CHAPTER 7 - COMMUNITY DEVELOPMENT, AND SCIENCE, TECHNOLOGY ANDENERGY, AUTHORITIES
ARTICLE 1 - COMMUNITY DEVELOPMENT AUTHORITY
9-7-101. Short title.
Thisact may be cited as the "Wyoming Community Development AuthorityAct".
9-7-102. Legislative findings.
(a) It is declared that:
(i) There is in this state by reason of the location andexpansion of mineral extractive industries and other industrial developments, acritical shortage of adequate housing and a lack of funds of private mortgagelending institutions of the state which are available to finance new andexisting housing at reasonable rates;
(ii) It is in the public interest of the citizens of this stateto promote the economic welfare of the state and its residents by increasingemployment, stimulating economic activity, augmenting sources of tax revenue,fostering economic stability, furthering health care and improving the balanceof the state's economy;
(iii) This act constitutes a valid public purpose, of primarybenefit to all citizens of the state of Wyoming.
(b) In purchasing loans from or making loans to mortgagelenders, the authority shall give preference to mortgage lenders authorized to dobusiness within the state.
(c) This act and the powers of the authority shall be liberallyconstrued to enable the authority to carry out its purposes.
9-7-103. Definitions.
(a) As used in this act:
(i) "Authority" means the Wyoming community developmentauthority;
(ii) "Board" means the board of directors of theWyoming community development authority;
(iii) "Bonds" means notes, warrants, bonds, temporarybonds and anticipation notes issued by the authority pursuant to this act;
(iv) "Economic development project" means any land,building or other improvement and all real and personal property includingmachinery and equipment suitable for:
(A) Manufacturing, processing or assembling agricultural ormanufactured products;
(B) Storing, warehousing, distributing or selling agricultural,mining or industrial products or any related processes including research anddevelopment;
(C) Health care including any facility used or occupied by anyperson for providing services in any home for the elderly, any nursing home,rest home or facility providing living space for the developmentally disabledor any person sixty (60) years of age or older;
(D) Airports, parking facilities or storage or trainingfacilities directly related to any other facility specified under thisparagraph;
(E) Industrial park facilities;
(F) Sewage or solid waste disposal facilities;
(G) Facilities furnishing electric energy, gas or water;
(H) Any other project which can be financed by a municipality orcounty pursuant to the definition of project under W.S. 15-1-701(a)(ii);
(J) Secondary, tertiary and enhanced mineral recovery projects.
(v) "Financial institution" means any bank or savingsand loan association authorized to do business within this state;
(vi) "Home improvement loan" means a loan of money forthe essential alteration, repair or improvement of an existing home;
(vii) "Insurance fund" means the fund created underW.S. 9-7-123;
(viii) "Care facility" means any governmental ornonprofit hospital and may include any land, building, other improvements orequipment and all real and personal, tangible or intangible, property inconnection therewith, or any interest therein or combination thereof;
(ix) "Mortgage lender" means a bank, mortgage bankingcompany, trust company, savings bank, savings and loan association, creditunion, national banking association, federal savings and loan association orfederal credit union maintaining an office in this state and authorized to makemortgage loans in this state or an insurance company authorized to do businessin this state;
(x) "Project" means a care facility or a specificresidential housing project including any land, building, other improvements orequipment and all real and personal, tangible or intangible, property inconnection therewith, or any interest therein or combination thereof, or anyportion of a project;
(xi) "Project cost" means the sum total of costs whichthe authority deems necessary for financing and carrying out a project;
(xii) "Real property" means lands, buildings,improvements, fixtures, structures and interests in land, including waterrights and all appurtenances to the land;
(xiii) "Rehabilitation" means the repair,reconstruction, remodeling or improvement of existing housing;
(xiv) "State" means the state of Wyoming;
(xv) "State agency" means any office orinstrumentality of the state;
(xvi) "This act" means W.S. 9-7-101 through 9-7-125.
9-7-104. Community development authority; creation; composition;compensation; termination; meetings; surety bonds; personal liability; fiscalcontrol.
(a) This act creates the Wyoming community developmentauthority. The authority is a body corporate operating as a stateinstrumentality operated solely for the public benefit. Its membership consistsof ten (10) directors, seven (7) of whom are appointed by the governor with theadvice and consent of the senate. Not more than four (4) of the appointeddirectors shall be from the same political party. Directors shall serve forstaggered terms of four (4) years each. No appointed director shall serve morethan two (2) successive four (4) year terms. A director's term may beterminated by the governor under the same procedure and in the same manner asprovided by W.S. 9-1-202(a) or a majority vote of the senate. Directors shallcontinue in office until their successors are appointed and qualified. If avacancy occurs, the governor shall appoint a successor to serve in accordancewith W.S. 28-12-101. The board of directors shall select one (1) of its membersto act as chairman of the board of directors and one (1) member to act astreasurer. The board of directors appoints the executive director of theauthority, who serves as the executive secretary to the board and is the chiefexecutive officer of the authority. The executive director serves at thepleasure of the board. The executive director shall be an ex officio member ofthe board but may not vote. The governor and the state treasurer are members ofthe board and may vote.
(b) The directors, other than the executive director, thegovernor and the state treasurer, shall receive compensation for each day orpart thereof in which they are engaged in performance of their official dutiesat the same rate as state legislators and shall be reimbursed for actual andnecessary expenses incurred in the performance of their official duties. Theboard shall fix the salary of the executive director. Subject to the approvalof the directors, and pursuant to W.S. 9-7-118 the executive director shalldetermine the terms of employment, tenure, duties, working conditions,promotion and termination of all other employees which the executive directordetermines are necessary to carry out the purposes and functions of the authority.Employees of the authority may be covered by and subject to the provisions ofthe Wyoming Retirement Act, the State Employees and Officials Group InsuranceAct and the Wyoming Deferred Compensation Act.
(c) The authority shall exist perpetually or until terminatedby law. No termination of the authority shall take effect so long as theauthority has bonds and other obligations outstanding, unless adequateprovision has been made for the payment thereof. Upon termination of theauthority, all its rights and properties shall pass to and be vested in thestate.
(d) The board shall determine the date, time, place and methodof notice for all regular meetings of the board. A majority of the votingdirectors of the authority constitutes a quorum for the transaction of anybusiness or the exercise of any power or function of the authority. All mattersshall be decided by a majority vote of the voting members of the board. Minutesof board meetings shall be kept, maintained and open to members of the public.Notice of meetings shall be given to the public prior to the meetings andmeetings shall be open to the public in accordance with W.S. 16-4-401 through16-4-408. In emergency circumstances, as unanimously determined by the boardmembers, the board may take action by conference telephone or similarcommunications equipment whereby all persons participating in the meeting canhear each other at the same time. The conversation shall be recorded,immediately transcribed as minutes of the board, and notice given of theiravailability for public review. The finding by the board that an emergencyexists shall be binding and conclusive unless clearly erroneous.
(e) The authority shall execute and maintain at its expense ablanket surety bond covering each director, the executive director and theemployees or other officers of the authority in the penal sum of two hundredfifty thousand dollars ($250,000.00).
(f) Neither the directors, the executive director, theemployees of the authority nor any other person executing bonds shall besubject to any personal liability by reason of their issuance.
(g) Notwithstanding any other provision, the directors, theexecutive director and the employees of the authority shall receive approval inadvance from the governor prior to traveling out of state on officialbusiness. Except as specifically provided in this act, the provisions of W.S.9-2-1001 through 9-2-1024 do not apply to the authority.
9-7-105. Community development authority; general powers and duties.
(a) For the purposes of this act, the authority may:
(i) Sue and be sued and procure necessary liability insurance;
(ii) Have a seal;
(iii) Make and execute contracts and other instruments, includingfinancial contracts and instruments which the authority determines arereasonable and advisable to carry out the purposes and programs of theauthority;
(iv) Adopt rules and regulations for its organization, forspecial meetings of the board, for internal management and for its loans,projects, economic development projects, operations, properties and facilities,including regulations governing the purchase, sale, rental, use, occupancy,maintenance, repair and alteration of housing projects. The rules andregulations shall be filed pursuant to the Wyoming Administrative ProcedureAct;
(v) Acquire or contract to acquire by grant, purchase, optionor otherwise, real, personal or mixed property or any interest in property;
(vi) Own, hold, clear, improve and rehabilitate, and sell,assign, exchange, transfer, convey, lease, mortgage or otherwise dispose of, orencumber the same;
(vii) Sell, lease, assign, transfer, convey, exchange, mortgageor otherwise dispose of or encumber any project or economic developmentproject, and in the case of the sale of any project or economic developmentproject, accept a purchase money mortgage in connection with the sale, andlease, repurchase or otherwise acquire and hold any project or economicdevelopment project which the authority has sold, leased or otherwise conveyed,transferred or disposed of;
(viii) Grant options to purchase any project or economicdevelopment project or to renew any leases entered into by it in connectionwith any of its projects or economic development projects, on terms and conditionsit considers advisable;
(ix) Prepare plans, specifications, designs and cost estimatesfor the construction, reconstruction, rehabilitation, improvement, alterationor repair of any project or economic development project, and modify the plans,specifications, designs or estimates;
(x) Manage any project or economic development project, whetherowned or leased by the authority, and enter into agreements for managing anyproject or economic development project;
(xi) Provide advisory, consultative or educational services,technical assistance and advice to any person in order to carry out thepurposes of the authority;
(xii) Borrow money and issue its negotiable bonds and provide forthe rights of the holders thereof;
(xiii) Mortgage or pledge any or all of its revenue, income,projects or economic development projects whether owned or later acquired, andassign or pledge the leases on any portion of the projects or economicdevelopment projects as security for the payment of the principal and intereston any bonds issued and any agreements made in connection therewith;
(xiv) Deposit or invest any funds of the authority as provided inW.S. 9-7-116;
(xv) Procure insurance against any loss in connection with itsproperty and other assets and operations in amounts and from insurers it deemsdesirable including, without limitation, participating with the federalgovernment or any agency or instrumentality thereof or any private insurer inany insurance or guaranty program;
(xvi) Engage the services of consultants on a contract basis forrendering professional, financial and technical assistance and advice;
(xvii) Contract for and accept any gifts or grants or loans offunds or property or financial or other aid in any form from the federalgovernment or any agency or instrumentality thereof, or from any other sourceand pass through or otherwise comply, subject to the provisions of this act,with the terms and conditions thereof;
(xviii) Purchase loans from mortgage lenders, includingconstruction loans or advances, or participations therein, subject to W.S.9-7-106, and sell or otherwise dispose of the loans;
(xix) Make loans to mortgage lenders under terms and conditionsrequiring the proceeds to be used by the mortgage lenders to make mortgages onresidential real property, subject to W.S. 9-7-106;
(xx) Enter into loan servicing agreements with any mortgagelender in this state at reasonable fees;
(xxi) Consent to the modification of the terms of any mortgage,loan or contract to which the authority is a party, subject to any contractwith bondholders;
(xxii) Make loans, including loans to mortgage lenders to enablethe lenders to make loans, to finance projects, including construction loansand advances, under terms and conditions, and with security therefore, as theauthority deems appropriate. The authority shall not make any loan, other thanloans to mortgage lenders, which is a first lien loan to a homeowner withrespect to single family residential property.
(b) The authority shall:
(i) Cooperate with the director of the state department ofaudit and its own auditors to develop and adopt guidelines relative to theproper handling and accounting for receipts and disbursements of the authorityand other financial and administrative policies which shall generallycorrespond to normal business practices required of financial institutions;
(ii) Provide by rule and regulation that any person assuming amortgage loan under this chapter shall qualify under existing authority rulesand regulations to the extent that rules for qualifying are not in conflictwith federal programs.
(c) Repealed by Laws 1988, ch. 87, 3.
9-7-106. Community development authority; additional powers; purchaseof mortgages; loans to lenders; funds appropriated for low interest mortgages.
