§ 37-5-505 — Bonds

Wyoming § 37-5-505

• Jurisdiction: Wyoming
• Title 37: Public Utilities
• Ch. 5: WYOMING PIPELINE AUTHORITY AND WYOMING
• Art. 5: WYOMING ENERGY AUTHORITY

Text

(a) In addition to the powers otherwise granted to the
authority and in order to accomplish its purposes, the authority
shall have the power to borrow money and evidence the borrowing
in the issuance and sale of bonds or other obligations of the
authority, the principal and interest of which shall be payable
solely out of revenues authorized to be dedicated and pledged
for the payment.
(b) Bonds issued under this section shall be solely the
obligation of the authority and shall recite on their face that
they do not constitute obligations of the state of Wyoming or
any county, municipality or other political subdivision of the
state. The bonds or other obligations shall be authorized and
issued by resolution of the authority. The bonds shall be
executed in the form and manner provided by the resolution
authorizing their issuance. The resolution shall include:
(i) The series of the bond or obligation;
(ii) The date of issuance of the bond or obligation;
(iii) The date of maturity of the bond or obligation;
(iv) That the bond or obligation shall bear interest,
and the interest rate;
(v) The form that the bond or obligation shall be in;
(vi) The registration and exchangeability privileges
of the bond or obligation;
(vii) The medium of payment and the place of payment
of the bond or obligation;
(viii) The terms of redemption and that the bond or
obligation shall be subject to those terms;
(ix) That the bond or obligation shall be entitled
only to a priority on the revenues of the authority as the
authority's resolution provides, subject to subsection (d) of
this section.
(c) The bonds or other obligations issued under this
section may be sold by the authority at, above or below par
value, at public or private sale, in a manner and from time to
time as the authority determines.
(d) Except as provided by subsection (k) of this section,
any bonds issued under this section shall be payable from and be
secured by the pledge of the revenues derived from the operation
of the pipeline or other transportation or distribution system
or energy transmission facility as constructed, acquired,
extended or improved with the proceeds of the bonds, subject
only to prior payment of the reasonable and necessary expenses
of operating and maintaining the system or facility. Any holder
of the bonds may by appropriate legal action compel performance
of all duties required of the authority in order to enforce
payment of the bonds when due. If any bond issued under this
section is permitted to go into default as to principal or
interest, any court of competent jurisdiction may, pursuant to
the application of the holder of the bonds, appoint a receiver
for the system or facility, who shall operate the same and
collect and distribute the revenues thereof pursuant to the
provisions and requirements of the resolution authorizing the
bonds.
(e) If more than one (1) series of bonds is issued payable
from the revenues of the facility or bond proceeds, priority of
lien on the revenues shall be as provided by the resolution
authorizing the bonds.
(f) All bonds issued under the provisions of this section
shall constitute negotiable instruments within the meaning of
the Uniform Commercial Code. The bonds and income from them
shall be exempt from all taxation within the state of Wyoming.
(g) No board or commission other than the authority shall
fix or supervise the making of fees and charges stated in this
subsection, which shall be in amounts reasonably necessary for
the purposes stated in this article. When the authority has
issued bonds and pledged the revenues of the pipeline or other
transportation or distribution system or facility or the energy
transmission facility for the payment of the bonds as provided
in this article, the authority shall operate and maintain or
shall contract for the operation and maintenance of the system
or facility and shall impose and collect fees and charges for
the services furnished by the system or facility, including
those furnished to the authority itself, in the amounts and at
rates as shall be fully sufficient at all times to:
(i) Pay the expenses of operating and maintaining the
system or facility;
(ii) Provide a sinking fund sufficient to assure the
prompt payment of principal and interest on the bonds as each
falls due;
(iii) Provide a reasonable fund for contingencies as
may be required by any bond underwriting or by the resolution
authorizing the bonds; and
(iv) Provide an adequate depreciation fund for
repairs, extensions and improvements to the system or facility
necessary to assure adequate and efficient service to the
public.
(h) Any resolution of the authority authorizing the
issuance of bonds shall be published once in a newspaper of
general circulation published in Wyoming, and in a newspaper in
the area where the facility or services are contemplated. For a
period of thirty (30) days from the date of the publication any
person in interest may contest the legality of the resolution
and of the bonds to be issued under the resolution and the
provisions securing the bonds, including the validity of any
lease or other contract pledged to the payment thereof. After
the expiration of thirty (30) days from the date of the
publication no one shall have any right of action to contest the
validity of the bonds, the validity of the security pledged to
the payment thereof or the provisions of the resolution under
which the bonds were issued, and all the bonds and all related
proceedings shall be conclusively presumed to be legal.
(j) The authority may authorize the issuance of bonds for
the purpose of refunding, extending and unifying the whole or
any part of the principal, interest and redemption premiums on
any outstanding bonds issued under this article, as well as
bonds issued by the Wyoming pipeline authority under W.S. 37-5-
101 through 37-5-109 and by the Wyoming infrastructure authority
under W.S. 37-5-301 through 37-5-307, before July 1, 2020. The
refunding bonds may either be sold and the proceeds applied to
or deposited in escrow for the retirement of the outstanding
bonds, 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 or were required at the
time of their issuance to be authorized. The authority, in
authorizing the refunding bonds, shall provide for the security
of the bonds, the sources from which the bonds are to be paid
and for the rights of the holders thereof in all respects as
herein provided for other bonds issued under this article. The
board may also provide that the refunding bonds shall have the
same or different priority of lien on the revenues pledged for
their payment as was enjoyed by the bonds refunded.
(k) The authority may authorize the issuance of bonds for
the purpose of purchasing pipeline capacity as authorized by
W.S. 37-5-503(h). Any bonds issued under this subsection shall
be payable solely from and be secured solely by the pledge of
the revenues derived from the subsequent sale, lease or other
disposal of the capacity purchased or from bond proceeds. Bonds
issued under this subsection shall be authorized in all respects
as other bonds of the authority are required to be authorized.
The authority, in authorizing the bonds, shall provide for the
security of the bonds, the sources from which the bonds are to
be paid and for the rights of the holders thereof.