§ 42-133-8. Bonds.
(a) In furtherance of this chapter:
(1) The corporation may issue bonds, from time to time, for the purposes and in the manner authorized by this chapter. Bonds issued pursuant to this chapter may be secured by the pledge of a portion of the state’s tobacco receipts sold to the corporation, any monies derived therefrom, and any other sources available to the corporation. The corporation may also issue refunding bonds, including advance refunding bonds, for the purpose of refunding previously issued bonds.
(2) The corporation may issue its bonds in such principal amounts and at such rate or rates of interest as the corporation by resolution of the board may determine, establish reserves to secure the bonds, and pay the costs of issuance of the bonds and all other expenditures of the corporation incident to and necessary to carry out the corporation’s purposes or powers. The bonds are investment securities and negotiable instruments within the meaning of and for the purposes of title 6A.
(3) Bonds issued by the corporation are payable solely and only out of the monies, assets, or revenues pledged by the corporation, and are not a general obligation or indebtedness of the corporation or an obligation or indebtedness of the state or any subdivision of the state. The corporation has no power or authorization to pledge the credit or taxing power of the state or any political subdivision of the state, or create a debt or obligation of the state, or make its debts payable out of any monies except monies of the corporation.
(4) Bonds shall state on their face that the bonds are payable both as to principal and interest solely out of the assets of the corporation pledged for such purpose and; neither the faith and credit nor the taxing power of the state or any political subdivision thereof is pledged to the payment of the principal of or the interest on the bonds; do not constitute an indebtedness of the state or any political subdivision of the state; are secured solely by and are payable solely from the tobacco receipts sold to the corporation and other monies of the corporation; do not constitute a general, legal, or moral obligation of the state or any political subdivisions thereof and that the state has no obligation or intention to satisfy any deficiency or default of any payment of the bonds.
(5) Any pledge by the corporation of a portion of the state’s tobacco receipts shall be valid and binding at the time such pledge is made. Tobacco receipts so pledged and then or thereafter received by the corporation shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act. The lien of any such pledge shall be valid and binding as against all parties having claims of any kind against the corporation, whether such parties have notice of the lien. Notwithstanding any other provision to the contrary, the resolution of the corporation or any other instrument by which a pledge is created need not be recorded or filed to perfect such pledge.
(6) The proceeds of bonds may be invested in any manner approved by the board and specified in the trust indenture or resolution pursuant to which the bonds are issued.
(b) All bonds issued by the corporation shall comply with all of the following:
(1) Bonds shall be in a form, issued in denominations, executed in a manner, and payable over terms and with rights of redemption, as the board prescribes in the resolution authorizing their issuance.
(2) Bonds shall be fully negotiable instruments under the laws of this state and may be sold at prices, at public or private sale, and in a manner as prescribed by the board.
(3) Bonds shall be subject to the terms, conditions and covenants providing for the payment of the principal, redemption premiums, if any, interest, and other terms, conditions, covenants and protective provisions safeguarding payment, not inconsistent with this chapter and as determined by resolution of the board authorizing their issuance.
(c) Bonds must be authorized by a resolution of the board; provided, that a resolution authorizing the issuance of bonds may delegate to an officer of the corporation the power to negotiate and fix the details of an issue of bonds by an appropriate certificate of the authorized officer.
(d) To comply with all applicable federal law with respect to the issuance of bonds, including, but not limited to, tax-exemption provisions of Internal Revenue Code, the corporation may issue a certain series of bonds, or periodically issue several series of bonds, so that interest on the bonds remains exempt from federal taxation or to comply with the purposes specified in this chapter.
History of Section.
P.L. 2002, ch. 65, art. 8, § 1.