(a) In addition to the other powers granted in this act, theauthority:
(i) May purchase from mortgage lenders or make commitments topurchase, or take assignments from mortgage lenders of notes and mortgagesevidencing loans for the purchase, construction or rehabilitation ofresidential real property in the state. If the notes and mortgages are financedwith bond proceeds, the notes and mortgages shall be insured or guaranteed inwhole or in part by governmental or private mortgage insurers, including thefund created by W.S. 9-7-123, or otherwise secured as provided in theresolution or trust indenture authorizing bonds of the authority;
(ii) May make loans to mortgage lenders which are general obligationsof the respective lenders and may establish maturity dates, repaymentschedules, provisions for prepayment, the nature, bond, note or othercertificate of indebtedness and other provisions consistent with this sectionwhich the authority determines are necessary. The authority shall require as acondition of each loan to a mortgage lender that the mortgage lender, on orbefore a designated date shall have entered into written commitments to make,and shall proceed as promptly as practicable to make and disburse, newmortgages on residential real property in an aggregate principal amount equalto the amount of the loan;
(iii) Shall require that loans to mortgage lenders areadditionally secured as to payment of both principal and interest by a pledgeof and lien upon collateral security in the amounts the authority by resolutiondetermines to be necessary to assure the payment of the loans and the interestthereon as they become due. Such collateral security shall be determined by theauthority and may consist of those obligations described in W.S.9-7-105(a)(xiv) or mortgages secured by first mortgage liens on residentialreal property in the state;
(iv) May, in connection with any mortgage loan or loan to amortgage lender, foreclose on any property on which the authority holds amortgage loan, or realize upon any collateral pledged as security, or commenceany action to protect or enforce any right conferred upon it by any law,mortgage, contract or other agreement, and bid for and purchase such propertyor collateral at any foreclosure or at any other sale, or acquire or takepossession of any such property or collateral. In the event of a proposed orexisting foreclosure or sale of collateral the authority may complete,administer, pay the principal of and interest on any obligations in connectionwith the property, subordinate its interest to other financing, dispose of, andotherwise deal with the property in the manner that may be necessary ordesirable to protect the interest of the authority therein;
(v) Shall adopt, modify or repeal rules and regulationsgoverning the making of loans to mortgage lenders, the purchase and sale ofmortgage loans and the application of the proceeds thereof, including but notlimited to rules and regulations relating to:
(A) Housing, income or other reasonable eligibility standardsfor persons or families to be financed from mortgage loans purchased frommortgage lenders or from loans to mortgage lenders;
(B) Limitations or restrictions as to the location or otherqualifications or characteristics of residences to be financed from theproceeds of the purchases or loans;
(C) Restrictions as to the interest rates on loans made fromthe proceeds of the purchase of mortgage loans or from loans to mortgagelenders or the return realized therefrom by mortgage lenders;
(D) Requirements as to any commitments by mortgage lenders withrespect to the application of the proceeds of the purchase or loan; and
(E) Schedules of any fees and charges necessary to provide forexpenses and reserves of the authority.
(vi) May adopt a program or issue bonds to purchase mortgageloans or make loans to mortgage lenders if the authority finds:
(A) That the mortgage lending resources of the mortgage lendersare not sufficient to adequately finance the housing needs of the state; and
(B) That the loan to lenders or mortgage loan purchased willpromote better housing in the state.
(vii) May make, purchase from lenders, make commitments topurchase or take assignments from mortgage lenders of notes for homeimprovement loans, or make loans or commitments to lenders for the purpose ofmaking funds available for home improvement loans. The home improvement loansto lenders shall be secured in a manner the authority determines;
(viii) Shall receive all funds which may be appropriated to itfrom the state treasury for the purpose of reducing the interest rate onmortgage loans made to low and moderate income persons. The authority shallallocate the lower interest rate mortgages only to persons and families of lowand moderate income in need of assistance in obtaining decent, safe andsanitary housing at affordable rates.
9-7-107. Community development authority; revenue bonds; issuance.
(a) Subject to W.S. 9-7-108, the authority may issue bonds inprincipal amounts the authority determines necessary to provide sufficientfunds for achieving any of its purposes, including the payment of interest, theestablishment of reserves and for the purpose of defraying all other projectand economic development project costs. All bonds issued under this act arenegotiable instruments under the laws of the state unless expressly provided tothe contrary on the face of the bonds.
(b) All bonds issued by the authority are payable solely out ofspecial funds consisting of all or part of its revenues, receipts, monies andassets, as designated in the proceedings under which the bonds are authorized.The bonds shall bear interest at the rates, be executed and delivered at timesand in denominations, be of terms and maturities, be in bearer form or inregistered form as to principal and interest or principal alone, and bearmanual or facsimile signatures and seals as determined by the authority.
(c) Bonds may be payable in installments and may bearmaturities not exceeding forty-five (45) years from the date issued asdetermined by the authority.
(d) As determined by the authority, bonds and interest may bepayable at a time or place whether within or without the state. Bonds maycontain other provisions not inconsistent with this act.
(e) Any bonds issued by the authority may contain an option toredeem all or any part as may be specified. The price of redemption, the termsand conditions and the procedure of notice shall be set forth in theproceedings of the authority and may appear on the face of the bonds.
(f) Any bonds of the authority may be sold at, above or belowpar value, at public or private sale, in a manner and from time to time asdetermined by the authority. The authority may pay legal fees, expenses,premiums and commissions which it finds necessary or advantageous in connectionwith the issuance and sale.
(g) Additional bonds for a particular purpose may be issuedprovided the later issues shall recognize and protect any prior pledge ormortgage made for any prior issue. Bonds may be issued providing that any laterissues for the same project or economic development project may be on a paritywith the earlier bonds.
(h) The authority may provide for the issuance of its bonds torefund any bonds of the authority then outstanding, including the payment ofany redemption premium and any interest or premium accrued or to accrue to, theearliest or subsequent date of redemption, purchase or maturity of the bondsand, if determined advisable by the authority, for the purpose of paying anypart of the cost of acquiring, purchasing, constructing, reconstructing orimproving any project or economic development project or for making any loan onany project or economic development project. Refunding shall be accomplished inthe manner prescribed by W.S. 16-5-101 through 16-5-119 to the extent it isnot inconsistent with this act.
9-7-108. Community development authority; revenue bonds; amountauthorized.
(a) Repealed By Laws 1997, ch. 64, 2.
(b) Repealed By Laws 1997, ch. 64, 2.
(c) Repealed By Laws 1997, ch. 64, 2.
(d) Repealed by Laws 1988, ch. 87, 3.
(e) Repealed By Laws 1997, ch. 64, 2.
(f) Repealed By Laws 1997, ch. 64, 2.
(g) Repealed By Laws 2000, Ch. 41, 2.
(h) In addition to the bonds presently outstanding, any bondsauthorized for care facility projects, bonds that may be issued to refundbonds, and bonds the authority may issue from time to time as private activitybonds exempt from federal income taxation under section 146 of the internalrevenue code of 1986, as amended, the authority may issue and have outstandingadditional bonds in an aggregate amount of up to four hundred million dollars($400,000,000.00).
(j) In addition to the bonds authorized by subsection (h) ofthis section, the authority may issue and have outstanding additional bonds forcare facility projects in an aggregate amount of up to two hundred fiftymillion dollars ($250,000,000.00).
9-7-109. Community development authority; revenue bonds; securitytherefor.
(a) The principal and interest on any bonds issued by theauthority may be secured by a pledge of any revenues and receipts of theauthority or assignment of mortgage loans or other assets purchased and may besecured by a mortgage or other instrument covering all or any part of a projector economic development project, including any additions, improvements,extensions to or enlargements of any project or economic development projectlater made, or assignment, pledge or any loan or loan participation.
(b) Bonds issued for the purchase, acquisition, construction,reconstruction or improvement of a project or economic development project mayalso be secured by an assignment of any lease of or mortgage on the project oreconomic development project and by an assignment of the revenues and receiptsderived by the authority from the lease or mortgage of the project or economicdevelopment project.
(c) The resolution under which the bonds are authorized and anymortgage, lease or other instrument may contain agreements and provisions forthe maintenance of the projects or economic development projects covered, thefixing and collection of rents or other revenues, including monies received inrepayment of mortgage loans and interest, the creation and maintenance ofspecial funds from rents or other revenues and the rights and remediesavailable in the event of default.
(d) Each pledge, agreement, mortgage or other instrument madefor the benefit or security of any bonds of the authority is valid and bindingfrom the time when made. The revenues, receipts, monies and assets pledged areimmediately subject to the lien of the pledge without delivery or further act.The lien is valid and binding against persons having claims of any kind againstthe authority whether or not the persons have actual notice of the lien.Neither the resolution nor the indenture or other instrument by which a pledgeis created need be recorded or filed.
(e) The authority may provide in the proceedings under whichbonds are authorized that any part or all of any project or economicdevelopment project may be purchased, constructed, reconstructed or improved bythe authority, any municipality or any lessee or designee of the authority, andmay also provide for the time and manner of and requisites for disbursements tobe made for the cost of construction and for all the certificates and approvalsof construction and disbursements as the authority considers necessary.
(f) Any resolution or trust indenture under which bonds of theauthority are authorized may contain provisions for vesting in a trustee theproperties, rights, powers and duties in trust as the authority determines.This may include any or all of the rights, powers and duties of the trusteeappointed by the holders of any issue of bonds pursuant to W.S. 9-7-115, inwhich event the provisions of W.S. 9-7-115 authorizing the appointment of atrustee by the holders of bonds shall not apply.
9-7-110. Community development authority; revenue bonds; debt servicereserve funds; use of monies therein.
(a) Prior to the delivery of each bond issue, the authority maycreate one (1) or more debt service reserve funds and, at the time theauthority determines, shall pay into the funds an amount, as determined by theauthority, from:
(i) Proceeds of sale of bonds to the extent provided in theresolution of the authority authorizing the issuance; and
(ii) Other monies which may be received or made available to theauthority for the purposes of funds from any other source.
(b) Unless otherwise provided, the monies held in or creditedto any debt service reserve fund established under this section shall be usedsolely for the payment of the principal of bonds of the authority secured bythe reserve fund, as the bonds mature or are redeemed prior to maturity, thepurchase of such bonds of the authority, the payment of interest on such bondsof the authority or the payment of any redemption premium required to be paid whenthe bonds are redeemed prior to maturity. The interest earned on the amountdeposited in any reserve fund may be used for the purpose of defraying the costof the authority's operations. Money in any debt service reserve fund shall notbe withdrawn if it would reduce the amount of the fund to less than the amountwhich is pledged in the proceedings authorizing the issuance of the bondssecured by the debt service reserve fund, except for the purpose of payingprincipal and interest on bonds maturing and becoming due, and for the paymentof which other monies of the authority are not available.
9-7-111. Community development authority; revenue bonds; dispositionof monies received.
Moniesreceived pursuant to the authority of this act, whether as proceeds from thesale of bonds or as revenues, receipts or income, shall be held as trust fundsto be applied solely as provided in the proceedings under which the bonds areauthorized. The trustee shall hold and apply the monies for the purposesauthorized by this act and by the proceedings authorizing the bonds andincluded in the trust agreement securing the bonds.
9-7-112. Exemptions from taxation; exceptions.
Theexercise of the powers granted by this act constitutes the performance of anessential governmental function. The authority shall not be required to pay anytaxes levied by any municipality or political subdivision of the state, otherthan assessments for local improvements, upon its projects, property or monies.The authority shall not be required to pay state taxes of any kind. Except forestate taxes the authority's projects, property and monies and any bonds issuedunder this act and the income therefrom, shall be free from taxation of everykind by the state, municipalities and political subdivisions of the state.
9-7-113. Bonds as legal investments.
Thebonds of the authority are legal investments which may be used as collateralfor public funds of the state, insurance companies, banks, savings and loanassociations, investment companies, trustees and other fiduciaries which mayproperly and legally invest funds in their control or belonging to them inbonds of the authority.
9-7-114. State pledge not to impair bondholder's rights and remedies.
Thestate pledges to the holders of any bonds issued under this act, that the statewill not limit or alter the rights vested in the authority to fulfill the termsof agreements made with the holders, or in any way impair the rights andremedies of the holders until the bonds together with the interest, withinterest on any unpaid installments of interest, and all costs and expenses inconnection with any action or proceeding by or on behalf of the holders arefully met and discharged. The authority is authorized to include this pledge ofthe state in any agreement with the holders of the bonds.
9-7-115. Appointment of trustee by bondholders; powers and dutiesthereof.
(a) If the authority defaults in the payment of principal of orinterest on any bonds after they become due, whether at maturity or upon callfor redemption, and the default continues for a period of thirty (30) days, orif the authority fails or refuses to comply with the provisions of this act, ordefaults in any agreement made with the holders of any bonds, the holders of twenty-fivepercent (25%) in aggregate principal amount of the bonds of the issue thenoutstanding, by instrument or instruments filed in the office of the secretaryof state, may appoint a trustee to represent the holders of the bonds for thepurposes herein provided.
