§ 42-99-9 - Bonds and notes of the corporation.
SECTION 42-99-9
§ 42-99-9 Bonds and notes of thecorporation. – (a) The corporation is authorized to issue its negotiable bonds and notes fromtime to time for any of its corporate purposes; provided, however, that theauthorization be limited such that the aggregate principal amount of suchnegotiable bonds and notes outstanding at any time does not exceed the sum ofthree hundred five million dollars ($305,000,000); provided further, however,there shall be excluded from any calculation of the foregoing limitations, theprincipal amount of any bond anticipation notes retired with the proceeds ofnotes or bonds, as well as the portion of any refunding bonds issued afterJanuary 1, 2002 that exceeds the outstanding principal amount of the bondsbeing refunded, as well as the principal amount of any other obligation issuedto fund operating reserve accounts or debt service reserve accounts. All bondsand notes issued by the corporation may be secured by the full faith and creditof the corporation or may be payable solely out of the revenues and receiptsderived from the lease, mortgage, or sale by the corporation of its facilitiesor of any part thereof or from any other financing arrangement with respectthereto as may be designated in the proceedings of the corporation under whichthe bonds or notes shall be authorized to be issued. The bonds and notes may beexecuted and delivered by the corporation at any time and from time to time,may be in a form and denominations and of that tenor and maturities, may be inbearer form or in registered form, as to principal and interest or as toprincipal alone, may be payable in installments and at a time or times, may bepayable at places whether within or without the state, may bear interest at arate or rates payable at a time or times and at a place or places and evidencedin a manner, and may contain provisions not inconsistent herewith, all thatshall be provided in the proceedings of the corporation under which the bondsshall be authorized to be issued; provided, however, that bonds of thecorporation shall be payable not more than forty (40) years from the datethereof and notes shall be payable not more than ten (10) years from the datethereof. If deemed advisable by the corporation, there may be retained in theproceedings under which any bonds or notes of the corporation are authorized tobe issued an option to redeem all or any part thereof as may be specified inthe proceedings, at a price or prices and after notice or notices and on theterms and conditions as may be set forth in the proceedings and as may berecited in the face of the bonds or notes, but nothing herein contained shallbe construed to confer on the corporation any right or option to redeem anybonds or notes except as may be provided in the proceedings under which theyshall be issued. Any bonds or notes of the corporation may be sold at a priceor prices, at public or private sale, in a manner and from time to time as maybe determined by the corporation, and the corporation may pay all expenses,premiums, and commissions which it may deem necessary or advantageous inconnection with the issuance and sale thereof. Any moneys of the corporation,including proceeds from the sale of any bonds or notes, and revenues, receipts,and income from any of its projects, may be invested and reinvested in suchobligations, securities and other investments that shall be provided in theresolution or resolutions under which the bonds or notes are authorized.
(b) 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 project or any other projects, butthe proceedings whereunder any subsequent bonds or notes may be issued shallrecognize and protect any prior pledge or mortgage made for any prior issue ofbonds or notes unless in the proceedings authorizing prior issue the right isreserved to issue subsequent bonds or notes on a parity with prior issue.
(c) The corporation is authorized to provide for the issuanceof its bonds or notes for the purpose of refunding any bonds or notes of thecorporation then outstanding, including the payment of any redemption premiumthereon and any interest accrued or to accrue to the earliest or subsequentdate of redemption, purchase, or maturity of the bonds or notes, and, if deemedadvisable by the corporation, for the additional purpose of paying all or anypart of the cost of constructing and acquiring additions, improvements,extensions, or enlargements of a project or any portion thereof.
(d) The proceeds of any bonds or notes issued for the purposeof refunding outstanding bonds or notes may, in the discretion of thecorporation, be applied to the purchase or retirement at maturity or redemptionof the outstanding bonds or notes either on their earliest or any subsequentredemption date, and may, pending the application, be placed in escrow to beapplied to the purchase or retirement at maturity or redemption on such date asmay be determined by the corporation.
(e) Any escrowed proceeds, pending this use, may be investedand reinvested in obligations of or guaranteed by the United States of America,or in certificates of deposit or time deposits secured by direct obligations ofor guaranteed by the United States of America, maturing at a time or times thatshall be appropriate to assure the prompt payment, as to principal, interestand redemption premium, if any, on the outstanding bonds or notes to berefunded. The interest, income and profits, if any, earned or realized on anyinvestment 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 interest, income and profits, ifany, earned or realized on the investments thereof may be returned to thecorporation for use by it in any lawful manner. The portion of the proceeds ofany bonds or notes issued for the additional purpose of paying all or any partof the cost of constructing and acquiring additions, improvements, extensions,or enlargements of a project may be invested and reinvested in obligations ofor guaranteed by the United States of America, or in certificates of deposit ortime deposits secured by direct obligations of or guaranteed by the UnitedStates of America, maturing not later than the time or times when the proceedswill be needed for the purpose of paying all or any part of the cost. Theinterest, income and profits, if any, earned or realized on the investments maybe applied to the payment of all or any part of the cost or may be used by thecorporation in any lawful manner.
(f) All of the bonds or notes shall be issued and secured andshall be subject to the provisions of this chapter in the same manner and tothe same extent as any other bonds and notes issued pursuant to this chapter.All bonds and notes authorized under this section and the interest coupons, ifany, applicable to these are made and shall be construed to be negotiableinstruments.
(g) Money borrowed by the corporation for the purpose ofproviding temporary financing of a project pending the issuance of bonds orother notes shall be evidenced by notes or other obligations. The principal ofand interest on all notes or other obligations of the corporation issued underthe provisions of this section shall be payable from the following:
(i) From the proceeds of bonds subsequently issued; or
(ii) From the proceeds of subsequent borrowings which complywith the provisions of this chapter.
(h) Notwithstanding any other provisions of this chapter, allnotes shall be deemed to be negotiable instruments under the laws of the statesubject only to the provisions for registration contained therein. These notesor other obligations or any issue of these shall be in a form and contain anyother provisions as the corporation may determine and any votes or resolutionsor proceedings authorizing those notes or other obligations or any issue ofthese may contain, in addition to any provisions, conditions, covenants, orlimitations authorized by this chapter, any provisions, conditions, covenants,or limitations which the corporation is authorized to include in any resolutionor resolutions authorizing bonds or notes or in any trust indenture relatingthereto. The corporation may issue notes or other obligations in a mannereither publicly or privately on any terms it may determine to be in its bestinterests. These notes or other obligations may be issued under the provisionsof this chapter without obtaining the consent of any department, division,commission, board, body, or agency of the state, 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 by theprovisions and resolutions authorizing the issuance of the notes orobligations. Notwithstanding anything in this chapter or any other general orspecial law to the contrary, the issuance of bonds or notes or other evidencesof indebtedness hereunder for the purpose of financing the development of anyhotel, parking garages, connection walkways, or any facilities ancillary to ahotel shall be subject to chapter 18 of title 35.