§ 42-116-13 - Bonds of the corporation.
SECTION 42-116-13
§ 42-116-13 Bonds of the corporation.– (a) The corporation may provide by resolution of the board for the issuancefrom time to time of bonds of the corporation for any of its corporate purposesor for the borrowing of money in anticipation of the issuance of these bonds.Bonds issued by the corporation may be issued as general obligations of thecorporation or as special obligations payable solely from particular revenuesor funds as may be provided for in any trust agreement or other agreementsecuring bonds or any revenues dedicated to corporate purposes. Specialobligation bonds secured by the special revenue fund created by §42-116-31 shall not exceed, in the aggregate, an amount for which the aggregatemaximum annual debt service payments for principal and interest thereoncalculated at the time of the current issuance of any of these bonds, exceedsthe receipts exclusive of any receipts resulting from any expansion of thecoverage of the sales and use taxes through legislation enacted subsequent toFebruary 1, 1992 produced by six tenths of one percent (0.6%) within theexisting sales and use tax rates established in §§ 44-18-18 and44-18-20 for any twelve (12) consecutive months out of the eighteen (18)consecutive months immediately preceding the issuance of the bonds. Proceeds(net of costs of issuance, reserves, and capitalized interest, if any) of anyspecial obligation bonds secured by the special revenue fund created by §42-116-31 issued after March 1, 1992, shall be utilized only to effectuatetransactions authorized by § 42-116-6(j) and/or to effectuate theprovisions of § 42-116-12(e)(1) and (e)(2), or to refund specialobligation bonds previously issued for these purposes. These proceeds shall notbe utilized to effectuate the provisions of § 42-116-12(e)(3). Anyproceeds from the special obligation bonds issued after March 1, 1992 notutilized to effectuate transactions authorized by § 42-116-6(j) and/or toeffectuate the provisions of § 42-116-12(e)(1) and (e)(2), or forrefunding purposes, shall be segregated, placed in a separate fund, and may beutilized to defease and/or to redeem the special obligation bonds as determinedby the corporation from time to time. The corporation may also provide byresolution of the board of directors for the issuance from time to time oftemporary notes in anticipation of the revenues to be collected or received bythe corporation, including without limitation in anticipation of any paymentsto the corporation from the state pursuant to § 42-116-11, or inanticipation of the receipt of other grants or aid. The issue of these notesshall be governed by the provisions of this chapter relating to the issue ofbonds of the corporation other than those temporary notes as they may beapplicable; provided, however, that notes issued in anticipation of revenuesshall mature no later than one year from their respective dates, or the date ofexpected receipt of those revenues, if later, and notes issued in anticipationof grants, or other aid and renewals thereof, shall mature no later than six(6) months after the expected date of receipt of that grant or aid.
(b) The bonds of each issue shall be dated, may bear interestat a rate or rates, including rates variable from time to time as determined byan index, banker's loan, rate or other method determined by the corporation,and shall mature or otherwise be payable at the time or times, as may bedetermined by the corporation, and may be made redeemable before maturity atthe option of the corporation or the holder thereof at a price or prices andunder those terms and conditions that may be fixed by the corporation. Thecorporation shall determine the form of bonds, and the manner of execution ofthe bonds, and shall fix the denomination or denominations of the bonds and theplace or places of payment of principal, redemption premium, if any, andinterest, which may be at any bank or trust company within or outside of thestate. In case any officer whose signature or a facsimile of whose signatureshall appear on any bonds shall cease to be an officer before the deliverythereof, the signature or facsimile shall nevertheless be valid and sufficientfor all purposes as if that officer had remained in office until delivery. Thecorporation may provide for authentication of bonds by a trustee, fiscal agent,registrar or transfer agent. Bonds may be issued in bearer or in registeredform, or both, and, if notes, may be made payable to bearer or to order, as thecorporation may determine. The corporation may also establish and maintain asystem of registration for any bonds whereby the name of the registered owner,the rights evidenced by the bonds, the transfer of the bonds, and those rightsand other similar matters are recorded in books or other records maintained byor on behalf of the corporation, and no instrument evidencing the bond orrights need be delivered to the registered owner by the corporation. A copy ofthe books or other records of the corporation pertaining to any bond registeredunder the registration system certified by an authorized officer of thecorporation or by the agent of the corporation maintaining the system shall beadmissible in any proceeding without further authentication. The board ofdirectors may by resolution delegate to any member or officer of thecorporation or any combination of these persons the power to determine any ofthe matters set forth in this section. In the discretion of the corporation,bonds of the corporation may be issued with those terms that will cause theinterest on these bonds to be subject to federal income taxation. Thecorporation may sell its bonds in any manner either at public or private sale,for the price, at the rate or rates of interest, or at discount in lieu ofinterest, that it may determine will best effect the purposes of this chapter.
