16.26 - BONDS AND NOTES.
16.26 BONDS AND NOTES.
1. The authority may issue its negotiable bonds and notes in
principal amounts as, in the opinion of the authority, are necessary
to provide sufficient funds for achievement of its corporate
purposes, the payment of interest on its bonds and notes, the
establishment of reserves to secure its bonds and notes, and all
other expenditures of the authority incident to and necessary or
convenient to carry out its purposes and powers. The bonds and notes
shall be deemed to be investment securities and negotiable
instruments within the meaning of and for all purposes of the uniform
commercial code, chapter 554.
2. Bonds and notes issued by the authority are payable solely and
only out of the moneys, assets, or revenues of the authority, and as
provided in the agreement with bondholders or noteholders pledging
any particular moneys, assets, or revenues. Bonds or notes are not
an obligation of this state or any political subdivision of this
state other than the authority within the meaning of any
constitutional or statutory debt limitations, but are special
obligations of the authority payable solely and only from the sources
provided in this chapter, and the authority may not pledge the credit
or taxing power of this state or any political subdivision of this
state other than the authority, or make its debts payable out of any
moneys except those of the authority.
3. Bonds and notes must be authorized by a resolution of the
authority. However, a resolution authorizing the issuance of bonds
or notes may delegate to an officer of the authority the power to
negotiate and fix the details of an issue of bonds or notes by an
appropriate certificate of the authorized officer.
4. Bonds shall:
a. State the date and series of the issue, be consecutively
numbered, and state on their face that they are payable both as to
principal and interest solely out of the assets of the authority and
do not constitute an indebtedness of this state or any political
subdivision of this state other than the authority within the meaning
of any constitutional or statutory debt limit.
b. Be either registered, registered as to principal only, or
in coupon form, issued in denominations as the authority prescribes,
fully negotiable instruments under the laws of this state, signed on
behalf of the authority with the manual or facsimile signature of the
chairperson or vice chairperson, attested by the manual or facsimile
signature of the secretary, have impressed or imprinted thereon the
seal of the authority or a facsimile of it, and the coupons attached
shall be signed with the facsimile signature of the chairperson or
vice chairperson, be payable as to interest at rates and at times as
the authority determines, be payable as to principal at times over a
period not to exceed fifty years from the date of issuance, at
places, and with reserved rights of prior redemption, as the
authority prescribes, be sold at prices, at public or private sale,
and in a manner as the authority prescribes, and the authority may
pay all expenses, premiums, and commissions which it deems necessary
or advantageous in connection with the issuance and sale, and be
issued under and subject to the terms, conditions, and covenants
providing for the payment of the principal, redemption premiums, if
any, interest, and other terms, conditions, covenants, and protective
provisions safeguarding payment, not inconsistent with this chapter,
as are found to be necessary by the authority for the most
advantageous sale, which may include, but are not limited to,
covenants with the holders of the bonds as to:
(1) Pledging or creating a lien, to the extent provided by the
resolution, on moneys or property of the authority or moneys held in
trust or otherwise by others to secure the payment of the bonds.
(2) Providing for the custody, collection, securing, investment,
and payment of any moneys of or due to the authority.
(3) The setting aside of reserves or sinking funds and the
regulation or disposition of them.
(4) Limitations on the purpose to which the proceeds of sale of
an issue of bonds then or thereafter to be issued may be applied.
(5) Limitations on the issuance of additional bonds and on the
refunding of outstanding or other bonds.
(6) The procedure by which the terms of a contract with the
holders of bonds may be amended or abrogated, the amount of bonds the
holders of which must consent thereto, and the manner in which
consent may be given.
(7) The creation of special funds into which moneys of the
authority may be deposited.
(8) Vesting in a trustee properties, rights, powers, and duties
in trust as the authority determines, which may include the rights,
powers, and duties of the trustee appointed for the holders of any
issue of bonds pursuant to section 16.28, in which event the
provisions of that section authorizing appointment of a trustee by
the holders of bonds shall not apply, or limiting or abrogating the
right of the holders of bonds to appoint a trustee under that
section, or limiting the rights, duties, and powers of the trustee.
