1998 Florida Code
TITLE XXVI PUBLIC TRANSPORTATION
Chapter 341 Public Transit  
341.329   Bonds; project financing.

341.329  Bonds; project financing.--

(1)  The issuance of bonds, in accordance with applicable federal and state laws and regulations, is authorized to provide sufficient funds in order to finance a high-speed rail transportation system and achieve the purposes of ss. 341.3201-341.386; to pay interest on the bonds; to pay expenses incident to the issuance and sale of any bond issued pursuant to ss. 341.3201-341.386, including costs of validating, printing, and delivering the bonds and costs of printing the preliminary and final official statement, publishing notices of sale of the bonds, and related administrative expenses; to refinance or refund any bonds; and to pay all other capital expenditures of the department incident to, and necessary or convenient to carry out, the purposes and powers granted by ss. 341.3201-341.386. Except as provided in paragraph (6)(b), the bonds shall be payable solely from the revenues of the high-speed rail transportation system.

(2)  The department is authorized to take appropriate action to provide that the interest on any bonds issued on behalf of the department and in the name of the department for the purposes of providing for the financing and construction of a high-speed rail transportation system be exempt from federal income tax. Any exemption granted by this subsection does not apply to any tax imposed by chapter 220 on interest, income, or profits on debt obligations owned by corporations.

(3)  The department may determine the high-speed rail transportation facilities to be financed under this section and may assess reasonable application fees or other fees to reimburse administrative costs incurred in processing applications for financing.

(4)  A high-speed rail transportation facility is not eligible for financing under this section unless the department determines that a proposed facility will serve the public purposes described herein and that an applicant for financing has demonstrated compliance with the conditions of this section.

(5)  Prior to the issuance of any bonds or financing under the terms of ss. 341.3201-341.386, the department shall make a comparison of the feasibility study of the franchisee and the database study performed by a consulting firm as financed by the Federal Railroad Administration. Such comparison shall be considered in the determination of the issuance of bonds or financing under ss. 341.3201-341.386 for purposes of data comparisons, ridership estimates, and the viability of revenue availability for the retirement of bonds or other financing.

(6)  A resolution authorizing any bonds issued on behalf of the department may contain, without limitation, provisions (which provisions shall be a part of the contracts with the bondholders) as to:

(a)  Pledging all or any part of the revenues of the high-speed rail transportation system to secure the payment of bonds or any issue of the bonds, subject to such agreements with the bondholders as may then exist.

(b)  Pledging all or any part of the revenues of the department to secure the payment of the bonds or of any issue of bonds, subject to such agreements with the bondholders as may then exist. The department may pledge revenues from taxes and fees only if such taxes and fees are specifically authorized for the purpose of facilitating a high-speed rail transportation system.

(c)  The procedure, if any, by which the terms of any contracts with the bondholders may be amended or abrogated; the amount of bonds the holders of which must consent thereto; and the manner in which such consent must be given.

(d)  Vesting in trustees such property, rights, powers, and duties in trusts as the division may solely determine and limiting the rights, powers, and duties of such trustees.

(e)  Defining the acts or omissions to act which constitute a default with respect to the bonds; and defining the obligations and duties of the department to the bondholders and providing for the rights and remedies of the bondholders in the event of such default, including, as a matter of right, the appointment of a receiver; however, such rights and remedies may not be inconsistent with the general laws of the state and other provisions of ss. 341.3201-341.386.

(f)  Any other matters, of like or different character, which in any way affect the security or protection of the bondholders.

(7)  In no event shall the full faith and credit or the taxing power of the state or any political subdivision of the state be pledged to pay the principal of the bonds, interest on the bonds, and redemption premium, if any, on the bonds or to otherwise secure the bonds.

(8)  All bonds issued on behalf of the department shall state on the face thereof the sources of revenue from which such bonds are payable, both as to the principal and interest and the redemption premium, if any, and that neither the full faith and credit of the department nor the full faith and credit of the state or any political subdivision of the state is pledged to the payment of the principal of the bonds, the interest on the bonds, and the redemption premium, if any, on the bonds.

(9)  All bonds issued on behalf of the department are declared to have all the qualities and incidents of negotiable instruments under the applicable laws of the Uniform Commercial Code and any other applicable laws of the state.

