Sec. 22a-269. (Formerly Sec. 19-524bb). Bonds of the authority.
Sec. 22a-269. (Formerly Sec. 19-524bb). Bonds of the authority. (a) Subject to
the approval of the Treasurer of the state, and any other limitations of this chapter, the
authority may borrow money and issue its bonds and notes from time to time and use
the proceeds thereof for the purposes and powers of the authority and to accomplish the
purposes of this chapter and to pay all of the costs of the authority incident to and
necessary in connection with the carrying out of such purposes, including providing
funds to be paid into any fund or funds to secure such bonds or notes in such principal
amount subject to the provisions of this chapter as in the opinion of the authority, shall
be necessary to provide sufficient funds for implementing such powers and achieving
such purposes. The notes and bonds issued by the authority shall be general obligations
of the authority payable out of any revenues or other receipts, funds or moneys of the
authority, subject only to any agreements with the holders of particular notes or bonds
pledging any particular revenues, receipts, funds or moneys except as otherwise expressly provided by resolution of the authority and in such event such bonds or notes
shall be special obligations of the authority payable solely from any revenues or other
receipts, funds or moneys of the authority pledged therefor and subject only to any
agreements with the holders of particular notes and bonds pledging any particular revenues, receipts, funds or moneys. Such bonds or notes may be executed and delivered in
such manner and at such times, may be in such form and denominations and of such
tenor and maturity or maturities, may be in bearer or registered form, as to principal
and interest or as to principal alone, may be payable at such time or times in the case
of any such note or renewals thereof not exceeding five years from the date of issue of
such note and in the case of any such bond not exceeding forty years from the date
thereof, may be payable at such place or places whether within or without the state, may
bear interest at such rate or rates payable at such time or times and at such place or
places and evidenced in such manner, and may contain such provisions not inconsistent
with this chapter, as shall be provided in the resolution of the authority authorizing the
issuance of the bonds or notes.
(b) Issuance by the authority of one or more series of bonds or notes for one or more
purposes shall not preclude it from issuing other bonds or notes in connection with the
same project or any other projects, but the proceeding wherein any subsequent bonds
or notes may be issued shall recognize and protect any prior pledge made for any prior
issue of bonds or notes unless in the resolution authorizing such prior issue the right is
reserved to issue subsequent bonds on a parity with such prior issue.
(c) Subject to the approval of the Treasurer of the state, any bonds or notes of the
authority may be sold at such price or prices, at public or private sale, in such manner
and from time to time as may be determined by the authority, and the authority may
pay all costs, expenses, premiums and commissions which it may deem necessary or
advantageous in connection with the issuance and sale thereof; and any moneys of the
authority, including proceeds from the sale of any bonds and notes, and revenues, receipts and income from any of its projects, may be invested and reinvested in such
obligations, securities and other investments or deposited or redeposited in such bank
or banks as shall be provided in the resolution or resolutions of the authority authorizing
the issuance of the bonds and notes.
(d) The authority is authorized to provide for the issuance of its bonds for the purpose
of refunding any bonds of the authority then outstanding, including the payment of any
redemption premium thereon and any interest accrued or to accrue to the earliest or
subsequent date of redemption, purchase or maturity of such bonds, and, if deemed
advisable by the authority, for the additional purpose of paying all or any part of the
cost of constructing and acquiring additions, improvements, extension or enlargements
of a project or any portion thereof. The proceeds of any such bonds issued for the purpose
of refunding outstanding bonds may, in the discretion of the authority, be applied to the
purchase or retirement at maturity or redemption of such outstanding bonds either on
their earliest or any subsequent redemption date, and may, pending such application,
be placed in escrow to be applied to such purchase or retirement at maturity or redemption on such date as may be determined by the authority.
(e) Whether or not the bonds or notes are of such form and character as to be negotiable instruments under article 8 of title 42a, the bonds or notes shall be and are hereby
made negotiable instruments within the meaning of and for all the purposes of article
8 of said title 42a, subject only to the provisions of the bonds or notes for registration.
