41-4507. Issuance of bonds

A. The board, for and on behalf of the authority, may issue negotiable bonds by resolution for the purpose of acquiring projects to facilitate international trade or commerce.

B. Bonds may be issued in one or more series, may be evidenced by one or more instruments or, if commercial paper, by a succession of instruments each bearing interest payable currently or only at maturity, bear such date or dates, be in such denomination or denominations, mature at such time or times not exceeding forty years from their respective dates, mature in such amount or amounts, bear interest at such rate or rates, be payable at such time or times, be in coupon or registered form, carry such registration privileges, be executed in such manner, be payable in such medium of payment, at such place or places, be refundable either at or in advance of maturity and be subject to such terms of redemption, with or without premium, as the resolution or other resolutions may provide. The bonds may be sold at either public or private sale at, above or below the principal amount of the bonds in the manner and on the terms provided in the resolution adopted by the board.

C. Bonds issued under this chapter are subject to the following:

1. The bonds may bear interest at a fixed or variable rate or any combination of fixed and variable rates, none of which exceed any maximum rate that is approved by the authority. A variable rate shall be based on any objective measure of the current value of money borrowed such as the announced prime rate of a bank, the rates borne by obligations of the United States or an index or other formula or rate setting mechanism provided for by the authority. The authority may employ a recognized agent in municipal bonds to market and remarket the bonds or commercial paper issued and to establish an interest rate pursuant to the approved index or formula.

2. The authority may grant to the owner of any bond a right to tender, or may require the tender of, the bond for payment or purchase at one or more times before maturity and, in such event, may enter into appropriate agreements with any bank, financial institution, insurance company or indemnity company for purchase of the bonds tendered. The agreement may provide that while the bonds are held by the bank, financial institution, insurance company or indemnity company the bonds may bear interest at a rate higher than when the bonds are held by other owners but not in excess of any maximum rate approved by the authority.

3. If bonds are tendered before maturity under an agreement to pay for or purchase bonds when tendered, the authority may provide for the purchase and resale of the bonds pursuant to the tenders without extinguishing the indebtedness represented by them or incurring new indebtedness on the resale, whether or not the bonds are represented by the same instruments when purchased as when resold.

D. The authority may contract with a bank, financial institution, insurance company or indemnity company to provide additional security for the bonds in the form of a line of credit, letter of credit or insurance policy or any other security, may pay the costs of such additional security from the proceeds of the bond issue or from other available sources and may enter into reimbursement obligations subject to the following:

1. Any reimbursement obligation entered into with the bank, financial institution, insurance company or indemnity company shall not provide for the payment of interest in excess of any maximum rate authorized by the authority. The reimbursement obligation does not constitute separate indebtedness of the authority but is payable from the same source as the bonds, or from other available revenues, as determined by the authority.

2. Administrative costs related to the reimbursement obligation may be deducted from bond proceeds or may be treated as interest and paid from the revenues, receipts or other monies of the authority.

E. If the bonds are to be issued in the form of commercial paper, the authority shall first provide for the establishment of the schedule for the maturities of the bonds within any maximum period permitted by the bond resolution. Individual instruments representing the bond shall mature over shorter periods and may be retired with the proceeds of definitive bonds, but they shall be finally paid according to the schedule of bond maturities or earlier. Bonds issued in the form of commercial paper may be sold through an agent in the form of instruments that mature at intervals the agent determines to be most advantageous to the authority after giving public notice to potential investors as determined by the authority.

F. Bonds may be issued as compound interest bonds bearing interest payable only at maturity but compounded periodically until that date at a rate no higher than any maximum rate approved by the authority.

G. Principal and interest on the bonds are payable solely from the revenues, receipts or other monies received or held by the authority.

H. Any resolution authorizing the issuance of bonds may provide for:

1. Execution of trust indentures, trust agreements or assignments to a trustee of the agreements relating to the project or projects to be acquired by the series or issue of bonds setting forth the powers, duties and remedies available to trustees, limiting liabilities, describing what occurrences constitute default and prescribing terms and conditions on which trustees or holders of bonds of any specified amount or percentage of such bonds may exercise and enforce any rights, covenants and remedies in order to protect the bondholder or bondholders and facilitate the payment of the principal and interest on the bonds.