(b) The trustee may, and upon written request of the holders oftwenty-five percent (25%) in principal amount of such bonds then outstandingshall, in his or its own name:
(i) By suit, action or proceeding enforce all rights of thebondholders to require the authority to carry out any other agreements with theholders of the bonds and to perform its duties under this act;
(ii) Bring suit upon the bonds;
(iii) By action or suit, require the authority to account as ifit were the trustee of an express trust for the holders of the bonds;
(iv) By action or suit, enjoin any acts or things which may beunlawful or in violation of the rights of the holders of the bonds;
(v) Declare all the bonds due and payable, and if all defaultsare made good, then, with the consent of the holders of twenty-five percent(25%) of the principal amount of the bonds then outstanding, to annul thedeclaration and its consequences.
(c) In addition, the trustee has all the powers necessary orappropriate for the exercise of any functions specifically set forth in thisact or incident to the general representation of bondholders in the enforcementand protection of their rights.
9-7-116. Investment and management of funds.
(a) The authority may invest funds in securities in which statefunds may be invested as provided by law or in savings certificates of savingsand loan associations and certificates of deposit of banks to the extent theyare fully insured by a federal agency or are fully secured by a pledge ofassets as provided by law, sell securities it has purchased and depositsecurities in any financial institution. Funds deposited in financialinstitutions shall be secured by obligations authorized as permissible securityfor state investments. In investing and managing its funds, the authority shallexercise the judgment and care which persons of prudence, discretion andintelligence would exercise under similar circumstances in managing thepermanent disposition of their funds, considering the probable income and theprobable safety of their capital.
(b) Notwithstanding the provisions of this section, theauthority may contract with the holders of any of its bonds, as to the custody,collection, securing, investment and payment of any monies of the authority, ofany monies held in trust or otherwise for the payment of bonds, and may carryout the contract. Monies held in trust or otherwise for the payment of bonds orin any way to secure bonds and deposits of monies may be secured in the same manneras monies of the authority and all banks and trust companies are authorized togive security for these deposits.
(c) Subject to agreements with bondholders, the authority shallprescribe a system of accounts in accordance with generally accepted accountingprinciples.
(d) The authority shall employ a certified public accountant toexamine the books and accounts of the authority including its receipts,disbursements, contracts, reserve funds, sinking funds, investments and anyother matters relating to its financial standing. The examination shall beconducted at least once in each year and copies of the examination report shallbe filed with the secretary of state, the director of the state department ofaudit and the legislative service office.
9-7-117. Assistance by state agencies.
(a) Upon request of the authority, any state agency maytemporarily assign to the authority officers and employees as it deemsnecessary to assist the authority in carrying out its functions and dutiesunder this act. Officers and employees so assigned shall not lose their statusor rights as public employees.
(b) Upon request of the authority, any state agency may lendtechnical assistance, render advice and attend meetings with the directors andemployees of the authority as the authority requires in carrying out itsfunctions and duties.
9-7-118. Annual report and budget.
(a) The authority shall submit an annual report in the mannerprovided by W.S. 9-2-1014.
(b) The authority shall submit its budget for review asprovided by W.S. 9-2-1010 through 9-2-1014. This section shall not impair oraffect any pledge of special funds of the authority to the payment of therevenue bonds authorized by this act.
9-7-119. Conflicts of interest.
(a) The authority shall not purchase from, sell to, borrowfrom, loan to, contract with or otherwise deal with any corporation, trust,association, partnership or other entity in which any director of the authorityhas a financial interest. This section does not prohibit the buying, selling orplacing of mortgage loans with financial institutions in which a director has afinancial interest. The financial interest shall be disclosed in the minutes ofthe authority.
(b) Repealed by Laws 1988, ch. 87, 3.
(c) Repealed by Laws 1988, ch. 87, 3.
9-7-120. Priorities in commitment of monies.
The authority shall require as a conditionto receiving any of its money under this chapter that any mortgage lenderreceiving money, within the limitation imposed by the amount of money received,shall give reasonable priority to mortgage loan applications made directly tothe mortgage lender by qualified, individual home purchasers, before committingany money received from the authority to contractors, builders, real estatedevelopers or real estate agents, except to the extent the authority determinesthere is a need to encourage the construction of affordable housing and it isreasonable and appropriate to provide or permit commitments to alleviate suchneed. Any money committed by a mortgage lender to an individual home purchaserunder this act may be used for the purchase of new or existing residentialdwellings.
9-7-121. Repealed by Laws 1985, ch. 44, 2.
9-7-122. Repealed by Laws 1988, ch. 87, 3.
9-7-123. Economic development projects; insurance fund.
(a) The authority may insure payments required by a loan, leaseor other credit arrangement for any project or economic development projectfinanced, under terms and conditions prescribed by the authority. The authoritymay establish one (1) or more separate accounts and may require the payment offees or premiums, establish application fees and prescribe application,notification, contract and guaranty forms, rules, regulations and guidelines.
(b) Insurance acquired by the authority shall:
(i) Be for a project or an economic development project meetingpolicies and objectives of this act;
(ii) Be through an applicant approved by the authority;
(iii) Contain amortization provisions satisfactory to theauthority; and
(iv) Be for a principal amount, in a form and contain terms forpayment of property insurance, repairs, alterations, taxes, assessments,delinquency charges and default remedies as the authority determines necessary.
(c) The authority may enter into an insurance contract,guarantee or other agreement or contract for the insurance fund and any insuredloan, lease or other credit agreement. The agreement or contract may containterms necessary for the insurance program subject to established requirements,including terms relating to loan documentation, review, approval procedures,origination and servicing rights and responsibilities, default obligations andother loan procedures and obligations.
(d) Any contract for insurance made under this section shallprovide that claims are payable from the insurance fund or a separate accountin the insurance fund. The obligation of the authority to make payments underany insurance contract is limited solely to the insurance fund and is not adebt or liability of the state. Any insurance contract and any rule, regulationor guideline of the authority implementing the insurance program may containother terms, provisions or conditions the authority considers necessary. Anypremium for insuring a loan payment under this section may be determined on abasis, payable by a person in an amount and at a time determined by theauthority. The premium amount may differ among any insured loan, lease or othercredit agreement.
(e) The authority shall establish an insurance fund held by atrustee or other fiduciary designated by the authority. All insurance fees andpremiums shall be deposited into the fund along with up to two million fivehundred thousand dollars ($2,500,000.00) prior to April 1, 1985 and anadditional one million five hundred thousand dollars ($1,500,000.00) thereafterfrom other revenues and assets of the authority as the authority considersnecessary to comply with any contract or agreement entered into under thissection.
(f) The insurance fund shall be used to satisfy any claimresulting from a defaulted loan, lease or other credit agreement. The fund mayalso be used for any other purpose prescribed by the authority pursuant toguaranty contracts with financial institutions under this section including theprotection of the authority's interest in projects during periods ofdelinquency or upon default.
(g) The minimum reserve requirement for the insurance fundshall be an amount provided by agreement, resolution or indenture with bondholders. No additional loan, lease or other credit agreement may be insured ifthe amount available in the insurance fund is less than the minimum reserverequirement.
9-7-124. Repealed by Laws 1995, ch. 199, 2
9-7-125. Subsidiary corporation; economic development loans.
(a) The authority may charter a subsidiary corporation for thepurpose of managing or originating economic development loans subject to thefollowing conditions:
(i) The directors of the authority shall also be directors ofthe subsidiary corporation and are entitled to the same compensation andexpenses for such service as provided by W.S. 9-7-104(b) so long as theservices do not occur on the same day;
(ii) The subsidiary corporation shall not take equity positionsthrough stock ownership in any corporation or association;
(iii) The subsidiary corporation is subject to the auditrequirements of W.S. 9-7-116 and the financial supervision requirements of W.S.9-7-105(b);
(iv) The subsidiary corporation shall not acquire or originateany economic development loans on and after the effective date of this act;
(v) This section is retroactive and prospective in itsapplication.
ARTICLE 2 - SCIENCE, TECHNOLOGY AND ENERGY AUTHORITY
CHAPTER 7 - COMMUNITY DEVELOPMENT, AND SCIENCE, TECHNOLOGY ANDENERGY, AUTHORITIES
ARTICLE 1 - COMMUNITY DEVELOPMENT AUTHORITY
9-7-101. Short title.
Thisact may be cited as the "Wyoming Community Development AuthorityAct".
9-7-102. Legislative findings.
(a) It is declared that:
(i) There is in this state by reason of the location andexpansion of mineral extractive industries and other industrial developments, acritical shortage of adequate housing and a lack of funds of private mortgagelending institutions of the state which are available to finance new andexisting housing at reasonable rates;
(ii) It is in the public interest of the citizens of this stateto promote the economic welfare of the state and its residents by increasingemployment, stimulating economic activity, augmenting sources of tax revenue,fostering economic stability, furthering health care and improving the balanceof the state's economy;
(iii) This act constitutes a valid public purpose, of primarybenefit to all citizens of the state of Wyoming.
(b) In purchasing loans from or making loans to mortgagelenders, the authority shall give preference to mortgage lenders authorized to dobusiness within the state.
(c) This act and the powers of the authority shall be liberallyconstrued to enable the authority to carry out its purposes.
9-7-103. Definitions.
(a) As used in this act:
(i) "Authority" means the Wyoming community developmentauthority;
(ii) "Board" means the board of directors of theWyoming community development authority;
(iii) "Bonds" means notes, warrants, bonds, temporarybonds and anticipation notes issued by the authority pursuant to this act;
(iv) "Economic development project" means any land,building or other improvement and all real and personal property includingmachinery and equipment suitable for:
(A) Manufacturing, processing or assembling agricultural ormanufactured products;
(B) Storing, warehousing, distributing or selling agricultural,mining or industrial products or any related processes including research anddevelopment;
(C) Health care including any facility used or occupied by anyperson for providing services in any home for the elderly, any nursing home,rest home or facility providing living space for the developmentally disabledor any person sixty (60) years of age or older;
(D) Airports, parking facilities or storage or trainingfacilities directly related to any other facility specified under thisparagraph;
(E) Industrial park facilities;
(F) Sewage or solid waste disposal facilities;
(G) Facilities furnishing electric energy, gas or water;
(H) Any other project which can be financed by a municipality orcounty pursuant to the definition of project under W.S. 15-1-701(a)(ii);
(J) Secondary, tertiary and enhanced mineral recovery projects.
(v) "Financial institution" means any bank or savingsand loan association authorized to do business within this state;
(vi) "Home improvement loan" means a loan of money forthe essential alteration, repair or improvement of an existing home;
(vii) "Insurance fund" means the fund created underW.S. 9-7-123;
(viii) "Care facility" means any governmental ornonprofit hospital and may include any land, building, other improvements orequipment and all real and personal, tangible or intangible, property inconnection therewith, or any interest therein or combination thereof;
(ix) "Mortgage lender" means a bank, mortgage bankingcompany, trust company, savings bank, savings and loan association, creditunion, national banking association, federal savings and loan association orfederal credit union maintaining an office in this state and authorized to makemortgage loans in this state or an insurance company authorized to do businessin this state;
(x) "Project" means a care facility or a specificresidential housing project including any land, building, other improvements orequipment and all real and personal, tangible or intangible, property inconnection therewith, or any interest therein or combination thereof, or anyportion of a project;
(xi) "Project cost" means the sum total of costs whichthe authority deems necessary for financing and carrying out a project;
(xii) "Real property" means lands, buildings,improvements, fixtures, structures and interests in land, including waterrights and all appurtenances to the land;
(xiii) "Rehabilitation" means the repair,reconstruction, remodeling or improvement of existing housing;
(xiv) "State" means the state of Wyoming;
(xv) "State agency" means any office orinstrumentality of the state;
(xvi) "This act" means W.S. 9-7-101 through 9-7-125.
9-7-104. Community development authority; creation; composition;compensation; termination; meetings; surety bonds; personal liability; fiscalcontrol.
