SEC. 57-67-19. Power of authority to borrow money and issue bonds generally.
(1) Upon notification to the authority by the United States Department of Energy that the state has been finally selected as the site for the project, then the authority shall have the power and is hereby authorized, from time to time, pursuant to contracts entered into under Section 57-67-17, to borrow money and to issue bonds in such principal amounts as the authority may determine to be necessary to provide funds sufficient to defray all or any designated portion of the costs incurred with respect to the project or any facility related to the project, or any educational, cultural, housing or recreational facility or enhancement offered to secure the siting of the project in the state; provided that prior to said notification, the authority may enter into agreements with the United States Government or others that will commit the authority to issue bonds for eligible undertakings set out in subsection (6) of this section pursuant to contracts entered into under Section 57-67-17, conditioned on the siting of the project in the state.
(2) Bonds of the authority issued pursuant to Sections 57-67-19 through 57-67-31 shall be payable (except to the extent that payment may be made from bond proceeds deposited or accumulated in any capitalized interest fund or bond reserve fund) solely from and secured by a pledge of all or any designated part of the revenues received by the authority pursuant to contracts entered into with one or more public agencies pursuant to Section 57-67-17. Such bonds may be further secured by a trust indenture between the authority and a corporate trustee, which may be any trust company or bank having powers of a trust company within or without the state, and by reserves established to secure the payment of principal of and interest on such bonds. Any pledge of earnings, revenues or other moneys made by the authority shall be valid and binding from the time the pledge is made. 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 the lien of any such pledge shall be valid and binding as against all parties having claims of any kind against the authority whether such parties have or do not have notice thereof. Neither the bond resolution, trust indenture nor any other instrument by which a pledge is created need be recorded.
(3) Bonds of the authority issued pursuant to Sections 57-67-19 through 57-67-31 may be authorized and issued in one or more series by a resolution or resolutions of the authority, without publication of notice of intent and without an election on the question of the issuance thereof. Such bonds shall bear such date or dates, mature at such time or times, bear interest at such rate or rates, be in such denomination or denominations, be in such form, carry such conversion 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, be subject to such terms of redemption prior to maturity, all as may be provided by resolution or resolutions of the authority. Such bonds may be executed and delivered at any time as a single issue or from time to time as several issues, and may mature or become payable in such amounts and at such time or times not exceeding thirty (30) years from their date, all as may be provided by resolution or resolutions of the authority.
(4) Bonds of the authority issued pursuant to Sections 57-67-19 through 57-67-31 may be sold at a price not less than ninety-eight percent (98%) of par value plus accrued interest, at public or private sale, 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) Whenever any bonds issued pursuant to Sections 57-67-19 through 57-67-31 shall have been signed by the officer(s) designated by the 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 officer(s) 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 officer(s) upon such bonds 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.
(6) Proceeds from the sale of bonds issued pursuant to Sections 57-67-19 through 57-67-31 may be applied for the purposes of (a) defraying all or any designated portion of the costs incurred with respect to the project or any facility related to the project, or any educational, cultural, housing or recreational facility offered as an enhancement to secure the siting of the project in the state, including costs of design and engineering, all costs incurred to provide land, easements, rights-of-way and relocation costs with respect to the project and with respect to any such facility; (b) providing for the payment of interest on the bonds; (c) providing debt service reserves; and (d) paying underwriters discount, original issue discount, accountants' fees, engineers' fees, attorneys' fees, rating agency fees and other fees and expenses in connection with the issuance of the bonds and other necessary and proper expenses of the authority in connection with the project or any such facility. Proceeds from the sale of bonds issued pursuant to Sections 57-67-19 through 57-67-31 may be invested, subject to federal limitations, pending their use, in such securities as may be specified in the resolution authorizing the issuance of the bonds or the trust indenture securing them, and the earning on such investment applied as provided in such resolution or trust indenture.
(7) Neither the executive director 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.
(8) In anticipation of the issuance of bonds under Sections 57-67-19 through 57-67-31, the authority is hereby authorized to negotiate and enter into any loan or credit agreement with any bank, trust company or other lending institution for the purpose of making any payments authorized under this chapter. All borrowings made under this provision shall be evidenced by notes of the authority which shall be issued from time to time, for such amounts not exceeding the amount of bonds authorized herein, in such form and in such denomination and subject to such terms and conditions of sale and issuance, prepayment or redemption and maturity, rate or rates of interest, and time of payment of interest as the authority shall agree to in such agreement. Such notes may also be issued for the purpose of refunding previously issued notes; provided that no notes shall mature more than three (3) years following the date of issuance of the first note hereunder and provided further, that all outstanding notes shall be retired from the proceeds of the first issuance of bonds hereunder. The authority is authorized to provide for the compensation of any purchaser of the notes by payment of a fixed fee or commission and for all other costs and expenses of issuance and service, including paying agent costs. Such costs and expenses may be paid from the proceeds of the notes.
SOURCES: Laws, 1987 Ex Sess, ch. 24, Sec. 10, eff from and after passage (approved August 29, 1987).