2. Capitalization of a bond reserve from bond proceeds or from the revenues, receipts or other monies of the authority when the board deems necessary.

3. Limitations on the issuance of future bonds or restrictions or formulas relative to the issuance of future bonds of equal or secondary lien, or for a lien on or pledge of the revenues, receipts or other monies of the authority.

4. Restrictions as to liens, encumbrances or alienation of any project.

5. Covenants as to any procedures by which the terms of any agreement for the benefit of holders of such bonds may be amended or abrogated, the amount or percentage of bondholders who must consent and the manner in which the consent may be given.

6. Vesting in a trustee or holder of any specified amount or percentage of bonds the right to apply to any court of competent jurisdiction for, and have granted, the appointment of a receiver to act under the terms of any agreement.

I. Bonds issued under this chapter are fully negotiable within the meaning and for all purposes of the uniform commercial code regardless of whether the bonds constitute negotiable instruments under the uniform commercial code.

J. Bonds issued under this chapter:

1. Are payable only according to their terms.

2. Are obligations of the authority and are not general, special or other obligations of this state.

3. Do not constitute a legal debt of this state.

4. Are not enforceable against this state, and payment of the bonds is not enforceable out of any monies other than the income and revenue or other security pledged and assigned by the authority to, or in trust for the benefit of, the holder or holders of the bonds.

5. Are securities in which public officers and bodies of this state and of municipalities and political subdivisions of this state, all companies, associations and other persons carrying on an insurance business, all financial institutions, investment companies and other persons carrying on a banking business, all fiduciaries and all other persons who are authorized to invest in government obligations may properly and legally invest.

6. Are securities that may be deposited with public officers or bodies of this state and municipalities and political subdivisions of this state for purposes that require the deposit of government bonds or obligations.

41-4507. Issuance of bonds

A. The board, for and on behalf of the authority, may issue negotiable bonds by resolution for the purpose of acquiring projects to facilitate international trade or commerce.

B. Bonds may be issued in one or more series, may be evidenced by one or more instruments or, if commercial paper, by a succession of instruments each bearing interest payable currently or only at maturity, bear such date or dates, be in such denomination or denominations, mature at such time or times not exceeding forty years from their respective dates, mature in such amount or amounts, bear interest at such rate or rates, be payable at such time or times, be in coupon or registered form, carry such registration privileges, be executed in such manner, be payable in such medium of payment, at such place or places, be refundable either at or in advance of maturity and be subject to such terms of redemption, with or without premium, as the resolution or other resolutions may provide. The bonds may be sold at either public or private sale at, above or below the principal amount of the bonds in the manner and on the terms provided in the resolution adopted by the board.

C. Bonds issued under this chapter are subject to the following:

1. The bonds may bear interest at a fixed or variable rate or any combination of fixed and variable rates, none of which exceed any maximum rate that is approved by the authority. A variable rate shall be based on any objective measure of the current value of money borrowed such as the announced prime rate of a bank, the rates borne by obligations of the United States or an index or other formula or rate setting mechanism provided for by the authority. The authority may employ a recognized agent in municipal bonds to market and remarket the bonds or commercial paper issued and to establish an interest rate pursuant to the approved index or formula.

2. The authority may grant to the owner of any bond a right to tender, or may require the tender of, the bond for payment or purchase at one or more times before maturity and, in such event, may enter into appropriate agreements with any bank, financial institution, insurance company or indemnity company for purchase of the bonds tendered. The agreement may provide that while the bonds are held by the bank, financial institution, insurance company or indemnity company the bonds may bear interest at a rate higher than when the bonds are held by other owners but not in excess of any maximum rate approved by the authority.

