§266-55  Special facility revenuebonds.  All special facility revenue bonds, including special facilityrevenue refunding bonds, authorized to be issued shall be issued pursuant topart III of chapter 39, except as follows:

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

(2)  Such 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 such issuance.

(4)  Such revenue bonds shall be payable solely fromand secured solely by the revenues derived by the department from the specialfacility for which they are issued, as defined in section 266-51(1).

(5)  The final maturity date of such 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 such trustee.  The trustee may be authorized by the departmentto collect, hold, and administer the revenues derived from the special facilityfor which the revenue bonds are issued and to apply such revenues to thepayment of the principal and interest on such revenue bonds.  In the event thatany such trustee shall be appointed, any trust indenture or agreement enteredinto by the 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".  Such 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 indenture or agreement.  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 second sentence ofsection 39-68 the director of finance may elect not to serve as fiscal agentfor the payment of the principal and interest, and for the purchase,registration, transfer, exchange, and redemption, of the revenue bonds, or mayelect to limit the functions the director shall perform as such fiscal agent. The department with the approval of the director of finance may appoint thetrustee to serve as such fiscal agent, and may authorize and empower thetrustee to perform such functions with respect to such payment, purchase,registration, transfer, exchange, and redemption, as the department may deemnecessary, advisable, or expedient, including, without limitation, the holdingof the revenue bonds and coupons which have been paid, and the supervision anddestruction thereof in accordance with sections 40-10 and 40-11.  Nothing inthis paragraph shall be a limitation upon or be construed as a limitation uponthe powers granted in the preceding paragraph to the department with theapproval of the director of finance to appoint the trustee, or granted insections 36-3 and 39-13 and the third sentence of section 39-68 to the directorof finance to appoint the trustee or others, as fiscal agents, paying agents,and registrars for the revenue bonds or to authorize and empower such fiscalagents, paying agents, and registrars to perform the functions referred to insuch paragraph and sections, it being the intent of this paragraph to confirmthat the director of finance as aforesaid may elect not to serve as fiscal agentfor the revenue bonds or may elect to limit the functions the director shallperform as such fiscal agent, as the director of finance may deem necessary,advisable, or expedient.

(8)  The department may sell such 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 whichsuch revenue bonds are issued, such revenues shall be held in a separateaccount in the treasury of the State, separate and apart from the harborspecial fund, to be applied solely to the carrying out of the resolution,certificate, trust indenture, or trust agreement authorizing or securing suchrevenue 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 such revenue bonds, signatures of the officers ofthe State upon such bonds and the coupons thereof as required by section 39-56may be evidenced by their facsimile signatures.

(11)  The proceeds of such revenue bonds may be usedand applied by the department to reimburse the other person to the specialfacility lease for all preliminary costs and expenses, including architecturaland legal costs.

(12)  If the special facility lease shall require theother person to operate, maintain, and repair the special facility which is thesubject of such lease, at the other person's expense, such requirement shallconstitute compliance by the department with section 39-61(a)(2), and none ofthe revenues derived by the department from such special facility shall berequired to 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 1980, c 126, pt of §2; am L 1993, c 2, §3 and c 212,§3]