§ 2:713 — Bonded indebtedness; authority

Louisiana § 2:713

• Jurisdiction: Louisiana
• Title 2: Aeronautics

Text

§713. Bonded indebtedness; authority
A. For the purpose of acquiring, purchasing, constructing, improving, installing,
enlarging, furnishing, equipping, reequipping, or repairing airports and airport facilities for
which operational jurisdiction is transferred pursuant to this Chapter or is acquired by the
regional authority, the regional authority may issue self-liquidating bonds of the authority in
accordance with and exercise all of the powers conferred on public entities by and under state
law.
B. The regional authority may borrow money and issue municipal securities in
accordance with and exercise all of the powers conferred on municipalities by and under state
law.
C. All bonds or other evidences of indebtedness issued by the regional authority
pursuant to this Chapter, and the interest on them, are free and exempt from all taxation in
this state, except inheritance and estate taxes and taxes on gains realized from the sale,
payment, or other disposition of them.
D. Any suit to determine the validity of bonds issued by the regional authority shall
be brought only in accordance with the provisions of R.S. 13:5121 et seq.
E. On request of the board of the regional authority, the Baton Rouge Metropolitan
Council may take one or more of the following actions:
(1) Pledge the full faith and credit of the local government behind any obligation or
evidence of indebtedness of the regional authority.
(2) To the extent allowed by law, advance money to the regional authority for
working capital and other purposes of the regional authority on terms and conditions agreed
to by the regional authority and the local government consistent with obligations under
applicable federal law, regulations, and assurances associated with accepting grants from the
FAA or another agency of the United States or this state.
(3) Appropriate and grant money to the regional authority in furtherance of its
purposes.
(4) Grant and convey to the regional authority movable or immovable property of
any kind or nature, or any interest in movable or immovable property, for carrying out the
authorized purposes of the regional authority pursuant to an agreement or agreements
between the regional authority and the local government.
F. A pledge made under Subsection E of this Section shall be at the discretion of the
governing body and may be subject to an agreement providing for terms and conditions of
the pledge and for repayment of any amount paid under the pledge as the regional authority
and the local government determine to be necessary and advisable consistent with obligations
under applicable federal law, regulations, and assurances associated with accepting grants
from the FAA or another agency of the United States or this state.
G. An agreement by the authority to repay an advance made pursuant to this Section
and any obligation incurred by the regional authority under the agreement shall not be subject
to R.S. 39:1461 et seq.
H. For the purpose of more effectively managing its debt service, the regional
authority may enter into an interest rate exchange or swap, hedge, or similar agreement or
agreements in connection with the issuance or proposed issuance of obligations or other
evidences of indebtedness or in connection with its then outstanding obligations or other
evidences of indebtedness. The authority may create a reserve fund for the payment of the
interest rate exchange or swap, hedge, or similar agreement.
I. An agreement entered into pursuant to this Section shall comply with all of the
following requirements:
(1) The agreement is not a debt of the regional authority entering into the agreement
for any statutory debt limitation purpose.
(2) The agreement is payable from general funds of the regional authority or, subject
to any existing contracts, from any available money or revenue sources, including revenues
that are specified by the agreement, securing the obligation or evidence of indebtedness in
connection with the agreement.
J. Notwithstanding anything in this Chapter or any other law to the contrary, all
ordinances, resolutions, and other proceedings of the local government with respect to any
outstanding bonds, notes, or evidences of indebtedness or liability assumed by a regional
authority pursuant to this Chapter constitute a contract between the regional authority and
the holders of the bonds, notes, or evidences of indebtedness or liability and shall have their
provisions enforceable against the regional authority or any or all of its successors or assigns,
by mandamus or any other appropriate action or proceeding in law or in equity in any court
of competent jurisdiction in accordance with law.
K. Bonds, notes, or evidences of indebtedness or liability that are assumed by the
regional authority pursuant to this Chapter are payable solely from and secured solely by the
sources of revenue that were pledged to those bonds, notes, or evidences of indebtedness or
liability under the ordinance, resolution, or other proceedings of the local government.
L. This Chapter and any other law shall not relieve the regional authority from any
bonded or other debt or liability lawfully contracted by the local government with respect to
the airport and outstanding on the effective date of the transfer of the operational jurisdiction
over the airport to the regional authority.
M. The regional authority shall not take any action to impair the rights or remedies
of the holders of the bonds or other obligations of the local government that owns the airport
that were lawfully issued before the transfer of operational jurisdiction of the airport to the
regional authority.
N. Effective on the FAA approval date, trustees, paying agents, and registrars for any
obligation of the local government that has been assumed by the regional authority pursuant
to Subsections A through G of this Section shall perform all of their duties and obligations
and provide all notices related to the obligations as if the regional authority were the issuer
of the obligations. The trustees, paying agents, and registrars shall care for and consider all
revenues and money pledged to secure obligations of the local government that have been
assumed by the regional authority under Subsections A through G of this Section as revenues
and money of the regional authority. The regional authority shall indemnify and hold
harmless the trustees, paying agents, and registrars from liability incurred in compliance with
this Subsection.

Legislative History

Acts 2025, No. 118, §1, eff. June 8, 2025.