§ 48:196.1 — Bonds

Louisiana § 48:196.1

• Jurisdiction: Louisiana
• Title 48: Roads, Bridges and Ferries

Text

A. Notwithstanding any provision of law to the contrary, and as a grant of power in addition to any other general or special law, the State Bond Commission, hereinafter referred to as the "commission", on behalf of the Department of Transportation and Development, hereinafter referred to as the "department", may issue bonds, notes, certificates, or other evidences of indebtedness, hereinafter collectively referred to as the "bonds", for the purpose of funding projects for any road which is part of the state highway system but not part of the federal system and, thus, is ineligible for federal highway funding assistance which are included in the priority listing for the fiscal year pursuant to the highway priority program provided for in R.S. 48:228 through 233, and may pledge registration and license fees and taxes on trucks and trailers collected by the state pursuant to R.S. 47:462 for the payment of the principal and interest of such bonds. The commission is further authorized, in its discretion, to pledge all or any part of any gift, grant, donation, or other sum of money, aid, or assistance from the United States, the state, or any political subdivision thereof, unless otherwise restricted by the terms thereof, all or any part of the proceeds of bonds, credit agreements, instruments, or any other money of the commission, from whatever source derived, for the further securing of the payment of the principal and interest of the bonds. Any bonds issued pursuant to the provisions hereof shall constitute revenue bonds under Article VII, Section 6 of the Constitution of Louisiana, and such bonds shall be payable solely from an irrevocable pledge and dedication of the registration and license fees and taxes collected by the state on trucks and trailers pursuant to R.S. 47:462, or other fees, rates, rentals, charges, grants, or other receipts or income derived by or in connection with an undertaking, facility, project, or any combination thereof, without a pledge of the full faith and credit of the state, hereinafter referred to as "revenues".
B. In accordance with the provisions of Article VII, Section 9(A)(6) of the Constitution of Louisiana, there is hereby established a special fund for the purpose of providing for the securitization of any bonds which may be issued pursuant to the provisions of this Section which shall include requirements for reserves and credit enhancement devices, all as may be provided in any resolution, trust agreement, indenture, or other instrument pursuant to which such bonds were issued. The fund shall be administered by a trustee as designated by the State Bond Commission. The source of monies for the fund shall be the registration and license fees and taxes on trucks and trailers collected by the state pursuant to R.S. 47:462, and as provided in R.S. 47:481. All revenues received from such registration license fees and taxes as are necessary to provide for all requirements associated with the bonds as provided in this Section shall be classified and set aside in a separately identifiable fund or account outside of the state treasury but maintained by the state treasury and such revenues shall be assigned and pledged to the trustee under the documents pursuant to which the bonds were issued for the benefit of the holders of the bonds. Only after satisfaction of all requirements of this Section shall any monies received by the state from the registration and license fees and taxes on trucks and trailers pursuant to R.S. 47:462 and 481 be available for any other purposes, and specifically for the purposes provided for in R.S. 48:196.
C. Bonds issued under the provisions of this Section shall not be deemed to constitute a pledge of the full faith and credit of the state or of any governmental unit thereof. All such bonds shall contain a statement on their face substantially to the effect that neither the full faith and credit of the state nor the full faith and credit of any public entity of the state are pledged to the payment of the principal of or the interest on such bonds. The issuance of bonds under the provisions of this Section shall not directly, indirectly, or contingently obligate the state or any governmental unit of the state to levy any taxes whatsoever therefor or to make any appropriation for their payment.
D. Bonds shall be authorized by a resolution of the commission and shall be of such series, bear such date or dates, mature at such time or times, bear interest at such rate or rates, including but not limited to fixed, variable, or zero rates, be payable at such time or times, 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 prior to maturity at such price or prices as determined by the commission, and be entitled to such priority on the revenues as such resolution or resolutions may provide.
E. Bonds shall be sold by the commission at public sale by competitive bid or negotiated private sale and at such price as the commission may determine to be in the best interest of the commission and the state.
F. Except for the provisions of R.S. 39:1367, the issuance of the bonds shall not be subject to any limitations, requirements, or conditions contained in any other law, and bonds may be issued without obtaining the consent of any political subdivision of the state or of any agency, commission, or instrumentality of the state. The bonds shall be issued in compliance with the provisions of this Section.