(a) This act creates the Wyoming community developmentauthority. The authority is a body corporate operating as a stateinstrumentality operated solely for the public benefit. Its membership consistsof ten (10) directors, seven (7) of whom are appointed by the governor with theadvice and consent of the senate. Not more than four (4) of the appointeddirectors shall be from the same political party. Directors shall serve forstaggered terms of four (4) years each. No appointed director shall serve morethan two (2) successive four (4) year terms. A director's term may beterminated by the governor under the same procedure and in the same manner asprovided by W.S. 9-1-202(a) or a majority vote of the senate. Directors shallcontinue in office until their successors are appointed and qualified. If avacancy occurs, the governor shall appoint a successor to serve in accordancewith W.S. 28-12-101. The board of directors shall select one (1) of its membersto act as chairman of the board of directors and one (1) member to act astreasurer. The board of directors appoints the executive director of theauthority, who serves as the executive secretary to the board and is the chiefexecutive officer of the authority. The executive director serves at thepleasure of the board. The executive director shall be an ex officio member ofthe board but may not vote. The governor and the state treasurer are members ofthe board and may vote.
(b) The directors, other than the executive director, thegovernor and the state treasurer, shall receive compensation for each day orpart thereof in which they are engaged in performance of their official dutiesat the same rate as state legislators and shall be reimbursed for actual andnecessary expenses incurred in the performance of their official duties. Theboard shall fix the salary of the executive director. Subject to the approvalof the directors, and pursuant to W.S. 9-7-118 the executive director shalldetermine the terms of employment, tenure, duties, working conditions,promotion and termination of all other employees which the executive directordetermines are necessary to carry out the purposes and functions of the authority.Employees of the authority may be covered by and subject to the provisions ofthe Wyoming Retirement Act, the State Employees and Officials Group InsuranceAct and the Wyoming Deferred Compensation Act.
(c) The authority shall exist perpetually or until terminatedby law. No termination of the authority shall take effect so long as theauthority has bonds and other obligations outstanding, unless adequateprovision has been made for the payment thereof. Upon termination of theauthority, all its rights and properties shall pass to and be vested in thestate.
(d) The board shall determine the date, time, place and methodof notice for all regular meetings of the board. A majority of the votingdirectors of the authority constitutes a quorum for the transaction of anybusiness or the exercise of any power or function of the authority. All mattersshall be decided by a majority vote of the voting members of the board. Minutesof board meetings shall be kept, maintained and open to members of the public.Notice of meetings shall be given to the public prior to the meetings andmeetings shall be open to the public in accordance with W.S. 16-4-401 through16-4-408. In emergency circumstances, as unanimously determined by the boardmembers, the board may take action by conference telephone or similarcommunications equipment whereby all persons participating in the meeting canhear each other at the same time. The conversation shall be recorded,immediately transcribed as minutes of the board, and notice given of theiravailability for public review. The finding by the board that an emergencyexists shall be binding and conclusive unless clearly erroneous.
(e) The authority shall execute and maintain at its expense ablanket surety bond covering each director, the executive director and theemployees or other officers of the authority in the penal sum of two hundredfifty thousand dollars ($250,000.00).
(f) Neither the directors, the executive director, theemployees of the authority nor any other person executing bonds shall besubject to any personal liability by reason of their issuance.
(g) Notwithstanding any other provision, the directors, theexecutive director and the employees of the authority shall receive approval inadvance from the governor prior to traveling out of state on officialbusiness. Except as specifically provided in this act, the provisions of W.S.9-2-1001 through 9-2-1024 do not apply to the authority.
9-7-105. Community development authority; general powers and duties.
(a) For the purposes of this act, the authority may:
(i) Sue and be sued and procure necessary liability insurance;
(ii) Have a seal;
(iii) Make and execute contracts and other instruments, includingfinancial contracts and instruments which the authority determines arereasonable and advisable to carry out the purposes and programs of theauthority;
(iv) Adopt rules and regulations for its organization, forspecial meetings of the board, for internal management and for its loans,projects, economic development projects, operations, properties and facilities,including regulations governing the purchase, sale, rental, use, occupancy,maintenance, repair and alteration of housing projects. The rules andregulations shall be filed pursuant to the Wyoming Administrative ProcedureAct;
(v) Acquire or contract to acquire by grant, purchase, optionor otherwise, real, personal or mixed property or any interest in property;
(vi) Own, hold, clear, improve and rehabilitate, and sell,assign, exchange, transfer, convey, lease, mortgage or otherwise dispose of, orencumber the same;
(vii) Sell, lease, assign, transfer, convey, exchange, mortgageor otherwise dispose of or encumber any project or economic developmentproject, and in the case of the sale of any project or economic developmentproject, accept a purchase money mortgage in connection with the sale, andlease, repurchase or otherwise acquire and hold any project or economicdevelopment project which the authority has sold, leased or otherwise conveyed,transferred or disposed of;
(viii) Grant options to purchase any project or economicdevelopment project or to renew any leases entered into by it in connectionwith any of its projects or economic development projects, on terms and conditionsit considers advisable;
(ix) Prepare plans, specifications, designs and cost estimatesfor the construction, reconstruction, rehabilitation, improvement, alterationor repair of any project or economic development project, and modify the plans,specifications, designs or estimates;
(x) Manage any project or economic development project, whetherowned or leased by the authority, and enter into agreements for managing anyproject or economic development project;
(xi) Provide advisory, consultative or educational services,technical assistance and advice to any person in order to carry out thepurposes of the authority;
(xii) Borrow money and issue its negotiable bonds and provide forthe rights of the holders thereof;
(xiii) Mortgage or pledge any or all of its revenue, income,projects or economic development projects whether owned or later acquired, andassign or pledge the leases on any portion of the projects or economicdevelopment projects as security for the payment of the principal and intereston any bonds issued and any agreements made in connection therewith;
(xiv) Deposit or invest any funds of the authority as provided inW.S. 9-7-116;
(xv) Procure insurance against any loss in connection with itsproperty and other assets and operations in amounts and from insurers it deemsdesirable including, without limitation, participating with the federalgovernment or any agency or instrumentality thereof or any private insurer inany insurance or guaranty program;
(xvi) Engage the services of consultants on a contract basis forrendering professional, financial and technical assistance and advice;
(xvii) Contract for and accept any gifts or grants or loans offunds or property or financial or other aid in any form from the federalgovernment or any agency or instrumentality thereof, or from any other sourceand pass through or otherwise comply, subject to the provisions of this act,with the terms and conditions thereof;
(xviii) Purchase loans from mortgage lenders, includingconstruction loans or advances, or participations therein, subject to W.S.9-7-106, and sell or otherwise dispose of the loans;
(xix) Make loans to mortgage lenders under terms and conditionsrequiring the proceeds to be used by the mortgage lenders to make mortgages onresidential real property, subject to W.S. 9-7-106;
(xx) Enter into loan servicing agreements with any mortgagelender in this state at reasonable fees;
(xxi) Consent to the modification of the terms of any mortgage,loan or contract to which the authority is a party, subject to any contractwith bondholders;
(xxii) Make loans, including loans to mortgage lenders to enablethe lenders to make loans, to finance projects, including construction loansand advances, under terms and conditions, and with security therefore, as theauthority deems appropriate. The authority shall not make any loan, other thanloans to mortgage lenders, which is a first lien loan to a homeowner withrespect to single family residential property.
(b) The authority shall:
(i) Cooperate with the director of the state department ofaudit and its own auditors to develop and adopt guidelines relative to theproper handling and accounting for receipts and disbursements of the authorityand other financial and administrative policies which shall generallycorrespond to normal business practices required of financial institutions;
(ii) Provide by rule and regulation that any person assuming amortgage loan under this chapter shall qualify under existing authority rulesand regulations to the extent that rules for qualifying are not in conflictwith federal programs.
(c) Repealed by Laws 1988, ch. 87, 3.
9-7-106. Community development authority; additional powers; purchaseof mortgages; loans to lenders; funds appropriated for low interest mortgages.
(a) In addition to the other powers granted in this act, theauthority:
(i) May purchase from mortgage lenders or make commitments topurchase, or take assignments from mortgage lenders of notes and mortgagesevidencing loans for the purchase, construction or rehabilitation ofresidential real property in the state. If the notes and mortgages are financedwith bond proceeds, the notes and mortgages shall be insured or guaranteed inwhole or in part by governmental or private mortgage insurers, including thefund created by W.S. 9-7-123, or otherwise secured as provided in theresolution or trust indenture authorizing bonds of the authority;
(ii) May make loans to mortgage lenders which are general obligationsof the respective lenders and may establish maturity dates, repaymentschedules, provisions for prepayment, the nature, bond, note or othercertificate of indebtedness and other provisions consistent with this sectionwhich the authority determines are necessary. The authority shall require as acondition of each loan to a mortgage lender that the mortgage lender, on orbefore a designated date shall have entered into written commitments to make,and shall proceed as promptly as practicable to make and disburse, newmortgages on residential real property in an aggregate principal amount equalto the amount of the loan;
(iii) Shall require that loans to mortgage lenders areadditionally secured as to payment of both principal and interest by a pledgeof and lien upon collateral security in the amounts the authority by resolutiondetermines to be necessary to assure the payment of the loans and the interestthereon as they become due. Such collateral security shall be determined by theauthority and may consist of those obligations described in W.S.9-7-105(a)(xiv) or mortgages secured by first mortgage liens on residentialreal property in the state;
(iv) May, in connection with any mortgage loan or loan to amortgage lender, foreclose on any property on which the authority holds amortgage loan, or realize upon any collateral pledged as security, or commenceany action to protect or enforce any right conferred upon it by any law,mortgage, contract or other agreement, and bid for and purchase such propertyor collateral at any foreclosure or at any other sale, or acquire or takepossession of any such property or collateral. In the event of a proposed orexisting foreclosure or sale of collateral the authority may complete,administer, pay the principal of and interest on any obligations in connectionwith the property, subordinate its interest to other financing, dispose of, andotherwise deal with the property in the manner that may be necessary ordesirable to protect the interest of the authority therein;
(v) Shall adopt, modify or repeal rules and regulationsgoverning the making of loans to mortgage lenders, the purchase and sale ofmortgage loans and the application of the proceeds thereof, including but notlimited to rules and regulations relating to:
(A) Housing, income or other reasonable eligibility standardsfor persons or families to be financed from mortgage loans purchased frommortgage lenders or from loans to mortgage lenders;
(B) Limitations or restrictions as to the location or otherqualifications or characteristics of residences to be financed from theproceeds of the purchases or loans;
(C) Restrictions as to the interest rates on loans made fromthe proceeds of the purchase of mortgage loans or from loans to mortgagelenders or the return realized therefrom by mortgage lenders;
(D) Requirements as to any commitments by mortgage lenders withrespect to the application of the proceeds of the purchase or loan; and
(E) Schedules of any fees and charges necessary to provide forexpenses and reserves of the authority.
(vi) May adopt a program or issue bonds to purchase mortgageloans or make loans to mortgage lenders if the authority finds:
(A) That the mortgage lending resources of the mortgage lendersare not sufficient to adequately finance the housing needs of the state; and
(B) That the loan to lenders or mortgage loan purchased willpromote better housing in the state.
(vii) May make, purchase from lenders, make commitments topurchase or take assignments from mortgage lenders of notes for homeimprovement loans, or make loans or commitments to lenders for the purpose ofmaking funds available for home improvement loans. The home improvement loansto lenders shall be secured in a manner the authority determines;
(viii) Shall receive all funds which may be appropriated to itfrom the state treasury for the purpose of reducing the interest rate onmortgage loans made to low and moderate income persons. The authority shallallocate the lower interest rate mortgages only to persons and families of lowand moderate income in need of assistance in obtaining decent, safe andsanitary housing at affordable rates.
9-7-107. Community development authority; revenue bonds; issuance.
(a) Subject to W.S. 9-7-108, the authority may issue bonds inprincipal amounts the authority determines necessary to provide sufficientfunds for achieving any of its purposes, including the payment of interest, theestablishment of reserves and for the purpose of defraying all other projectand economic development project costs. All bonds issued under this act arenegotiable instruments under the laws of the state unless expressly provided tothe contrary on the face of the bonds.
(b) All bonds issued by the authority are payable solely out ofspecial funds consisting of all or part of its revenues, receipts, monies andassets, as designated in the proceedings under which the bonds are authorized.The bonds shall bear interest at the rates, be executed and delivered at timesand in denominations, be of terms and maturities, be in bearer form or inregistered form as to principal and interest or principal alone, and bearmanual or facsimile signatures and seals as determined by the authority.
