Advanced Search

§42-133-5  General Powers. –

Published: 2015

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now for only USD$40 per month.

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


   (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


   (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


   (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;


   (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.)