TITLE 42
State Affairs and Government
CHAPTER 42-133
Tobacco Settlement Financing Corporation Act
SECTION 42-133-5
§ 42-133-5 General powers.
(a) The corporation shall have all the powers necessary and convenient to carry
out and effectuate the purposes and provisions of this chapter, including, but
not limited to, the power to:
(1) Sue and be sued, complain and defend, in its corporate
name;
(2) Have a seal which may be altered at pleasure, and use the
seal by causing it, or a facsimile thereof, to be impressed or affixed or in
any other manner reproduced; provided, however, that the failure to affix the
seal does not affect the validity of an instrument executed on behalf of the
corporation;
(3) Adopt, promulgate, amend, and repeal bylaws, not
inconsistent with provisions in this chapter, for the administration and
regulation of the corporation's affairs and the implementation of its functions;
(4) Conduct its activities, carry on its operations, and have
offices and exercise the powers granted by this chapter;
(5) Purchase, take, receive, or otherwise acquire, own, hold,
use, and otherwise deal in and with, intangible personal property, or any
interest therein, including the state's tobacco receipts or any portion thereof;
(6) Invest and reinvest its funds in such manner as shall be
determined by the board or by contract with its bondholders (and such
investments shall not be subject to chapter 10.1 of title 35);
(7) Make and execute all contracts or agreements necessary,
proper, or convenient for the exercise of the powers and purposes of the board
and the corporation; borrow money through the execution and delivery of bonds,
and make, execute and deliver financing agreements relating thereto in the
exercise of the powers and purposes of the board and the corporation;
(8) Make and execute all agreements for the purpose of
managing and controlling the funds transferred between the corporation and the
state, and any trust created by the state or the corporation, and governing the
investment and the monitoring and record keeping of such funds and investment
income thereon, for purposes of maintaining the exemption from federal income
tax of interest on bonds and for other purposes;
(9) Make and execute, amend and terminate all agreements in
the nature of interest rate swaps, forward security supply contracts,
agreements for the management of interest rate risks, agreements for the
management of cash flow, and other agreements of a similar nature, with respect
to bonds issued pursuant to this chapter;
(10) Procure insurance, guarantees, letters of credit, and
other forms of collateral or security or credit support from any public or
private entity, including any department, agency, or instrumentality of the
United States or the state, for the payment of any bonds, including the power
to pay premiums or fees on any insurance, guarantees, letters of credit, and
other forms of collateral or security or credit support;
(11) Make and execute all contracts and expend funds to
obtain accounting, management, legal, financial consulting, trusteeship and
other professional services necessary or convenient to the operations of the
corporation;
(12) Expend funds for the costs of administering the
operations of the corporation;
(13) Request the attorney general, on behalf of the state, to
notify the independent auditor of the sale and instruct the independent auditor
to direct the escrow agent to disburse to the corporation, so that it may
receive and accept from the escrow agent, all or a portion of the state's
tobacco receipts;
(14) With respect to all or such portion of the state's
tobacco receipts as may be acquired by the corporation, direct the attorney
general to enforce, in the name of the state and, if permissible, to enforce
directly through the corporation's own attorneys in the name of the state, with
notice to the attorney general, the master settlement agreement; provided, that
the board may not give any approval to any amendment to the master settlement
agreement or the qualifying statute without notice to the attorney general and
the approval of the general assembly. This power constitutes a part of the
contractual obligation owed to the holders of any bonds;
(15) Create and establish, or cause to be created and
established, under the laws of this state or another state, a trust fund with
regard to monies paid to the corporation which monies shall include, but not be
limited to, such portion of the state's tobacco receipts as may be sold to the
corporation and not pledged to the payment of bonds or subsequently released
from the pledge for payment of the bonds and which, in accordance with any sale
agreement with the state, is to be paid to the state, including such portion of
the proceeds of any bonds designated for the purchase of the state's tobacco
receipts and designated for deposit in the fund, together with all interest
thereon; and all securities or investment income and other assets acquired by
and through the use of the monies belonging to the fund and any other monies
deposited in the fund. Monies in the fund shall be used solely and only for the
payment of all amounts due and to become due to the state, and shall not be
used for any other purpose. Monies deposited in the trust fund shall not be
available for the payment of any claim against the corporation or any debt or
obligation of the corporation, including any bonds issued by the corporation;
and
(16) Do all other things necessary or convenient to exercise
powers granted or reasonably implied by this chapter or that may be necessary
for the furtherance and accomplishments of the purposes of the corporation.
(b) As long as any bonds of the corporation are outstanding,
the corporation shall not take any action that materially and adversely affects
the rights of the holders of its bonds.
History of Section.
(P.L. 2002, ch. 65, art. 8, § 1.)