11-307. Issuance of bonds; negotiability;
investment; definition
A. A governing body of any county, city or town may issue bonds for and on behalf
of the county, city or town to provide funds to construct, purchase or lease, as lessee,
any health care institution. The bonds shall be payable solely from the revenues of the
issuer received from the payment of leases or purchase agreements for the lease or sale
of the health care institution constructed, purchased or leased, as lessor, by the
issuer.
B. Bonds issued under this article shall be fully negotiable within the meaning and
for all purposes of title 44. They may be in one or more series which may be secured by
revenues from the lease or sale of one or more health care institutions, may bear such
dates, may be payable in such medium of payment, at such places, may carry such
registration privileges, shall be executed in such manner, contain such terms, covenants
and conditions and shall be in such form, either coupon or registered, as the governing
body may by resolution prescribe. The bonds shall be payable at one time, or from time
to time in such manner and in such maturities no longer than forty years from their date
as the governing body may prescribe. The bonds may be additionally secured by reserve or
sinking funds which may either be capitalized in whole or in part from bond proceeds or
accumulated over the term of the bonds from pledged revenues. Any or all of the bonds may
be callable at such times, on such terms and in such manner as the governing body by
resolution may prescribe. The bonds may be refunded by the issuance of refunding bonds
either at or in advance of maturity, but the mere issuance of refunding bonds shall never
be construed to advance the maturity or change stated call dates of the bonds being
refunded. The bonds shall bear such rate or rates of interest as the governing body may
provide and may be sold above, at, or below par at either public or private sale. The
issuer may assign its interest in any or all of the leases, purchase contracts, reserve
or sinking funds securing any issue or series of bonds to a bank or trust company doing
business in this state as an indenture trustee. The resolution of the governing body
authorizing the issuance of the bonds may contain such covenants, conditions and
provisions as deemed necessary to secure the bonds.
C. Bonds issued under the provisions of this article shall be legal investments for
all banks, trust companies and insurance companies organized and operating under the laws
of this state. The bonds and interest thereon shall be paid solely in accordance with
their terms and shall not be obligations general, special or otherwise of this
state. Such bonds shall not constitute a legal debt of this state and shall not be
enforceable against the state. The issuer shall not in any event be liable for the
payment of the principal of or interest on the bonds from any source of revenues other
than those pledged for the payment of the bonds. The bonds shall never be construed to
constitute an indebtedness of the issuer within the meaning of any constitutional or
statutory provisions whatsoever.
D. For purposes of this article, the term "health care institutions" shall include
but not be limited to land, buildings, aircraft and ground vehicles reasonably necessary
to conduct an ambulance service.
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