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

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

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

The bonds shall be authorized by ordinance andmay be issued in one or more series.  The tax increment bonds of each issueshall be dated, be payable upon demand or mature at a time or times notexceeding thirty years from their date of issuance, bear interest at a rate orrates, be in a denomination or denominations, be in registered form, have arank or priority, be executed in a manner, be payable in a medium of payment ata place or places, and be subject to terms of redemption (with or withoutpremium), be secured in a manner, and have other characteristics as may beprovided by the ordinance providing for issuance of the bonds or by the trustindenture or mortgage issued in connection with the bonds.  The county may selltax increment bonds in such manner, either at public or private sale, and forsuch price as it may determine.

(c)  Prior to the preparation of definitive taxincrement bonds, the county may issue interim receipts or temporary bondsexchangeable for definitive bonds when such bonds have been executed and areavailable for delivery.

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

(1)  Has paid reasonable expenses and charges inconnection therewith;

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

(3)  Has furnished indemnity satisfactory to thecounty.

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

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

(g)  All banks, trust companies, savings banks andinstitutions, building and loan associations, savings and loan associations,investment companies, and other persons carrying on a banking or investmentbusiness; all insurance companies, insurance associations, and other personscarrying on an insurance business; and all personal representatives,administrators, curators, trustees, and other fiduciaries legally may investsinking funds, money, or other funds belonging to them or within their controlin tax increment bonds issued by a county pursuant to this part.  The bondsshall be authorized security for all public deposits.  Any person, politicalsubdivision, and officer, public or private, are authorized to use funds ownedor controlled by them for the purchase of tax increment bonds.  This part doesnot relieve any person of the duty to exercise reasonable care in selectingsecurities.

(h)  Tax increment bonds shall be payable onlyout of the tax increment fund.  The county council may pledge irrevocably allor a part of the fund for payment of the bonds.  The part of the fund pledgedin payment thereafter shall be used only for the payment of the bonds orinterest or redemption premium, if any, on the bonds until the bonds have beenfully paid.  A holder of the bonds shall have a lien against the fund forpayment of the bonds and interest thereon and may either at law or in equityprotect and enforce such lien.

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

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

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