(9) Defining the acts or omissions which constitute a default in
the obligations and duties of the authority and providing for the
rights and remedies of the holders of bonds in the event of a
default. However, rights and remedies shall be consistent with the
laws of this state and other provisions of this chapter.
(10) Any other matters which affect the security and protection
of the bonds and the rights of the holders.
5. The authority may issue its bonds for the purpose of refunding
any bonds or notes of the authority then outstanding, including the
payment of any redemption premiums thereon and any interest accrued
or to accrue to the date of redemption of the outstanding bonds or
notes. Until the proceeds of bonds issued for the purpose of
refunding outstanding bonds or notes are applied to the purchase or
retirement of outstanding bonds or notes or the redemption of
outstanding bonds or notes, the proceeds may be placed in escrow and
be invested and reinvested in accordance with the provisions of this
chapter. The interest, income, and profits earned or realized on an
investment may also be applied to the payment of the outstanding
bonds or notes to be refunded by purchase, retirement, or redemption.
After the terms of the escrow have been fully satisfied and carried
out, any balance of proceeds and interest earned or realized on the
investments may be returned to the authority for use by it in any
lawful manner. All refunding bonds shall be issued and secured and
subject to the provisions of this chapter in the same manner and to
the same extent as other bonds issued pursuant to this chapter.
6. The authority may issue negotiable bond anticipation notes and
may renew them from time to time but the maximum maturity of the
notes, including renewals, shall not exceed ten years from the date
of issue of the original notes. Notes are payable from any available
moneys of the authority not otherwise pledged, or from the proceeds
of the sale of bonds of the authority in anticipation of which the
notes were issued. Notes may be issued for any corporate purpose of
the authority. Notes shall be issued in the same manner as bonds,
and notes and the resolution authorizing them may contain any
provisions, conditions, or limitations, not inconsistent with the
provisions of this subsection, which the bonds or a bond resolution
of the authority may contain. Notes may be sold at public or private
sale. In case of default on its notes or violation of any
obligations of the authority to the noteholders, the noteholders
shall have all the remedies provided in this chapter for bondholders.
Notes shall be as fully negotiable as bonds of the authority.
7. A copy of each pledge agreement by or to the authority,
including without limitation each bond resolution, indenture of trust
or similar agreement, or any revisions or supplements to it shall be
filed with the secretary of state and no further filing or other
action under chapter 554, article 9 of the uniform commercial code,
or any other law of the state shall be required to perfect the
security interest in the collateral or any additions to it or
substitutions for it, and the lien and trust so created shall be
binding from and after the time made against all parties having
claims of any kind in tort, contract, or otherwise against the
pledgor.
8. Neither the members of the authority nor any person executing
its bonds, notes, or other obligations shall be liable personally on
the bonds, notes, or other obligations or be subject to any personal
liability or accountability by reason of the issuance of the
authority's bonds or notes.
9. The authority may make or participate in the making of loans
to housing sponsors to provide interim construction financing for the
construction or rehabilitation of adequate housing for low or
moderate income persons or families, elderly persons or families, and
persons or families which include one or more persons with
disabilities, and of noninstitutional residential care facilities.
An interim construction loan may be made under this section only if
the loan is the subject of a commitment from an agency or
instrumentality of the United States government or from the
authority, to provide long-term financing for the mortgage loan, and
interim construction advances made under the interim construction
loan will be insured or guaranteed by an agency or instrumentality of
the United States government. Section History: Early Form
[C77, 79, 81, § 220.26; 82 Acts, ch 1173, § 3] Section History: Recent Form
83 Acts, ch 124, § 4; 84 Acts, ch 1281, § 7; 85 Acts, ch 225, §2
C93, § 16.26
96 Acts, ch 1129, § 113; 2000 Acts, ch 1149, §161, 187; 2005 Acts,
ch 3, §12
Referred to in § 16.1, 173.14B, 175.17