(a) Bonds of the Authority shall be authorized by its resolution, may be issued in one (1) or more series and shall be offered, awarded and executed in such manner, bear such date or dates, mature at such time or times, bear interest at such rate or rates, not exceeding the most recently published rate at which the U.S. Department of Treasury sells its treasury bills per annum, be in such denomination or denominations, be in such form, bearer, order, coupon or registered, carry such conversion or registration privileges, have such rank or priority, be payable in such medium of payment, at such place or places, and be subject to such terms of redemption, with or without premium, as such resolution of the Authority, trust indenture or mortgage may provide, and shall be fully negotiable.

(b) The bonds may be sold at a public or private sale at not less than par.

(c) In case any of the Commissioners or officers of the Authority whose signatures appear on any bonds or coupons shall cease to be such Commissioners or officers before the delivery of the bonds, their signatures shall, nevertheless, be valid and sufficient for all purposes, the same as if the Commissioners or officers had remained in office until such delivery.

(d) In any suit, action or proceeding involving the validity or enforceability of any bond of the Authority or the security therefor, any such bond reciting in substance that it has been issued by the Authority to aid in financing a project as defined in this Article, shall be conclusively deemed to have been issued for such purpose, and the project shall be conclusively deemed to have been planned, located and carried out in accordance with the purposes and provisions of this Article.

(e) (1) When the Authority sells bonds at a private sale, no person standing in a fiduciary relationship with the Authority shall purchase any of the bonds.

(2) As used in this Subsection, “”person”” means a natural person, corporation, partnership, trust or the employer of a natural person.(3) If the provisions of this Subsection are violated, then the sale of the bonds to the violating person shall be deemed null and void ab initio.

SOURCE: Added by P.L. 24-110:2 (Nov. 21, 1997).

§ 79403. Powers of Authority With Respect to Bonds or
Obligations.

In connection with the issuance of bonds or the incurring of obligations, and in order to secure the payment of such bonds or obligations, the Authority, in addition to its other powers, may:

(a) pledge all or any part of its gross or net rents, fees or revenues, to which its right then exists, or may thereafter come into existence;

(b) mortgage all or any part of its real or personal property, then owned or thereafter acquired;

(c) covenant against pledging all or any part of its rents, fees and revenues, or against mortgaging all or any part of its real or personal property, to which its right or title then exists or may thereafter come into existence or against permitting or suffering any lien on such revenues or property; covenant with respect to limitations on its right to sell, lease or otherwise dispose of any project or any part thereof; and covenant as to what other, or additional debts or obligations may be incurred by it;

(d) covenant as to the bonds to be issued and as to the issuance of such bonds in escrow or otherwise, and as to the use and disposition of the proceeds thereof; provide for the replacement of lost, destroyed or mutilated bonds; covenant against extending the time of the payment of its bonds or interest thereon; and to covenant for redemption of the bonds and to provide the term and conditions thereof;

(e) covenant subject to the limitations contained in this Article, as to the rents and fees to be charged in the operation of projects, the amount to be raised each year or other period of time by rents, fees and other revenues, and as to the use and disposition to be made thereof; create or authorize the creation of special funds for moneys held for construction or
operating costs, debt services, reserves or other purpose, and covenant as to the use and disposition of the moneys held in such funds;

(f) prescribe the procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the amount of bonds the holders of which must consent thereto and the manner in which such consent may be given;

(g) covenant as to the use, maintenance and replacement of any or all of its real or personal property, the insurance to be carried thereon, and the use and disposition of insurance moneys;

(h) covenant as to the rights, liabilities, powers and duties arising upon the breach by it of any covenant, condition or obligation; and covenant and prescribed as to events of default and terms and conditions upon which any or all of its bonds or obligations shall become or may be declared due before maturity, and as to the terms and conditions upon which such declaration and its consequences may be waived;

(i) vest in any obligee of the Authority the right to enforce the payment of the bonds or any covenants securing or relating to the bonds; vest in an obligee or obligees holding a specified amount in bonds the right, in the event of a default by the Authority, to take possession of and use, operate and manage any project or any part thereof or any funds connected therewith, and to collect the rents and revenues arising therefrom, and to dispose of such moneys in accordance with the agreement of the Authority with said obligees; provide for the powers and duties of such obligees and limit the liabilities thereof; and provide the terms and conditions upon which such obligees may enforce any covenant or rights securing or relating to the bonds; and

(j) exercise all or any part or combination of the powers herein granted; make covenants and do any and all such acts and things as may be necessary or convenient or desirable in order to secure its bonds, or in the absolute discretion of the
Authority, as will tend to make the bonds more marketable notwithstanding that such covenants, acts or things may not be enumerated herein.

SOURCE: Added by P.L. 24-110:2 (Nov. 21, 1997).

2012 NOTE: In maintaining the general codification scheme of the GCA the Compiler changed the hierarchy of subsections beginning with “”Numbers”” to “”Lowercase Letters”” in this section.