(c) Bonds may be payable in installments and may bearmaturities not exceeding forty-five (45) years from the date issued asdetermined by the authority.
(d) As determined by the authority, bonds and interest may bepayable at a time or place whether within or without the state. Bonds maycontain other provisions not inconsistent with this act.
(e) Any bonds issued by the authority may contain an option toredeem all or any part as may be specified. The price of redemption, the termsand conditions and the procedure of notice shall be set forth in theproceedings of the authority and may appear on the face of the bonds.
(f) Any bonds of the authority may be sold at, above or belowpar value, at public or private sale, in a manner and from time to time asdetermined by the authority. The authority may pay legal fees, expenses,premiums and commissions which it finds necessary or advantageous in connectionwith the issuance and sale.
(g) Additional bonds for a particular purpose may be issuedprovided the later issues shall recognize and protect any prior pledge ormortgage made for any prior issue. Bonds may be issued providing that any laterissues for the same project or economic development project may be on a paritywith the earlier bonds.
(h) The authority may provide for the issuance of its bonds torefund any bonds of the authority then outstanding, including the payment ofany redemption premium and any interest or premium accrued or to accrue to, theearliest or subsequent date of redemption, purchase or maturity of the bondsand, if determined advisable by the authority, for the purpose of paying anypart of the cost of acquiring, purchasing, constructing, reconstructing orimproving any project or economic development project or for making any loan onany project or economic development project. Refunding shall be accomplished inthe manner prescribed by W.S. 16-5-101 through 16-5-119 to the extent it isnot inconsistent with this act.
9-7-108. Community development authority; revenue bonds; amountauthorized.
(a) Repealed By Laws 1997, ch. 64, 2.
(b) Repealed By Laws 1997, ch. 64, 2.
(c) Repealed By Laws 1997, ch. 64, 2.
(d) Repealed by Laws 1988, ch. 87, 3.
(e) Repealed By Laws 1997, ch. 64, 2.
(f) Repealed By Laws 1997, ch. 64, 2.
(g) Repealed By Laws 2000, Ch. 41, 2.
(h) In addition to the bonds presently outstanding, any bondsauthorized for care facility projects, bonds that may be issued to refundbonds, and bonds the authority may issue from time to time as private activitybonds exempt from federal income taxation under section 146 of the internalrevenue code of 1986, as amended, the authority may issue and have outstandingadditional bonds in an aggregate amount of up to four hundred million dollars($400,000,000.00).
(j) In addition to the bonds authorized by subsection (h) ofthis section, the authority may issue and have outstanding additional bonds forcare facility projects in an aggregate amount of up to two hundred fiftymillion dollars ($250,000,000.00).
9-7-109. Community development authority; revenue bonds; securitytherefor.
(a) The principal and interest on any bonds issued by theauthority may be secured by a pledge of any revenues and receipts of theauthority or assignment of mortgage loans or other assets purchased and may besecured by a mortgage or other instrument covering all or any part of a projector economic development project, including any additions, improvements,extensions to or enlargements of any project or economic development projectlater made, or assignment, pledge or any loan or loan participation.
(b) Bonds issued for the purchase, acquisition, construction,reconstruction or improvement of a project or economic development project mayalso be secured by an assignment of any lease of or mortgage on the project oreconomic development project and by an assignment of the revenues and receiptsderived by the authority from the lease or mortgage of the project or economicdevelopment project.
(c) The resolution under which the bonds are authorized and anymortgage, lease or other instrument may contain agreements and provisions forthe maintenance of the projects or economic development projects covered, thefixing and collection of rents or other revenues, including monies received inrepayment of mortgage loans and interest, the creation and maintenance ofspecial funds from rents or other revenues and the rights and remediesavailable in the event of default.
(d) Each pledge, agreement, mortgage or other instrument madefor the benefit or security of any bonds of the authority is valid and bindingfrom the time when made. The revenues, receipts, monies and assets pledged areimmediately subject to the lien of the pledge without delivery or further act.The lien is valid and binding against persons having claims of any kind againstthe authority whether or not the persons have actual notice of the lien.Neither the resolution nor the indenture or other instrument by which a pledgeis created need be recorded or filed.
(e) The authority may provide in the proceedings under whichbonds are authorized that any part or all of any project or economicdevelopment project may be purchased, constructed, reconstructed or improved bythe authority, any municipality or any lessee or designee of the authority, andmay also provide for the time and manner of and requisites for disbursements tobe made for the cost of construction and for all the certificates and approvalsof construction and disbursements as the authority considers necessary.
(f) Any resolution or trust indenture under which bonds of theauthority are authorized may contain provisions for vesting in a trustee theproperties, rights, powers and duties in trust as the authority determines.This may include any or all of the rights, powers and duties of the trusteeappointed by the holders of any issue of bonds pursuant to W.S. 9-7-115, inwhich event the provisions of W.S. 9-7-115 authorizing the appointment of atrustee by the holders of bonds shall not apply.
9-7-110. Community development authority; revenue bonds; debt servicereserve funds; use of monies therein.
(a) Prior to the delivery of each bond issue, the authority maycreate one (1) or more debt service reserve funds and, at the time theauthority determines, shall pay into the funds an amount, as determined by theauthority, from:
(i) Proceeds of sale of bonds to the extent provided in theresolution of the authority authorizing the issuance; and
(ii) Other monies which may be received or made available to theauthority for the purposes of funds from any other source.
(b) Unless otherwise provided, the monies held in or creditedto any debt service reserve fund established under this section shall be usedsolely for the payment of the principal of bonds of the authority secured bythe reserve fund, as the bonds mature or are redeemed prior to maturity, thepurchase of such bonds of the authority, the payment of interest on such bondsof the authority or the payment of any redemption premium required to be paid whenthe bonds are redeemed prior to maturity. The interest earned on the amountdeposited in any reserve fund may be used for the purpose of defraying the costof the authority's operations. Money in any debt service reserve fund shall notbe withdrawn if it would reduce the amount of the fund to less than the amountwhich is pledged in the proceedings authorizing the issuance of the bondssecured by the debt service reserve fund, except for the purpose of payingprincipal and interest on bonds maturing and becoming due, and for the paymentof which other monies of the authority are not available.
9-7-111. Community development authority; revenue bonds; dispositionof monies received.
Moniesreceived pursuant to the authority of this act, whether as proceeds from thesale of bonds or as revenues, receipts or income, shall be held as trust fundsto be applied solely as provided in the proceedings under which the bonds areauthorized. The trustee shall hold and apply the monies for the purposesauthorized by this act and by the proceedings authorizing the bonds andincluded in the trust agreement securing the bonds.
9-7-112. Exemptions from taxation; exceptions.
Theexercise of the powers granted by this act constitutes the performance of anessential governmental function. The authority shall not be required to pay anytaxes levied by any municipality or political subdivision of the state, otherthan assessments for local improvements, upon its projects, property or monies.The authority shall not be required to pay state taxes of any kind. Except forestate taxes the authority's projects, property and monies and any bonds issuedunder this act and the income therefrom, shall be free from taxation of everykind by the state, municipalities and political subdivisions of the state.
9-7-113. Bonds as legal investments.
Thebonds of the authority are legal investments which may be used as collateralfor public funds of the state, insurance companies, banks, savings and loanassociations, investment companies, trustees and other fiduciaries which mayproperly and legally invest funds in their control or belonging to them inbonds of the authority.
9-7-114. State pledge not to impair bondholder's rights and remedies.
Thestate pledges to the holders of any bonds issued under this act, that the statewill not limit or alter the rights vested in the authority to fulfill the termsof agreements made with the holders, or in any way impair the rights andremedies of the holders until the bonds together with the interest, withinterest on any unpaid installments of interest, and all costs and expenses inconnection with any action or proceeding by or on behalf of the holders arefully met and discharged. The authority is authorized to include this pledge ofthe state in any agreement with the holders of the bonds.
9-7-115. Appointment of trustee by bondholders; powers and dutiesthereof.
(a) If the authority defaults in the payment of principal of orinterest on any bonds after they become due, whether at maturity or upon callfor redemption, and the default continues for a period of thirty (30) days, orif the authority fails or refuses to comply with the provisions of this act, ordefaults in any agreement made with the holders of any bonds, the holders of twenty-fivepercent (25%) in aggregate principal amount of the bonds of the issue thenoutstanding, by instrument or instruments filed in the office of the secretaryof state, may appoint a trustee to represent the holders of the bonds for thepurposes herein provided.
(b) The trustee may, and upon written request of the holders oftwenty-five percent (25%) in principal amount of such bonds then outstandingshall, in his or its own name:
(i) By suit, action or proceeding enforce all rights of thebondholders to require the authority to carry out any other agreements with theholders of the bonds and to perform its duties under this act;
(ii) Bring suit upon the bonds;
(iii) By action or suit, require the authority to account as ifit were the trustee of an express trust for the holders of the bonds;
(iv) By action or suit, enjoin any acts or things which may beunlawful or in violation of the rights of the holders of the bonds;
(v) Declare all the bonds due and payable, and if all defaultsare made good, then, with the consent of the holders of twenty-five percent(25%) of the principal amount of the bonds then outstanding, to annul thedeclaration and its consequences.
(c) In addition, the trustee has all the powers necessary orappropriate for the exercise of any functions specifically set forth in thisact or incident to the general representation of bondholders in the enforcementand protection of their rights.
9-7-116. Investment and management of funds.
(a) The authority may invest funds in securities in which statefunds may be invested as provided by law or in savings certificates of savingsand loan associations and certificates of deposit of banks to the extent theyare fully insured by a federal agency or are fully secured by a pledge ofassets as provided by law, sell securities it has purchased and depositsecurities in any financial institution. Funds deposited in financialinstitutions shall be secured by obligations authorized as permissible securityfor state investments. In investing and managing its funds, the authority shallexercise the judgment and care which persons of prudence, discretion andintelligence would exercise under similar circumstances in managing thepermanent disposition of their funds, considering the probable income and theprobable safety of their capital.
(b) Notwithstanding the provisions of this section, theauthority may contract with the holders of any of its bonds, as to the custody,collection, securing, investment and payment of any monies of the authority, ofany monies held in trust or otherwise for the payment of bonds, and may carryout the contract. Monies held in trust or otherwise for the payment of bonds orin any way to secure bonds and deposits of monies may be secured in the same manneras monies of the authority and all banks and trust companies are authorized togive security for these deposits.
(c) Subject to agreements with bondholders, the authority shallprescribe a system of accounts in accordance with generally accepted accountingprinciples.
(d) The authority shall employ a certified public accountant toexamine the books and accounts of the authority including its receipts,disbursements, contracts, reserve funds, sinking funds, investments and anyother matters relating to its financial standing. The examination shall beconducted at least once in each year and copies of the examination report shallbe filed with the secretary of state, the director of the state department ofaudit and the legislative service office.
9-7-117. Assistance by state agencies.
(a) Upon request of the authority, any state agency maytemporarily assign to the authority officers and employees as it deemsnecessary to assist the authority in carrying out its functions and dutiesunder this act. Officers and employees so assigned shall not lose their statusor rights as public employees.
(b) Upon request of the authority, any state agency may lendtechnical assistance, render advice and attend meetings with the directors andemployees of the authority as the authority requires in carrying out itsfunctions and duties.
9-7-118. Annual report and budget.
(a) The authority shall submit an annual report in the mannerprovided by W.S. 9-2-1014.
(b) The authority shall submit its budget for review asprovided by W.S. 9-2-1010 through 9-2-1014. This section shall not impair oraffect any pledge of special funds of the authority to the payment of therevenue bonds authorized by this act.
9-7-119. Conflicts of interest.
(a) The authority shall not purchase from, sell to, borrowfrom, loan to, contract with or otherwise deal with any corporation, trust,association, partnership or other entity in which any director of the authorityhas a financial interest. This section does not prohibit the buying, selling orplacing of mortgage loans with financial institutions in which a director has afinancial interest. The financial interest shall be disclosed in the minutes ofthe authority.
(b) Repealed by Laws 1988, ch. 87, 3.
(c) Repealed by Laws 1988, ch. 87, 3.
9-7-120. Priorities in commitment of monies.
