County sports authority bonds

A. The authority, through the board of directors, may issue negotiable county sports authority bonds in a principal amount as in its opinion is necessary to provide sufficient monies for its activities under section 11-702, maintaining sufficient reserves in the county sports authority fund to secure the bonds, to pay the necessary costs of issuing, selling and redeeming the bonds and to pay the other expenditures of the authority incidental to and necessary and convenient to carry out the purposes of this chapter.

B. The board must authorize the bonds by resolution. The resolution shall prescribe:

1. The rate or rates of interest and the denominations of the bonds.

2. The date or dates of the bonds and maturity, not exceeding twenty years from their respective dates.

3. The coupon or registered form of the bonds.

4. The manner of executing the bonds.

5. The medium and place of payment.

6. The terms of redemption.

C. The bonds shall be sold at public or private sale at the price and on the terms determined by the board.

D. The board shall publish a notice of its intention to issue bonds under this article for at least five consecutive days in a newspaper of general circulation in the county. The last day of publication must be at least ten days before issuing the bonds. The notice shall state the amount of the bonds to be sold and the intended date of issuance. A copy of the notice shall be hand delivered or sent, by certified mail, return receipt requested, to the clerk of the board of supervisors on or before the last day of publication.

E. In order to secure the principal and interest on the bonds the board may by resolution:

1. Provide that bonds issued under this section shall be secured by a first lien on all or part of the monies paid into the county sports authority fund.

2. Pledge or assign to or in trust for the benefit of the holder or holders of the bonds any part of the county sports authority fund monies as is necessary to pay the principal and interest of the bonds as they come due.

3. Set aside, regulate and dispose of reserves and sinking funds.

4. Provide that sufficient amounts of the proceeds from the sale of the bonds may be used to fully or partly fund any reserves or sinking funds set up by the bond resolution.

5. Prescribe the procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the amount of bonds the holders of which must consent to and the manner in which consent may be given.

6. Provide for payment from the proceeds of the sale of the bonds of all legal and financial expenses incurred by the board in the issuance, sale, delivery and payment of the bonds.

7. Do any other matters which in any way may affect the security and protection of the bonds.

F. Any pledge made under this article is valid and binding from the time when the pledge is made. The monies so pledged and received by the treasurer of the authority to be placed in the county sports authority fund are immediately subject to the lien of the pledge without any future physical delivery or further act, and any such lien of any pledge is valid or binding against all parties having claims of any kind in tort, contract or otherwise against the board irrespective of whether the parties have notice of the lien. The official resolution or trust indenture or any instrument by which this pledge is created, when placed in the board's records, is notice to all concerned of the creation of the pledge, and those instruments need not be recorded in any other place.

G. Neither the members of the board of directors nor any person executing the bonds is personally liable for the payment of the bonds. The bonds are valid and binding obligations notwithstanding that before the delivery of the bonds any of the persons whose signatures appear on the bonds cease to be members of the board. From and after the sale and delivery of the bonds, they are incontestable by the board.

H. The board, out of any available monies, may purchase bonds, which may thereupon be canceled, at a price not exceeding either of the following:

1. If the bonds are then redeemable, the redemption price then applicable plus accrued interest to the next interest payment date.

2. If the bonds are not then redeemable, the redemption price applicable on the first date after purchase on which the bonds become subject to redemption plus accrued interest to such date.