§ 46-12.8-11 - Bonds of the agency.
SECTION 46-12.8-11
§ 46-12.8-11 Bonds of the agency. –(a) The agency may provide by resolution of the board of directors for theissuance, from time to time, of bonds, notes or any other evidences ofindebtedness of the agency for any of its corporate purposes or for theborrowing of money in anticipation of the issuance of the bonds. Bonds issuedby the agency may be issued as general obligations of the agency or as specialobligations payable solely from particular revenues or funds as may be providedfor in any trust agreement or other agreement securing bonds. The agency mayalso provide by resolution of the board of directors for the issuance, fromtime to time, of temporary notes in anticipation of the revenues to becollected or received by the agency, including, without limitation, inanticipation of any payments to the agency from the state, or in anticipationof the receipt of other grants or aid. The issue of notes shall be governed bythe provisions of this chapter relating to the issue of bonds of the agencyother than temporary notes as this chapter may be applicable; provided,however, that notes issued in anticipation of revenues shall mature no laterthan one year from their respective dates, or the date of expected receipt ofthe revenues, if later, and notes issued in anticipation of grants, or otheraid and renewals thereof, shall mature no later than six (6) months after theexpected date of receipt of the grant or aid.
(b) The bonds of each issue shall be dated, may bear interestat such rate or rates, including rates variable from time to time as determinedby such index, banker's loan rate, or other method determined by the agency,and shall mature or otherwise be payable at such time or times, as may bedetermined by the agency, and may be made redeemable before maturity at theoption of the agency or the holder thereof at such price or prices and undersuch terms and conditions as may be fixed by the agency. The agency shalldetermine the form of bonds, and the manner of execution of the bonds, andshall fix the denomination or denominations of the bonds, and the place orplaces of payment of principal, redemption premium, if any, and interest, whichmay be paid at any bank or trust company within or without the state. In caseany officer whose signature or a facsimile of whose signature shall appear onany bonds shall cease to be the officer before the delivery thereof, thesignature or facsimile shall nevertheless be valid and sufficient for allpurposes as if the officer had remained in office until delivery. The agencymay provide for authentication of bonds by a trustee, fiscal agent, registrar,or transfer agency. Bonds may be issued in bearer or in registered form, orboth, and if notes, may be made payable to the bearer or to order, as theagency may determine. The agency may also establish and maintain a system ofregistration for any bonds whereby the name of the registered owner, the rightsevidenced by the bonds, the transfer of the bonds, and the rights and othersimilar matters, are recorded in books or other records maintained by or onbehalf of the agency, and no instrument evidencing the bonds or rights need bedelivered to the registered owner by the agency. A copy of the books or otherrecords of the agency pertaining to any bond registered under a registrationsystem certified by an authorized officer of the agency or by the agent of theagency maintaining the system shall be admissible in any proceeding withoutfurther authentication. The board of directors may by resolution delegate toany member or officer of the agency, or any combination thereof, the power todetermine any of the matters set forth in this section. In the discretion ofthe agency, bonds of the agency may be issued with such terms as will cause theinterest thereon to be subject to federal income taxation. The agency may sellits bonds in such manner, either at public or private sale, for the price, atthe rate or rates of interest, or at discount in lieu of interest, as it maydetermine will best affect the purposes of this chapter.
(c) The agency may issue interim receipts or temporary bonds,exchangeable for definitive bonds, when the bonds shall have been executed andare available for delivery. The agency may also provide for the replacement ofany bonds which shall have become mutilated or shall have been destroyed orlost. The agency, by itself or through such agency as it may select, maypurchase and invite offers to tender for purchase any bonds of the agency atany time outstanding; provided, however, that no purchase by the agency shallbe made at a price, exclusive of accrued interest, if any, exceeding theprincipal amount thereof or, if greater, the redemption price of the bonds whennext redeemable at the option of the agency, and may resell any bonds sopurchased in such manner and for such price as it may determine will besteffect the purposes of this chapter.
(d) In the discretion of the board of directors, any bondsissued hereunder may be secured by a trust agreement in such form and executedin such manner as may be determined by the board of directors, between theagency and the purchasers or holders of the bonds, or between the agency and acorporate trustee which may be any trust company or bank having the powers of atrust company within or without the state. The trust agreement may pledge orassign, in whole or in part, any loan agreements and local governmentalobligations, and the revenues, funds, and other assets or property held or tobe received by the agency, including without limitation all moneys andinvestments on deposit from time to time in the safe drinking water revolvingloan fund, and any contract or other rights to receive the same, whether thenexisting or thereafter coming into existence and whether then held orthereafter acquired by the agency, and the proceeds thereof. The trustagreement may contain such provisions for protecting and enforcing the rights,security, and remedies of the bondholders as may be reasonable and properincluding, without limiting the generality of the foregoing, provisionsdefining defaults and providing for remedies in the event thereof which mayinclude the acceleration of maturities, restrictions on the individual right ofaction by bondholders, and covenants setting forth the duties of andlimitations on the agency in relation to the custody, safeguarding, investment,and application of moneys, the enforcement of loan agreements and localgovernmental obligations, the issue of additional or refunding bonds, thefixing, revision, charging, and collection of charges, the use of any surplusbond proceeds, the establishment of reserves, and the making and amending ofcontracts.
(e) In the discretion of the board of directors, any bondissued under authority of this chapter may be issued by the agency in the formof lines of credit or other banking arrangements under terms and conditions,not inconsistent with this chapter, and under such agreements with thepurchasers or makers thereof or any agent or other representative of suchpurchasers or makers, as the board of directors may determine to be in the bestinterest of the agency. In addition to other security provided herein orotherwise by law, bonds issued by the agency under any provision of thischapter may be secured, in whole or in part, by financial guarantees, byinsurance, or by letters or lines of credit issued to the agency or a trusteeor any other person, by any bank, trust company, insurance or surety company,or other financial institution, within or without the state, and the agency maypledge or assign, in whole or in part, any loan agreements and any localgovernmental obligations or obligations of any privately organized watersupplier, and the revenues, funds, and other assets and property held or to bereceived by the agency, and any contract or other rights to receive the same,whether then existing or thereafter coming into existence and whether then heldor thereafter acquired by the agency, and the proceeds thereof, as security forthe guarantees or insurance or for the reimbursement by the agency to anyissuer of the line 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 agency, and to furnish indemnification and toprovide security as may be required by the agency. It is hereby declared thatany pledge or assignment made by the agency under this chapter is an exerciseof the governmental powers of the agency, and loan agreements, localgovernmental obligations, the obligations of private water companies, revenues,funds, assets, property, and contract or other rights to receive the same andthe proceeds thereof, which are subject to the lien of a pledge or assignmentcreated under this chapter, shall not be applied to any purposes not permittedby the pledge or assignment.
(g) Any holder of a bond issued by the agency under theprovisions of this chapter and any trustee or other representative under atrust agreement securing the trustee or representative, except to the extentthe rights herein given may be restricted by the trust agreement, may bringsuit upon the bonds in the superior court and may, either at law or in equity,by suit, action, mandamus, or other proceeding for legal or equitable relief,protect and enforce any and all rights under the laws of the state or grantedhereunder or under the trust agreement, and may enforce and compel performanceof all duties required by this chapter or by the trust agreement, to beperformed by the agency or by any officer thereof.