Section 31.25.160. Bonds and notes.

   (a) The corporation may, by resolution, issue bonds and bond anticipation notes to provide funds to carry out its purposes.
   (b) The principal of and interest on the bonds or notes are payable from corporation funds. Bond anticipation notes may be payable from the proceeds of the sale of bonds or from the proceeds of sale of other bond anticipation notes or, in the event bond or bond anticipation note proceeds are not available, from other funds or assets of the corporation. Bonds or notes may be additionally secured by a pledge of a grant or contribution from the federal government, or a corporation, association, institution, or person, or a pledge of money, income, or revenue of the corporation from any source.
   (c) Bonds or bond anticipation notes may be issued in one or more series and shall be dated, bear interest at the rate or rates a year or within the maximum rate, be in the denomination, be in the form, either coupon or registered, carry the conversion or registration provisions, have the rank or priority, be executed in the manner and form, be payable from the sources in the medium of payment and place or places within or outside the state, be subject to authentication by a trustee or fiscal agent, and be subject to the terms of redemption with or without premium, as the resolution of the corporation may provide. Bond anticipation notes shall mature at the time or times that are determined by the corporation. Bonds shall mature at a time, not exceeding 50 years from their date, that is determined by the corporation. Before the preparation of definitive bonds or bond anticipation notes, the corporation may issue interim receipts or temporary bonds or bond anticipation notes, with or without coupons, exchangeable for bonds or bond anticipation notes when the definitive bonds or bond anticipation notes have been executed and are available for delivery.
   (d) Bonds or bond anticipation notes may be sold in the manner and on the terms the corporation determines.
   (e) If an officer whose signature or a facsimile of whose signature appears on bonds or notes or coupons attached to them ceases to be an officer before the delivery of the bond, note, or coupon, the signature or facsimile is valid the same as if the officer had remained in office until delivery.
   (f) In a resolution of the corporation authorizing or relating to the issuance of bonds or bond anticipation notes, the corporation has power by provisions in the resolution that will constitute covenants of the corporation and contracts with the holders of the bonds or bond anticipation notes
        (1) to pledge to a payment or purpose all or a part of its revenue to which its right then exists or may thereafter come into existence the money derived from the revenue and the proceeds of the bonds or notes;
        (2) to covenant against pledging all or a part of its revenue or against permitting or suffering a lien on the revenue of its property;
        (3) to covenant as to the use and disposition of payments of principal or interest received by the corporation on investments held by the corporation;
        (4) to covenant as to establishment of reserves or sinking funds and the making of provision for and the regulation and disposition of the reserves or sinking funds;
        (5) to covenant with respect to or against limitations on a right to sell or otherwise dispose of property of any kind;
        (6) to covenant as to bonds and notes to be issued, and their limitations, terms, and condition, and as to the custody, application, and disposition of the proceeds of the bonds and notes;
        (7) to covenant as to the issuance of additional bonds or notes or as to limitations on the issuance of additional bonds or notes and the incurring of other debts;
        (8) to covenant as to the payment of the principal of or interest on the bonds or notes, as to the sources and methods of the payment, as to the rank or priority of the bonds or notes with respect to a lien or security, or as to the acceleration of the maturity of the bonds or notes;
        (9) to provide for the replacement of lost, stolen, destroyed, or mutilated bonds or notes;
        (10) to covenant against extending the time for the payment of bonds or notes or interest on the bonds or notes;
        (11) to covenant as to the redemption of bonds or notes and privileges of their exchange for other bonds or notes of the corporation;
        (12) to covenant to create or authorize the creation of special funds of money to be held in pledge or otherwise for operating expenses, payment or redemption of bonds or notes, reserves, or other purposes, and as to the use and disposition of the money held in the funds;
        (13) to establish the procedure, if any, by which the terms of a contract or covenant with or for the benefit of the holders of bonds or notes may be amended or abrogated, the amount of bonds or notes the holders of which must consent to amendment or abrogation, and the manner in which the consent may be given;
        (14) to covenant as to the custody of any of its properties or investments, the safekeeping and insurance of its properties or investments, and the use and disposition of insurance money;
        (15) to covenant as to the time or manner of enforcement or restraint from enforcement of any rights of the corporation arising by reason of or with respect to nonpayment or violation of the terms of an agreement to which the corporation is a party or with respect to which the corporation has enforcement rights;
        (16) to provide for the rights, liabilities, powers, and duties arising upon the breach of a covenant, condition, or obligation, and to prescribe the events of default and the terms and conditions on which any or all of the bonds, notes, or other obligations of the corporation become or may be declared due and payable before maturity and the terms and conditions on which a declaration and its consequences may be waived;
        (17) to vest in a trustee or trustees within or outside the state the property, rights, powers, and duties in trust as the corporation may determine, which may include any or all of the rights, powers, and duties of a trustee appointed by the holders of the bonds or notes, and to limit or abrogate the right of the holders of the bonds or notes of the corporation to appoint a trustee under this chapter or limit the rights, powers, and duties of the trustee;
        (18) to pay the costs or expenses incident to the enforcement of the bonds or notes or of the provisions of the resolution or of a covenant or agreement of the corporation with the holders of its bonds or notes;
        (19) to agree with a corporate trustee, which may be a trust company or bank having the powers of a trust company within or outside the state, as to the pledging or assigning of revenue or funds to which or in which the corporation has any rights or interest; the agreement may further provide for other rights and remedies exercisable by the trustee as may be proper for the protection of the holders of the bonds or notes of the corporation and not otherwise in violation of law and may provide for the restriction of the rights of an individual holder of bonds or notes of the corporation;
        (20) to appoint and provide for the duties and obligations of any paying agent or paying agents, or other fiduciaries as the resolution may provide within or outside the state;
        (21) to limit the rights of the holders of the bonds or notes to enforce a pledge or covenant securing bonds or notes;
        (22) to make covenants other than and in addition to the covenants expressly authorized in this section, of like or different character, and to make covenants to do or refrain from doing acts and things as may be necessary, or as may be convenient and desirable, to better secure bonds or notes or that, in the absolute discretion of the corporation, would tend to make bonds or notes more marketable, notwithstanding that the covenants, acts, or things may not be enumerated in this section.

Notes

History

(Sec. 3 ch 11 SLA 2013)