12-3427

Chapter 12.--CITIES AND MUNICIPALITIES

Article 34.--PORT AUTHORITIES

     
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 a
resolution authorizing the issuance of any series of bonds hereunder and
said bonds have been sold but prior to the time as of which the bonds can
be delivered, the board of directors of a port authority finds it necessary
to borrow money for the purpose for which the bonds were authorized, such
board of directors may, by appropriate resolution, authorize the borrowing
of money in anticipation of the issuance of the bonds, and the issuance of
the note or notes of the board of directors to evidence such borrowing. The
amount so borrowed shall not exceed the principal amount of the bonds and
shall not bear interest at a rate exceeding the average interest rate of
the bonds. Such note or notes shall be signed in the manner prescribed by
the board of directors and shall be made payable at such time or times as
the board of directors may prescribe, not later than one year from their
respective dates and may be renewed from time to time by the issuance of
new notes hereunder. The proceeds of any loan made under this section shall
be devoted exclusively to the purpose for which the bonds shall have been
authorized and the note or notes and the interest thereon shall be paid
with the proceeds of the bonds simultaneously with the delivery of the
bonds. If for any reason the bonds shall not be issued, the holder or
holders of the notes shall be entitled to all rights which would have been
enjoyed by the holders of the bonds had they been issued; and the notes
shall be paid from the revenues provided for the payment of the bonds, and
shall be entitled to the benefit of all covenants, agreements and rights
appearing in the resolution authorizing the bonds for the benefit of the
bonds.

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