Section 10-323 - General authorization.
§ 10-323. General authorization.
(a) Issuance.-
(1) The Authority may periodically:
(i) issue bonds for any corporate purpose, including operating expenses;
(ii) refund those bonds;
(iii) purchase its bonds with any funds available; and
(iv) hold, pledge, cancel, or resell bonds.
(2) By resolution, the Authority may authorize the chair, vice chair, one of its members, or a committee of its members to determine, provide for, or approve any matters relating to bonds that the Authority considers appropriate including:
(i) specifying, determining, prescribing, and approving matters, documents, and procedures that relate to the authorization, sale, security, issuance, delivery, and payment of and for the bonds;
(ii) creating security for the bonds;
(iii) providing for the administration of bond issues; and
(iv) taking other actions it considers appropriate concerning the bonds.
(3) The power granted in paragraph (2) of this subsection is in addition to powers conferred on the Authority by this subtitle and does not limit any power of the Authority under this subtitle.
(4) (i) Subject to subparagraph (ii) of this paragraph, the Authority may authorize the Executive Director to take any of the actions described in paragraph (2) of this subsection.
(ii) If the Authority authorizes the Executive Director to take any of the actions described in paragraph (2) of this subsection, the Authority shall prescribe limits within which the Executive Director may exercise discretion.
(b) Nature of obligation.-
(1) Except as otherwise provided by the Authority, each issue of its bonds is a general obligation of the Authority payable from any revenues or moneys of the Authority that are available and not otherwise pledged.
(2) The provisions of paragraph (1) of this subsection are subject to any agreements with:
(i) holders of particular bonds pledging any particular revenues or moneys; and
(ii) any participating institution.
(c) Required resolution.- For each issue of its bonds, the Authority shall pass a resolution that:
(1) specifies and describes the project for which the proceeds of the bond issuance are intended;
(2) generally describes the public purpose and the financing transaction to be accomplished;
(3) specifies the maximum principal amount of the bonds that may be issued by the Authority; and
(4) imposes any terms or conditions on the issuance and sale of the bonds that the Authority considers appropriate.
(d) Negotiability.- Subject to any provision for their registration, bonds are negotiable instruments for all purposes regardless of whether they are payable from a special fund.
(e) Terms and conditions.-
(1) The bonds may be:
(i) serial bonds;
(ii) term bonds; or
(iii) both in the discretion of the Authority.
(2) Subject to any delegation under subsection (a)(2) of this section, the resolution authorizing bonds may provide:
(i) the dates of the bonds;
(ii) the maturity dates of the bonds;
(iii) the interest rates on the bonds;
(iv) the time at which the bonds will be payable;
(v) the denominations of the bonds;
(vi) whether the bonds will be in a coupon or registered form;
(vii) any registration privileges of the bonds;
(viii) the manner of execution of the bonds;
(ix) the place at which the bonds will be payable; and
(x) any terms of redemption of the bonds.
(3) The bonds shall mature within a period not to exceed 50 years after their date.
(4) The bonds shall be payable in United States currency.
(f) Sale.- The bonds may be sold by competitive or negotiated sale at a price determined by the Authority.
(g) Temporary certificates.- Pending preparation of the definitive bonds, the Authority may issue interim receipts or certificates that will be exchanged for definitive bonds.
(h) Trust agreement; rights and remedies.-
(1) A trust agreement authorizing bonds may contain provisions that are part of the contract with the bondholders.
(2) The provisions may include:
(i) pledging the following to secure payment of bonds, subject to any existing agreements with bondholders:
1. the full faith and credit of the Authority;
2. the full faith and credit of a participating institution;
3. revenues of a project;
4. a revenue-producing contract the Authority has made with a person or public entity; or
5. the proceeds of the sale of bonds;
(ii) the rentals, fees, and other charges, the amounts to be raised in each year, and the use and disposition of the revenues;
(iii) setting aside of reserves and sinking funds and their disposition;
(iv) limits on the right of the Authority or its agents to restrict and regulate the use of a project;
(v) limits on the purpose to which the proceeds of sale of bonds may be applied;
(vi) limits on issuing additional bonds, the terms under which additional bonds may be issued and secured, and refunding outstanding bonds;
(vii) the procedure to amend or abrogate the terms of a contract with bondholders and the requirements for consent;
(viii) limits on the amount of project revenues to be expended for operating, administrative, or other expenses of the Authority;
(ix) the acts or omissions that constitute default by the Authority and the rights and remedies of the bondholders in the event of a default;
(x) the conveyance or mortgaging of a project and its site to secure the bondholders; and
(xi) creation and disposition of a collateral fund, instead of conveyance or mortgage, for the purpose of securing the bondholders.
(i) Immunity from personal liability.- The members of the Authority and a person executing the bonds may not be held liable personally on the bonds.
[An. Code 1957, art. 43C, §§ 5(a)(6), 11(a)-(g); 2008, ch. 306, § 2.]