12-3427.   Same; borrowing money in anticipation of issuance of bonds;restrictions; failure to issue bonds, effect.Whenever the board of directors of a port authority shall have adopted aresolution authorizing the issuance of any series of bonds hereunder andsaid bonds have been sold but prior to the time as of which the bonds canbe delivered, the board of directors of a port authority finds it necessaryto borrow money for the purpose for which the bonds were authorized, suchboard of directors may, by appropriate resolution, authorize the borrowingof money in anticipation of the issuance of the bonds, and the issuance ofthe note or notes of the board of directors to evidence such borrowing. Theamount so borrowed shall not exceed the principal amount of the bonds andshall not bear interest at a rate exceeding the average interest rate ofthe bonds. Such note or notes shall be signed in the manner prescribed bythe board of directors and shall be made payable at such time or times asthe board of directors may prescribe, not later than one year from theirrespective dates and may be renewed from time to time by the issuance ofnew notes hereunder. The proceeds of any loan made under this section shallbe devoted exclusively to the purpose for which the bonds shall have beenauthorized and the note or notes and the interest thereon shall be paidwith the proceeds of the bonds simultaneously with the delivery of thebonds. If for any reason the bonds shall not be issued, the holder orholders of the notes shall be entitled to all rights which would have beenenjoyed by the holders of the bonds had they been issued; and the notesshall be paid from the revenues provided for the payment of the bonds, andshall be entitled to the benefit of all covenants, agreements and rightsappearing in the resolution authorizing the bonds for the benefit of thebonds.

      History:   L. 1969, ch. 89, § 27; July 1.