Section 374-E:8 Bonds and Notes of the Division.
I. The bond bank acting by and through the division may issue bonds or notes of the division in such principal amounts as it shall deem necessary to provide funds for any purposes authorized by this chapter, including the making of loans; the payment, funding, or refunding of the principal of, or interest or redemption premiums on, any bonds or notes issued by the division, whether or not the bonds or notes or interest to be funded or refunded have become due; the establishment or increase of reserves to secure or to pay such bonds or notes or interest on such bonds or notes; and all other costs or expenses of the division incident to and necessary or convenient to carry out its purposes and powers.
II. Any such bonds or notes may be secured by a pledge of any grant or contributions from the United States of America, the state, any governmental unit, or any person, firm, or corporation or a pledge of any income, revenues, funds, or moneys of the division from any source whatsoever.
III. Notwithstanding any law to the contrary, any bond or note issued under this chapter shall be fully negotiable within the meaning and for all purposes of the negotiable instruments law of this state, and each holder or owner of such bond or note, or of any coupon appurtenant to such bond or note, by accepting such bond, note, or coupon shall be conclusively deemed to have agreed that such bond, note, or coupon is and shall be fully negotiable within the meaning and for all purposes of the negotiable instruments law, subject only to the provision of the bonds and notes for registration.
IV. Bonds or notes of the division shall be authorized by resolution of the bond bank and may be issued in one or more series and shall bear such date or dates; mature at such time or times, not exceeding, with respect to notes, 8 years from the date of issue of the original notes and with respect to bonds, 50 years from the date of their issue; provide sinking fund payments; bear interest at such rate or rates of interest per annum or within such maximum rate; be in such denomination or denominations; be in such form, either coupon or registered; carry such conversion or registration privileges; have such rank or priority; be executed in such manner; be payable from such sources in such medium of payment at such place or places within or without the state; and be subject to such terms or redemption (with or without premium) as such resolution or resolutions may provide. If any of the members, the executive director, or officers of the bond bank whose signatures appear on any notes, bonds or coupons shall cease to be such members, executive director, or officers before the delivery of such notes or bonds, such signatures shall nevertheless be valid and sufficient for all purposes, the same as if such members, executive director, or officers had remained in office until such delivery.
V. Bonds or notes of the division may be sold at public or private sale at such time or times and at such price or prices as the bond bank shall determine.
VI. Bonds or notes may be issued under this chapter without obtaining the consent of the governor and council or of any department, division, commission, board, bureau, or agency of the state, and without any other proceeding or the happening of any other conditions or things other than those proceedings, conditions, or things which are specifically required by this chapter.
VII. The bond bank, acting by and through the division, may provide for the issuance of bonds or notes of the division under this chapter in such amounts as it may deem necessary to refund any bonds or notes of the division then outstanding, including the payment of any redemption premium on such bonds or notes and any interest accrued or to accrue to the earliest or subsequent date of redemption, purchase, or maturity of such bonds or notes. The proceeds of any such bonds or notes issued to refund outstanding bonds or notes may, in the discretion of the bond bank, be applied to the purchase or retirement at maturity or redemption of such outstanding bonds or notes 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 bond bank. Any such escrowed proceeds, pending such use, may be invested and reinvested, subject to any agreements with noteholders or bondholders, in such manner as the bond bank shall determine, maturing at such times as shall be appropriate to assure the prompt payment of principal, interest, and redemption premium, if any, on the outstanding bonds or notes to be so refunded. Any interest, income, and profits earned or realized on such investment may also be applied to the payment of the outstanding bonds or notes to be so refunded. After the terms of the escrow have been fully satisfied and carried out, any balance of such proceeds and interest, income, and profits earned or realized on their investment may be returned to the division for use in any lawful manner.
Source. 1981, 545:7, eff. Aug. 29, 1981.