§ 23-19-15 - Short term notes.
SECTION 23-19-15
§ 23-19-15 Short term notes. – (a) Money borrowed by the corporation for the purpose of providing temporaryfinancing of a project or projects or combination of projects pending theissuance of bonds or other notes shall be evidenced by notes or otherobligations.
(b) The principal and interest of all notes or otherobligations of the corporation issued under the provisions of this sectionshall be payable from the following:
(1) From the proceeds of bonds subsequently issued; or
(2) From the proceeds of subsequent borrowings which complywith the provisions of this section; or
(3) From general revenues of the corporation, the lien onwhich may be equal and proportionate with, but not superior to, that securingoutstanding bonds or bonds subsequently issued.
(c) Notwithstanding any other provisions of this chapter, allthe notes shall be deemed to be negotiable instruments under the laws of thestate subject only to the provisions for registration contained therein.
(d) The notes or other obligations or any issue thereof shallbe in a form and contain any other provisions that the corporation maydetermine, and the notes or resolutions or proceedings authorizing the notes orother obligations or any issue thereof may contain, in addition to anyprovisions, conditions, covenants, or limitations authorized by this chapter,any provisions, conditions, covenants, or limitations which the corporation isauthorized to include in any resolution or resolutions authorizing bonds ornotes or in any trust indenture relating bonds or notes.
(e) The corporation may issue notes or other obligations in amanner either publicly or privately on terms that it may determine to be in itsbest interests.
(f) The notes or other obligations may be issued under theprovisions of this chapter without obtaining the consent of any department,division, commission, board, body, or agency of the state, without any otherproceedings or the happening of any conditions or things other than thoseproceedings, conditions, or things which are specifically required by thischapter, and by the provisions and resolutions authorizing the issuance of thenotes or obligations.