§ 33-1-124 — Revenue bonds - authority - issuance - requirements - covenants

(1) (a) The commission may, by resolution that meets the requirements of
subsection (2) of this section, authorize and issue revenue bonds in an amount not
to exceed ten million dollars in the aggregate for expenses of the division. Such
bonds may be issued only after approval by both houses of the general assembly
acting either by bill or joint resolution and after approval by the governor in
accordance with section 39 of article V of the state constitution. Such bonds shall
be payable only from moneys allocated to the division for expenses of the division
pursuant to section 33-1-112.

(b) All bonds issued by the commission shall provide that:

(I) No holder of any such bond may compel the state or any subdivision
thereof to exercise its appropriation or taxing power; and

(II) The bond does not constitute a debt of the state and is payable only from
the net revenues allocated to the division for expenses as designated in such bond.

(2) (a) Any resolution authorizing the issuance of bonds under the terms of
this section shall state:

(I) The date of issuance of the bonds;

(II) A maturity date or dates during a period not to exceed thirty years from
the date of issuance of the bonds;

(III) The interest rate or rates on, and the denomination or denominations of,
the bonds; and

(IV) The medium of payment of the bonds and the place where the bonds will
be paid.

(b) Any resolution authorizing the issuance of bonds under the terms of this
section may:

(I) State that the bonds are to be issued in one or more series;

(II) State a rank or priority of the bonds; and

(III) Provide for redemption of the bonds prior to maturity, with or without
premium.

(3) Any bonds issued pursuant to the terms of this section may be sold at
public or private sale. If bonds are to be sold at a public sale, the commission shall
advertise the sale in such manner as the commission deems appropriate. All bonds
issued pursuant to the terms of this section shall be sold at a price not less than the
par value thereof, together with all accrued interest to the date of delivery.

(4) Notwithstanding any provisions of law to the contrary, all bonds issued
pursuant to this section are negotiable.

(5) (a) A resolution pertaining to issuance of bonds under this section may
contain covenants as to:

(I) The purpose to which the proceeds of sale of the bonds may be applied
and to the use and disposition thereof;

(II) Such matters as are customary in the issuance of revenue bonds
including, without limitation, the issuance and lien position of other or additional
bonds; and

(III) Books of account and the inspection and audit thereof.

(b) Any resolution made pursuant to the terms of this section shall be
deemed a contract with the holders of the bonds, and the duties of the commission
under such resolution shall be enforceable by any appropriate action in a court of
competent jurisdiction.

(6) Bonds issued under this section and bearing the signatures of the
commission in office on the date of the signing shall be deemed valid and binding
obligations regardless of whether, prior to delivery and payment, any or all of the
persons whose signatures appear thereon have ceased to be members of the
commission.

(7) (a) Except as otherwise provided in the resolution authorizing the bonds,
all bonds of the same issue under this section shall have a prior and paramount lien
on the net revenues pledged therefor. The commission may provide for preferential
security for any bonds, both principal and interest, to be issued under this section to
the extent deemed feasible and desirable by such commission over any bonds that
may be issued thereafter.

(b) Bonds of the same issue or series issued under this section shall be
equally and ratably secured, without priority by reason of number, date, sale,
execution, or delivery, by a lien on the net revenue pledged in accordance with the
terms of the resolution authorizing the bonds.

Legislative History

Source: L. 2001: Entire section added, p. 202, � 2, effective July 1.