(1) (a) The authority may issue bonds to finance its
affordable rental housing projects, to finance the affordable rental housing
component in a public-private partnership, or to accomplish or further any of its
powers or duties relating to affordable rental housing projects.
(b) Bonds must be issued pursuant to resolution of the board, are payable
solely from all or a specified portion of the revenues or assets of the authority or
the revenues and assets of the affordable rental housing component of a public-private partnership, and may be secured by a mortgage, deed of trust, pledge, other
security interest in or encumbrance on any of the revenue, property, or assets of the
authority or the revenue, property, or assets of the affordable rental housing
component of a public-private partnership.
(c) Bonds may be executed and delivered by the authority at such times; may
be in such form and denominations and include such terms and maturities; may be
subject to optional or mandatory redemption prior to maturity with or without a
premium; may be in fully registered form or bearer form registrable as to principal
or interest or both; may bear such conversion privileges; may be payable in such
installments and at such times not exceeding forty-five years from the date
thereof; may be payable at such place or places whether within or without the state;
may bear interest at such rate or rates per annum, which may be fixed or vary
according to index, procedure, or formula or as determined by the authority or its
agents, without regard to any interest rate limitation appearing in any other law of
the state; may be subject to purchase at the option of the holder or the authority;
may be evidenced in such manner; may be executed by such officers of the
authority, including the use of one or more facsimile signatures so long as at least
one manual signature appears on the bonds, which may be either of an officer of
the authority or of an agent authenticating the same; may be in the form of coupon
bonds that have attached interest coupons bearing a manual or facsimile signature
of an officer of the authority; and may contain such provisions not inconsistent with
this part 11, all as provided in the resolution of the board under which the bonds are
authorized to be issued or as provided in a trust indenture between the authority
and any commercial bank or trust company having full trust powers.
(d) Bonds may be sold at public or private sale at such price or prices, in such
manner, and at such times as determined by the board, and the authority may pay
all fees, expenses, and commissions that it deems necessary or advantageous in
connection with the sale of the bonds. The power to fix the date of sale of the
bonds, to receive bids or proposals, to award and sell bonds, to fix interest rates,
and to take all other action necessary to sell and deliver the bonds may be
delegated to an officer or agent of the authority.
(e) Any outstanding bonds may be refunded by the authority pursuant to
article 56 of title 11.
(f) All bonds and any interest coupons applicable to the bonds are declared
to be negotiable instruments.
(g) The resolution or trust indenture authorizing the issuance of the bonds
may pledge all or a portion of the revenues and assets of the authority; may grant
or provide for a mortgage, deed of trust, pledge, other security interest in or
encumbrance on any of the revenues, property, or assets of the authority; may
pledge all or a portion of the rights of the authority to impose and receive rent or
other charges in accordance with the provisions of this part 11; may contain such
provisions for protecting and enforcing the rights and remedies of holders of any of
the bonds as the authority deems appropriate; may set forth the rights and
remedies of the holders of any of the bonds; and may contain provisions that the
authority deems appropriate for the security of the holders of the bonds, including,
but not limited to, provisions for letters of credit, insurance, standby credit
agreements, or other forms of credit ensuring timely payment of the bonds,
including the redemption price or the purchase price.
(h) Any pledge of revenue, assets, or other property made by the authority or
by any person or governmental unit with which the authority contracts is valid and
binding from the time the pledge is made. The pledged revenues, assets, or
property are immediately subject to the lien of the pledge without any physical
delivery or further act, and the lien of the pledge is valid and binding against all
parties having claims of any kind in tort, contract, or otherwise against the pledging
party. The instrument by which the pledge is created shall be recorded or filed.
Such lien of the pledge is superior only to any other lien on the same revenue,
assets, or property that is filed later in time other than a lien for property taxes.
(i) Neither the members of the board of the authority, employees of the
authority, nor any person executing the bonds are liable personally on the bonds or
subject to any personal liability by reason of the issuance of the bonds.
(j) The authority may purchase its bonds out of any available money and may
hold, pledge, cancel, or resell such bonds subject to and in accordance with
agreements with the holders of the bonds.
(2) The authority may invest or deposit any proceeds and any interest from
the sale of bonds in the manner provided by part 6 of article 75 of title 24. In
addition, the authority may direct a corporate trustee that holds such proceeds and
any interest to invest or deposit such proceeds and any interest in investments or
deposits other than those specified by said part 6 if the board determines, by
resolution, that the investment or deposit meets the standard established in section
15-1-304, the income is at least comparable to income available on investments or
deposits specified by part 6 of article 75 of title 24, and the investment will assist
the authority in the completion of the affordable rental housing project or activities
to be financed from proceeds of the bonds.
(3) All banks, trust companies, savings and loan associations, insurance
companies, executors, administrators, guardians, trustees, and other fiduciaries
may legally invest any money within their control in bonds issued under this part 11.
Public entities, as defined in section 24-75-601 (1), may invest public money in such
bonds only if the bonds satisfy the investment requirements established in part 6 of
article 75 of title 24.
(4) Bonds issued under this part 11 are exempt from the provisions of article
51 of title 11.
(5) The issuance of bonds by the authority pursuant to this part 11 need not
comply with the requirements of any other state law applicable to the issuance of
bonds and no proceedings, notice, or approval is required for the issuance of bonds
by the authority except as provided in this part 11.