2006 Louisiana Laws - RS 30:2079 — Municipal facilities revolving loan fund program; loans for facilities; authorizing and issuing debt; security; interest rates; tax exemption

§2079.  Municipal Facilities Revolving Loan Fund Program; loans for facilities; authorizing and issuing debt; security; interest rates; tax exemption

A.  Notwithstanding any provisions of law to the contrary, and in addition to the authority to borrow money or incur indebtedness provided by any other provisions of law, sums on deposit in, credited to, or to be received by the department in the Municipal Facilities Revolving Loan Fund may be loaned by the department to municipalities, any other political subdivision of the state or public trusts, or may be used by the department to purchase debt obligations of such entities.  Any municipality, other political subdivision, or public trust is hereby authorized to make loans from and incur debt payable to the department in accordance with the provisions hereof.  The making of a loan from the Municipal Facilities Revolving Loan Fund and the issuance of debt evidencing such loan by any municipality, other political subdivision, or public trust shall be approved by the State Bond Commission.  This Section shall not be deemed to be the exclusive authority under which municipalities, other political subdivisions, or public trusts may borrow money from or incur indebtedness to the department.

B.  All bonds, notes, or other evidence of indebtedness of any municipality, other political subdivision or public trust issued to represent a loan from the department or Municipal Facilities Revolving Loan Fund shall be authorized and issued pursuant to a resolution of the governing authority of such entity, which resolution shall prescribe the form and details thereof, including the terms, security for, manner of execution, repayment schedule, and redemption features thereof and such resolution may provide that an officer of such entity may execute in connection with such obligation any related contract, including but not limited to a credit enhancement device, indenture of trust, loan agreement, pledge agreement, or other agreement or contract needed to accomplish the purposes for which said evidence of indebtedness is given, in substantially the form attached to said resolution, but which final executed credit enhancement device, indenture of trust, loan agreement, pledge, or other contract or agreement may contain such changes, additions and deletions as shall in the sole opinion of the executing officer be appropriate under the circumstances.  Any such resolution shall include a statement as to the maximum principal amount of any such obligation, the maximum interest rate to be incurred or borne by said obligation or guaranteed by said obligation, the maximum redemption premium, if any, and the maximum term in years for such obligation, guarantee, or pledge.

C.  Notwithstanding any other provision of law to the contrary, a municipality, other local political subdivision, or public trust upon entering into a loan in accordance with the Municipal Facilities Revolving Loan Fund Program as provided in R.S. 30:2078 may dedicate and pledge a portion of any revenues it has available to it including but not limited to revenues from the general revenue fund, sales taxes, sewer user fees, assessments, parcel fees, or property taxes of the municipality or other local political subdivision for a term not exceeding twenty years from the date of project completion for repayment of the principal of, interest on, and any premium, administrative fee or other fee or cost imposed by the department in connection with such loan; provided that any loan made solely for the purpose of financing the cost of facility planning and the preparation of plans, specifications, and estimates for construction of projects approved by the department shall have a term not to exceed two years from the date thereof.

D.  Any evidence of indebtedness authorized pursuant to the provisions thereof shall bear a rate or rates of interest that shall not exceed the rate or rates set forth in the resolution authorizing and providing for the issuance thereof.  Any such rate or rates of interest may be at fixed, variable or adjustable rates.

E.  Bonds, notes or other evidence of indebtedness of any municipality or other political subdivision shall be sold at a private, negotiated sale to the department at such price or prices, including premiums and discounts as shall be authorized in the resolution of the municipality, other political subdivision or public trust authorizing the issuance of any such obligation and agreed to by the department.  The general laws of the state governing fully registered securities of public entities shall be applicable to the bonds, notes, or other evidence of indebtedness issued pursuant to this Section.

F.  All resolutions authorizing the issuance of bonds, notes, or other evidence of indebtedness hereunder shall be published once in the official journal of the municipality, other political subdivision, or public trust incurring said debt.  It shall not be necessary to publish exhibits to any such resolution but such exhibits shall be made available for public inspection at the offices of the governing authority of the municipality, other political subdivision, or public trust at reasonable times and such fact must be stated in the publication within the official journal.  For a period of thirty days after the date of such publication any persons in interest may contest the legality of the resolution authorizing such evidence of indebtedness and any provisions thereof made for the security and payment thereof.  After such thirty day period no one shall have any cause or right of action to contest the regularity, formality, legality, or effectiveness of said resolution and the provisions thereof or of the bonds, notes or other evidence of indebtedness authorized thereby for any cause whatsoever.  If no suit, action, or proceeding is begun contesting the validity of the bonds, notes, or other evidence of indebtedness authorized pursuant to such resolution within the thirty days herein prescribed, the authority to issue the bonds, notes, or other evidence of indebtedness, or to provide for the payment thereof, and the legality thereof, and all of the provisions of the resolution and such evidence of indebtedness shall be conclusively presumed, and no court shall have authority or jurisdiction to inquire into any such matter.

G.  Bonds, notes or other evidence of indebtedness issued under the authority of this Section shall be exempt from all taxation for state, parish, municipal, or other purposes.  Such bonds, notes, or other evidence of indebtedness shall be legal and authorized investments for banks, savings banks, insurance companies, any other financial institution, tutors of minors, curators of interdicts, trustees, and other fiduciaries.  Such bonds, notes, or other evidence of indebtedness may be used for deposit with any officer, board, municipality, or other political subdivision of the state, in any case where, by present or future laws, deposit of security is required for state funds.

Acts 1990, No. 595, §1, eff. July 18, 1990; Acts 1997, No. 480, §1, eff. June 30, 1997.