3. If bonds are tendered before maturity under an agreement to pay for or purchase bonds when tendered, the authority may provide for the purchase and resale of the bonds pursuant to the tenders without extinguishing the indebtedness represented by them or incurring new indebtedness on the resale, whether or not the bonds are represented by the same instruments when purchased as when resold.

D. The authority may contract with a bank, financial institution, insurance company or indemnity company to provide additional security for the bonds in the form of a line of credit, letter of credit or insurance policy or any other security, may pay the costs of such additional security from the proceeds of the bond issue or from other available sources and may enter into reimbursement obligations subject to the following:

1. Any reimbursement obligation entered into with the bank, financial institution, insurance company or indemnity company shall not provide for the payment of interest in excess of any maximum rate authorized by the authority. The reimbursement obligation does not constitute separate indebtedness of the authority but is payable from the same source as the bonds, or from other available revenues, as determined by the authority.

2. Administrative costs related to the reimbursement obligation may be deducted from bond proceeds or may be treated as interest and paid from the revenues, receipts or other monies of the authority.

E. If the bonds are to be issued in the form of commercial paper, the authority shall first provide for the establishment of the schedule for the maturities of the bonds within any maximum period permitted by the bond resolution. Individual instruments representing the bond shall mature over shorter periods and may be retired with the proceeds of definitive bonds, but they shall be finally paid according to the schedule of bond maturities or earlier. Bonds issued in the form of commercial paper may be sold through an agent in the form of instruments that mature at intervals the agent determines to be most advantageous to the authority after giving public notice to potential investors as determined by the authority.

F. Bonds may be issued as compound interest bonds bearing interest payable only at maturity but compounded periodically until that date at a rate no higher than any maximum rate approved by the authority.

G. Principal and interest on the bonds are payable solely from the revenues, receipts or other monies received or held by the authority.

H. Any resolution authorizing the issuance of bonds may provide for:

1. Execution of trust indentures, trust agreements or assignments to a trustee of the agreements relating to the project or projects to be acquired by the series or issue of bonds setting forth the powers, duties and remedies available to trustees, limiting liabilities, describing what occurrences constitute default and prescribing terms and conditions on which trustees or holders of bonds of any specified amount or percentage of such bonds may exercise and enforce any rights, covenants and remedies in order to protect the bondholder or bondholders and facilitate the payment of the principal and interest on the bonds.

2. Capitalization of a bond reserve from bond proceeds or from the revenues, receipts or other monies of the authority when the board deems necessary.

3. Limitations on the issuance of future bonds or restrictions or formulas relative to the issuance of future bonds of equal or secondary lien, or for a lien on or pledge of the revenues, receipts or other monies of the authority.

4. Restrictions as to liens, encumbrances or alienation of any project.

5. Covenants as to any procedures by which the terms of any agreement for the benefit of holders of such bonds may be amended or abrogated, the amount or percentage of bondholders who must consent and the manner in which the consent may be given.

6. Vesting in a trustee or holder of any specified amount or percentage of bonds the right to apply to any court of competent jurisdiction for, and have granted, the appointment of a receiver to act under the terms of any agreement.

I. Bonds issued under this chapter are fully negotiable within the meaning and for all purposes of the uniform commercial code regardless of whether the bonds constitute negotiable instruments under the uniform commercial code.

J. Bonds issued under this chapter:

1. Are payable only according to their terms.

2. Are obligations of the authority and are not general, special or other obligations of this state.

3. Do not constitute a legal debt of this state.

4. Are not enforceable against this state, and payment of the bonds is not enforceable out of any monies other than the income and revenue or other security pledged and assigned by the authority to, or in trust for the benefit of, the holder or holders of the bonds.

5. Are securities in which public officers and bodies of this state and of municipalities and political subdivisions of this state, all companies, associations and other persons carrying on an insurance business, all financial institutions, investment companies and other persons carrying on a banking business, all fiduciaries and all other persons who are authorized to invest in government obligations may properly and legally invest.

6. Are securities that may be deposited with public officers or bodies of this state and municipalities and political subdivisions of this state for purposes that require the deposit of government bonds or obligations.