§ 33:9039.111 — Financing

Louisiana § 33:9039.111

• Jurisdiction: Louisiana
• Title 33: Municipalities and Parishes

Text

A.(1) The district may issue bonds, notes, certificates, or other evidences of indebtedness to fund economic development through acquisition of land, acquisition and construction of buildings and other structures or facilities, including furnishings and equipment therefor, and may use any other state law relative to the incurring of debt and the security therefor by a political subdivision. Should any provision of this Section be found to be inconsistent with any other law, the provisions of this Section shall control.
(2) The district's bonds may be issued for or on behalf of a nonprofit corporation, a 501(c)(3) corporation, or a for-profit private entity to be secured by any source of income or revenue deemed appropriate by the district for a project located in or program to be performed in the district and related to the goals or objectives of the district.
(3) The district may borrow funds for operating expenses.
(4) The district may borrow funds from any political subdivision, public trust, or public agency.
(5) The district may also incur debt by virtue of the execution of a cooperative endeavor agreement and any public entity which may be a party thereto shall also have such authority.
(6) Security for the district's bonds or cooperative endeavor obligations may include taxes referenced in this Chapter, revenues from projects, fees, assessments, and charges of any nature, lease, or financing agreement income, general fund balances, excess fund balances, and projected income.
(7) Notwithstanding any law to the contrary, all bonds of the district, including sales tax secured bonds, may be sold by private negotiated sale or sold in public competitive sale. The approval of the State Bond Commission shall be obtained for the incurring of debt. The district shall employ bond counsel, financial advisors, underwriters, and other professionals in its sole discretion and set their compensation in accordance with law.
(8) Obligations of the district shall be authorized, issued, and sold by a resolution or resolutions of the district adopted as provided in this Chapter. Such bonds or obligations may be of such series, bear such date or dates, mature at such time or times, bear interest at such rate or rates, including variable, adjustable, or zero interest rates, be payable at such time or times, be in such denominations, be sold at such price or prices, be sold at private negotiated sale, be in such form, carry such registration and exchangeability privileges, be payable at such place or places, be subject to such terms or redemption, and be entitled to such priorities on the income, revenue, and receipts of, or available to, the district as may be provided by the district in the resolution or resolutions providing for the issuance and sale of the bonds or obligations of the district.
(9) The obligations of the district shall be signed by such members or officers of the district by either manual or facsimile signatures, as shall be determined by resolution or resolutions of the district, and shall have impressed or imprinted thereon the seal of the district or a facsimile thereof.
(10) Any obligations of the district may be validly issued, sold, and delivered, notwithstanding that one or more of the members or officers of the district signing such obligations, or whose facsimile signature or signatures may be on the obligations, shall have ceased to be such member or officer of the district at the time such obligations shall actually have been delivered.
(11) Obligations of the district may be sold in such manner and from time to time as may be determined by the district to be most beneficial, subject to approval of the State Bond Commission, and the district may pay all expenses, premiums, fees, or commission, which it deems necessary and advantageous in connection with the issuance and sale thereof, subject to the provisions of this Chapter.
(12) The district may authorize the establishment of a fund or funds for the creation of a debt service reserve, a renewal and replacement reserve, or such other funds or reserves as the district may approve with respect to the financing and operation of any project and as may be authorized by any bond resolution, trust agreement, indenture of trust, or similar instrument or agreement pursuant to the provisions of which the issuance of bonds or other obligations of the district may be authorized.
(13) Any cost, obligation, or expense incurred for any of the purposes specified in this Chapter shall be a part of the project costs and may be paid or reimbursed as such out of the proceeds of bonds or other obligations issued by the district.
(14) The resolution authorizing the issuance of bonds shall be published in the official journal of the district. For a period of thirty days from the date of publication of the resolution authorizing the issuance of bonds hereunder, any persons in interest shall have the right to contest the legality of the resolution and the legality of the bond issue for any cause after which time no one shall have any cause or right of action to contest the legality of said resolution or of the bonds authorized thereby for any cause whatsoever. If no suit, action, or proceeding is begun contesting the validity of the bond issue within the thirty days herein prescribed, the authority to issue the bonds and to provide for the payment thereof, and the legality thereof and all of the provisions of the resolution authorizing the issuance of the bonds shall be conclusively presumed, and no court shall have authority to inquire into such matters.
(15) Neither the directors of the board nor any person executing the bonds shall be personally liable for the bonds or be subject to any personal liability by reason of the issuance thereof. No earning or asset of the district shall accrue to the benefit of any private persons. However, the limitation of liability provided for in this Paragraph shall not apply to any gross negligence or criminal negligence on the part of any director or person executing the bonds.
(16) Bonds issued under the provisions of this Chapter shall be limited obligations of the district payable solely from the sources pledged for the payment thereof.
(17) The district may utilize any form of credit enhancement otherwise allowed by general law for any obligation, including but not limited to bond insurance, letters of credit, and surety bonds. The district may invest bond proceeds in guaranteed investments contracts and repurchase agreements. Derivative products such as interest rate swaps, total return swaps, and other instruments may also be used.
