§ 46-12.8-11. Bonds of the agency.
(a) The agency may provide by resolution of the board of directors for the issuance, from
time to time, of bonds, notes or any other evidences of indebtedness of the agency
for any of its corporate purposes or for the borrowing of money in anticipation of
the issuance of the bonds. Bonds issued by the agency may be issued as general obligations
of the agency or as special obligations payable solely from particular revenues or
funds as may be provided for in any trust agreement or other agreement securing bonds.
The agency may also provide by resolution of the board of directors for the issuance,
from time to time, of temporary notes in anticipation of the revenues to be collected
or received by the agency, including, without limitation, in anticipation of any payments
to the agency from the state, or in anticipation of the receipt of other grants or
aid. The issue of notes shall be governed by the provisions of this chapter relating
to the issue of bonds of the agency other than temporary notes as this chapter may
be applicable; provided, however, that notes issued in anticipation of revenues shall
mature no later than one year from their respective dates, or the date of expected
receipt of the revenues, if later, and notes issued in anticipation of grants, or
other aid and renewals thereof, shall mature no later than six (6) months after the
expected date of receipt of the grant or aid.
(b) The bonds of each issue shall be dated, may bear interest at such rate or rates, including
rates variable from time to time as determined by such index, banker's loan rate,
or other method determined by the agency, and shall mature or otherwise be payable
at such time or times, as may be determined by the agency, and may be made redeemable
before maturity at the option of the agency or the holder thereof at such price or
prices and under such terms and conditions as may be fixed by the agency. The agency
shall determine the form of bonds, and the manner of execution of the bonds, and shall
fix the denomination or denominations of the bonds, and the place or places of payment
of principal, redemption premium, if any, and interest, which may be paid at any bank
or trust company within or without the state. In case any officer whose signature
or a facsimile of whose signature shall appear on any bonds shall cease to be the
officer before the delivery thereof, the signature or facsimile shall nevertheless
be valid and sufficient for all purposes as if the officer had remained in office
until delivery. The agency may provide for authentication of bonds by a trustee, fiscal
agent, registrar, or transfer agency. Bonds may be issued in bearer or in registered
form, or both, and if notes, may be made payable to the bearer or to order, as the
agency may determine. The agency may also establish and maintain a system of registration
for any bonds whereby the name of the registered owner, the rights evidenced by the
bonds, the transfer of the bonds, and the rights and other similar matters, are recorded
in books or other records maintained by or on behalf of the agency, and no instrument
evidencing the bonds or rights need be delivered to the registered owner by the agency.
A copy of the books or other records of the agency pertaining to any bond registered
under a registration system certified by an authorized officer of the agency or by
the agent of the agency maintaining the system shall be admissible in any proceeding
without further authentication. The board of directors may by resolution delegate
to any member or officer of the agency, or any combination thereof, the power to determine
any of the matters set forth in this section. In the discretion of the agency, bonds
of the agency may be issued with such terms as will cause the interest thereon to
be subject to federal income taxation. The agency may sell its bonds in such manner,
either at public or private sale, for the price, at the rate or rates of interest,
or at discount in lieu of interest, as it may determine will best affect the purposes
of this chapter.
(c) The agency may issue interim receipts or temporary bonds, exchangeable for definitive
bonds, when the bonds shall have been executed and are available for delivery. The
agency may also provide for the replacement of any bonds which shall have become mutilated
or shall have been destroyed or lost. The agency, by itself or through such agency
as it may select, may purchase and invite offers to tender for purchase any bonds
of the agency at any time outstanding; provided, however, that no purchase by the
agency shall be made at a price, exclusive of accrued interest, if any, exceeding
the principal amount thereof or, if greater, the redemption price of the bonds when
next redeemable at the option of the agency, and may resell any bonds so purchased
in such manner and for such price as it may determine will best effect the purposes
of this chapter.
(d) In the discretion of the board of directors, any bonds issued hereunder may be secured
by a trust agreement in such form and executed in such manner as may be determined
by the board of directors, between the agency and the purchasers or holders of the
bonds, or between the agency and a corporate trustee which may be any trust company
or bank having the powers of a trust company within or without the state. The trust
agreement may pledge or assign, in whole or in part, any loan agreements and local
governmental obligations, and the revenues, funds, and other assets or property held
or to be received by the agency, including without limitation all moneys and investments
on deposit from time to time in the safe drinking water revolving loan fund, and any
contract or other rights to receive the same, whether then existing or thereafter
coming into existence and whether then held or thereafter acquired by the agency,
and the proceeds thereof. The trust agreement may contain such provisions for protecting
and enforcing the rights, security, and remedies of the bondholders as may be reasonable
and proper including, without limiting the generality of the foregoing, provisions
defining defaults and providing for remedies in the event thereof which may include
the acceleration of maturities, restrictions on the individual right of action by
bondholders, and covenants setting forth the duties of and limitations on the agency
in relation to the custody, safeguarding, investment, and application of moneys, the
enforcement of loan agreements and local governmental obligations, the issue of additional
or refunding bonds, the fixing, revision, charging, and collection of charges, the
use of any surplus bond proceeds, the establishment of reserves, and the making and
amending of contracts.
(e) In the discretion of the board of directors, any bond issued under authority of this
chapter may be issued by the agency in the form of lines of credit or other banking
arrangements under terms and conditions, not inconsistent with this chapter, and under
such agreements with the purchasers or makers thereof or any agent or other representative
of such purchasers or makers, as the board of directors may determine to be in the
best interest of the agency. In addition to other security provided herein or otherwise
by law, bonds issued by the agency under any provision of this chapter may be secured,
in whole or in part, by financial guarantees, by insurance, or by letters or lines
of credit issued to the agency or a trustee or any other person, by any bank, trust
company, insurance or surety company, or other financial institution, within or without
the state, and the agency may pledge or assign, in whole or in part, any loan agreements
and any local governmental obligations or obligations of any privately organized water
supplier, and the revenues, funds, and other assets and property held or to be received
by the agency, and any contract or other rights to receive the same, whether then
existing or thereafter coming into existence and whether then held or thereafter acquired
by the agency, and the proceeds thereof, as security for the guarantees or insurance
or for the reimbursement by the agency to any issuer of the line or letter of credit.
(f) It shall be lawful for any bank or trust company to act as a depository or trustee
of the proceeds of bonds, revenues, or other moneys under a trust agreement of the
agency, and to furnish indemnification and to provide security as may be required
by the agency. It is hereby declared that any pledge or assignment made by the agency
under this chapter is an exercise of the governmental powers of the agency, and loan
agreements, local governmental obligations, the obligations of private water companies,
revenues, funds, assets, property, and contract or other rights to receive the same
and the proceeds thereof, which are subject to the lien of a pledge or assignment
created under this chapter, shall not be applied to any purposes not permitted by
the pledge or assignment.
(g) Any holder of a bond issued by the agency under the provisions of this chapter and
any trustee or other representative under a trust agreement securing the trustee or
representative, except to the extent the rights herein given may be restricted by
the trust agreement, may bring suit upon the bonds in the superior court and may,
either at law or in equity, by suit, action, mandamus, or other proceeding for legal
or equitable relief, protect and enforce any and all rights under the laws of the
state or granted hereunder or under the trust agreement, and may enforce and compel
performance of all duties required by this chapter or by the trust agreement, to be
performed by the agency or by any officer thereof.