Article 91, § 10 — Procedure for Issuing Bonds

Before any series of bonds may be issued: (1) (A) The commission shall, in consultation with the chief fiscal officer, determine the estimated amount of designated tax revenues to be collected by the state in the remainder of the then current fiscal biennium. (B) The estimated amount of designated tax revenues shall be reported to the commission and Governor; (2) The commission shall present a report to the Governor that includes the: (A) Highway construction and improvements to be financed with the proceeds of such series of bonds; (B) Estimated cost of the four-lane highway construction and improvements; (C) Amount of bonds necessary to finance such four-lane highway construction and improvements; and (D) Estimated amount of debt service required to pay the bonds; (3) Upon receipt of the report required under subdivision (2) of this section, the Governor shall, if he and the Commission determine that the estimated designated tax revenues and any other revenues appropriated by the General Assembly for repayment of bonds will be sufficient to pay the debt service on the series of bonds, by proclamation authorize the commission to proceed with the issuance of such series of bonds. (4) (A) After the Governor has issued his or her proclamation with respect to one (1) or more series of bonds, the commission shall adopt a resolution authorizing the issuance of the bonds. (B) Each such resolution shall contain the terms, covenants, and conditions as are desirable and consistent with this amendment, including without limitation the: (i) Establishment and maintenance of funds and accounts; (ii) Deposit and investment of tax collections and of bond proceeds; and (iii) Rights and obligations of the state, its officers and officials, the commission, and the registered owners of the bonds. (C) (i) Each such resolution of the commission may provide for the execution and delivery by the commission of a trust indenture or trust indentures, with one (1) or more banks or trust companies located within or outside the state, containing any of the terms, covenants, and conditions provided for in this section and other terms and conditions deemed necessary by the commission. (ii) The trust indenture or trust indentures shall be binding upon the commission, the state, and their respective officers and officials.