§ 51:1355 — Revenue bonds

In order to encourage the location within the state of industrial enterprises in the field of space and nuclear energy and related industrial operations and to provide funds to acquire plant sites and other necessary property for appurtenances and to acquire or construct industrial plant buildings to be located within the state and leased, sold or otherwise disposed of as authorized by this Chapter by the authority, said authority is authorized to incur debt and issue revenue bonds in an aggregate amount not to exceed ten million dollars subject to the following provisions and restrictions:
(1) Such bonds shall be payable solely from the income and revenues to be derived from the operation of the properties owned or operated by the authority or from such part of the revenues of such properties as may be pledged thereto. Said bonds shall be in coupon form but may be made registrable as to principal if so provided in the resolution authorizing the issuance thereof. The bonds shall be in such denomination, shall bear interest at such rate or rates not exceeding six per cent per annum, shall mature serially or otherwise in such manner not later than forty years from their date, and shall be made payable at such place or places within or without the State of Louisiana as may be provided by the authority and in the discretion of said authority may be made redeemable prior to maturity at such premium or premiums not greater than ten per cent of the principal amount thereof as the authority may determine. The bonds shall be signed by the chairman and attested by the secretary of the authority under the official seal of the authority, in such manner as may be provided in the resolution authorizing their issuance. Interest coupons to be attached thereto may be executed with the facsimile signature of such officers, and in the event that any officer whose signature appears on such bonds or coupons shall cease to be such officer before the delivery of the bonds to the purchaser, such signature shall nevertheless be valid and sufficient for all purposes. The bonds shall be sold in such manner and at such times as the authority may determine, except that no bond shall be sold at a price which will result in an interest cost to the authority in excess of six per cent per annum computed to maturity on the basis of standard tables of bond values.
(2) Any bonds issued under this section shall be payable from and secured by the pledge of the revenues of such properties owned or operated by the authority as may be pledged thereto in the resolution authorizing the bonds. Any holder of the bonds or of any of the coupons thereto attached may either at law or in equity, by suit, action, mandamus, or other proceeding, enforce and compel performance of all duties required to be performed by the authority and the officials of the authority by the provisions of this statute and the proceedings authorizing the issuance of such bonds. If any bond issued hereunder shall be permitted to go into default as to principal or interest, any court of competent jurisdiction is hereby authorized, pursuant to application of the holder of such bond, to appoint a receiver for the properties of the authority, the revenues of which have been pledged to the payment of the bonds, which receiver shall be under the duty of operating such properties and collecting and distributing the revenues thereof pursuant to the provisions and requirements of the resolution authorizing the bonds.
If more than one series of bonds shall be issued hereunder payable from the revenues of such properties, priority of lien on such revenues shall depend on the time of the delivery of such bonds, each series enjoying a lien prior and superior to that enjoyed by any series of bonds subsequently delivered; provided however, that as to any issue or series of bonds which may be authorized as a unit but delivered from time to time in blocks, the authority may in the proceedings authorizing the issuance of said bonds provide that all of the bonds of such series or issue shall be coequal as to lien regardless of the time of delivery, and provided further that it may be provided in the proceedings for issuance of any bonds that additional bonds may be authorized and issued in the future on a parity therewith pursuant to such restrictions as may be therein provided.
(3) All bonds issued under the provisions of this section shall constitute negotiable instruments for all purposes under the Negotiable Instruments Law as that law is now or may hereafter be in force in Louisiana.
(4) Any resolution authorizing the issuance of bonds hereunder shall provide for the creation of a sinking fund into which shall be paid from the revenues pledged thereto, sums fully sufficient to pay principal of and interest on such bonds, and to create such reserves for contingencies as may be provided in such resolution. The moneys in the sinking fund shall be applied to the payment of interest on and principal of the bonds or to the purchase or retirement of the bonds prior to maturity in such manner as may be provided in such resolution.
The resolution authorizing the issuance of bonds hereunder may contain such covenants with the future holder or holders of the bonds as to the management and operation of the properties of the authority, the imposition and collection of fees and charges for the commodities or services furnished thereby, the disposition of such fees and revenues, the issuance of future bonds and the creation of future liens and encumbrances against the properties of the authority and the revenues thereof, the carrying of insurance on the properties, the disposition of the proceeds of any such insurance, and other pertinent matters, as may be deemed necessary by the authority to assure the marketability of such bonds, provided such covenants are not inconsistent with the provisions of this section. Provisions may also be made therein for the appointment of a trustee to have and perform such powers and duties as may be therein provided.
(5) When the authority shall have issued bonds hereunder and shall have pledged any revenues for the payment thereof as herein provided the authority shall impose and collect rentals, fees and charges for the use of its properties, in such amounts and at such rates as shall be fully sufficient at all times to pay the expenses of operating and maintaining the properties of the authority, provide a sinking fund sufficient to assure the prompt payment of principal of and interest on the bonds as each falls due, provide such reasonable funds for contingencies as may be required by the resolution authorizing the bonds and provide an adequate depreciation or renewal and replacement fund for such repairs, extensions and improvements as may be necessary to assure adequate and efficient service to the public.
(6) The authority may refund any bonds issued under this section. Such refunding bonds may either be sold and the proceeds applied to or deposited in escrow for the retirement of the outstanding bonds (if the bonds to be refunded are maturing or are optional for redemption), or may be delivered in exchange for the outstanding bonds. The refunding bonds shall be authorized in all respects as original bonds are herein required to be authorized and the authority in authorizing the refunding bonds shall provide for the security of such bonds and the sources from which such bonds are to be paid and for the rights of the holders thereof in all respects as herein authorized to be provided for other bonds issued under authority of this section. The authority may also provide that the refunding bonds shall have the same priority of lien on the revenues pledged for their payment as was enjoyed by the bonds refunded.
(7) The resolution authorizing the issuance of bonds hereunder shall be once published in the official journal of the state. For a period of thirty days from the date of such publication any person in interest shall have the right to contest the legality of said resolution and of the bonds to be issued pursuant thereto and the provisions securing the bonds. After the expiration of said thirty days no one shall have any right of action to contest the validity of said bonds or the provisions of the resolution pursuant to which the bonds were issued, and all such bonds shall be conclusively presumed to be legal, and no court shall thereafter have jurisdiction to inquire into such matters.
(8) This section shall, without reference to any other law of Louisiana, except R.S. 51:1351-51:1355 of which this section is part, constitute full authority for the authorization and issuance of revenue bonds hereunder and no referendum thereon shall be required and no proceedings relating thereto or to the authorization or issuance of such bonds shall be necessary except the adoption of the resolutions herein contemplated and the publication of the resolution authorizing the issuance of the bonds and no other provision of the statutes of Louisiana pertinent to the authorization or issuance of bonds or the adoption of proceedings by governing bodies or requiring the holding of elections or referendums or in anywise impeding or restricting the carrying out of the acts by this section authorized to be done shall be construed as applying to any proceedings had or any acts done pursuant to this section.
(9) The bonds herein authorized to be issued shall not be a debt of the State of Louisiana and nothing herein contained shall be construed as pledging the faith and credit of the state to the retirement of said bonds.
(10) The bonds herein authorized to be issued shall be exempt from taxation.

Legislative History

Acts 1968, No. 605, §5.