§261-55  Special facility revenuebonds.  All special facility revenue bonds authorized to be issued shall beissued pursuant to part III of chapter 39, except as follows:

(1)  No revenue bonds shall be issued unless at thetime of issuance the department shall have entered into a special facilitylease with respect to the special facility for which the revenue bonds are tobe issued;

(2)  The revenue bonds shall be issued in the name ofthe department, and not in the name of the State;

(3)  No further authorization of the legislature shallbe required for the issuance of the special facility revenue bonds, but theapproval of the governor shall be required for the issuance;

(4)  The revenue bonds shall be payable solely fromand secured solely by the revenues derived by the department from the specialfacility for which they are issued;

(5)  The final maturity date of the revenue bondsshall not be later than either the estimated life of the special facility forwhich they are issued or the initial term of the special facility lease;

(6)  If deemed necessary or advisable by thedepartment, or to permit the obligations of the other person to the specialfacility lease to be registered under the United States Securities Act of 1933,the department with the approval of the state director of finance may appoint anational or state bank within or without the State to serve as trustee for theholders of the revenue bonds and may enter into a trust indenture or trustagreement with the trustee.  The trustee may be authorized by the department tocollect, hold, and administer the revenues derived from the special facilityfor which the revenue bonds are issued and to apply the revenues to the paymentof the principal and interest on the revenue bonds.  In the event that anytrustee shall be appointed, any trust indenture or agreement entered into bythe department with the trustee may contain the covenants and provisionsauthorized by part III of chapter 39 to be inserted in a resolution adopted orcertificate issued, as though the words "resolution" or"certificate" as used in that part read "trust indenture oragreement".  The covenants and provisions shall not be required to beincluded in the resolution or certificate authorizing the issuance of therevenue bonds if included in the trust agreement or indenture.  Any resolutionor certificate, trust indenture or trust agreement adopted, issued, or enteredinto by the department pursuant to this part may also contain any provisionsrequired for the qualification thereof under the United States Trust IndentureAct of 1939.  The department may pledge and assign to the trustee the specialfacility lease and the rights of the department including the revenuesthereunder;

(7)  If the department with the approval of the statedirector of finance shall have appointed or shall appoint a trustee for theholders of the revenue bonds, then notwithstanding the provisions of the secondsentence of section 39-68 the director of finance may elect not to serve asfiscal agent for the payment of the principal and interest, and for thepurchase, registration, transfer, exchange, and redemption, of the revenuebonds, or may elect to limit the functions the director of finance shallperform as the fiscal agent.  The department with the approval of the directorof finance may appoint the trustee to serve as the fiscal agent, and mayauthorize and empower the trustee to perform the functions with respect topayment, purchase, registration, transfer, exchange, and redemption, that thedepartment may deem necessary, advisable, or expedient, including, withoutlimitation, the holding of the revenue bonds and coupons which have been paidand the supervision and conduction of the destruction thereof in accordancewith sections 40-10 and 40-11.  Nothing in this paragraph shall be a limitationupon or construed as a limitation upon the powers granted in the precedingparagraph to the department with the approval of the director of finance toappoint the trustee, or granted in sections 36-3 and 39-13 and the thirdsentence of section 39-68 to the director of finance to appoint the trustee orothers, as fiscal agents, paying agents, and registrars for the revenue bondsor to authorize and empower the fiscal agents, paying agents, and registrars toperform the functions referred to in that paragraph and sections, it being theintent of this paragraph to confirm that the director of finance as aforesaidmay elect not to serve as fiscal agent for the revenue bonds or may elect tolimit the functions the director of finance shall perform as the fiscal agent,that the director of finance may deem necessary, advisable, or expedient;

(8)  The department may sell the revenue bonds eitherat public or private sale;

(9)  If no trustee shall be appointed to collect, hold,and administer the revenues derived from the special facility for which therevenue bonds are issued, the revenues shall be held in a separate account inthe treasury of the State, separate and apart from the airport revenue fund, tobe applied solely to the carrying out of the resolution, certificate, trustindenture, or trust agreement authorizing or securing the revenue bonds;

(10)  If the resolution, certificate, trust indenture,or trust agreement shall provide that no revenue bonds issued thereunder shallbe valid or obligatory for any purpose unless certified or authenticated by thetrustee for the holders of the revenue bonds, signatures of the officers of theState upon the bonds required by section 39-56 may be facsimiles of theirsignatures;

(11)  Proceeds of the revenue bonds may be used andapplied by the department to reimburse the other person to the special facilitylease for all preliminary costs and expenses, including architectural and legalcosts; and

(12)  If the special facility lease shall require theother person to operate, maintain, and repair the special facility which is thesubject of the lease, at the other person's expense, the requirement shallconstitute compliance by the department with section 39-61(a)(2), and none of therevenues derived by the department from the special facility shall be requiredto be applied to the purposes of section 39-62(2).  Sections 39-62(4),39-62(5), and 39-62(6) shall not be applicable to the revenues derived from aspecial facility lease. [L 1971, c 160, pt of §1; am L 1974, c 101, §1; gen ch1985; am L 1998, c 284, §3]