§206M-9  Issuance of special purpose revenuebonds; bond anticipation notes; refunding bonds.  (a)  In addition to theother powers that it may have, the development corporation may issue specialpurpose revenue bonds to finance, in whole or in part, the costs of projectsof, for, or to loan the proceeds of the bonds to assist qualified persons.  Allrevenue bonds issued under this chapter are special purpose revenue bonds andpart III of chapter 39 shall not apply thereto. All special purpose revenue bondsshall be issued in the name of the development corporation and not in the nameof the State.

The legislature finds and determines that theexercise of the powers vested in the development corporation by this chapterconstitutes assistance to a high technology industrial, manufacturing, orprocessing enterprise and that the issuance of special purpose revenue bonds tofinance facilities of, for, or to loan the proceeds of the bonds to assistqualified persons, is in the public interest.

(b)  The development corporation, with theapproval of the governor, may issue special purpose revenue bonds for eachsingle project or industrial park or multi-project program that has beenauthorized by the legislature by an affirmative vote of two-thirds of themembers to which each house is entitled; provided that the legislature shallfind that the issuance of the special purpose revenue bonds is in the publicinterest.  Special purpose revenue bonds shall be issued in principal amountsas may be authorized from time to time by law and at the time or times as thedevelopment corporation deems necessary and advisable to finance the cost of aproject, industrial park, or multi-project program as authorized by law.  Withrespect to the financing of a multi-project program with the proceeds ofspecial purpose revenue bonds, the legislature may authorize the issuance fromtime to time in one or more series by the development corporation, in each casewith the approval of the governor, of special purpose revenue bonds in the aggregateprincipal amount and during the period as the legislature shall provide.  Theprincipal of, premium, if any, and interest on the special purpose revenuebonds shall be payable:

(1)  Exclusively from the revenues and receiptsderived or to be derived by the development corporation under projectagreements or from the revenues and receipts together with any grant from thegovernment in aid of the project or industrial park financed from the proceedsof the bonds;

(2)  Exclusively from the revenues and receiptsderived or to be derived by the development corporation from a particularproject agreement, whether or not the project or industrial park to which itrelates is financed in whole or in part with the proceeds of the specialpurpose revenue bonds; or

(3)  From revenues and receipts derived or to bederived by the development corporation generally.

Neither the board members nor any personexecuting the special purpose revenue bonds shall be liable personally on thebonds by reason of the issuance thereof.

All special purpose revenue bonds of the sameissue (or, in the case of an authorized issue for a multi-project program,series), subject to the prior and superior rights of outstanding bonds, claims,obligations, or mechanic's and materialman's liens, shall have a prior andparamount lien on the revenues derived from the project agreement with respectto the project for which the bonds have been issued, over and ahead of allspecial purpose revenue bonds of the issue (or series) payable from the revenueswhich may be subsequently issued and over and ahead of any claims orobligations of any nature against the revenues subsequently arising orsubsequently incurred; provided that the development corporation may reservethe right and privilege to subsequently issue additional series of specialpurpose revenue bonds, from time to time, payable from the revenues derivedfrom the project agreement on a parity with the issue or series of specialpurpose revenue bonds theretofore issued, and the subsequently issued series ofspecial purpose revenue bonds may be secured, without priority by reason ofdate of sale, date of execution, or date of delivery, by a lien on the revenuesin accordance with law, including this chapter.

(c)  Special purpose revenue bonds issuedpursuant to this chapter may be in one or more issues and in one or more serieswithin an issue and shall be further authorized pursuant to resolution of theboard.  The special purpose revenue bonds shall be dated, shall bear interestat the rate or rates, shall mature at the time or times not exceeding fortyyears from their date or dates, shall have the rank or priority, and may bemade redeemable before maturity at the option of the development corporation,at the price or prices and under the terms and conditions, all as may bedetermined by the development corporation. 

The development corporation shall determine theform of the special purpose revenue bonds, including interest coupons, if any,to be attached thereto, and the manner of execution of the special purposerevenue bonds, and shall fix the denomination or denominations of the specialpurpose revenue bonds and, subject to the approval of the director of finance,the place or places of payment of principal and interest, which may be at anybank or trust company approved by the director of finance within or without theState.

The special purpose revenue bonds may be issuedin coupon or in registered form, or both, as the development corporation maydetermine, and provisions may be made for the registration of coupon bonds asto principal alone and also as to both principal and interest, and for thereconversion into coupon bonds of special purpose revenue bonds registered asto both principal and interest.  Subject to the approval of the director offinance, the development corporation may sell special purpose revenue bonds insuch manner, either at public or private sale, and for such price as it maydetermine.

(d)  Prior to the preparation of definitivespecial purpose revenue bonds, the development corporation may issue interimreceipts or temporary bonds, with or without coupons, exchangeable fordefinitive bonds when the bonds have been executed and are available fordelivery.

