§ 39-16-11 - Terms and sale of bonds – Refunding.
SECTION 39-16-11
§ 39-16-11 Terms and sale of bonds –Refunding. – (a) The authority is hereby authorized to provide by resolution for theissuance, at one time or from time to time, of revenue bonds of the authorityfor the purpose of paying all or part of the cost to acquire, construct,reconstruct, rehabilitate, improve, or maintain any property necessary ordesirable for the purposes of the authority. The bonds shall be authorized byresolution of the board, and shall bear such date or dates, mature at such timeor times not exceeding forty (40) years from their date, bear interest at suchrate or rates payable at such time or times, be in such denominations, be insuch form, either coupon or registered, carry such registration privileges andsuch privileges of reconversion from registered to coupon form, be executed insuch manner, be payable in such medium of payment, at such place or places andbe subject to redemption at such premium, if required, and on such terms, asthe resolution may provide. Notwithstanding the requirement of § 39-16-8that any indebtedness incurred by the authority shall be payable solely fromthe earnings or revenues derived from all or part of the property acquired bythe authority, the authority may purchase or otherwise acquire or require bondinsurance, letters of credit, lines of credit or such other instruments orsecurities to insure the timely payment of principal, interest, and/orredemption premium on the bonds.
(b) Pending the preparation of the bonds in definitive form,the board shall have the power to issue temporary bonds or interim receipts insuch form as the board may elect. The definitive bonds shall be signed by thechairperson of the authority or a facsimile thereof shall be impressed orimprinted thereon and attested by the manual or facsimile signature of thesecretary of the authority, and any coupons attached to the bonds shall bearthe facsimile signature of the chairperson of the authority. In case anyofficer whose signature or facsimile of whose signature shall appear on anybonds or coupons shall cease to be an officer before the delivery of the bonds,the signature or the facsimile shall nevertheless be valid and sufficient forall purposes the same as if he or she had remained in office until delivery.
(c) Any bonds, authorized by and issued pursuant to thischapter, may be sold at public or private sale for such price or prices as theauthority shall determine.
(d) The authority is hereby authorized to provide for theissuance of refunding bonds of the authority for the purpose of refunding anybonds then outstanding which shall have been issued under the provisions ofthis chapter, including the payment of any redemption premium thereon orinterest accrued or to accrue to the earliest or subsequent date of redemptionpurchase or maturity of the bonds and, if deemed advisable by the authority,for the additional purpose of paying all or part of the cost of acquiring,constructing, reconstructing, rehabilitating, or improving any property of theauthority. The proceeds of bonds or notes issued for the purpose of refundingoutstanding bonds or notes may be applied, in the discretion of the authority,to the purchase, retirement at maturity, or redemption of the outstanding bondsor notes either on their earliest or a subsequent redemption date, and may,pending that application, be placed in escrow. Any escrowed proceeds may beinvested and reinvested in obligations of or guaranteed by the United States,or in certificates of deposit, time deposits, or repurchase agreements fullysecured or guaranteed by the state or the United States, or an instrumentalityof either, maturing at such time or times as shall be appropriate to assure theprompt payment, as to principal, interest, and redemption premium, if any, ofthe outstanding bonds or notes to be so refunded. After the terms of the escrowhave been fully satisfied and carried out, any balance of the proceeds andinterest, income, and profits, if any, earned or realized on the investmentsthereof may be returned to the authority for use by it in furtherance of itspurposes. The portion of the proceeds of bonds or notes issued for theadditional purpose of paying all or part of the cost of acquiring,constructing, reconstructing, rehabilitating, developing, or improving anyproperty of the authority may be invested and reinvested in such obligations,securities, and other investments consistent with this section as shall bespecified in the resolutions under which the bonds are authorized and whichshall mature not later than the times when the proceeds will be needed forthese purposes. The interest, income, and profits, if any, earned or realizedon the investments may be applied to the payment of all parts of the costs, ormay be used by the authority otherwise in furtherance of its purposes. Theissuance of the bonds, the maturities, and other details thereof, the rights ofthe holders thereof, and the rights, duties, and obligations of the authorityin respect to the bonds shall be governed by the provisions of this chapterinsofar as the provisions may be applicable.