(c) The corporation may issue interim receipts or temporarybonds, exchangeable for definitive bonds when the bonds shall have beenexecuted and are available for delivery. The corporation may also provide forreplacement of any bonds which shall have become mutilated or shall have beendestroyed or lost. The corporation, by itself or through any agent it mayselect, may purchase and invite offers to tender for purchase any bonds of thecorporation at any time outstanding; provided, however, that no purchase by thecorporation shall be made at a price, exclusive of accrued interest, if any,exceeding the principal amount thereof or, if greater, the redemption price ofthe bonds when next redeemable at the option of the corporation, and may resellany bonds so purchased in a manner and for a price that it may determine willbest effect the purposes of this chapter.
(d) In the discretion of the board of directors, any bondsissued under this chapter may be secured by a trust agreement in a form andexecuted in a manner as may be determined by the board of directors between thecorporation and the purchasers or holders of those bonds or between thecorporation and a corporate trustee which may be any trust company or bankhaving the powers of a trust company within or without the state. The trustagreement may pledge or assign, in whole or in part, any loan agreements, andthe revenues, funds, and other assets or property held or to be received by thecorporation, whether then existing or thereafter coming into existence andwhether then held or thereafter acquired by the corporation, and the proceedsthereof. The trust agreement may contain any provisions for protecting andenforcing the rights, security and remedies of the bondholders, as may bereasonable and proper including, without limiting the generality of theforegoing, provisions defining defaults and providing for remedies in the eventthereof which may include the acceleration of maturities, restrictions on theindividual right of action by bondholders, and covenants setting forth theduties of and limitations on the corporation in relation to the custody,safeguarding, investment, and application of moneys, the enforcement of loanagreements, the issue of additional or refunding bonds, the fixing, revision,charging, and collection of charges, the use of any surplus bond proceeds, theestablishment of reserves and the making and amending of contracts.
(e) In the discretion of the board of directors, any bondsissued under the authority of this chapter may be issued by the corporation inthe form of lines of credit or other banking arrangements under terms andconditions, not inconsistent with this chapter, and under any agreements withthe purchasers or makers thereof or any agent or other representative of anypurchasers or makers, that the board of directors may determine to be in thebest interests of the corporation. In addition to other security provided inthis section or otherwise by law, bonds issued by the corporation under anyprovision of this chapter may be secured, in whole or in part, by financialguarantees, by insurance or by letters or lines of credit issued to thecorporation or a trustee or any other person, by any bank, trust company,insurance, or surety company or other financial institution, within or outsideof the state, and the corporation may pledge or assign, in whole or in part,any loan agreements, funds, and other assets and property held or to bereceived by the corporation, and any contract or other rights to receive anyloan agreements, funds, and other assets and property, whether then existing orthereafter coming into existence and whether then held or thereafter acquiredby the corporation, and the proceeds thereof, as security for those guaranteesor insurance or for the reimbursement by the corporation to any issuer of theline or letter of credit.
(f) It shall be lawful for any bank or trust company to actas a depository or trustee of the proceeds of bonds, revenues, or other moneysunder a trust agreement of the corporation and to furnish indemnification andto provide security as may be required by the corporation. It is herebydeclared that any pledge or assignment made by the corporation under thischapter is an exercise of the governmental powers of the corporation, and loanagreements, revenues, funds, assets, property, and contract or other rights toreceive a pledge or assignment and the proceeds thereof which are subject tothe lien of a pledge or assignment created under this chapter shall not beapplied to any purposes not permitted by a pledge or assignment.
(g) Any holder of a bond issued by the corporation under theprovisions of this chapter and any trustee or other representative under atrust agreement securing the bond, except to the extent the rights given inthis section may be restricted by the trust agreement, may bring suit upon thebonds in the superior court and may, either at law or in equity, by suit,action, mandamus, or other proceeding for legal or equitable relief, protectand enforce any and all rights under the laws of the state or granted underthis chapter or under a trust agreement, and may enforce and compel performanceof all duties required by this chapter or by a trust agreement, to be performedby the corporation or by any officer of the corporation.