The authority shall require as a conditionto receiving any of its money under this chapter that any mortgage lenderreceiving money, within the limitation imposed by the amount of money received,shall give reasonable priority to mortgage loan applications made directly tothe mortgage lender by qualified, individual home purchasers, before committingany money received from the authority to contractors, builders, real estatedevelopers or real estate agents, except to the extent the authority determinesthere is a need to encourage the construction of affordable housing and it isreasonable and appropriate to provide or permit commitments to alleviate suchneed. Any money committed by a mortgage lender to an individual home purchaserunder this act may be used for the purchase of new or existing residentialdwellings.
9-7-121. Repealed by Laws 1985, ch. 44, 2.
9-7-122. Repealed by Laws 1988, ch. 87, 3.
9-7-123. Economic development projects; insurance fund.
(a) The authority may insure payments required by a loan, leaseor other credit arrangement for any project or economic development projectfinanced, under terms and conditions prescribed by the authority. The authoritymay establish one (1) or more separate accounts and may require the payment offees or premiums, establish application fees and prescribe application,notification, contract and guaranty forms, rules, regulations and guidelines.
(b) Insurance acquired by the authority shall:
(i) Be for a project or an economic development project meetingpolicies and objectives of this act;
(ii) Be through an applicant approved by the authority;
(iii) Contain amortization provisions satisfactory to theauthority; and
(iv) Be for a principal amount, in a form and contain terms forpayment of property insurance, repairs, alterations, taxes, assessments,delinquency charges and default remedies as the authority determines necessary.
(c) The authority may enter into an insurance contract,guarantee or other agreement or contract for the insurance fund and any insuredloan, lease or other credit agreement. The agreement or contract may containterms necessary for the insurance program subject to established requirements,including terms relating to loan documentation, review, approval procedures,origination and servicing rights and responsibilities, default obligations andother loan procedures and obligations.
(d) Any contract for insurance made under this section shallprovide that claims are payable from the insurance fund or a separate accountin the insurance fund. The obligation of the authority to make payments underany insurance contract is limited solely to the insurance fund and is not adebt or liability of the state. Any insurance contract and any rule, regulationor guideline of the authority implementing the insurance program may containother terms, provisions or conditions the authority considers necessary. Anypremium for insuring a loan payment under this section may be determined on abasis, payable by a person in an amount and at a time determined by theauthority. The premium amount may differ among any insured loan, lease or othercredit agreement.
(e) The authority shall establish an insurance fund held by atrustee or other fiduciary designated by the authority. All insurance fees andpremiums shall be deposited into the fund along with up to two million fivehundred thousand dollars ($2,500,000.00) prior to April 1, 1985 and anadditional one million five hundred thousand dollars ($1,500,000.00) thereafterfrom other revenues and assets of the authority as the authority considersnecessary to comply with any contract or agreement entered into under thissection.
(f) The insurance fund shall be used to satisfy any claimresulting from a defaulted loan, lease or other credit agreement. The fund mayalso be used for any other purpose prescribed by the authority pursuant toguaranty contracts with financial institutions under this section including theprotection of the authority's interest in projects during periods ofdelinquency or upon default.
(g) The minimum reserve requirement for the insurance fundshall be an amount provided by agreement, resolution or indenture with bondholders. No additional loan, lease or other credit agreement may be insured ifthe amount available in the insurance fund is less than the minimum reserverequirement.
9-7-124. Repealed by Laws 1995, ch. 199, 2
9-7-125. Subsidiary corporation; economic development loans.
(a) The authority may charter a subsidiary corporation for thepurpose of managing or originating economic development loans subject to thefollowing conditions:
(i) The directors of the authority shall also be directors ofthe subsidiary corporation and are entitled to the same compensation andexpenses for such service as provided by W.S. 9-7-104(b) so long as theservices do not occur on the same day;
(ii) The subsidiary corporation shall not take equity positionsthrough stock ownership in any corporation or association;
(iii) The subsidiary corporation is subject to the auditrequirements of W.S. 9-7-116 and the financial supervision requirements of W.S.9-7-105(b);
(iv) The subsidiary corporation shall not acquire or originateany economic development loans on and after the effective date of this act;
(v) This section is retroactive and prospective in itsapplication.
ARTICLE 2 - SCIENCE, TECHNOLOGY AND ENERGY AUTHORITY
CHAPTER 7 - COMMUNITY DEVELOPMENT, AND SCIENCE, TECHNOLOGY ANDENERGY, AUTHORITIES
ARTICLE 1 - COMMUNITY DEVELOPMENT AUTHORITY
9-7-101. Short title.
Thisact may be cited as the "Wyoming Community Development AuthorityAct".
9-7-102. Legislative findings.
(a) It is declared that:
(i) There is in this state by reason of the location andexpansion of mineral extractive industries and other industrial developments, acritical shortage of adequate housing and a lack of funds of private mortgagelending institutions of the state which are available to finance new andexisting housing at reasonable rates;
(ii) It is in the public interest of the citizens of this stateto promote the economic welfare of the state and its residents by increasingemployment, stimulating economic activity, augmenting sources of tax revenue,fostering economic stability, furthering health care and improving the balanceof the state's economy;
(iii) This act constitutes a valid public purpose, of primarybenefit to all citizens of the state of Wyoming.
(b) In purchasing loans from or making loans to mortgagelenders, the authority shall give preference to mortgage lenders authorized to dobusiness within the state.
(c) This act and the powers of the authority shall be liberallyconstrued to enable the authority to carry out its purposes.
9-7-103. Definitions.
(a) As used in this act:
(i) "Authority" means the Wyoming community developmentauthority;
(ii) "Board" means the board of directors of theWyoming community development authority;
(iii) "Bonds" means notes, warrants, bonds, temporarybonds and anticipation notes issued by the authority pursuant to this act;
(iv) "Economic development project" means any land,building or other improvement and all real and personal property includingmachinery and equipment suitable for:
(A) Manufacturing, processing or assembling agricultural ormanufactured products;
(B) Storing, warehousing, distributing or selling agricultural,mining or industrial products or any related processes including research anddevelopment;
(C) Health care including any facility used or occupied by anyperson for providing services in any home for the elderly, any nursing home,rest home or facility providing living space for the developmentally disabledor any person sixty (60) years of age or older;
(D) Airports, parking facilities or storage or trainingfacilities directly related to any other facility specified under thisparagraph;
(E) Industrial park facilities;
(F) Sewage or solid waste disposal facilities;
(G) Facilities furnishing electric energy, gas or water;
(H) Any other project which can be financed by a municipality orcounty pursuant to the definition of project under W.S. 15-1-701(a)(ii);
(J) Secondary, tertiary and enhanced mineral recovery projects.
(v) "Financial institution" means any bank or savingsand loan association authorized to do business within this state;
(vi) "Home improvement loan" means a loan of money forthe essential alteration, repair or improvement of an existing home;
(vii) "Insurance fund" means the fund created underW.S. 9-7-123;
(viii) "Care facility" means any governmental ornonprofit hospital and may include any land, building, other improvements orequipment and all real and personal, tangible or intangible, property inconnection therewith, or any interest therein or combination thereof;
(ix) "Mortgage lender" means a bank, mortgage bankingcompany, trust company, savings bank, savings and loan association, creditunion, national banking association, federal savings and loan association orfederal credit union maintaining an office in this state and authorized to makemortgage loans in this state or an insurance company authorized to do businessin this state;
(x) "Project" means a care facility or a specificresidential housing project including any land, building, other improvements orequipment and all real and personal, tangible or intangible, property inconnection therewith, or any interest therein or combination thereof, or anyportion of a project;
(xi) "Project cost" means the sum total of costs whichthe authority deems necessary for financing and carrying out a project;
(xii) "Real property" means lands, buildings,improvements, fixtures, structures and interests in land, including waterrights and all appurtenances to the land;
(xiii) "Rehabilitation" means the repair,reconstruction, remodeling or improvement of existing housing;
(xiv) "State" means the state of Wyoming;
(xv) "State agency" means any office orinstrumentality of the state;
(xvi) "This act" means W.S. 9-7-101 through 9-7-125.
9-7-104. Community development authority; creation; composition;compensation; termination; meetings; surety bonds; personal liability; fiscalcontrol.
(a) This act creates the Wyoming community developmentauthority. The authority is a body corporate operating as a stateinstrumentality operated solely for the public benefit. Its membership consistsof ten (10) directors, seven (7) of whom are appointed by the governor with theadvice and consent of the senate. Not more than four (4) of the appointeddirectors shall be from the same political party. Directors shall serve forstaggered terms of four (4) years each. No appointed director shall serve morethan two (2) successive four (4) year terms. A director's term may beterminated by the governor under the same procedure and in the same manner asprovided by W.S. 9-1-202(a) or a majority vote of the senate. Directors shallcontinue in office until their successors are appointed and qualified. If avacancy occurs, the governor shall appoint a successor to serve in accordancewith W.S. 28-12-101. The board of directors shall select one (1) of its membersto act as chairman of the board of directors and one (1) member to act astreasurer. The board of directors appoints the executive director of theauthority, who serves as the executive secretary to the board and is the chiefexecutive officer of the authority. The executive director serves at thepleasure of the board. The executive director shall be an ex officio member ofthe board but may not vote. The governor and the state treasurer are members ofthe board and may vote.
(b) The directors, other than the executive director, thegovernor and the state treasurer, shall receive compensation for each day orpart thereof in which they are engaged in performance of their official dutiesat the same rate as state legislators and shall be reimbursed for actual andnecessary expenses incurred in the performance of their official duties. Theboard shall fix the salary of the executive director. Subject to the approvalof the directors, and pursuant to W.S. 9-7-118 the executive director shalldetermine the terms of employment, tenure, duties, working conditions,promotion and termination of all other employees which the executive directordetermines are necessary to carry out the purposes and functions of the authority.Employees of the authority may be covered by and subject to the provisions ofthe Wyoming Retirement Act, the State Employees and Officials Group InsuranceAct and the Wyoming Deferred Compensation Act.
(c) The authority shall exist perpetually or until terminatedby law. No termination of the authority shall take effect so long as theauthority has bonds and other obligations outstanding, unless adequateprovision has been made for the payment thereof. Upon termination of theauthority, all its rights and properties shall pass to and be vested in thestate.
(d) The board shall determine the date, time, place and methodof notice for all regular meetings of the board. A majority of the votingdirectors of the authority constitutes a quorum for the transaction of anybusiness or the exercise of any power or function of the authority. All mattersshall be decided by a majority vote of the voting members of the board. Minutesof board meetings shall be kept, maintained and open to members of the public.Notice of meetings shall be given to the public prior to the meetings andmeetings shall be open to the public in accordance with W.S. 16-4-401 through16-4-408. In emergency circumstances, as unanimously determined by the boardmembers, the board may take action by conference telephone or similarcommunications equipment whereby all persons participating in the meeting canhear each other at the same time. The conversation shall be recorded,immediately transcribed as minutes of the board, and notice given of theiravailability for public review. The finding by the board that an emergencyexists shall be binding and conclusive unless clearly erroneous.
(e) The authority shall execute and maintain at its expense ablanket surety bond covering each director, the executive director and theemployees or other officers of the authority in the penal sum of two hundredfifty thousand dollars ($250,000.00).
(f) Neither the directors, the executive director, theemployees of the authority nor any other person executing bonds shall besubject to any personal liability by reason of their issuance.
(g) Notwithstanding any other provision, the directors, theexecutive director and the employees of the authority shall receive approval inadvance from the governor prior to traveling out of state on officialbusiness. Except as specifically provided in this act, the provisions of W.S.9-2-1001 through 9-2-1024 do not apply to the authority.
9-7-105. Community development authority; general powers and duties.
