2005 Idaho Code - 67-8915 — ISSUANCE OF BONDS TO FINANCE FACILITIES

                                  TITLE  67
                      STATE GOVERNMENT AND STATE AFFAIRS
                                  CHAPTER 89
                     IDAHO ENERGY RESOURCES AUTHORITY ACT
    67-8915.  ISSUANCE OF BONDS TO FINANCE FACILITIES. (1) The authority shall
have power and is hereby authorized to issue, from time to time, its bonds in
such principal amount as it shall determine to be necessary to provide
sufficient funds to pay, finance or refinance the cost of any facility, and
all other expenditures of the authority incidental and necessary or convenient
to carry out its corporate purposes and powers. The cost of any facility shall
include all amounts determined by the authority to be necessary or desirable
in connection with the acquisition, construction, development, improvement and
equipping of a facility including, but not limited to:
    (a)  The cost of acquiring all lands, structures, real or personal
    property, rights, rights-of-way, franchises, easements and interests
    necessary, used or useful for or in connection with the facility;
    (b)  The cost of all machinery and equipment necessary, used or useful in
    connection with the facility;
    (c)  The cost of architectural, engineering and legal services, including
    studies, surveys, plans and specifications, and related services;
    (d)  The cost of interest on bonds prior to and during construction, and
    if judged advisable by the authority, for a period after completion of
    such construction, and all other costs incidental to the issuance of bonds
    by the authority;
    (e)  The cost of reserves for future repairs, replacements and additions
    to  a facility, insurance policies and premiums and related costs and
    expenses; and
    (f)  All other costs and expenses determined by the authority to be
    necessary and incidental to the acquisition, construction, financing and
    placing in operation of a facility.
The proceeds of the bonds may also be used to provide for the payment of any
financial fees and charges, including underwriting discounts, financial
advisory, legal and trustee fees and expenses, the premiums for or costs of
bond insurance, surety bonds or other forms of credit or liquidity
enhancement, and to provide for any necessary debt service reserves associated
with such bonds.
    (2)  The bonds shall be authorized by resolution or resolutions of the
authority, shall be dated, shall mature, shall bear interest, shall be in such
form and shall otherwise have such terms and provisions as such resolution or
resolutions may provide, except that no bond shall mature more than forty (40)
years from the date of its issue. The bonds shall bear interest at such rate
or rates, shall be executed in such manner, shall be payable in such medium at
such place or places, and be subject to such terms of redemption as such
resolution or resolutions may provide. The authority may sell its bonds at
public or private sale, at such price or prices as it shall determine.
    (3)  Any resolution or resolutions authorizing bonds, or any trust
indenture or other instrument securing bonds, may contain provisions which
shall be a part of the contract or contracts with the holders thereof, as to:
    (a)  Pledging and assigning all or any part of the revenues of the
    authority to secure the payment of the bonds, and the use and disposition
    of such revenues pending the payment of the bonds;
    (b)  Pledging and assigning all or any part of the assets of the authority
    including mortgages and obligations securing the same, to secure the
    payment of the bonds;
    (c)  The setting aside of reserves or sinking funds and the regulation and
    disposition thereof;
    (d)  Limitations on the purpose to which the proceeds of sale of bonds may
    be applied and limitations on the issuance of additional bonds, the terms
    upon which additional bonds may be issued and secured, and the refunding
    of outstanding or other bonds;
    (e)  The procedure, if any, by which the terms of any contract with
    bondholders may be amended, the amount of bonds the holders of which must
    consent thereto, and the manner in which such consent may be given;
    (f)  Vesting in a trustee or trustees such property, rights, powers and
    duties in trust as the authority may determine, which may include any or
    all of the rights, powers and duties of the trustee appointed by the
    bondholders pursuant to this chapter;
    (g)  Defining the acts or omissions to act which shall constitute a
    default in the obligations and duties of the authority to the holders of
    the bonds and providing for the rights and remedies of the holders of the
    bonds in the event of such default, including as a matter of right the
    appointment of a receiver; and
    (h)  Any other matters, of like or different character, deemed necessary,
    desirable or appropriate by the authority in connection with the issuance
    of its bonds.
    (4)  Any pledge made by the authority shall be valid and binding from the
time when the pledge is made; the revenues, moneys or property so pledged and
thereafter received by the authority shall immediately be subject to the lien
of such pledge without any physical delivery thereof or further act, and the
lien of any such pledge shall be valid and binding as against all parties
having claims of any kind in tort, contract or otherwise against the
authority, irrespective of whether such parties have notice thereof. Neither
the resolution nor any other instrument by which a pledge is created need be
recorded.
    (5)  Neither the directors of the authority nor any other person executing
such bonds shall be subject to any personal liability or accountability by
reason of the issuance thereof.
    (6)  The authority may from time to time purchase any of its outstanding
bonds out of any moneys available to it for such purpose at such price or
prices as the authority shall deem reasonable or necessary.
    (7)  In the discretion of the authority, the bonds may be secured by a
trust indenture by and between the authority and a corporate trustee, which
may be any bank or trust company organized under the laws of the United States
or any state. Such trust indenture may contain such provisions for protecting
and enforcing the rights and remedies of the bondholders as may be determined
by the authority to be reasonable and necessary, including covenants setting
forth the duties of the authority in relation to the exercise of its corporate
powers, the custody, the safeguarding and application of all moneys, the
events of default and the rights and remedies of the bondholders and the
corporate trustee upon the occurrence of an event of default. The authority
may provide by such trust indenture for the payment of the proceeds of the
bonds and the revenues to the trustee under such trust indenture or other
depository, and for the method of disbursement thereof, with such safeguards
and restrictions as it may determine. All expenses incurred in carrying out
such trust indenture may be treated as a part of the operating expenses of the
authority. If the bonds shall be secured by a trust indenture, the bondholders
shall have no authority to appoint a separate trustee to represent them.
    (8)  Whether or not the bonds are of such form and character as to be
negotiable instruments under the terms of the uniform commercial code, the
bonds are hereby made negotiable instruments within the meaning of and for all
the purposes of the uniform commercial code, subject only to the provisions of
the bonds for registration.