G. For a period of thirty days after the date of publication of a notice of intent to issue bonds in the official journal of the commission authorizing the issuance of bonds hereunder, any person in interest shall have the right to contest the legality of the resolution and the legality of the bond issue for any cause, but after that time no one shall have any cause or right of action to contest the legality of the resolution or of the bonds or the security therefor for any cause whatsoever. If no suit, action, or proceeding is begun contesting the validity of the resolution, the bonds or the security therefor within the thirty days herein prescribed, the authority to issue the bonds and to provide for the payment thereof, the legality thereof, and all of the provisions of the resolution authorizing the issuance of the bonds shall be conclusively presumed to be legal and shall be incontestable. Any notice of intent so published shall set forth in reasonable detail the purpose of the bonds, the security therefor, and the parameters of amount, duration, and interest rates. Any suit to determine the validity of bonds issued by the commission shall be brought only in accordance with the provisions of R.S. 13:5121 et seq.
H. All bonds issued pursuant to this Section shall have all the qualities of negotiable instruments under the commercial laws of the state.
I. Any pledge of the revenues or other monies made by the commission shall be valid and binding from the time when the pledge is made. The revenues or monies so pledged and thereafter received by the commission shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act, and the lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the commission irrespective of whether such parties have notice thereof. Any trust agreement or other instrument by which a pledge is created need not be filed or recorded except in the official records of the commission.
J. Neither the members of the commission nor any person executing the bonds shall be personally liable for the bonds or be subject to any personal liability or accountability by reason of the issuance thereof.
K. Bonds of the commission, their transfer, and the income thereof shall at all times be exempt from all taxation by the state or any political subdivision thereof, and may or may not be exempt for federal income tax purposes. The bonds issued pursuant to this Section shall be and are hereby declared to be legal and authorized investments for banks, savings banks, trust companies, building and loan associations, insurance companies, fiduciaries, trustees, and guardians. Such bonds shall be eligible to secure the deposit of any and all public funds of the state and any and all public funds of municipalities, parishes, school districts, or other political corporations or subdivisions of the state. Such bonds shall be lawful and sufficient security for said deposits to the extent of their value. When any bonds shall have been issued pursuant to Subsection A of this Section, neither the legislature, the state, nor any other entity may act to impair any obligation or contract for the benefit of the holders of the bonds or discontinue or decrease the fees, taxes, rates, or other revenues pledged to the payment of the bonds authorized hereunder or permit to be discontinued or decreased said revenues in anticipation of the collection of which such bonds have been issued, or in any way make any change in the allocation and dedication of any fee, rate, or other revenues which would diminish the amount of the revenues to be received by the commission, until all such bonds shall have been retired as to principal and interest, and there is hereby vested in the holders from time to time of such bonds a contract right in the provisions of this Section.
L. The commission may provide by resolution for the issuance of refunding bonds pursuant to R.S. 39:1444 et seq.
M. The holders of any bonds issued hereunder shall have such rights and remedies as may be provided in the resolution or trust agreement authorizing the issuance of the bonds, including but not by way of limitation, appointment of a trustee for the bondholders, and any other available civil action to compel compliance with the terms and provisions of the bonds and the resolution or trust agreement.
N. Subject to the agreements with the holders of bonds, all proceeds of bonds and all revenues pledged under a resolution or trust agreement authorizing or securing such bonds shall be deposited and held in trust in a fund or funds separate and apart from all other funds of the state treasury or of the department. Subject to the resolution or trust agreement, the trustee shall hold the same for the benefit of the holders of the bonds for the application and disposition thereof solely to the respective uses and purposes provided in such resolution or trust agreement.
O. The commission is authorized to employ all professionals it deems necessary in the issuance of the bonds.
P. The commission is authorized to enter into any and all agreements or contracts, execute any and all instruments, and do and perform any and all acts necessary, convenient, or desirable for the issuance of the bonds or to carry out any power expressly given in this Section.
Q. Any other provision of law to the contrary notwithstanding, any revenues deposited in the bond fund that are pledged to the repayment of any bonds issued in accordance with this Section may be collected and disbursed in accordance with the documents pursuant to which such bonds were issued.

Legislative History

Acts 2012, No. 135, §1, eff. July 1, 2012.