(a) For the purposes of this act, the authority may:
(i) Sue and be sued and procure necessary liability insurance;
(ii) Have a seal;
(iii) Make and execute contracts and other instruments, includingfinancial contracts and instruments which the authority determines arereasonable and advisable to carry out the purposes and programs of theauthority;
(iv) Adopt rules and regulations for its organization, forspecial meetings of the board, for internal management and for its loans,projects, economic development projects, operations, properties and facilities,including regulations governing the purchase, sale, rental, use, occupancy,maintenance, repair and alteration of housing projects. The rules andregulations shall be filed pursuant to the Wyoming Administrative ProcedureAct;
(v) Acquire or contract to acquire by grant, purchase, optionor otherwise, real, personal or mixed property or any interest in property;
(vi) Own, hold, clear, improve and rehabilitate, and sell,assign, exchange, transfer, convey, lease, mortgage or otherwise dispose of, orencumber the same;
(vii) Sell, lease, assign, transfer, convey, exchange, mortgageor otherwise dispose of or encumber any project or economic developmentproject, and in the case of the sale of any project or economic developmentproject, accept a purchase money mortgage in connection with the sale, andlease, repurchase or otherwise acquire and hold any project or economicdevelopment project which the authority has sold, leased or otherwise conveyed,transferred or disposed of;
(viii) Grant options to purchase any project or economicdevelopment project or to renew any leases entered into by it in connectionwith any of its projects or economic development projects, on terms and conditionsit considers advisable;
(ix) Prepare plans, specifications, designs and cost estimatesfor the construction, reconstruction, rehabilitation, improvement, alterationor repair of any project or economic development project, and modify the plans,specifications, designs or estimates;
(x) Manage any project or economic development project, whetherowned or leased by the authority, and enter into agreements for managing anyproject or economic development project;
(xi) Provide advisory, consultative or educational services,technical assistance and advice to any person in order to carry out thepurposes of the authority;
(xii) Borrow money and issue its negotiable bonds and provide forthe rights of the holders thereof;
(xiii) Mortgage or pledge any or all of its revenue, income,projects or economic development projects whether owned or later acquired, andassign or pledge the leases on any portion of the projects or economicdevelopment projects as security for the payment of the principal and intereston any bonds issued and any agreements made in connection therewith;
(xiv) Deposit or invest any funds of the authority as provided inW.S. 9-7-116;
(xv) Procure insurance against any loss in connection with itsproperty and other assets and operations in amounts and from insurers it deemsdesirable including, without limitation, participating with the federalgovernment or any agency or instrumentality thereof or any private insurer inany insurance or guaranty program;
(xvi) Engage the services of consultants on a contract basis forrendering professional, financial and technical assistance and advice;
(xvii) Contract for and accept any gifts or grants or loans offunds or property or financial or other aid in any form from the federalgovernment or any agency or instrumentality thereof, or from any other sourceand pass through or otherwise comply, subject to the provisions of this act,with the terms and conditions thereof;
(xviii) Purchase loans from mortgage lenders, includingconstruction loans or advances, or participations therein, subject to W.S.9-7-106, and sell or otherwise dispose of the loans;
(xix) Make loans to mortgage lenders under terms and conditionsrequiring the proceeds to be used by the mortgage lenders to make mortgages onresidential real property, subject to W.S. 9-7-106;
(xx) Enter into loan servicing agreements with any mortgagelender in this state at reasonable fees;
(xxi) Consent to the modification of the terms of any mortgage,loan or contract to which the authority is a party, subject to any contractwith bondholders;
(xxii) Make loans, including loans to mortgage lenders to enablethe lenders to make loans, to finance projects, including construction loansand advances, under terms and conditions, and with security therefore, as theauthority deems appropriate. The authority shall not make any loan, other thanloans to mortgage lenders, which is a first lien loan to a homeowner withrespect to single family residential property.
(b) The authority shall:
(i) Cooperate with the director of the state department ofaudit and its own auditors to develop and adopt guidelines relative to theproper handling and accounting for receipts and disbursements of the authorityand other financial and administrative policies which shall generallycorrespond to normal business practices required of financial institutions;
(ii) Provide by rule and regulation that any person assuming amortgage loan under this chapter shall qualify under existing authority rulesand regulations to the extent that rules for qualifying are not in conflictwith federal programs.
(c) Repealed by Laws 1988, ch. 87, 3.
9-7-106. Community development authority; additional powers; purchaseof mortgages; loans to lenders; funds appropriated for low interest mortgages.
(a) In addition to the other powers granted in this act, theauthority:
(i) May purchase from mortgage lenders or make commitments topurchase, or take assignments from mortgage lenders of notes and mortgagesevidencing loans for the purchase, construction or rehabilitation ofresidential real property in the state. If the notes and mortgages are financedwith bond proceeds, the notes and mortgages shall be insured or guaranteed inwhole or in part by governmental or private mortgage insurers, including thefund created by W.S. 9-7-123, or otherwise secured as provided in theresolution or trust indenture authorizing bonds of the authority;
(ii) May make loans to mortgage lenders which are general obligationsof the respective lenders and may establish maturity dates, repaymentschedules, provisions for prepayment, the nature, bond, note or othercertificate of indebtedness and other provisions consistent with this sectionwhich the authority determines are necessary. The authority shall require as acondition of each loan to a mortgage lender that the mortgage lender, on orbefore a designated date shall have entered into written commitments to make,and shall proceed as promptly as practicable to make and disburse, newmortgages on residential real property in an aggregate principal amount equalto the amount of the loan;
(iii) Shall require that loans to mortgage lenders areadditionally secured as to payment of both principal and interest by a pledgeof and lien upon collateral security in the amounts the authority by resolutiondetermines to be necessary to assure the payment of the loans and the interestthereon as they become due. Such collateral security shall be determined by theauthority and may consist of those obligations described in W.S.9-7-105(a)(xiv) or mortgages secured by first mortgage liens on residentialreal property in the state;
(iv) May, in connection with any mortgage loan or loan to amortgage lender, foreclose on any property on which the authority holds amortgage loan, or realize upon any collateral pledged as security, or commenceany action to protect or enforce any right conferred upon it by any law,mortgage, contract or other agreement, and bid for and purchase such propertyor collateral at any foreclosure or at any other sale, or acquire or takepossession of any such property or collateral. In the event of a proposed orexisting foreclosure or sale of collateral the authority may complete,administer, pay the principal of and interest on any obligations in connectionwith the property, subordinate its interest to other financing, dispose of, andotherwise deal with the property in the manner that may be necessary ordesirable to protect the interest of the authority therein;
(v) Shall adopt, modify or repeal rules and regulationsgoverning the making of loans to mortgage lenders, the purchase and sale ofmortgage loans and the application of the proceeds thereof, including but notlimited to rules and regulations relating to:
(A) Housing, income or other reasonable eligibility standardsfor persons or families to be financed from mortgage loans purchased frommortgage lenders or from loans to mortgage lenders;
(B) Limitations or restrictions as to the location or otherqualifications or characteristics of residences to be financed from theproceeds of the purchases or loans;
(C) Restrictions as to the interest rates on loans made fromthe proceeds of the purchase of mortgage loans or from loans to mortgagelenders or the return realized therefrom by mortgage lenders;
(D) Requirements as to any commitments by mortgage lenders withrespect to the application of the proceeds of the purchase or loan; and
(E) Schedules of any fees and charges necessary to provide forexpenses and reserves of the authority.
(vi) May adopt a program or issue bonds to purchase mortgageloans or make loans to mortgage lenders if the authority finds:
(A) That the mortgage lending resources of the mortgage lendersare not sufficient to adequately finance the housing needs of the state; and
(B) That the loan to lenders or mortgage loan purchased willpromote better housing in the state.
(vii) May make, purchase from lenders, make commitments topurchase or take assignments from mortgage lenders of notes for homeimprovement loans, or make loans or commitments to lenders for the purpose ofmaking funds available for home improvement loans. The home improvement loansto lenders shall be secured in a manner the authority determines;
(viii) Shall receive all funds which may be appropriated to itfrom the state treasury for the purpose of reducing the interest rate onmortgage loans made to low and moderate income persons. The authority shallallocate the lower interest rate mortgages only to persons and families of lowand moderate income in need of assistance in obtaining decent, safe andsanitary housing at affordable rates.
9-7-107. Community development authority; revenue bonds; issuance.
(a) Subject to W.S. 9-7-108, the authority may issue bonds inprincipal amounts the authority determines necessary to provide sufficientfunds for achieving any of its purposes, including the payment of interest, theestablishment of reserves and for the purpose of defraying all other projectand economic development project costs. All bonds issued under this act arenegotiable instruments under the laws of the state unless expressly provided tothe contrary on the face of the bonds.
(b) All bonds issued by the authority are payable solely out ofspecial funds consisting of all or part of its revenues, receipts, monies andassets, as designated in the proceedings under which the bonds are authorized.The bonds shall bear interest at the rates, be executed and delivered at timesand in denominations, be of terms and maturities, be in bearer form or inregistered form as to principal and interest or principal alone, and bearmanual or facsimile signatures and seals as determined by the authority.
(c) Bonds may be payable in installments and may bearmaturities not exceeding forty-five (45) years from the date issued asdetermined by the authority.
(d) As determined by the authority, bonds and interest may bepayable at a time or place whether within or without the state. Bonds maycontain other provisions not inconsistent with this act.
(e) Any bonds issued by the authority may contain an option toredeem all or any part as may be specified. The price of redemption, the termsand conditions and the procedure of notice shall be set forth in theproceedings of the authority and may appear on the face of the bonds.
(f) Any bonds of the authority may be sold at, above or belowpar value, at public or private sale, in a manner and from time to time asdetermined by the authority. The authority may pay legal fees, expenses,premiums and commissions which it finds necessary or advantageous in connectionwith the issuance and sale.
(g) Additional bonds for a particular purpose may be issuedprovided the later issues shall recognize and protect any prior pledge ormortgage made for any prior issue. Bonds may be issued providing that any laterissues for the same project or economic development project may be on a paritywith the earlier bonds.
(h) The authority may provide for the issuance of its bonds torefund any bonds of the authority then outstanding, including the payment ofany redemption premium and any interest or premium accrued or to accrue to, theearliest or subsequent date of redemption, purchase or maturity of the bondsand, if determined advisable by the authority, for the purpose of paying anypart of the cost of acquiring, purchasing, constructing, reconstructing orimproving any project or economic development project or for making any loan onany project or economic development project. Refunding shall be accomplished inthe manner prescribed by W.S. 16-5-101 through 16-5-119 to the extent it isnot inconsistent with this act.
9-7-108. Community development authority; revenue bonds; amountauthorized.
(a) Repealed By Laws 1997, ch. 64, 2.
(b) Repealed By Laws 1997, ch. 64, 2.
(c) Repealed By Laws 1997, ch. 64, 2.
(d) Repealed by Laws 1988, ch. 87, 3.
(e) Repealed By Laws 1997, ch. 64, 2.
(f) Repealed By Laws 1997, ch. 64, 2.
(g) Repealed By Laws 2000, Ch. 41, 2.
(h) In addition to the bonds presently outstanding, any bondsauthorized for care facility projects, bonds that may be issued to refundbonds, and bonds the authority may issue from time to time as private activitybonds exempt from federal income taxation under section 146 of the internalrevenue code of 1986, as amended, the authority may issue and have outstandingadditional bonds in an aggregate amount of up to four hundred million dollars($400,000,000.00).
(j) In addition to the bonds authorized by subsection (h) ofthis section, the authority may issue and have outstanding additional bonds forcare facility projects in an aggregate amount of up to two hundred fiftymillion dollars ($250,000,000.00).
9-7-109. Community development authority; revenue bonds; securitytherefor.
(a) The principal and interest on any bonds issued by theauthority may be secured by a pledge of any revenues and receipts of theauthority or assignment of mortgage loans or other assets purchased and may besecured by a mortgage or other instrument covering all or any part of a projector economic development project, including any additions, improvements,extensions to or enlargements of any project or economic development projectlater made, or assignment, pledge or any loan or loan participation.
(b) Bonds issued for the purchase, acquisition, construction,reconstruction or improvement of a project or economic development project mayalso be secured by an assignment of any lease of or mortgage on the project oreconomic development project and by an assignment of the revenues and receiptsderived by the authority from the lease or mortgage of the project or economicdevelopment project.
(c) The resolution under which the bonds are authorized and anymortgage, lease or other instrument may contain agreements and provisions forthe maintenance of the projects or economic development projects covered, thefixing and collection of rents or other revenues, including monies received inrepayment of mortgage loans and interest, the creation and maintenance ofspecial funds from rents or other revenues and the rights and remediesavailable in the event of default.
(d) Each pledge, agreement, mortgage or other instrument madefor the benefit or security of any bonds of the authority is valid and bindingfrom the time when made. The revenues, receipts, monies and assets pledged areimmediately subject to the lien of the pledge without delivery or further act.The lien is valid and binding against persons having claims of any kind againstthe authority whether or not the persons have actual notice of the lien.Neither the resolution nor the indenture or other instrument by which a pledgeis created need be recorded or filed.