(f) The principal of and interest on bonds issued by the authority may be secured
by a pledge of any revenues and receipts of the authority derived from any project
and may be additionally secured by the assignment of a lease of any project for the
construction and acquisition of which said bonds are issued and by an assignment of
the revenues and receipts derived by the authority from any such lease. The payment
of principal and interest on such bonds may be additionally secured by a pledge of any
other property, revenues, moneys or funds available to the authority for such purpose.
The resolution authorizing the issuance of any such bonds or notes and any such lease
may contain agreements and provisions respecting the establishment of reserves to secure such bonds or notes, the maintenance and insurance of the projects covered thereby,
the fixing and collection of rents for any portion thereof leased by the authority to others,
the creation and maintenance of special funds from such revenues and the rights and
remedies available in the event of default, the vesting in a trustee or trustees of such
property, rights, powers and duties in trust as the authority may determine, which may
include any or all of the rights, powers and duties of any trustee appointed by the holders
of any bonds and notes and limiting or abrogating the right of the holders of any bonds
and notes of the authority to appoint a trustee under this chapter or limiting the rights,
powers and duties of such trustee; provision for a trust agreement by and between the
authority and a corporate trust which may be any trust company or bank having the
powers of a trust company within or without the state, which agreement may provide
for the pledging or assigning of any assets or income from assets to which or in which
the authority has any rights or interest, and may further provide for such other rights
and remedies exercisable by the trustee as may be proper for the protection of the holders
of any bonds or notes and not otherwise in violation of law, and such agreement may
provide for the restriction of the rights of any individual holder of bonds or notes of the
authority and may contain any further provisions which are reasonable to delineate
further the respective rights, duties, safeguards, responsibilities and liabilities of the
authority, persons and collective holders of bonds or notes of the authority and the
trustee; and covenants to do or refrain from doing such acts and things as may be necessary or convenient or desirable in order to better secure any bonds or notes of the authority, or which, in the discretion of the authority, will tend to make any bonds or notes to
be issued more marketable notwithstanding that such covenants, acts or things may not
be enumerated herein; and any other matters of like or different character, which in any
way affect the security or protection of the bonds or notes, all as the authority shall deem
advisable and not in conflict with the provisions hereof. Each pledge, agreement, or
assignment of lease made for the benefit or security of any of the bonds or notes of the
authority shall be in effect until the principal of and interest on the bonds or notes for
the benefit of which the same were made have been fully paid, or until provision has
been made for the payment in the manner provided in the resolution or resolutions
authorizing their issuance. Any pledge made in respect of such bonds or notes shall be
valid and binding from the time when the pledge is made; moneys or rents so pledged
and thereafter received by the authority shall immediately be subject to the lien of such
pledge without any physical delivery thereof or further act; and the lien of any such
pledge shall be valid and binding as against all parties having claims of any kind in tort,
contract or otherwise against the authority, irrespective of whether such parties have
notice thereof. Neither the resolution, trust indenture nor any other instrument by which
a pledge is created need be recorded. The resolution authorizing the issuance of such
bonds or notes may provide for the enforcement of any such pledge or security in any
lawful manner.
(g) The authority may provide in any resolution authorizing the issuance of bonds
or notes that any project or part thereof or any addition, improvement, extension or
enlargement thereof, may be constructed by the authority or any designee of the authority, and may also provide in such proceedings for the time and manner of and requisites
for disbursements to be made for the cost of such construction and disbursements as the
authority shall deem necessary or appropriate.
(P.A. 73-459, S. 13, 26; P.A. 74-338, S. 71, 94.)
History: P.A. 74-338 made technical correction, substituting "evidenced" for "evidence" in Subsec. (a); Sec. 19-524bb
transferred to Sec. 22a-269 in 1983.
Cited. 193 C. 506.