§ 24-117-111 — Investment powers of authority

(1) The authority has the power
to:

(a) Invest any money held in reserve, sinking funds, capital reserve funds, or
any funds not required for immediate disbursement in property or in securities in
which the state treasurer may legally invest money subject to the treasurer's
control;

(b) Sell securities purchased and held by the authority;

(c) Deposit securities in any bank within or without the state; and

(d) Invest any such money in unsecured promissory notes of a national bank
having the highest investment ratings.

(2) Any funds deposited in a banking institution by the authority must be
secured in a manner and subject to terms and conditions as determined by the
board, with or without payment of any interest on the deposit, including, without
limitation, time deposits evidenced by certificates of deposit.

(3) Any commercial bank incorporated under the laws of this state which
may act as a depository of any money of the authority may issue indemnifying
bonds or may pledge such securities as may be required by the board.

(4) (a) If the board determines that the investment in, purchase or
participation in the purchase of investment loans for, or making loans to lenders for
an eligible infrastructure project is necessary to fund an eligible infrastructure
project, the authority may create a plan for the authority investing in that eligible
infrastructure project and the board may approve such plan.

(b) In connection with the purchase from a lender of a loan for an eligible
infrastructure project or interest on that loan, the authority may require the lender
to furnish an amount of collateral security necessary to assure the payment of that
loan and the interest on that loan as the loan or interest become due. The collateral
security shall consist of any obligations or loans satisfactory to the authority.

(c) (I) A loan from the authority to a lender is a general obligation of the
lender and shall be additionally secured as to payment of both principal and
interest by a pledge of and lien upon collateral security in an amount and type that
the board, by regulation, determines to be necessary to assure the payment of that
loan and the interest on that loan as the loan and interest become payable.

(II) The authority may require that a lender lodge collateral with a bank or
trust company, located either within or outside the state, designated by the
authority. In the absence of such a requirement, each lender shall enter into an
agreement with the authority referring to this subsection (4)(c); containing
provisions deemed necessary by the authority to identify, maintain, and service the
collateral; and providing that the lender shall hold such collateral as trustee for the
benefit of the authority and shall be held accountable as the trustee of an express
trust for the application and disposition of such collateral, including the income and
proceeds therefrom, solely for the uses and purposes as provided in the agreement.
A copy of each agreement and any revisions or supplements thereto, which
revisions or supplements may, among other things, add to, delete from, or
substitute items of collateral pledged by the agreement, shall be filed with the
secretary of state to perfect the security interest of the authority in the collateral.
No filing, recording, possession, or other action under article 9 of title 4 or any other
law of this state is required to perfect the security interest of the authority in such
collateral. The security interest of the authority in the collateral shall be deemed
perfected, and the trust for the benefit of the authority so created shall be binding
on and after the time of such filing with the secretary of state against all parties
having prior unperfected or subsequent security interests or claims of any kind in
tort, in contract, or otherwise against such lender. The authority may also establish
additional requirements as necessary with respect to the pledging, assigning,
setting aside, or holding of such collateral and the making of substitutions therefor
or additions thereto and the disposition of income and receipts therefrom.

(d) Subject to any agreement with bondholders, the authority may collect,
enforce the collection of, and foreclose on any collateral required by subsections
(4)(b) and (4)(c) of this section and acquire or take possession of such collateral and
sell the same at public or private sale, with or without public bidding, and otherwise
deal with the collateral as necessary to protect the interest of the authority therein.

(e) In addition to the other powers granted by this article 117, the authority
has the power, with respect to eligible infrastructure project loans to lenders as
provided under this section, to collect and pay reasonable fees and charges and to
establish the terms and conditions of eligible infrastructure project loans to lenders
by rules and regulations, including rules and regulations as to:

(I) Reinvestment and commitments to reinvest by lenders of the proceeds of
eligible infrastructure project loans; and

(II) Other matters related to such infrastructure project loans to lenders
deemed necessary by the authority to accomplish the purposes of this article 117.

Legislative History

Source: L. 2025: Entire article added, (SB 25-081), ch. 320, p. 1686, � 3, effective August 6.