28J.21 - ISSUANCE OF REVENUE AND REFUNDING BONDS AND PLEDGE ORDERS.
28J.21 ISSUANCE OF REVENUE AND REFUNDING BONDS AND
PLEDGE ORDERS.
1. A port authority may issue revenue bonds and pledge orders
payable solely from the net revenues of the port authority including
the revenues generated from a facility pursuant to section 28J.20.
The revenue bonds may be issued in such principal amounts as, in the
opinion of the port authority, are necessary for the purpose of
paying the cost of one or more port authority facilities or parts
thereof.
2. a. The resolution to issue the bonds must be adopted at a
regular or special meeting of the board called for that purpose by a
majority of the total number of members of the board. The board
shall fix a date, time, and place of meeting at which it proposes to
take action, and give notice by publication in the manner directed in
section 331.305. The notice must include a statement of the date,
time, and place of the meeting, the maximum amount of the proposed
revenue bonds, the purpose for which the revenue bonds will be
issued, and the net revenues to be used to pay the principal and
interest on the revenue bonds.
b. At the meeting, the board shall receive oral or written
objections from any resident or property owner within the
jurisdiction of the port authority. After all objections have been
received and considered, the board, at the meeting or a date to which
it is adjourned, may take additional action for the issuance of the
bonds or abandon the proposal to issue bonds. Any resident or
property owner within the jurisdiction of the port authority may
appeal a decision of the board to take additional action in district
court within fifteen days after the additional action is taken, but
the additional action of the board is final and conclusive unless the
court finds that the board exceeded its authority.
3. The board may sell revenue bonds or pledge orders at public or
private sale and may deliver revenue bonds and pledge orders to the
contractors, sellers, and other persons furnishing materials and
services constituting a part of the cost of the port authority
facility in payment therefor. The pledge of any net revenues of a
port authority is valid and effective as to all persons including but
not limited to other governmental bodies when it becomes valid and
effective between the port authority and the holders of the revenue
bonds or pledge orders.
4. A revenue bond is valid and binding for all purposes if it
bears the signatures or a facsimile of the signature of the officer
designated by the port authority. Port authority revenue bonds may
bear dates, bear interest at rates not exceeding those permitted by
chapter 74A, bear interest at a variable rate or rates changing from
time to time in accordance with a base or formula, mature in one or
more installments, be in registered form, carry registration and
conversion privileges, be payable as to principal and interest at
times and places, be subject to terms of redemption prior to maturity
with or without premium, and be in one or more denominations, all as
provided by the resolution of the board authorizing their issuance.
The resolution may also prescribe additional provisions, terms,
conditions, and covenants which the port authority deems advisable,
consistent with this chapter, including provisions for creating and
maintaining reserve funds, the issuance of additional revenue bonds
ranking on a parity with such revenue bonds and additional revenue
bonds junior and subordinate to such revenue bonds, and that such
revenue bonds shall rank on a parity with or be junior and
subordinate to any revenue bonds which may be then outstanding. Port
authority revenue bonds are a contract between the port authority and
holders and the resolution is a part of the contract.
5. The port authority may issue revenue bonds to refund revenue
bonds, pledge orders, and other obligations which are by their terms
payable from the net revenues of the same port authority, at lower,
the same, or higher rates of interest. A port authority may sell
refunding revenue bonds at public or private sale and apply the
proceeds to the payment of the obligations being refunded, and may
exchange refunding revenue bonds in payment and discharge of the
obligations being refunded. The principal amount of refunding
revenue bonds may exceed the principal amount of the obligations
being refunded to the extent necessary to pay any premium due on the
call of the obligations being refunded and to fund interest accrued
and to accrue on the obligations being refunded.
6. The final maturity of any original issue of port authority
revenue bonds shall not exceed forty years from the date of issue,
and the final maturity of port authority revenue bonds that refund
outstanding port authority revenue bonds shall not be later than the
later of forty years from the date of issue of the original issue of
bonds or the date by which it is expected, at the time of issuance of
the refunding bonds, that the useful life of all of the property
refinanced with the proceeds of the bonds, other than interests in
land, will have expired. Such bonds or notes shall be executed in a
manner as the resolution may provide.
7. The port authority may contract to pay an amount not to exceed
ninety-five percent of the engineer's estimated value of the
acceptable work completed during the month to the contractor at the
end of each month for work, material, or services. Payment may be
made in warrants drawn on any fund from which payment for the work
may be made. If such funds are depleted, anticipatory warrants may
be issued bearing a rate of interest not exceeding that permitted by
chapter 74A even if income from the sale of bonds which have been
authorized and are applicable to the public improvement takes place
after the fiscal year in which the warrants are issued. If the port
authority arranges for the private sale of anticipatory warrants, the
warrants may be sold and the proceeds used to pay the contractor.
The warrants may also be used to pay other persons furnishing
services constituting a part of the cost of the public improvement.
8. Port authority revenue bonds, pledge orders, and warrants
issued under this section are negotiable instruments.
9. The board may issue pledge orders pursuant to a resolution
adopted by a majority of the total number of supervisors, at a
regular or special meeting, ordering their issuance and delivery in
payment for all or part of the cost of a project. Pledge orders may
bear interest at rates not exceeding those permitted by chapter 74A.
10. Except as provided in section 28J.20, the physical properties
of the port authority shall not be pledged or mortgaged to secure the
payment of revenue bonds, pledge orders, or refunding bonds, or the
interest thereon.
11. The members of the board of the port authority and any person
executing the bonds or pledge orders shall not be personally liable
on the bonds or pledge orders or be subject to any personal liability
or accountability by reason of the issuance thereof. Section History: Recent Form
2005 Acts, ch 150, §109
Referred to in § 28J.1, 28J.9