SEC. 49-17-325. Issuance of bonds by authority.
(1) The Authority shall have the power and is hereby authorized, from time to time, to issue bonds in such principal amounts as, in the opinion of the authority, shall be necessary to provide sufficient funds for achieving any of its corporate purposes, including, without limiting the generality of the foregoing, the financing of the acquisition, construction, improvement or extension of collection facilities or treatment facilities, or any combination thereof, whether or not such facilities are owned by the authority, the payment of interest on bonds of the authority, establishment of reserves to secure such bonds, expenses incident to the issuance of such bonds and to the implementation of the authority's programs, and all other expenditures of the authority incident to or necessary or convenient to carry out its corporate purposes and powers.
(2) The authority may issue such types of bonds as it may determine, subject only to any agreement with the holders of particular bonds, including bonds as to which the principal and interest are payable exclusively from all or a portion of the revenues derived from one or more collection facilities or treatment facilities pursuant to the contracts entered into by public agencies, and other persons pursuant to section 49-17-315 or 49-17-321, or any combination of any of the foregoing, or which may be secured by a pledge of any grant, subsidy, or contribution from any public agency or other person, or a pledge of an income or revenues, funds or moneys of the authority from any source whatsoever.
(3) Bonds shall be authorized by a resolution or resolutions of the authority. Such bonds shall bear such date or dates, mature at such time or times, (either serially, term or a combination thereof), bear interest at such rate or rates, be in such denomination or denominations, be in such form, either coupon or registered, carry such conversion or registration privileges, have such rank or priority, be executed in such manner and by such officers, be payable from such sources in such medium of payment at such place or places within or without the state, provided that one (1) such place shall be within the state, be subject to such terms of redemption prior to maturity, all as may be provided by resolution or resolutions of the authority.
(4) Any bonds of the authority may be sold at such price or prices, at public sale, in such manner and at such times as may be determined by the authority to be in the public interest, and the authority may pay all expenses, premiums, fees and commissions which it may deem necessary and advantageous in connection with the issuance and sale thereof.
(5) It is the intention of the legislature that any pledge of earnings, revenues or other moneys made by the authority shall be valid and binding from the time the pledge is made; that the earnings, revenues, or other moneys so pledged and thereafter received by the authority shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act, and that the lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the authority irrespective of whether such parties have notice thereof. Neither the resolution nor any other instrument by which a pledge is created need be recorded.
(6) Neither the commissioners of the authority nor any person executing the bonds shall be personally liable on the bonds or be subject to any personal liability or accountability by reason of the issuance thereof.
(7) Whenever any bonds shall have been signed by the officers designated by resolution of the authority to sign the bonds who were in office at the time of such signing but who may have ceased to be such officers prior to the sale and delivery of such bonds, or who may not have been in office on the date such bonds may bear, the manual or facsimile signatures of such officers upon such bonds and the coupons appertaining thereto, shall nevertheless be valid and sufficient for all purposes and have the same effect as if the person so officially executing such bonds had remained in office until the delivery of the same to the purchaser or had been in office on the date such bonds may bear.
