TITLE 46
Waters and Navigation
CHAPTER 46-12.8
Water Projects Revolving Loan Fund
SECTION 46-12.8-11
§ 46-12.8-11 Bonds of the agency.
(a) The agency may provide by resolution of the board of directors for the
issuance, from time to time, of bonds, notes or any other evidences of
indebtedness of the agency for any of its corporate purposes or for the
borrowing of money in anticipation of the issuance of the bonds. Bonds issued
by the agency may be issued as general obligations of the agency or as special
obligations payable solely from particular revenues or funds as may be provided
for in any trust agreement or other agreement securing bonds. The agency may
also provide by resolution of the board of directors for the issuance, from
time to time, of temporary notes in anticipation of the revenues to be
collected or received by the agency, including, without limitation, in
anticipation of any payments to the agency from the state, or in anticipation
of the receipt of other grants or aid. The issue of notes shall be governed by
the provisions of this chapter relating to the issue of bonds of the agency
other than temporary notes as this chapter may be applicable; provided,
however, that notes issued in anticipation of revenues shall mature no later
than one year from their respective dates, or the date of expected receipt of
the revenues, if later, and notes issued in anticipation of grants, or other
aid and renewals thereof, shall mature no later than six (6) months after the
expected date of receipt of the grant or aid.
(b) The bonds of each issue shall be dated, may bear interest
at such rate or rates, including rates variable from time to time as determined
by such index, banker's loan rate, or other method determined by the agency,
and shall mature or otherwise be payable at such time or times, as may be
determined by the agency, and may be made redeemable before maturity at the
option of the agency or the holder thereof at such price or prices and under
such terms and conditions as may be fixed by the agency. The agency shall
determine the form of bonds, and the manner of execution of the bonds, and
shall fix the denomination or denominations of the bonds, and the place or
places of payment of principal, redemption premium, if any, and interest, which
may be paid at any bank or trust company within or without the state. In case
any officer whose signature or a facsimile of whose signature shall appear on
any bonds shall cease to be the officer before the delivery thereof, the
signature or facsimile shall nevertheless be valid and sufficient for all
purposes as if the officer had remained in office until delivery. The agency
may provide for authentication of bonds by a trustee, fiscal agent, registrar,
or transfer agency. Bonds may be issued in bearer or in registered form, or
both, and if notes, may be made payable to the bearer or to order, as the
agency may determine. The agency may also establish and maintain a system of
registration for any bonds whereby the name of the registered owner, the rights
evidenced by the bonds, the transfer of the bonds, and the rights and other
similar matters, are recorded in books or other records maintained by or on
behalf of the agency, and no instrument evidencing the bonds or rights need be
delivered to the registered owner by the agency. A copy of the books or other
records of the agency pertaining to any bond registered under a registration
system certified by an authorized officer of the agency or by the agent of the
agency maintaining the system shall be admissible in any proceeding without
further authentication. The board of directors may by resolution delegate to
any member or officer of the agency, or any combination thereof, the power to
determine any of the matters set forth in this section. In the discretion of
the agency, bonds of the agency may be issued with such terms as will cause the
interest thereon to be subject to federal income taxation. The agency may sell
its bonds in such manner, either at public or private sale, for the price, at
the rate or rates of interest, or at discount in lieu of interest, as it may
determine will best affect the purposes of this chapter.
(c) The agency may issue interim receipts or temporary bonds,
exchangeable for definitive bonds, when the bonds shall have been executed and
are available for delivery. The agency may also provide for the replacement of
any bonds which shall have become mutilated or shall have been destroyed or
lost. The agency, by itself or through such agency as it may select, may
purchase and invite offers to tender for purchase any bonds of the agency at
any time outstanding; provided, however, that no purchase by the agency shall
be made at a price, exclusive of accrued interest, if any, exceeding the
principal amount thereof or, if greater, the redemption price of the bonds when
next redeemable at the option of the agency, and may resell any bonds so
purchased in such manner and for such price as it may determine will best
effect the purposes of this chapter.
