§ 39:1025 — Parish school board bonds

Louisiana § 39:1025

• Jurisdiction: Louisiana
• Title 39: Procurement and Contract

Text

A. It is the intention of this Section to provide authority for any parish school board located in a parish with a population exceeding one hundred fifty thousand according to the latest federal decennial census to issue bonds secured by the general revenues of the school board limited to existing ad valorem taxes or sales taxes levied by such school board.
B. Subject to the approval of the State Bond Commission, such school board may issue its bonds for the purpose of recovering the costs of capital expenditures paid from general revenues of the school board, excluding payments from bond proceeds, and/or for refunding, extending, or unifying any debt obligations of the school board, and funding any necessary reserves in connection therewith and paying the costs of issuance of the bonds. Such bonds shall be issued in the name of the school board and shall be limited obligations secured by existing ad valorem or sales tax revenues. Such bonds shall not be delivered unless they receive an investment grade rating from either Moody's Investors Service or Standard & Poors Corporation, or their successors. In order to issue such bonds, said school board must redeposit proceeds of the bonds in capital fund.
C. Bonds may be issued under the authority conferred in this Section in such amount or amounts of past capital expenditures as the school board is legally eligible to recover. The bonds shall be authorized by a resolution of the school board and shall be of such series, bear such date or dates, mature at such time or times not exceeding forty years from their respective dates, bear interest, payable at such times and in such manner, be in such denominations, be in such form, carry such registration and exchangeability privilege, be payable in such medium of payment and at such place or places, be subject to such terms of redemption, and, notwithstanding the provisions of any other statute to the contrary, be entitled to such priority on the pledged revenues as such resolution or resolutions may provide.
D. Any resolution authorizing the issuance of bonds or other debt obligations under this Section may provide for creation of sinking funds, reserve funds or other special funds to secure the payment of such bonds.
E. The resolution authorizing the issuance of the bonds may contain such covenants with the future holder of the bonds or other debt obligation as to the disposition of fees and revenues, the issuance of future bonds and other debt obligations, and the creation of future liens and encumbrances against the pledged revenues, the disposition of proceeds of insurance, and other pertinent matters, as may be deemed necessary by the governing body to assure the marketability of the bonds, provided these covenants are not inconsistent with the provisions of this Section.
F. The provisions of Chapters 13 and 13A of Title 39 of the Louisiana Revised Statutes as currently enacted or as may hereafter be amended shall apply to the bonds and, for the purpose of the application of the provisions of said Chapters, the bonds shall be deemed to be revenue bonds.
{{NOTE: SEE ACTS 1988, NO. 763, §2 - EXPIRATION DATE OF JUNE 30, 1989.}}

Legislative History

Acts 1987, No. 877, §1, eff. July 20, 1987; Acts 1988, No. 763, §1, eff. July 15, 1988.