23-30.54 - Issuance of refunding bonds.
§ 23-30.54. Issuance of refunding bonds.
(a) The Authority is hereby authorized to provide for the issuance of revenuebonds of the Authority for the purpose of refunding any revenue bonds of theAuthority then outstanding, including the payment of any redemption premiumthereon and any interest accrued or to accrue to the earliest or anysubsequent date of redemption, purchase or maturity of such revenue bonds,and, if deemed advisable by the Authority, for the additional purpose ofpaying all or any part of the cost of constructing and acquiring additions,improvements, extensions or enlargements of a project or any portion thereof.
(b) The proceeds of any such revenue bonds issued for the purpose ofrefunding outstanding revenue bonds may, in the discretion of the Authority,be applied to the purchase or retirement at maturity or redemption of suchoutstanding revenue bonds either on their earliest or any subsequentredemption date or upon the purchase or at the maturity thereof and may,pending such application, be placed in escrow to be applied to such purchaseor retirement at maturity or redemption on such date as may be determined bythe Authority.
(c) Any such escrowed proceeds, pending such use, may be invested andreinvested in direct obligations of the United States of America, or incertificates of deposit or time deposits secured by direct obligations of theUnited States of America, maturing at such time or times as shall beappropriate to assure the prompt payment, as to principal, interest andredemption premium, if any, of the outstanding revenue bonds to be sorefunded. The interest, income and profits, if any, earned or realized on anysuch investment may also be applied to the payment of the outstanding revenuebonds to be so refunded. After the terms of the escrow have been fullysatisfied and carried out, any balance of such proceeds and interest, incomeand profits, if any, earned or realized on the investments thereof may bereturned to the Authority for use by it in any lawful manner.
(d) The portion of the proceeds of any such revenue bonds issued for theadditional purpose of paying all or any part of the cost of constructing andacquiring additions, improvements, extensions or enlargements of a projectmay be invested and reinvested in direct obligations of the United States ofAmerica, or in certificates of deposit or time deposits secured by directobligations of the United States of America, maturing not later than the timeor times when such proceeds will be needed for the purpose of paying all orany part of such cost. The interest, income and profits, if any, earned orrealized on such investment may be applied to the payment of all or any partof such cost or may be used by the Authority in any lawful manner.
(e) All such revenue bonds shall be subject to the provisions of this chapterin the same manner and to the same extent as other revenue bonds issuedpursuant to this chapter.
(1972, c. 686.)