(d) In the discretion of the board of directors, any bonds
issued hereunder may be secured by a trust agreement in such form and executed
in such manner as may be determined by the board of directors, between the
agency and the purchasers or holders of the bonds, or between the agency and a
corporate trustee which may be any trust company or bank having the powers of a
trust company within or without the state. The trust agreement may pledge or
assign, in whole or in part, any loan agreements and local governmental
obligations, and the revenues, funds, and other assets or property held or to
be received by the agency, including without limitation all moneys and
investments on deposit from time to time in the safe drinking water revolving
loan fund, and any contract or other rights to receive the same, whether then
existing or thereafter coming into existence and whether then held or
thereafter acquired by the agency, and the proceeds thereof. The trust
agreement may contain such provisions for protecting and enforcing the rights,
security, and remedies of the bondholders as may be reasonable and proper
including, without limiting the generality of the foregoing, provisions
defining defaults and providing for remedies in the event thereof which may
include the acceleration of maturities, restrictions on the individual right of
action by bondholders, and covenants setting forth the duties of and
limitations on the agency in relation to the custody, safeguarding, investment,
and application of moneys, the enforcement of loan agreements and local
governmental obligations, the issue of additional or refunding bonds, the
fixing, revision, charging, and collection of charges, the use of any surplus
bond proceeds, the establishment of reserves, and the making and amending of
contracts.
(e) In the discretion of the board of directors, any bond
issued under authority of this chapter may be issued by the agency in the form
of lines of credit or other banking arrangements under terms and conditions,
not inconsistent with this chapter, and under such agreements with the
purchasers or makers thereof or any agent or other representative of such
purchasers or makers, as the board of directors may determine to be in the best
interest of the agency. In addition to other security provided herein or
otherwise by law, bonds issued by the agency under any provision of this
chapter may be secured, in whole or in part, by financial guarantees, by
insurance, or by letters or lines of credit issued to the agency or a trustee
or any other person, by any bank, trust company, insurance or surety company,
or other financial institution, within or without the state, and the agency may
pledge or assign, in whole or in part, any loan agreements and any local
governmental obligations or obligations of any privately organized water
supplier, and the revenues, funds, and other assets and property held or to be
received by the agency, and any contract or other rights to receive the same,
whether then existing or thereafter coming into existence and whether then held
or thereafter acquired by the agency, and the proceeds thereof, as security for
the guarantees or insurance or for the reimbursement by the agency to any
issuer of the line or letter of credit.
(f) It shall be lawful for any bank or trust company to act
as a depository or trustee of the proceeds of bonds, revenues, or other moneys
under a trust agreement of the agency, and to furnish indemnification and to
provide security as may be required by the agency. It is hereby declared that
any pledge or assignment made by the agency under this chapter is an exercise
of the governmental powers of the agency, and loan agreements, local
governmental obligations, the obligations of private water companies, revenues,
funds, assets, property, and contract or other rights to receive the same and
the proceeds thereof, which are subject to the lien of a pledge or assignment
created under this chapter, shall not be applied to any purposes not permitted
by the pledge or assignment.
(g) Any holder of a bond issued by the agency under the
provisions of this chapter and any trustee or other representative under a
trust agreement securing the trustee or representative, except to the extent
the rights herein given may be restricted by the trust agreement, may bring
suit upon the bonds in the superior court and may, either at law or in equity,
by suit, action, mandamus, or other proceeding for legal or equitable relief,
protect and enforce any and all rights under the laws of the state or granted
hereunder or under the trust agreement, and may enforce and compel performance
of all duties required by this chapter or by the trust agreement, to be
performed by the agency or by any officer thereof.
History of Section.
(P.L. 1993, ch. 313, § 1; P.L. 1993, ch. 396, § 1.)
