42-3-111 - Bonds and other obligations.
42-3-111. Bonds and other obligations.
(a) An authority has the power to borrow money for any of its corporate purposes and issue its bonds therefor, including refunding bonds, in such form and upon such terms as it may determine, payable out of any revenues of the authority, including grants or contributions from the federal government or other sources, which bonds may be sold at public sale at not less than par. Revenue bonds may be issued for the above purposes and the authority may pledge as security for such bonds all or any portion of the landing fees, concession fees, rents, charges, or any other revenues derived from the operation of the airport. Revenue bonds shall be issued in accordance with the applicable provisions of title 9, chapter 21; provided, that any fees, rents, or charges so pledged that are fixed and established pursuant to the provisions of a lease or contract shall not be subject to revision or change except in such manner as is provided in such lease or contract. Any bonds of any authority issued pursuant to this chapter that are payable, as to principal and interest, solely from revenues of an airport or air navigation facility (and they shall so state on their face) shall not constitute a debt of any municipality, the state, or any political subdivision thereof other than the authority, and shall not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction. Neither the commissioners of an authority nor any person executing the bonds shall be liable personally thereon by reason of the issuance of the bonds.
(b) In case any of the commissioners or officers of an authority whose signatures appear on any bonds or coupons cease to be commissioners or officers after authorization but before the delivery of the bonds, the signatures shall nevertheless be valid and sufficient for all purposes, the same as if the commissioners or officers had remained in office until delivery. Any provision of any law to the contrary notwithstanding, any bonds issued pursuant to this chapter shall be fully negotiable.
(c) Any bond reciting in substance that it has been issued by an authority pursuant to this chapter and for a purpose or purposes authorized to be accomplished by this chapter shall be conclusively deemed, in any suit, action or proceeding involving the validity or enforceability of the bond or the security for the bond, to have been issued pursuant to this chapter and for such purpose or purposes.
(d) Bonds issued by an authority pursuant to this chapter are declared to be issued for an essential public and governmental purpose, and, together with interest on the bonds and income from the bonds, shall be exempt from all taxes.
[Acts 1957, ch. 376, § 10; T.C.A., § 42-611; Acts 1980, ch. 601, § 11; 1988, ch. 750, § 48.]