28A.18 - BONDS AND NOTES PAYABLE FROM REVENUE.
28A.18 BONDS AND NOTES PAYABLE FROM REVENUE.
1. a. The bonds issued by the board pursuant to this division
shall be authorized by resolution of the board and shall be either
term or serial bonds, shall bear the date, mature at the time, not
exceeding forty years from their respective dates, bear interest at
the rate, not exceeding the rate permitted under chapter 74A or the
rate authorized by another state within the greater metropolitan
area, whichever rate is lower, payable monthly or semiannually, be in
the denominations, be in the form, either coupon or fully registered,
shall carry the registration, exchangeability and interchangeability
privileges, be payable in the medium of payment and at the place,
within or without the state, be subject to the terms of redemption
and be entitled to the priorities on the revenues, rates, fees,
rentals, or other charges or receipts of the authority as the
resolution may provide. The bonds shall be executed either by manual
or facsimile signature by the officers as the authority shall
determine, provided that the bonds shall bear at least one signature
which is manually executed on the bond, and the coupons attached to
the bonds shall bear the facsimile signature of the officer as
designated by the authority and the bonds shall have the seal of the
authority, affixed, imprinted, reproduced, or lithographed on the
bond, all as may be prescribed in a resolution.
b. The bonds shall be sold at public sale or private sale at
the price as the authority shall determine to be in the best
interests of the authority provided that the bonds shall not be sold
at less than ninety-eight percent of the par value of the bond, plus
accrued interest and provided that the net interest cost shall not
exceed that permitted by applicable state law. Pending the
preparation of definitive bonds, interim certificates or temporary
bonds may be issued to the purchaser of the bonds, and may contain
the terms and conditions as the board may determine.
2. a. The board, after the issuance of bonds, may borrow
moneys for the purposes for which the bonds are to be issued in
anticipation of the receipt of the proceeds of the sale of the bonds
and within the authorized maximum amount of the bond issue. Any loan
shall be paid within three years after the date of the initial loan.
Bond anticipation notes shall be issued for all moneys so borrowed
under this section, and the notes may be renewed, but all the renewal
notes shall mature within the time above limited for the payment of
the initial loan. The notes shall be authorized by resolution of the
board and shall be in the denominations, shall bear interest at the
rate not exceeding the maximum rate permitted by the resolution
authorizing the issuance of the bonds, shall be in the form and shall
be executed in the manner, all as the authority prescribes.
b. The notes shall be sold at public or private sale or, if
the notes are renewal notes, they may be exchanged for notes
outstanding on the terms as the board determines. The board may
retire any notes from the revenues derived from its metropolitan
facilities or from other moneys of the authority which are lawfully
available or from a combination of revenues and other available
moneys, in lieu of retiring them by means of bond proceeds. However,
before the retirement of the notes by any means other than the
issuance of bonds, the board shall amend or repeal the resolution
authorizing the issuance of the bonds, in anticipation of the
proceeds of the sale of the notes, so as to reduce the authorized
amount of the bond issue by the amount of the notes so retired. The
amendatory or repealing resolution shall take effect upon its
passage.
3. Any resolution authorizing the issuance of any bonds may
contain provisions which shall be part of the contract with the
holders of the bonds, as to:
a. The pledging of all or any part of the revenues, rates,
fees, rentals, or other charges or receipts of the authority derived
by the authority from all or any of its metropolitan facilities.
b. The construction, improvement, operations, extensions,
enlargement, maintenance, repair, or lease of metropolitan facilities
and the duties of the authority with reference to the facilities.
c. Limitations on the purposes to which the proceeds of the
bonds, or of any loan or grant by the federal government or the state
government or the county or any city in the county, may be applied.
d. The fixing, charging, establishing, and collecting of
rates, fees, rentals, or other charges for use of the services and
facilities of the metropolitan facilities of an authority, or any
part of the facilities.
e. The setting aside of reserves or sinking funds or repair
and replacement funds or other funds and the regulation and
disposition of the funds.
f. Limitations on the issuance of additional bonds.
g. The terms and provisions of any deed of trust, mortgage,
or indenture securing the bonds or under which the bonds may be
issued.
h. Any other or additional agreements with the holders of the
bonds as are customary and proper and which in the judgment of the
authority will make the bonds more marketable.
4. The board of the authority may enter into any deeds of trust,
mortgages, indentures, or other agreements, with any bank or trust
company or any other lender within or without the state as security
for the bonds, and may assign and pledge all or any of the revenues,
rates, fees, rentals, or other charges or receipts of the authority.
The deeds of trust, mortgages, indentures, or other agreements may
contain the provisions as may be customary in the instruments, or, as
the board may authorize, including, but without limitation,
provisions as to:
a. The construction, improvement, operation, leasing,
maintenance, and repair of the metropolitan facilities and duties of
the board with reference to the facilities.
b. The application of funds and the safeguarding and
investment of funds on hand or on deposit.
c. The appointment of consulting engineers or architects and
approval by the holders of the bonds.
d. The rights and remedies of the trustee and the holders of
the bonds.
e. The terms and provisions of the bonds or the resolution
authorizing the issuance of the bonds.
5. Any of the bonds issued pursuant to this section are
negotiable instruments, and have all the qualities and incidents of
negotiable instruments and are exempt from state taxation. Section History: Recent Form
91 Acts, ch 198, §17
CS91, § 330B.18
C93, § 28A.18
2008 Acts, ch 1032, §139