§ 30:558 — Bond issue for pipeline

Louisiana § 30:558

• Jurisdiction: Louisiana
• Title 30: Mortgages and Privileges

Text

§558. Bond issue for pipeline
A. In order to finance capital improvements authorized by R.S. 30:557, the secretary
shall have the power to borrow money not to exceed fifty million dollars and evidence the
borrowing in the issuance and sale of bonds or other obligations of the Department of
Conservation and Energy, the principal and interest of which shall be payable solely out of
revenues herein authorized to be dedicated and pledged for such payment.
B. The bonds or other obligations issued under authority of this Section shall be
solely the obligations of the Department of Conservation and Energy and shall recite on their
face that they do not constitute obligations of the state of Louisiana or of any parish,
municipality or other political subdivision of the state. The bonds or other obligations shall
be authorized and issued by written authorization of the secretary and shall be of such series,
bear such date or dates, mature at such time or times, bear interest at such rate or rates, be
in such form, either coupon or fully registered without coupons, carry such registration and
exchangeability privileges, be payable in such medium of payment and at such place or
places, be subject to such terms of redemption and be entitled to such priorities on the
revenues authorized by this Section to be pledged for the payment of principal and interest
of such bonds or other obligations as such written authorization may provide. The bonds and
the coupons, if any, attached thereto shall be executed in the form and manner provided by
the secretary's written authorization.
C. The bonds or other obligations issued under authority of this Section shall be sold
by the State Bond Commission in accordance with R.S. 39:1403, except as otherwise
provided herein, to the highest bidder on sealed proposals at public sale at not less than par
and accrued interest, after publication of notice of sale at least seven days in advance of the
date of sale in newspapers or financial journals published at such places as the State Bond
Commission may determine, reserving to the State Bond Commission the right to reject any
and all bids.
D.(1) Any bonds or other obligations issued hereunder shall be payable from and be
secured by the pledge of the revenues derived from the operation of the pipeline system or
systems, as constructed, acquired, extended or improved with the proceeds of the bonds,
subject only to prior payment of the reasonable and necessary expenses of operating and
maintaining the system or systems. Any holder of the bonds or other obligations or of any
of the coupons thereto attached may by appropriate legal action compel performance of all
duties required of the secretary in order to enforce payment of the bonds when due. If any
bonds or other obligations issued hereunder are permitted to go into default as to principal
or interest, any court of competent jurisdiction may, pursuant to the application of the holder
of the bonds or other obligations, appoint a receiver for the system or systems who shall
operate the system or systems and collect and distribute the revenues thereof pursuant to the
provisions and requirements of the secretary's written authorization for the bonds.
(2) If more than one series of bonds or other obligations is issued hereunder payable
from the revenues of the system or systems, priority of lien on such revenues shall depend
on the time of the delivery of the bonds or other obligations each series enjoying a lien prior
and superior to that enjoyed by any series of bonds or other obligations subsequently
delivered, except that where provision is made in the proceedings authorizing any issue or
series of bonds or other obligations for the issuance of additional bonds or other obligations
in the future on a parity therewith pursuant to procedure or restrictions provided in such
proceedings, additional bonds or other obligations may be issued in the future on a parity
with such issue or series in the manner so provided in such proceedings.
E. All bonds or other obligations issued under the provisions of this Section shall
constitute negotiable instruments within the meaning of the Louisiana Negotiable
Instruments Law. The bonds or other obligations and the income thereof shall be exempt
from all taxation within the state of Louisiana.
F. When the secretary has issued bonds and pledged the revenues of the pipeline
system or systems for the payment thereof as herein provided, the secretary shall operate and
maintain the system or systems and shall impose and collect fees and charges for the services
furnished by the system or systems, including those furnished to the Department of
Conservation and Energy, in such amounts and at such rates as shall be fully sufficient at all
times to pay the expenses of operating and maintaining the system or systems, provide a
sinking fund sufficient to assure the prompt payment of principal of and interest on the bonds
or other obligations as each falls due, provide such reasonable fund for contingencies as may
be required by the secretary's written authorization for the bonds or other obligations, and
provide an adequate depreciation fund for repairs, extensions and improvements to the
system or systems necessary to assure adequate and efficient service to the public. No board
or commission other than the secretary shall have authority to fix or supervise the making
of such fees and charges, which shall be in amounts reasonably necessary for the purposes
herein stated.
G. Any written authorization of the secretary authorizing the issuance of bonds or
other obligations shall be published at least three times in ten days in a newspaper published
in the city of Baton Rouge. For a period of thirty days from the date of the publication, any
person in interest may contest the legality of the written authorization of the secretary and
of the bonds or other obligations to be issued pursuant thereto and the provisions securing
the bonds or other obligations, including the validity of any lease or other contract pledged
to the payment thereof. After the expiration of thirty days no one shall have any right of
action to contest the validity of the bonds or other obligations, the validity of the security
pledged to the payment thereof or the provisions of the written authorization pursuant to
which the bonds or other obligations were issued, and all the bonds or other obligations and
all proceedings relating thereto shall be conclusively presumed to be legal, and no court shall
thereafter have authority to inquire into such matters.
H. The secretary may by written authorization authorize the issuance of bonds or
other obligations for the purpose of refunding, extending and unifying the whole or any part
of the principal, interest and redemption premiums on any outstanding bonds or other
obligations issued under the authority of this Section. The refunding bonds or other
obligations may either be sold and the proceeds applied to or deposited in escrow for the
retirement of the outstanding bonds or other obligations, or may be delivered in exchange for
the outstanding bonds or other obligations. The refunding bonds or other obligations shall
be authorized in all respects as original bonds or other obligations are herein required to be
authorized. The secretary, in authorizing the refunding bonds or other obligations, shall
provide for the security of the bonds or other obligations, the sources from which the bonds
or other obligations are to be paid and for the rights of the holders thereof in all respects as
herein provided for other bonds or other obligations issued under the authority of this
Section. The secretary may also provide that the refunding bonds or other obligations shall
have the same priority of lien on the revenues pledged for their payment as was enjoyed by
the bonds or other obligations refunded.

Legislative History

Added by Acts 1973, Ex.Sess., No. 16, §1, emerg. eff. Dec. 8, 1973, at 9:55 A.M.; Acts 2025, No. 458, §1, eff. Oct. 1, 2025.