41-12-115 - Negotiable bonds Resolution Enforcement of rights.
41-12-115. Negotiable bonds Resolution Enforcement of rights.
(a) (1) The authority has the power to issue negotiable bonds, in accordance with title 9, chapter 21, from time to time in order to accomplish any of the purposes authorized by this chapter. The authority also has the power to issue bonds in the same manner and under the same provisions as municipalities or metropolitan governments or counties are empowered to issue bonds under the laws of this state, for the purposes authorized by this chapter.
(2) All these bonds shall be payable from all or any part of the revenues, income and charges of the authority and the bonds may also constitute an obligation of one (1) or more of the creating and participating governmental entities.
(b) (1) The bonds shall be authorized by resolution of the board, be issued in accordance with title 9, chapter 21, and shall bear such date, mature at such time or times, bear interest at such rate or rates payable annually or semiannually, be in such form and denominations, be subject to such terms of redemption with or without premium, carry such registration privileges, be payable in such medium and at such place or places, be executed in such manner, all as may be provided in the resolution authorizing the bonds.
(2) The bonds may be sold at public or private sale in such manner and for such amount as the board may determine.
(c) The resolution may include any covenants that are deemed necessary by the board to make the bonds secure and marketable, including, but not limited to, covenants regarding:
(1) The application of the bond proceeds;
(2) The pledging, application and securing of the revenues of the authority;
(3) The creation and maintenance of reserves;
(4) The investment of funds;
(5) The issuance of additional bonds;
(6) The maintenance of minimum fees, charges and rentals;
(7) The operation and maintenance of the authority's facilities;
(8) Insurance and insurance proceeds;
(9) Accounts and audits;
(10) The sale of authority properties;
(11) The vesting in a trustee or trustees such powers and rights as may be necessary to secure the bonds and the revenues and funds from which they are payable;
(12) The terms and conditions upon which bondholders may exercise their rights and remedies;
(13) The placement of lost, destroyed or mutilated bonds;
(14) The definition, consequences and remedies of an event of default;
(15) The amendment of such resolution; and
(16) The appointment of a receiver in the event of a default.
(d) Any holder of any such bonds, including any trustee for any bondholders, may enforce their rights against the authority, its board or any officer, agent or employee of the authority, by mandamus, injunction or other action in any court of competent jurisdiction, subject to the covenants included in the bond resolution.
(e) (1) Sums received as accrued interest from the sale of any bonds may be applied to the payment of interest on the bonds.
(2) All sums received as principal or premium from the sale shall be applied to the purpose for which the bonds were issued, and may include, but not be limited to, expenses for fiscal, legal, engineering and architectural services, expenses for the authorization, sale and issuance of the bonds, expenses for obtaining an economic feasibility survey in connection with the bonds, and to create a reserve for the payment of not exceeding one (1) year of interest on the bonds.
(f) Bonds issued pursuant to this chapter executed by officers in office on the date of the execution shall be valid obligations of the authority, notwithstanding that before the delivery of the bonds, any or all of the persons executing the bonds shall have ceased to be officers.
(g) Bonds issued pursuant to this chapter, and the income from the bonds, shall be exempt from all state, county and municipal taxation except inheritance, transfer and estate taxes.
(h) All public officers and bodies of the state, municipal corporations, governmental entities, all insurance companies and associations, all savings banks and savings institutions, including savings and loan associations, all executors, administrators, guardians, trustees, and all other fiduciaries in the state may legally invest funds within their control in bonds of an authority.
(i) Any bonds upon which any creating governmental entity or participating governmental entity is jointly obligated with the authority may be secured by the full faith and credit and taxing powers of the governmental entity.
[Acts 2008, ch. 1092, § 16.]