(10)  Any pledge of earnings, revenues, or other moneys made by the department is valid and binding from the time when the pledge is made. The earnings, revenues, or other moneys so pledged and thereafter received by the department are immediately subject to the lien of that pledge without any physical delivery of the pledge or further act. The lien of the pledge is valid and binding against the department irrespective of whether the parties have notice thereof. Neither the resolution nor any other instrument by which a pledge is created needs to be recorded or filed pursuant to the Uniform Commercial Code.

(11)  All such bonds shall be issued on behalf of the department, and in the name of the department, by the division as provided by the State Bond Act.

(12)  The provisions of the State Bond Act, including, without limitation, the definitions contained in that act, are applicable to all bonds issued pursuant to ss. 341.3201-341.386, when the provisions of the State Bond Act are not in conflict with the provisions of ss. 341.3201-341.386; provided that the basis of the award of sale of such bonds may be either the lowest net interest cost or the lowest true or effective interest cost, as set forth in the resolution authorizing the sale of such bonds. In cases of conflict, the provisions of ss. 341.3201-341.386 are controlling.

(13)(a)  An underwriter, commercial bank, investment banker, or financial consultant or adviser may not pay a finder a bonus, fee, or gratuity in connection with the sale of bonds issued by the department, unless full disclosure is made to the department prior to, or concurrently with, the submission of a purchase proposal for bonds by the underwriter, commercial bank, investment banker, or financial consultant or adviser and subsequently in the official statement or offering circular, if any, detailing the name and address of any finder and the amount of bonus, fee, or gratuity paid to such finder.

(b)  The willful violation of this subsection is a felony of the third degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084.

(c)  A violation of this subsection does not affect the validity of the bond issue.

(d)  As used in this section, the term "finder" means a person who is neither regularly employed by, nor a partner or officer of, an underwriter, bank, banker, or financial consultant or adviser and who enters into an understanding with either the issuer or the managing underwriter, or both, for any paid or promised compensation or valuable consideration, directly or indirectly, expressly or impliedly, to act solely as an intermediary between such issuer and managing underwriter for the purpose of influencing any transaction in the purchase of such bonds.

(14)  There shall be established, from the proceeds of each issue of bonds, a debt service reserve account in an amount at least equal to the greatest amount of principal and interest to become due on such issue in any ensuing state fiscal year; except that a reserve of a lesser amount may be established if the division determines that such reserve, if any, will adequately protect the interests of bondholders.

(15)(a)  To the extent provided in the bond agreement, the title to all high-speed rail transportation facilities financed by the issuance of the bonds shall be held in the name of the state, and the title to other high-speed rail transportation facilities may be held in the name of the state or encumbered as may be determined by the division in its discretion as necessary to provide for the security of the issuance of the bonds. If the title to any high-speed rail transportation facility financed by the issuance of the bonds is not held by the state, then the title shall be pledged as security for the bonds by the owner of such title.

(b)  The department may lease such facilities to a franchisee or enter into such agreements as are authorized by ss. 341.3201-341.386.

1.  Any such lease agreement may provide for the transfer of title to such facilities only when such bonds have been retired and the holders of all outstanding bonds issued to finance such facilities have received all principal, interest payments, and redemption premiums to which the holders are legally entitled.

2.  Any lease or other contractual arrangement between the department and a franchisee qualified under ss. 341.3201-341.386, together with such other fees, rents, or charges imposed pursuant to ss. 341.3201-341.386, shall provide sufficient revenues to the department to satisfy all outstanding obligations as the obligations come due.

(16)(a)  The division is authorized to engage the services of investment banking, financial, advisory, legal, or other consultants to plan, review, or structure any financing, bonding, or other financial requirements of a high-speed rail transportation system.

(b)  If the division is requested to issue bonds to finance all or part of a high-speed rail transportation system, the director of the division may contract for the services of commercial or investment banking interests, financial advisory consultants, and bond counsel to plan, review, structure, or advise as to any financing or bonding requirements associated with the high-speed rail transportation system.

(17)  Neither the employees of the department nor any person executing the bonds of the department is liable personally on the bonds or subject to any personal liability or accountability by reason of the issuance of the bonds.

History.--ss. 9, 10, ch. 84-207; s. 2, ch. 85-65; s. 52, ch. 89-356; s. 5, ch. 91-429; s. 17, ch. 92-152.