53B-13-104 - Issuance of bonds -- Disposition of funds -- Refunding bonds -- Resolution to authorize bonds -- Contents -- Sale of bonds -- Bond debt service reserve funds -- Restoration of fund assets
53B-13-104. Issuance of bonds -- Disposition of funds -- Refunding bonds --Resolution to authorize bonds -- Contents -- Sale of bonds -- Bond debt service reservefunds -- Restoration of fund assets -- Establishment of other subfunds.
(1) The board may issue its bonds in the principal amounts necessary to provide funds forachieving its purposes under this chapter, including the payment of interest, the establishment ofreserves to secure the bonds, and other expenditures of the board necessary to carry out itspurposes and powers.
(2) The board may issue refunding bonds when it considers refunding expedient, whetherthe bonds to be refunded have or have not matured.
(3) The proceeds of the refunding bonds shall be applied to the purchase, redemption, orpayment of the bonds refunded.
(4) Except as otherwise expressly provided in a resolution authorizing bonds, an issue ofbonds is a special obligation of the board to be satisfied only out of revenue or money of theboard, subject to an agreement with the holders of particular receipts or revenues of the boardwhich have been pledged.
(5) The board shall authorize its bonds by resolution.
(6) The bonds are fully negotiable for all purposes, shall bear a date, shall be serial bondsor term bonds or both and, if serial bonds, shall be payable either semiannually or annually, andshall mature at a time or times, not exceeding 40 years after the date of issue, as provided in theresolution.
(7) The resolution shall specify the following:
(a) either the interest rate or rates or a formula by means of which the interest rate or ratesare determined during the time the bonds are outstanding;
(b) denomination and form, either coupon or registered;
(c) registration privileges;
(d) manner of execution;
(e) medium of payment; and
(f) place and terms for the redemption of the bonds.
(8) If the resolution sets forth a formula by means of which the interest rate or rates on thebonds are determined, it shall also state the maximum rate which the bonds may bear under theformula.
(9) Pursuant to the resolution or another instrument, the board may delegate to the chair,vice-chair, or chair of the Budget and Finance Subcommittee the authority:
(a) to approve any changes with respect to interest rate, price, amount, redemptionfeatures, and other terms of the bonds as are within reasonable parameters set forth in theresolution; and
(b) to approve and execute all documents relating to the issuance of the bonds.
(10) The bonds are sold by the board in such manner and at such a price as the boarddetermines.
(11) (a) The board may create and establish one or more bond debt service reserve fundsin order to secure its bonds from the following:
(i) any proceeds of the sale of bonds, to the extent provided in the resolution authorizingthe issuance of the bonds;
(ii) any money appropriated and made available by the state for the purpose of the funds;and
(iii) any other money available to the board for the purpose of the funds.
(b) All money held in any bond debt service reserve fund shall be used, as provided in theresolution establishing the fund, to pay principal of, premium, and interest on bonds of the boardissued under this chapter.
(c) If the assets in any bond debt service reserve fund are less than the amount currentlyrequired in the authorizing resolution to be on deposit, the chairman of the board shall, annuallybefore the second day of December, certify to the governor and to the director of finance theamount necessary to restore the assets of the funds to the required amount.
(d) The governor may request from the Legislature an appropriation of the certifiedamount in order to restore the required amount to the funds.
(12) The board may create and establish any other subfunds and accounts as may benecessary for its corporate purposes.
Amended by Chapter 271, 1992 General Session