§ 14-186-409 - Issuance of revenue bonds generally.
14-186-409. Issuance of revenue bonds generally.
(a) (1) Whenever it shall be determined by the legislative body of any municipality or by the county court of any county to join with another municipality or other municipalities or another county or other counties, to construct, purchase, establish, equip, and operate a port under the provisions of this subchapter, it shall cause an estimate to be made of the costs of it and shall provide, by ordinance of the legislative body or by order of the county court, as the situation may require, for the issuance of revenue bonds, as provided in this subchapter.
(2) (A) The ordinance or order shall set forth a brief description of the contemplated improvement or improvements, the estimated costs of them, the amount, rate of interest, time and place of payment, and other details in connection with the issuance of the bonds.
(B) The bonds shall bear interest at such rate or rates, payable semiannually, and shall be payable at such times not exceeding forty (40) years from their date and at such places as shall be prescribed in the respective ordinance or order.
(b) The bonds shall be executed by each municipality joining in the undertaking by its mayor and clerk or recorder, and by each county joining in the undertaking by its county judge and county clerk.
(c) (1) Each ordinance and order shall also declare that a statutory mortgage lien shall exist upon the property so to be acquired or constructed, fix the minimum rate or rates on all freight or cargo that passes over or through the port, to be collected prior to the payment of all of the bonds, and shall pledge the revenue derived from the port for the purpose of paying the bonds, and the interest on them.
(2) (A) The pledge shall definitely fix and determine the amount of revenues which shall be necessary to set apart and apply to the payment of principal of, and interest on, the bonds, and the proportion of the balance of the revenues and income which are to be set aside as a proper and adequate depreciation account, and the remainder shall be set aside for the reasonable and proper operation of the port.
(B) The rates to be charged for the services from the port shall be sufficient to provide for:
(i) The payment of interest upon all bonds and to create a sinking fund to pay the principal of them as and when they become due;
(ii) For the operation and maintenance of the port; and
(iii) An adequate depreciation fund.