§ 35-12-8. Notes of the corporation.
(a) The corporation shall have the power and is authorized to issue from time to time
negotiable notes in one or more series, in such principal amounts as in the opinion
of the corporation shall be necessary to provide sufficient funds for achieving its
purposes, including:
(1) Payment of interest on notes of the corporation;
(2) Establishment of reserves to secure these notes; and
(3) Making of all other expenditures of the corporation incident to and necessary or convenient
to carrying out its corporate purposes and powers.
(b) All notes issued by the corporation may be secured by the full faith and credit of
the corporation, or may be payable solely out of revenues and receipts derived from
the pledge or assignment of, grant of security interest in, or sale of, accounts owned
by it or any part thereof, or upon investment earnings of any of these revenues, receipts,
proceeds, or payments, or upon any other form of security available to the corporation
for that purpose, all as may be designated in the proceedings of the corporation under
which the notes shall be authorized to be issued. The notes may be executed and delivered
by the corporation at any time or from time to time, may be in such form and denominations
and of such tenor and maturities, and may be in bearer form or in registered form,
as to principal and interest or as to principal alone, all as the corporation may
determine.
(c) Notes and any renewals thereof may be payable in such installments and at such times,
not exceeding six (6) months from the date of the original issue of the notes, as
shall be determined by the corporation.
(d) Notes may be payable at such places, whether within or without the state, may bear
interest at such rate or rates payable at such time or times and at such place or
places and evidenced in such manner, and may contain such provisions not inconsistent
herewith, all as shall be provided in the proceedings of the corporation under which
they shall be authorized to be issued.
(e) There may be retained by provisions made in the proceedings under which any notes
of the corporation are authorized to be issued an option to redeem all or any part
thereof, at the prices and upon such notice, and on such further terms and conditions,
as shall be set forth on the record of the proceedings and on the face of the notes.
(f) Moneys of the corporation, including without limitation revenues, receipts, proceeds,
payments, or earnings listed in subsection (b), may be invested and reinvested in
such obligations, securities, and other investments consistent with the purposes of
this chapter as shall be specified in the resolutions under which the notes are authorized.
(g) Issuance by the corporation of one or more series of notes for one or more purposes
shall not preclude it from issuing other notes for the same purpose or purposes, but
the proceedings whereunder any subsequent notes may be issued shall recognize and
protect a prior pledge made for a prior issue of notes unless in the proceedings authorizing
the prior issue the right is reserved to issue subsequent notes on a parity with the
prior issue.
(h) The members of the corporation shall not be subject to personal liability or accountability
by reason of the issue of notes under this chapter.
(i) Notes may be issued under the provisions of this chapter without obtaining the consent
of any department, division, commission, board, body, bureau, or agency of the state,
and without any other proceedings, conditions, or things other than those proceedings,
conditions, or things which are specifically required by this chapter and by the provisions
of the resolution authorizing the issuance of the notes or the trust agreement securing
the same.
(j) Whether or not the notes are of such form and character as to be negotiable instruments
under the terms of the Uniform Commercial Code, title 6A, the notes are hereby made
negotiable instruments within the meaning of and for all the purposes of the Uniform
Commercial Code, subject only to the provisions of the notes for registration.
(k) If a member of the corporation whose signature appears on the notes or coupons shall
cease to be a member before the delivery of the notes, the member's signature shall,
nevertheless, be valid and sufficient for all purposes, as if the member had remained
in office until the delivery.