Public Finance

CHAPTER 35-8.1
Refunding Bond Authority

SECTION 35-8.1-15

§ 35-8.1-15. Form of bonds.

(a) Bonds shall be authorized by resolution of the authority and may be issued in one or more series and shall bear such date or dates, mature at such time or times, be in such denomination or denominations, be in such form, carry such conversion or registration privileges, have such rank or priority, be executed in such manner, be payable from such sources, in such medium of payment, at such place or places within or without the state, and be subject to such terms of redemption, with or without premium, as the authority shall determine. The rate or rates of interest on the bonds may be fixed or variable. Variable rates shall be determined in the manner and in accordance with the procedures established by the authority prior to the issuance of the bonds. Bonds bearing a variable rate of interest may be converted to bonds bearing a fixed rate of interest to the extent and in the manner determined by the authority prior to the issuance of the bonds. The interest on bonds may be payable semiannually or annually or at any other interval as may be provided by the authority prior to the issuance of the bonds, or the interest may be compounded and paid at maturity or at any other times as may be specified by the authority prior to the issuance of the bonds.

(b) In case any person whose signature or facsimile of whose signature shall appear on any bonds shall cease to be an officer before the delivery of the bonds, the signature or the facsimile shall nevertheless be valid and sufficient for all purposes the same as if he or she had remained in office until delivery. The bonds may be issued in coupon form or in any form permitted by chapter 13 of this title, or both, as the authority may determine, and provision may be made for the registration of any coupon form bonds as to principal alone and also as to both principal and interest, for the reconversion into coupon form bonds of any bonds registered as to both principal and interest, and for the interchange of registered and coupon form bonds. The authority may sell these bonds in such manner, either at public or private sale, and for such price as it may determine will best effect the purposes of this chapter.

(c) The authority may, if it deems it desirable to do so, cause the bonds to conform to any requirements imposed to exempt the interest paid on the bonds from federal income taxation.

(d) The proceeds of the bonds shall be loaned to the state and shall be disbursed in such manner and under such restrictions, if any, as the authority may provide in the resolution authorizing the issuance of the bonds or in the loan and trust agreement mentioned in § 35-8.1-16 securing the bonds. Any surplus proceeds may be used to repurchase bonds of the authority, may be deposited to the credit of any reserve fund for the bonds, or may be used for any other purpose of the authority consistent herewith.

(e) Bonds may be issued under the provisions of this chapter without obtaining the consent of any department, division, commission, board, bureau, or agency of the state, and without any other proceedings or the happening of any other conditions or things than those proceedings, conditions, or things which are specifically required by this chapter. Notwithstanding the foregoing, the authority shall be subject to chapter 10.1 of title 42 (Public Finance Management Board).

History of Section.
(P.L. 1987, ch. 12, § 1.)