(e)  Should any special purpose revenue bondissued under this chapter or any coupon appertaining thereto become mutilated,lost, stolen, or destroyed, the development corporation may cause a new bond orcoupon of like date, number, and tenor to be executed and delivered in exchangeand substitution for, and upon the cancellation of the mutilated bond orcoupon, or in lieu of and in substitution for the lost, stolen, or destroyedbond or coupon.  The new bond or coupon shall not be executed or delivereduntil the holder of the mutilated, lost, stolen, or destroyed bond or coupon:

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

(2)  In the case of a lost, stolen, or destroyed bondor coupon, has filed with the development corporation or its fiduciary evidencesatisfactory to the development corporation or its fiduciary that the bond orcoupon was lost, stolen, or destroyed and that the holder was the ownerthereof; and

(3)  Has furnished indemnity satisfactory to thedevelopment corporation.

(f)  The development corporation in its discretionmay provide that CUSIP identification numbers shall be printed on the specialpurpose revenue bonds.  If the numbers are imprinted on the bonds:

(1)  No such number shall constitute a part of thecontract evidenced by the particular bond upon which it is imprinted; and

(2)  No liability shall attach to the developmentcorporation or any officer or agent thereof, including any fiscal agent, payingagent, or registrar for the bonds by reason of the numbers or any use madethereof, including any use thereof made by the development corporation, anysuch officer, or any such agent, or by reason of any inaccuracy, error, oromission with respect thereto or in such use.  The development corporation inits discretion may require that all costs of obtaining and imprinting thenumbers shall be paid by the purchaser of the bonds.  For the purposes of thissubsection, the term "CUSIP identification numbers" means thenumbering system adopted by the Committee for Uniform Security IdentificationProcedures formed by the Securities Industry Association.

(g)  Whenever the development corporation hasauthorized the issuance of special purpose revenue bonds under this chapter,special purpose revenue bond anticipation notes of the development corporationmay be issued in anticipation of the issuance of the bonds and of the receiptof the proceeds of sale thereof, for the purposes for which the bonds have beenauthorized.  All special purpose revenue bond anticipation notes shall beauthorized by the development corporation, and the maximum principal amount ofthe notes shall not exceed the authorized principal amount of the bonds.  Thenotes shall be payable solely from and secured solely by the proceeds of saleof the special purpose revenue bonds in anticipation of which the notes areissued and the moneys, rates, charges, and other revenues from which would bepayable and by which would be secured the bonds; provided that to the extentthat the principal of the notes shall be paid from moneys other than theproceeds of sale of the bonds, the maximum amount of bonds that has beenauthorized in anticipation of which the notes are issued shall be reduced bythe amount of notes paid in this manner.  The authorization, issuance, and thedetails of the notes shall be governed by this chapter with respect to specialpurpose revenue bonds insofar as the same may be applicable; provided that eachnote, together with all renewals and extensions thereof, or refundings thereofby other notes issued under this subsection, shall mature within five yearsfrom the date of the original note.

(h)  To secure the payment of any of thespecial purpose revenue bonds issued pursuant to this chapter, and interestthereon, or in connection with the bonds, the development corporation shallhave the power as to the bonds:

(1)  To pledge all or any part of the revenues andreceipts derived or to be derived by the development corporation as provided inthis chapter to the punctual payment of special purpose revenue bonds issuedwith respect to the project or industrial park financed from the proceedsthereof, and interest thereon, and to covenant against thereafter pledging anysuch revenues and receipts to any other bonds or any other obligations of thedevelopment corporation for any other purpose, except as otherwise stated inthe proceedings providing for the issuance of special purpose revenue bondspermitting the issuance of additional special purpose revenue bonds to beequally and ratably secured by a lien upon such revenues and receipts;

(2)  To pledge and assign the interest and right ofthe development corporation under any project agreement and other agreementsrelated to a project or industrial park, and the rights, duties, andobligations of the development corporation thereunder, including the right toreceive revenues and receipts thereunder;

(3)  To pledge or assign all or any part of theproceeds derived by the development corporation from proceeds of insurance orcondemnation awards;

(4)  To covenant as to the use and disposition of theproceeds from the sale of the special purpose revenue bonds;

(5)  To covenant to set aside or pay over reserves andsinking funds for the special purpose revenue bonds and as to the dispositionthereof;

(6)  To covenant and prescribe as to what happeningsor occurrences shall constitute "events of default", the terms andconditions upon which any or all of the bonds shall become or may be declareddue before maturity, and as to the terms and conditions upon which thedeclaration and its consequences may be waived;

(7)  To covenant as to the rights, liabilities,powers, and duties arising upon the breach by the development corporation ofany covenant, condition, or obligation;

