Louisiana Revised Statutes 39:505 – Authorization, sale, execution, and registration of bonds
Terms Used In Louisiana Revised Statutes 39:505
- bonds: means any bonds, notes, warrants, certificates of indebtedness, certificates of participation or other written contracts, agreements, or instruments evidencing the obligation of a governmental entity to repay borrowed money, regardless of the designation thereof. See Louisiana Revised Statutes 39:503
- Credit enhancement: means any letter of credit, insurance policy, surety bond, standby bond purchase agreement, reserve fund surety bond, or similar facility as used for the purpose of enhancing the security or credit quality of bonds. See Louisiana Revised Statutes 39:503
- Financial products agreement: means an interest rate swap, cap, collar, floor, other hedging agreement, arrangement, or security, however denominated, entered into by a governmental entity not for investment purposes but with respect to a series of bonds for the purpose of reducing or otherwise managing the risk of interest rate changes, or effectively converting a governmental entity's interest rate exposure, in whole or in part, from a fixed rate exposure to a variable rate exposure, or from a variable rate exposure to a fixed rate exposure. See Louisiana Revised Statutes 39:503
- Governing authority: means the elected or appointed body that exercises the legislative functions of a parish, municipality, school board, school district, or other political subdivision, including:
(a) A sheriff in the case of a law enforcement district. See Louisiana Revised Statutes 39:503
- Governmental entity: means any parish, municipality, school board, school district, or other political subdivision of the state, other than the city of New Orleans and its agencies, boards, authorities, and commissions, and other than the Sewerage and Water Board of New Orleans. See Louisiana Revised Statutes 39:503
- person: includes a body of persons, whether incorporated or not. See Louisiana Revised Statutes 1:10
- State: means the state of Louisiana. See Louisiana Revised Statutes 39:503
A. Each governing authority shall have authority to adopt all proceedings necessary for the authorization, sale, and delivery of bonds, including the right to enter into all contractual arrangements as may be necessary to effectuate the purpose for which the bonds are being issued upon terms determined by the governing authority. Bonds issued under this Part may be issued by either resolution or ordinance, unless the use of a resolution or the use of an ordinance is specifically required by law or home rule charter.
B. Bonds issued under this Part may be sold at a public or private sale upon such terms, in the manner and by following such procedures as may be determined by the governing authority of the governmental entity. No bond issued under this Part shall be required to be registered with the secretary of state or any other office or official.
C. Bonds issued under this Part may be secured additionally by credit enhancement, or be entitled to the benefits of a financial products agreement, the cost of which, upon a finding of benefit therefrom by the governing authority, may be paid from the proceeds of the bonds or other lawfully available funds. Bonds may also be secured by a trust agreement or trust indenture by and between the governmental entity and one or more corporate trustees.
D. In addition to the foregoing, the proceedings authorizing the issuance of bonds may provide that such bonds will be of such series, bear such date or dates, mature at such time or times, bear interest at such rate or rates payable at such times, be in such denominations, be in such form, carry such registration and exchangeability privileges, be payable in such medium and at such place or places within or without the state, be subject to such terms of prepayment or redemption, be entitled to such priorities on the pledged taxes, revenues, or other source of security, as such proceedings may provide. Bonds shall be executed in the name of the governmental entity by the manual or facsimile signatures of such official or officials of the governmental entity designated by the governing authority in said proceedings. At least one signature on each bond shall be a manual signature, which manual signature may be an authenticating signature by a designated bank or other financial institution or person, and facsimile signatures may be used in the manner provided by law. The seal, or a facsimile thereof, of the governmental entity may, but is not required to be affixed, imprinted, engraved, or otherwise reproduced upon each bond. The delivery of any bonds so executed at any time thereafter shall be valid, although before the date of delivery, any person or persons signing the bonds shall cease to hold office.
Acts 2018, No. 569, §1, eff. July 1, 2018.