(a) Before issuing bonds (other than interim certificates, notes, refunding bonds as provided in section 49-17-327 or other evidence of indebtedness of the authority) hereunder, the board of commissioners of the authority shall adopt a resolution declaring its intention to issue such bonds and stating the principal amount of the bonds proposed to be issued and the date and time upon which the board of commissioners proposes to direct the issuance of such bonds. Such resolution shall be published once a week for at least three (3) consecutive weeks in at least one (1) newspaper having a general circulation within the geographical limits of all of the public agencies (i) which have contracted with the authority under the provisions of sections 49-17-301 through 49-17-353, and (ii) whose contracts relate to the bonds proposed to be issued, and (iii) which are authorized by a law other than sections 49-17-301 through 49-17-353 to hold elections (each public agency which meets all of the criteria set forth in (i), (ii) and (iii) foregoing is hereinafter in this section referred to as an "affected public agency," and, together with other such agencies, collectively referred to as the "affected public agencies"); provided, however, that if no newspaper has a general circulation within the geographical limits of all of the affected public agencies, then such resolution shall be published in as many different newspapers as may be required to provide general circulation of the publication of such resolution within the geographical limits of each affected public agency; and, provided further, that if no newspaper has a general circulation within the geographical limits of any particular affected public agency, then notice in such affected public agency shall be made by posting a copy of such resolution for at least twenty-one (21) days next preceding the date therein at two (2) public places within the geographical limits of such public agency. If ten percent (10%) or fifteen hundred (1500), whichever is greater, of the qualified electors of a majority number of the qualified electors of the affected public agencies shall file a written protest against the issuance of such bonds with the board of commissioners of the authority on or before the date and time specified in such resolution, then an election on the question of the issuance of such bonds shall be called and held as hereinafter set forth in this section; notwithstanding subsection (d) of this section, such election shall be determined by a majority vote of the qualified electors participating in such election; provided, however, that in the event a county is an affected public agency, then the qualified electors of such county shall mean the qualified electors of such county who reside within the unincorporated areas within such county's geographical limits. If no such protest be filed, then such bonds may be issued without an election on the question of the issuance thereof at any time within a period of two (2) years after the date specified in the above-mentioned resolution. Nothing contained herein shall be construed to require the adoption or publication of a resolution of the kind described in this subsection, or to grant any right of protest or election, with respect to the issuance of interim certificates, notes, refunding bonds as provided in section 49-17-327 or other evidences of indebtedness of the authority.
(b) Where an election is to be called as provided in subsection (8)(a) of this section, the board of commissioners of the authority shall give notice of such election to the governing body of each of the affected public agencies. The governing body of each affected public agency shall publish a notice of such election once a week for at least three (3) consecutive weeks in a newspaper having a general circulation within its respective geographical limits. The first publication of such notice shall be made not less than twenty-one (21) days prior to the date fixed for such election and the last publication shall be made not more than seven (7) days prior to such date. If no newspaper has a general circulation within the geographical limits of any particular affected public agency, then notice in such affected public agency shall be made by posting a copy of such resolution for at least twenty-one (21) days next preceding the date therein at two (2) public places within the geographical limits of such public agency.
(c) The election provided for in subsection (8)(a) of this section shall be held in each of the affected public agencies, as far as practicable, in the same manner as other elections are held in such affected public agencies; provided, however, that in the event one or more affected public agencies have overlapping geographical limits, then such affected public agencies with overlapping geographical limits may provide for a consolidated election in such manner as their respective governing bodies may determine. At such election all qualified electors of each affected public agency may vote, and the ballots used at such election shall have printed thereon a brief statement of the principal amount and purpose of the proposed bond issue and the words "FOR THE BOND ISSUE" and "AGAINST THE BOND ISSUE," and the voters shall vote by placing a cross (x) or check mark (v) opposite his choice on the proposition; provided, however, that in the event a county is an affected public agency, then the qualified electors of such county shall mean the qualified electors of such county who reside within the unincorporated areas within such county's geographical limits.
(d) When the results of the election on the question of the issuance of such bonds as provided in this section shall have been canvassed by the respective election commissioners of the affected public agencies and certified by them to the board of commissioners of the authority, it shall be the duty of the board of commissioners of the authority to determine and adjudicate whether or not a majority of the qualified electors who voted thereon in a majority number of the affected public agencies vote in favor of the issuance of such bonds, and unless a majority of the qualified electors who voted thereon in a majority number of the affected public agencies voted in favor of the issuance of such bonds, then such bonds shall not be issued. Should a majority of the qualified electors who vote thereon in a majority number of the affected public agencies vote in favor of the issuance of such bonds, then the board of commissioners of the authority may issue such bonds, either in whole or in part, and if in part from time to time, within two (2) years from the date of such election or within two (2) years after the final favorable termination of any litigation affecting the issuance of such bonds, as shall be determined by the board of commissioners of the authority.
SOURCES: Laws, 1980, ch. 521, Sec. 13; 1982, chs. 378, Sec. 4; 434, Sec. 24, eff from and after passage (approved April 3, 1982).