§ 23-19-14 - Bonds and notes of the corporation.
SECTION 23-19-14
§ 23-19-14 Bonds and notes of thecorporation. – (a) The corporation shall have the power and is authorized to issue from timeto time its negotiable bonds and notes in one or more series in principalamounts that in the opinion of the corporation shall be necessary to providesufficient funds for achieving its purposes, including the payment of intereston bonds and notes of the corporation, the establishment of reserves to securethe bonds and notes (including the reserve funds created pursuant to §23-19-17), and the making of all other expenditures of the corporation incidentto and necessary or convenient to carrying out its purposes and powers.
(b) All bonds and notes issued by the corporation may besecured by the full faith and credit of the corporation, or may be payablesolely out of the revenues and receipts derived from the lease, mortgage, orsale by the corporation of its projects or of any part of its projects, fromrepayment from any loans made by the corporation with regard to any of itsprojects or any part of its projects, or from other contractual arrangementsentered into by the corporation with respect to its projects, all as may bedesignated in the proceedings of the corporation under which the bonds or notesshall be authorized to be issued. The bonds and notes may be executed anddelivered by the corporation at any time from time to time, may be in any formand denominations and of any tenor and maturities, and may be in bearer form orin registered form, as to principal and interest or as to principal alone, allas the corporation may determine.
(c) Bonds and notes may be payable in installments and attimes not exceeding fifty (50) years from the date issued as shall bedetermined by the corporation.
(d) Bonds and notes may be payable at any place, whetherwithin or without the state, may bear interest at a rate or rates payable atthe time or times and at any place or places and evidenced in any manner, andmay contain any provisions not inconsistent herewith, all as shall be providedin the proceedings of the corporation under which they shall be authorized tobe issued.
(e) There may be retained by provision made in theproceedings under which any bonds or notes of the corporation are authorized tobe issued, an option to redeem all or any part of the bonds or notes, at pricesand upon notice, and on further terms and conditions that shall be set forth onthe record of the proceedings and on the face of the bonds or notes.
(f) Any bonds or notes of the corporation may be sold fromtime to time at the prices, at public or private sale, and in the manner thatshall be determined by the corporation, and the corporation shall pay allexpenses, premiums, and commissions as it shall deem necessary or advantageousin connection with the issuance and sale of any bonds or notes.
(g) Money of the corporation, including proceeds from thesale of bonds or notes, and revenues, receipts, and income from any of itsprojects, may be invested and reinvested in obligations, securities, and otherinvestments consistent with the provisions of § 23-19-10(35) as shall bespecified in the resolutions under which the bonds or notes are authorized.
(h) Issuance by the corporation of one or more series ofbonds or notes for one or more purposes shall not preclude it from issuingother bonds or notes in connection with the same project or any other project,but the proceedings upon which any subsequent bonds or notes may be issuedshall recognize and protect a prior pledge or mortgage made for a prior issueof bonds or notes unless in the proceedings authorizing the prior issue, theright is reserved to issue subsequent bonds or notes on a parity with the priorissue.
(i) The corporation is authorized to issue bonds or notes forthe purpose of refunding its outstanding bonds or notes, including the paymentof any redemption premium and any interest accrued or to accrue to the earliestor subsequent date of redemption, purchase, or maturity of the bonds or notes,and, if deemed advisable by the corporation, for the additional purpose ofpaying all or part of the cost of acquiring, constructing, reconstructing,rehabilitating, or improving any project, or the making of loans on anyproject. The proceeds of bonds or notes issued for the purpose of refundingoutstanding bonds or notes may be applied, in the discretion of thecorporation, to the purchase, retirement at maturity, or redemption of theoutstanding bonds or notes either on the earliest or a subsequent redemptiondate, and may, pending the application, be placed in escrow. The escrowedproceeds may be invested and reinvested in obligations of or guaranteed by theUnited States of America, or in certificates of deposit, time deposits, orrepurchase agreements secured or guaranteed by the state or the United States,or an instrumentality of either, maturing at a time or times that shall beappropriate to assure the prompt payment, as to principal, interest, andredemption premium, if any, of the outstanding bonds or notes to be sorefunded. The interest, income and profits, if any, earned or realized on theinvestment may also be applied to the payment of the outstanding bonds or notesto be refunded. After the terms of the escrow have been fully satisfied andcarried out, any balance of the proceeds and interests, income and profits, ifany, earned or realized on the investments, may be returned to the corporationfor use by it in furtherance of its purposes. The portion of the proceeds ofbonds or notes issued for the additional purpose of paying all or part of thecost of acquiring, constructing, reconstructing, rehabilitating, developing, orimproving any project, or the making of loans on any project, may be investedand reinvested in obligations, securities, and other investments consistentherewith as shall be specified in the resolutions under which the bonds ornotes are authorized and which shall mature not later than the times when theproceeds will be needed for its purposes. The interest, income, and profits, ifany, earned or realized on the investments may be applied to the payment of allparts of the costs, or to the making of the loans, or may be used by thecorporation otherwise in furtherance of its purposes. All the bonds or notesshall be issued and secured, and shall be subject to the provisions of thischapter in the same manner and to the same extent as any other bonds or notesissued pursuant to this chapter.
(j) The commissioners, the executive director of thecorporation, and other persons executing the bonds or notes shall not besubject to personal liability or accountability by reason of the issuance ofbonds or notes.
(k) Bonds or notes may be issued under the provisions of thischapter without obtaining the consent of any department, division, commission,board, body, bureau, or agency of the state, and without any other proceedingsor the happening of any conditions or things other than those proceedings,conditions, or things which are specifically required by this chapter and bythe provisions of the resolution authorizing the issue of the bonds or notes orthe trust agreement securing the bonds.
(l) The corporation, subject to agreements with noteholdersor bondholders that may then be in force, shall have the power, out of anyavailable funds, to purchase bonds or notes of the corporation, which shallthereupon be cancelled, at a price not exceeding:
(1) If the bonds or notes are then redeemable, the redemptionprice then applicable plus accrued interest to the next interest payment date;or
(2) If the bonds or notes are not then redeemable, theredemption price applicable on the earliest date that the bonds or notes becomesubject to redemption, plus the interest that would have accrued to that date.
(m) Whether or not the bonds and notes are of a form andcharacter as to be negotiable instruments under the terms of the uniformcommercial code, the bonds and notes are hereby made negotiable instrumentswithin the meaning of and for all the purposes of the uniform commercial code,subject only to the provisions of the bonds and notes for registration.
(n) If a commissioner or officer of the corporation whosesignature appears on bonds, notes, or coupons shall cease to be a commissioneror officer before the delivery of the bonds or notes, the signature shall,nevertheless, be valid and sufficient for all purposes, the same as if thecommissioner or officer had remained in office until the delivery.