(8)  Subject to the approval of the director offinance, to designate a national or state bank or trust company within orwithout the State, incorporated in the United States, to serve as trustee forthe holders of the special purpose revenue bonds and to enter into a trustindenture, trust agreement, or indenture of mortgage with the trustee.  Thetrustee may be authorized by the development corporation to receive and receiptfor, hold, and administer the proceeds of the special purpose revenue bonds andto apply the proceeds to the purposes for which the special purpose revenue bondsare issued, or to receive and receipt for, hold, and administer the revenuesand receipts derived or to be derived by the development corporation under aproject agreement or other agreement related to a project or industrial park,and to apply such revenues and receipts to the payment of the principal of andinterest on the special purpose revenue bonds, or both, and any excess revenuesand receipts to the payment of expenses incurred by the development corporationin administering the special purpose revenue bonds or in carrying out theproject agreement or other agreement.  If the trustee shall be appointed, anytrust indenture, trust agreement, or indenture of mortgage entered into by thedevelopment corporation with the trustee may contain whatever covenants andprovisions as may be necessary, convenient, or desirable in order to secure thespecial purpose revenue bonds.  The development corporation may pledge andassign to the trustee the interest of the development corporation under aproject agreement and other agreements related thereto and the rights, duties,and obligations of the development corporation thereunder, including the rightto receive revenues and receipts thereunder.  The development corporation mayappoint the trustee to serve as fiscal agent for the payment of the principaland interest, and for the purchase, registration, transfer, exchange, andredemption of the special purpose revenue bonds, and may authorize and empowerthe trustee to perform the functions with respect to the payment, purchase,registration, transfer, exchange, and redemption, as the developmentcorporation may deem necessary, advisable, or expedient, including, withoutlimitation, the holding of the special purpose revenue bonds and coupons thathave been paid and the supervision of the destruction thereof in accordancewith law;

(9)  To execute all instruments necessary orconvenient in the exercise of the powers herein granted or in the performanceof its covenants and duties;

(10)  To invest or provide for the investment of theproceeds of special purpose revenue bonds and revenues and receipts derived bythe development corporation in the securities and in such manner as it deemsproper; and

(11)  To make such covenants and do any and all actsand things as may be necessary, convenient, or desirable in order to secure thespecial purpose revenue bonds, notwithstanding that the covenants, acts, orthings may not be enumerated in this chapter.

No holder or holders of special purpose revenuebonds issued under this chapter shall ever have the right to compel anyexercise of the taxing power of the State or any political subdivision of theState to pay the special purpose revenue bonds or the interest thereon and nomoneys other than the revenues pledged to the special purpose revenue bondsshall be applied to the payment thereof.

(i)  Special purpose revenue 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 of the personswhose signatures appear thereon shall have ceased to be officers of thedevelopment corporation.  The special purpose revenue bonds shall contain arecital that they are issued pursuant to this chapter which recital shall beconclusive evidence of their validity and of the regularity of their issuance.

(j)  Subject to authorization by an act enactedby the legislature by an affirmative vote of two-thirds of the members to whicheach house is entitled, the development corporation may issue special purposerevenue bonds for the purpose of refunding special purpose revenue bonds thenoutstanding and issued under this chapter whether or not the outstandingspecial purpose revenue bonds have matured or are then subject to redemption. The development corporation may issue special purpose revenue bonds for thecombined purposes of:

(1)  Financing or refinancing the cost of a project orindustrial park, or the improvement or expansion thereof; and

(2)  Refunding special purpose revenue bonds thatshall theretofore have been issued under this chapter and then shall beoutstanding, whether or not the outstanding bonds have matured or then aresubject to redemption.

Nothing in this subsection shall require or bedeemed to require the development corporation to elect to redeem or prepayspecial purpose revenue bonds being refunded, or to redeem or prepay specialpurpose revenue bonds being refunded that were issued, in the form customarilyknown as term bonds in accordance with any sinking fund installment schedulespecified in any proceeding authorizing the issuance thereof, or, if thedevelopment corporation elects to redeem or prepay any such bonds, to redeem orprepay as of any particular date or dates. The issuance of the special purposerevenue bonds, the maturities and other details thereof, the rights andremedies of the holders thereof, and the rights, powers, privileges, duties,and obligations of the development corporation with respect to the bonds, shallbe governed by the foregoing provisions of this chapter insofar as the same maybe applicable.

(k)  If special purpose revenue bonds issuedpursuant to this chapter are issued bearing interest at a rate or rates which varyfrom time to time and with a right of holders to tender the bonds for purchase,the development corporation may contract for such support facility orfacilities and remarketing arrangements as are required to market the specialpurpose revenue bonds to the greatest advantage of the development corporationupon such terms and conditions as the development corporation deems necessaryand proper.

The development corporation may enter intocontracts or agreements with the entity or entities providing a supportfacility; provided that any contract or agreement shall provide, in essence,that any amount due and owing by the development corporation under the contractor agreement on an annual basis shall be payable solely from the revenue andreceipts of the project agreement and any obligation issued or arising pursuantto the terms of the contract or agreement in the form of special purposerevenue bonds, notes, or other evidences of indebtedness shall only arise atsuch time as either:

(1)  Moneys or securities have been irrevocably setaside for the full payment of a like principal amount of special purposerevenue bonds issued pursuant to this chapter; or

(2)  A like principal amount of the issue or series ofspecial purpose revenue bonds to which the support facility relates are held inescrow by the entity or entities providing the support facility. [L 1983, c152, pt of §2; am L 2000, c 72, §13]