§46-106  Tax increment bonds.  (a)  A
county may issue tax increment bonds, the proceeds of which may be used to pay
project costs for a tax increment district or to satisfy claims of
bondholders.  The county may issue refunding bonds previously issued by the
county for the purpose of paying or retiring or in exchange for tax increment
bonds previously issued by the county.  Principal and interest on tax increment
bonds shall be made payable, as to both principal and interest, solely from the
tax increment fund established for the tax increment district.



A county may provide in its contract with the
owners or holders of the tax increment bonds that the county will pay into the
tax increment fund all or any part of the revenue or money produced or received
as a result of the operation or sale of a facility acquired, improved, or
constructed pursuant to a redevelopment plan or community development plan, as
the case may be, to be used to pay principal and interest on the tax increment
bonds and, if a county so agrees, the owners or holders of the tax increment
bonds may have a lien or mortgage on any facility acquired, improved, or
constructed with the proceeds of the tax increment bonds.



(b)  Tax increment bonds, and the income
therefrom, issued pursuant to this part shall be exempt from all state and
county taxation, except estate and transfer taxes.



The bonds shall be authorized by ordinance and
may be issued in one or more series.  The tax increment bonds of each issue
shall be dated, be payable upon demand or mature at a time or times not
exceeding thirty years from their date of issuance, bear interest at a rate or
rates, be in a denomination or denominations, be in registered form, have a
rank or priority, be executed in a manner, be payable in a medium of payment at
a place or places, and be subject to terms of redemption (with or without
premium), be secured in a manner, and have other characteristics as may be
provided by the ordinance providing for issuance of the bonds or by the trust
indenture or mortgage issued in connection with the bonds.  The county may sell
tax increment bonds in such manner, either at public or private sale, and for
such price as it may determine.



(c)  Prior to the preparation of definitive tax
increment bonds, the county may issue interim receipts or temporary bonds
exchangeable for definitive bonds when such bonds have been executed and are
available for delivery.



(d)  Should any bond issued under this part
become mutilated or be lost, stolen, or destroyed, the county may cause a new
bond of like date, number, and tenor to be executed and delivered in exchange
and substitution for, and upon the cancellation of such mutilated bond, or in
lieu of and in substitution for such lost, stolen, or destroyed bond.  Such new
bond shall not be executed or delivered until the holder of the mutilated,
lost, stolen, or destroyed bond:



(1)  Has paid reasonable expenses and charges in
connection therewith;



(2)  In the case of a lost, stolen, or destroyed bond,
has filed with the county or its fiduciary satisfactory evidence that such bond
was lost, stolen, or destroyed, and that the holder was owner thereof; and



(3)  Has furnished indemnity satisfactory to the
county.



(e)  Notwithstanding any of the provisions of
this part or any recital in any tax increment bond issued under this part, all
tax increment bonds shall be deemed to be investment securities under the
Uniform Commercial Code, chapter 490, subject only to the provisions pertaining
to registration.



(f)  In any suit, action, or other proceeding
involving the validity or enforceability of a bond issued under this part or
the security for a bond or note issued under this part, a bond reciting in
substance that it had been issued by the county for a tax increment district
shall be conclusively deemed to have been issued for that purpose, and the
development or redevelopment of the district conclusively shall be deemed to
have been planned, located, and carried out as provided by this part.



(g)  All banks, trust companies, savings banks and
institutions, building and loan associations, savings and loan associations,
investment companies, and other persons carrying on a banking or investment
business; all insurance companies, insurance associations, and other persons
carrying on an insurance business; and all personal representatives,
administrators, curators, trustees, and other fiduciaries legally may invest
sinking funds, money, or other funds belonging to them or within their control
in tax increment bonds issued by a county pursuant to this part.  The bonds
shall be authorized security for all public deposits.  Any person, political
subdivision, and officer, public or private, are authorized to use funds owned
or controlled by them for the purchase of tax increment bonds.  This part does
not relieve any person of the duty to exercise reasonable care in selecting
securities.



(h)  Tax increment bonds shall be payable only
out of the tax increment fund.  The county council may pledge irrevocably all
or a part of the fund for payment of the bonds.  The part of the fund pledged
in payment thereafter shall be used only for the payment of the bonds or
interest or redemption premium, if any, on the bonds until the bonds have been
fully paid.  A holder of the bonds shall have a lien against the fund for
payment of the bonds and interest thereon and may either at law or in equity
protect and enforce such lien.



(i)  No officer of the county including any
officer executing tax increment bonds shall be liable for the tax increment
bonds by reason of the issuance thereof.  Tax increment bonds issued under this
part shall not be general obligations of the State or county, nor in any event
shall they give rise to a charge against the general credit or taxing powers of
the State or county or be payable other than as provided by this part.  No
holder of bonds issued under this part shall have the right to compel any
exercise of the taxing power of the State or county to pay such bonds or the
interest thereon, and no moneys other than the moneys in the tax increment fund
pledged to the bonds shall be applied to the payment thereof.  Tax increment
bonds issued under this part shall state these restrictions on their face.



(j)  The tax increment bonds bearing the
signature or facsimile signature of officers in office on the date of the
signing thereof shall be valid and sufficient for all purposes, notwithstanding
that before the delivery thereof and payment therefor any or all persons whose
signatures appear thereon shall have ceased to be officers of the county.



(k)  Tax increment bonds shall not be issued in
an amount exceeding the total costs of implementing the tax increment financing
plan for which they were issued. [L 1985, c 267, pt of §1]