§ 14-188-112 — Form and sale of bonds, etc

(a) (1) Bonds or other evidence of indebtedness of a rural development authority shall be authorized by a resolution upon a vote of at least three (3) commissioners. (2) As the resolution, its trust indenture, or mortgage may provide, the bonds: (A) May be issued in one (1) or more series; and (B) Shall: (i) Bear such date or dates; (ii) Mature at such time or times; (iii) Bear interest at such rate or rates; (iv) Be in such denomination or denominations; (v) Be in such form, either coupon or registered; (vi) Carry such conversion or registration privileges; (vii) Have such rank or priority; (viii) Be executed in such manner; (ix) Be payable in such medium of payment, at such place or places; and (x) Be subject to such terms of redemption, with or without premium. (3) (A) The bonds may be sold under such terms or conditions as the authority may require. (B) Any provision of any law to the contrary notwithstanding, any bonds issued pursuant to this chapter shall be fully negotiable. (b) In case any of the commissioners or officers of the authority whose signatures appear on any bonds shall cease to be commissioners or officers before the delivery of the bonds, their signatures shall, nevertheless, be valid and sufficient for all purposes, the same as if the commissioners or officers had remained in office until the delivery. (c) In any suit, action, or proceedings involving the validity or enforceability of any bond of an authority, or the security for it, any such bond reciting in substance that it has been issued by the authority to aid in financing a rural development project shall be conclusively deemed to have been issued for a development project of such character and the project shall be conclusively deemed to have been planned, located, and constructed in accordance with the purposes and provisions of this chapter.

Legislative History

Acts 1963, No. 172, § 14; 1981, No. 425, § 23; A.S.A. 1947, § 20-1414.