(e) The authority may provide in the proceedings under whichbonds are authorized that any part or all of any project or economicdevelopment project may be purchased, constructed, reconstructed or improved bythe authority, any municipality or any lessee or designee of the authority, andmay also provide for the time and manner of and requisites for disbursements tobe made for the cost of construction and for all the certificates and approvalsof construction and disbursements as the authority considers necessary.
(f) Any resolution or trust indenture under which bonds of theauthority are authorized may contain provisions for vesting in a trustee theproperties, rights, powers and duties in trust as the authority determines.This may include any or all of the rights, powers and duties of the trusteeappointed by the holders of any issue of bonds pursuant to W.S. 9-7-115, inwhich event the provisions of W.S. 9-7-115 authorizing the appointment of atrustee by the holders of bonds shall not apply.
9-7-110. Community development authority; revenue bonds; debt servicereserve funds; use of monies therein.
(a) Prior to the delivery of each bond issue, the authority maycreate one (1) or more debt service reserve funds and, at the time theauthority determines, shall pay into the funds an amount, as determined by theauthority, from:
(i) Proceeds of sale of bonds to the extent provided in theresolution of the authority authorizing the issuance; and
(ii) Other monies which may be received or made available to theauthority for the purposes of funds from any other source.
(b) Unless otherwise provided, the monies held in or creditedto any debt service reserve fund established under this section shall be usedsolely for the payment of the principal of bonds of the authority secured bythe reserve fund, as the bonds mature or are redeemed prior to maturity, thepurchase of such bonds of the authority, the payment of interest on such bondsof the authority or the payment of any redemption premium required to be paid whenthe bonds are redeemed prior to maturity. The interest earned on the amountdeposited in any reserve fund may be used for the purpose of defraying the costof the authority's operations. Money in any debt service reserve fund shall notbe withdrawn if it would reduce the amount of the fund to less than the amountwhich is pledged in the proceedings authorizing the issuance of the bondssecured by the debt service reserve fund, except for the purpose of payingprincipal and interest on bonds maturing and becoming due, and for the paymentof which other monies of the authority are not available.
9-7-111. Community development authority; revenue bonds; dispositionof monies received.
Moniesreceived pursuant to the authority of this act, whether as proceeds from thesale of bonds or as revenues, receipts or income, shall be held as trust fundsto be applied solely as provided in the proceedings under which the bonds areauthorized. The trustee shall hold and apply the monies for the purposesauthorized by this act and by the proceedings authorizing the bonds andincluded in the trust agreement securing the bonds.
9-7-112. Exemptions from taxation; exceptions.
Theexercise of the powers granted by this act constitutes the performance of anessential governmental function. The authority shall not be required to pay anytaxes levied by any municipality or political subdivision of the state, otherthan assessments for local improvements, upon its projects, property or monies.The authority shall not be required to pay state taxes of any kind. Except forestate taxes the authority's projects, property and monies and any bonds issuedunder this act and the income therefrom, shall be free from taxation of everykind by the state, municipalities and political subdivisions of the state.
9-7-113. Bonds as legal investments.
Thebonds of the authority are legal investments which may be used as collateralfor public funds of the state, insurance companies, banks, savings and loanassociations, investment companies, trustees and other fiduciaries which mayproperly and legally invest funds in their control or belonging to them inbonds of the authority.
9-7-114. State pledge not to impair bondholder's rights and remedies.
Thestate pledges to the holders of any bonds issued under this act, that the statewill not limit or alter the rights vested in the authority to fulfill the termsof agreements made with the holders, or in any way impair the rights andremedies of the holders until the bonds together with the interest, withinterest on any unpaid installments of interest, and all costs and expenses inconnection with any action or proceeding by or on behalf of the holders arefully met and discharged. The authority is authorized to include this pledge ofthe state in any agreement with the holders of the bonds.
9-7-115. Appointment of trustee by bondholders; powers and dutiesthereof.
(a) If the authority defaults in the payment of principal of orinterest on any bonds after they become due, whether at maturity or upon callfor redemption, and the default continues for a period of thirty (30) days, orif the authority fails or refuses to comply with the provisions of this act, ordefaults in any agreement made with the holders of any bonds, the holders of twenty-fivepercent (25%) in aggregate principal amount of the bonds of the issue thenoutstanding, by instrument or instruments filed in the office of the secretaryof state, may appoint a trustee to represent the holders of the bonds for thepurposes herein provided.
(b) The trustee may, and upon written request of the holders oftwenty-five percent (25%) in principal amount of such bonds then outstandingshall, in his or its own name:
(i) By suit, action or proceeding enforce all rights of thebondholders to require the authority to carry out any other agreements with theholders of the bonds and to perform its duties under this act;
(ii) Bring suit upon the bonds;
(iii) By action or suit, require the authority to account as ifit were the trustee of an express trust for the holders of the bonds;
(iv) By action or suit, enjoin any acts or things which may beunlawful or in violation of the rights of the holders of the bonds;
(v) Declare all the bonds due and payable, and if all defaultsare made good, then, with the consent of the holders of twenty-five percent(25%) of the principal amount of the bonds then outstanding, to annul thedeclaration and its consequences.
(c) In addition, the trustee has all the powers necessary orappropriate for the exercise of any functions specifically set forth in thisact or incident to the general representation of bondholders in the enforcementand protection of their rights.
9-7-116. Investment and management of funds.
(a) The authority may invest funds in securities in which statefunds may be invested as provided by law or in savings certificates of savingsand loan associations and certificates of deposit of banks to the extent theyare fully insured by a federal agency or are fully secured by a pledge ofassets as provided by law, sell securities it has purchased and depositsecurities in any financial institution. Funds deposited in financialinstitutions shall be secured by obligations authorized as permissible securityfor state investments. In investing and managing its funds, the authority shallexercise the judgment and care which persons of prudence, discretion andintelligence would exercise under similar circumstances in managing thepermanent disposition of their funds, considering the probable income and theprobable safety of their capital.
(b) Notwithstanding the provisions of this section, theauthority may contract with the holders of any of its bonds, as to the custody,collection, securing, investment and payment of any monies of the authority, ofany monies held in trust or otherwise for the payment of bonds, and may carryout the contract. Monies held in trust or otherwise for the payment of bonds orin any way to secure bonds and deposits of monies may be secured in the same manneras monies of the authority and all banks and trust companies are authorized togive security for these deposits.
(c) Subject to agreements with bondholders, the authority shallprescribe a system of accounts in accordance with generally accepted accountingprinciples.
(d) The authority shall employ a certified public accountant toexamine the books and accounts of the authority including its receipts,disbursements, contracts, reserve funds, sinking funds, investments and anyother matters relating to its financial standing. The examination shall beconducted at least once in each year and copies of the examination report shallbe filed with the secretary of state, the director of the state department ofaudit and the legislative service office.
9-7-117. Assistance by state agencies.
(a) Upon request of the authority, any state agency maytemporarily assign to the authority officers and employees as it deemsnecessary to assist the authority in carrying out its functions and dutiesunder this act. Officers and employees so assigned shall not lose their statusor rights as public employees.
(b) Upon request of the authority, any state agency may lendtechnical assistance, render advice and attend meetings with the directors andemployees of the authority as the authority requires in carrying out itsfunctions and duties.
9-7-118. Annual report and budget.
(a) The authority shall submit an annual report in the mannerprovided by W.S. 9-2-1014.
(b) The authority shall submit its budget for review asprovided by W.S. 9-2-1010 through 9-2-1014. This section shall not impair oraffect any pledge of special funds of the authority to the payment of therevenue bonds authorized by this act.
9-7-119. Conflicts of interest.
(a) The authority shall not purchase from, sell to, borrowfrom, loan to, contract with or otherwise deal with any corporation, trust,association, partnership or other entity in which any director of the authorityhas a financial interest. This section does not prohibit the buying, selling orplacing of mortgage loans with financial institutions in which a director has afinancial interest. The financial interest shall be disclosed in the minutes ofthe authority.
(b) Repealed by Laws 1988, ch. 87, 3.
(c) Repealed by Laws 1988, ch. 87, 3.
9-7-120. Priorities in commitment of monies.
The authority shall require as a conditionto receiving any of its money under this chapter that any mortgage lenderreceiving money, within the limitation imposed by the amount of money received,shall give reasonable priority to mortgage loan applications made directly tothe mortgage lender by qualified, individual home purchasers, before committingany money received from the authority to contractors, builders, real estatedevelopers or real estate agents, except to the extent the authority determinesthere is a need to encourage the construction of affordable housing and it isreasonable and appropriate to provide or permit commitments to alleviate suchneed. Any money committed by a mortgage lender to an individual home purchaserunder this act may be used for the purchase of new or existing residentialdwellings.
9-7-121. Repealed by Laws 1985, ch. 44, 2.
9-7-122. Repealed by Laws 1988, ch. 87, 3.
9-7-123. Economic development projects; insurance fund.
(a) The authority may insure payments required by a loan, leaseor other credit arrangement for any project or economic development projectfinanced, under terms and conditions prescribed by the authority. The authoritymay establish one (1) or more separate accounts and may require the payment offees or premiums, establish application fees and prescribe application,notification, contract and guaranty forms, rules, regulations and guidelines.
(b) Insurance acquired by the authority shall:
(i) Be for a project or an economic development project meetingpolicies and objectives of this act;
(ii) Be through an applicant approved by the authority;
(iii) Contain amortization provisions satisfactory to theauthority; and
(iv) Be for a principal amount, in a form and contain terms forpayment of property insurance, repairs, alterations, taxes, assessments,delinquency charges and default remedies as the authority determines necessary.
(c) The authority may enter into an insurance contract,guarantee or other agreement or contract for the insurance fund and any insuredloan, lease or other credit agreement. The agreement or contract may containterms necessary for the insurance program subject to established requirements,including terms relating to loan documentation, review, approval procedures,origination and servicing rights and responsibilities, default obligations andother loan procedures and obligations.
(d) Any contract for insurance made under this section shallprovide that claims are payable from the insurance fund or a separate accountin the insurance fund. The obligation of the authority to make payments underany insurance contract is limited solely to the insurance fund and is not adebt or liability of the state. Any insurance contract and any rule, regulationor guideline of the authority implementing the insurance program may containother terms, provisions or conditions the authority considers necessary. Anypremium for insuring a loan payment under this section may be determined on abasis, payable by a person in an amount and at a time determined by theauthority. The premium amount may differ among any insured loan, lease or othercredit agreement.
(e) The authority shall establish an insurance fund held by atrustee or other fiduciary designated by the authority. All insurance fees andpremiums shall be deposited into the fund along with up to two million fivehundred thousand dollars ($2,500,000.00) prior to April 1, 1985 and anadditional one million five hundred thousand dollars ($1,500,000.00) thereafterfrom other revenues and assets of the authority as the authority considersnecessary to comply with any contract or agreement entered into under thissection.
(f) The insurance fund shall be used to satisfy any claimresulting from a defaulted loan, lease or other credit agreement. The fund mayalso be used for any other purpose prescribed by the authority pursuant toguaranty contracts with financial institutions under this section including theprotection of the authority's interest in projects during periods ofdelinquency or upon default.
(g) The minimum reserve requirement for the insurance fundshall be an amount provided by agreement, resolution or indenture with bondholders. No additional loan, lease or other credit agreement may be insured ifthe amount available in the insurance fund is less than the minimum reserverequirement.
9-7-124. Repealed by Laws 1995, ch. 199, 2
9-7-125. Subsidiary corporation; economic development loans.
(a) The authority may charter a subsidiary corporation for thepurpose of managing or originating economic development loans subject to thefollowing conditions:
(i) The directors of the authority shall also be directors ofthe subsidiary corporation and are entitled to the same compensation andexpenses for such service as provided by W.S. 9-7-104(b) so long as theservices do not occur on the same day;
(ii) The subsidiary corporation shall not take equity positionsthrough stock ownership in any corporation or association;
(iii) The subsidiary corporation is subject to the auditrequirements of W.S. 9-7-116 and the financial supervision requirements of W.S.9-7-105(b);
(iv) The subsidiary corporation shall not acquire or originateany economic development loans on and after the effective date of this act;
(v) This section is retroactive and prospective in itsapplication.
ARTICLE 2 - SCIENCE, TECHNOLOGY AND ENERGY AUTHORITY