B.(1) A public or private entity may borrow funds from the district for a project located in or program to be performed in the district and related to the goals and objectives of the district. Such obligation to the district may be evidenced by a lease, loan, or financing agreement. The district shall not be subject to any restrictions on its power to issue debt not contained in this Chapter. Approval of the issuance of bonds of the district by the State Bond Commission shall be deemed to be approval of the incurring of debt by any public entity participating with the district in a borrowing.
(2) A public or private entity may create a restricted account or accounts for the segregation of any funds which are to be received prospectively by the entity from the federal government, the state or any of its agencies, or from any other source in connection with the issuance of obligations by the district. A public entity is authorized to pledge such restricted accounts which pledge shall be irrevocable during the term of such bond or obligation, shall be according to such terms, and shall have such priority on the revenues of such restricted account as shall be provided by resolution or ordinance of the public entity, any law to the contrary notwithstanding. The state, through the office of the state treasurer, is hereby directed to accept the irrevocable election of a public entity to deposit any funds held by the state and due to such public entity described above, and thereafter the state treasurer shall be required to make any payments of such funds directly to the restricted account pursuant to instructions from the public entity.
(3) Any pledge made by the district shall be valid and binding from time to time when the pledge is made without the need for physical delivery of any pledged property. The money, assets, or revenues of the district so pledged and thereafter received by the district shall be immediately subject to the lien of such pledge and shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the district, irrespective of whether such parties have notice thereof. Neither the resolution nor any other instrument by which a pledge is created need be recorded or filed in order to establish and perfect a lien or security interest in the property so pledged by the district.
(4) Subject to the rights of the owners of the obligations of the district, the district is hereby authorized and empowered to issue from time to time its bonds for the purpose of refunding any bonds of the district then outstanding, together with the payment of any redemption of such outstanding bonds. All such refunding bonds of the district shall be issued, sold, or exchanged and delivered, shall be secured, and shall be subject to the provisions of this Chapter in the same manner and to the same extent as any other bonds issued by the district pursuant to this Chapter, unless otherwise determined by the resolution of the district. Refunding bonds issued by the district as herein provided may be sold or exchanged for outstanding bonds of the district and, if sold, the proceeds thereof may be applied, in addition to any other authorized purposes, to the purchase, redemption, or repayment of such outstanding bonds.
(5) Other than the State Bond Commission, no notice to, or consent or approval by, any governmental body or public officer shall be required as a prerequisite to the issuance, sale, or delivery of any bonds of the district, or the making of any loans to any public or private entity, or to the exercise of any other public function or corporate power of the district, except as is expressly provided in this Chapter.
(6) It is hereby determined that the creation of the district and the carrying out of its public functions and corporate purposes is, in all respects, a public and governmental purpose for the benefit of the people of the state, and for the improvement of their health, safety, welfare, prosperity, and security, and that such functions and purposes are public purposes and that the district will be performing an essential governmental function in the exercise of the powers conferred upon it by this Chapter. The money, assets, revenues, and operations of the district shall be exempt from all taxation by the state or any political subdivisions. The district shall not be required to pay any recording fee or transfer tax of any kind on account of instruments recorded by it or on its behalf. All bonds, certificates, or notes of the district and the interest payable thereon shall be exempt from all state and local taxes.
(7) The state and all public officers, any parish, municipality, or other subdivision or instrumentality of the state, any political subdivision, any bank, banker, trust company, savings bank and institution, building and loan association, savings and loan association, investment company or any person carrying on a banking or investment business, any insurance company or business, and any executor, administrator, curator, trustee, and other fiduciary, and retirement system or pension fund may legally invest any sinking fund monies, or other funds belonging to them or within their control in any bonds or other obligations issued by the district pursuant to the provisions of this Chapter, and such bonds or other obligations shall be authorized security for all public deposits. It is the purpose of this Section to authorize such persons, firms, corporations, associations, political subdivisions and officers, or other entities, public or private, to use any funds owned or controlled by them, including but not limited to sinking, insurance, investment, retirement, compensation, pension and trust funds, and funds held on deposit, for the purchase of any such bonds or other obligations of the district, and that any such bonds shall be authorized security for all public deposits. However, nothing contained in this Section with regard to legal investments or security for public deposits shall be construed as relieving any such person, firm, corporation, or other entity from any duty of exercising reasonable care in selecting securities.
(8) All state officers and agencies are authorized at their discretion to render such services to the district within their respective functions as may be requested by the district. In addition, the district and such agencies are authorized to enter into such contracts, cooperative endeavor agreements, or other agreements necessary and convenient to carry out the purposes of this Chapter.

Legislative History

Acts 2006, No. 839, §1, eff. July 5, 2006.