45-1996

45-1996. Provisions of bonds; sale

A. The bonds shall provide that:

1. The bond is purchased and taken after a complete disclosure and with a full
knowledge of all of the surrounding relevant facts and circumstances and not on the
representation, faith or credit of the authority, this state or any of its political
subdivisions.

2. The holder in order to obtain payment may not compel this state or any of its
political subdivisions to exercise its appropriation or taxing power.

3. The bond does not constitute a debt of this state, any political subdivision of
this state or any operating unit and is payable only from revenues of the authority.

B. The gross or net revenue derived from any project or any part of a project may
be pledged to secure the payment of any series of bonds.

C. The authority may provide for reimbursement to the holder of all expenses of
litigation and attorney fees incurred in collecting the bonds in the event of default and
may provide for and fix the powers and duties of a trustee if necessary to enforce
collection. Bond resolutions, agreements and bonds may be in such form and may contain
such other conditions and terms as the authority deems appropriate or necessary to make
the bonds fully salable and marketable.

D. The authority may provide that any holder of bonds, or a trustee designated by
the authority at the time of issuing the bonds, on proper showing may secure an order of
the superior court requiring the authority, subject to the contracts with operating units
then in effect, to fix and collect rates and charges that will produce adequate revenues
to permit setting up adequate yearly reserves with which to meet future payments
according to the terms of the bond.

E. All bonds issued by the authority and agreements of the authority with respect
to bonds are subject to this chapter, and no bond or agreement may contain any provision
in conflict with this chapter. An amendment of this chapter does not diminish or impair
the remedy and rights of the bondholder.

F. The bonds shall be signed by the chairman or vice-chairman and the
secretary-treasurer of the authority in office at the date of signing and are valid
obligations of the authority although before delivery or sale the persons whose
signatures appear on the bonds may have ceased to be officers of the authority.

G. The validity of the bonds is not dependent on or affected by the legality of any
proceeding relating to the acquisition, construction, improvement or extension of a
project for which the bonds are issued. The bonds shall recite that they are regularly
issued pursuant to this chapter and that recital is prima facie evidence of their
legality and validity.

H. Bonds so issued may be sold when the money is needed for the purposes for which
they are issued. Pending the preparation or execution of definite bonds, interim
receipts or certificates or temporary bonds may be delivered to the purchaser or
purchasers of bonds.