2012 Louisiana Laws
Revised Statutes
TITLE 2 — Aeronautics
RS 2:707 — Bonds of the authority

§707. Bonds of the authority

A. Without reference to any provision of the Constitution of Louisiana and the laws of Louisiana and as a grant of power in addition to any other general or special law, the authority may issue from time to time its bonds in such principal amounts as the authority shall deem necessary to provide sufficient funds to carry out any of its corporate purposes and powers. The principal of, redemption premium, if any, and interest on such bonds shall be payable from and may be secured by a pledge of and lien upon the revenues or any portion thereof of the authority or monies derived from any other source, including taxes, all as the authority shall determine.

B. Bonds of the authority shall be authorized by a resolution adopted by the board. The bonds of each issue shall be of such series, bear such date or dates, bear interest at such rate or rates, mature at such time or times not exceeding forty years from their date or dates, be in such denominations, be in such form, carry such registration and exchangeability privilege, be payable at such time or times, in such medium of payment and at such place or places, be subject to such terms of redemption, and be entitled to such priority on the revenues of the authority as the resolution may provide. In case any officer whose signature or facsimile of whose signature shall appear on any bonds shall cease to be such officer before the delivery of such bonds, such signature or such facsimile shall nevertheless be valid and sufficient for all purposes the same as if he had remained in office until such delivery. The authority may sell such bonds in such manner, either at public or at private sale, and for such price as it may determine to be for the best interest of the authority.

C. The issuance of such bonds shall not be subject to any limitations or conditions contained in any other law, and bonds may be issued without obtaining the consent of the state or any political subdivision, or of any agency, commission, or instrumentality thereof, except that the issuance of such bonds shall be subject to the approval of the State Bond Commission, and without any other approvals, proceedings, or the happening of any conditions or things other than those approvals, proceedings, conditions, or things which are specifically required by this Chapter, and the provisions of the resolution authorizing the issuance of such bonds or the trust agreement securing the same.

D. The bonds shall be issued in compliance with the provisions of this Chapter.

E. For a period of thirty days from the date of publication of the resolution authorizing the issuance of bonds hereunder, any persons in interest shall have the right to contest the legality of the resolution and the legality of the bond issue for any cause, after which time no one shall have any cause or right of action to contest the legality of said resolution or of the bonds authorized thereby for any cause whatsoever. If no suit, action, or proceeding is begun contesting the validity of the bond issue within the thirty days herein prescribed, the authority to issue the bonds and to provide for the payment thereof and the legality thereof and all of the provisions of the resolution authorizing the issuance of the bonds shall be conclusively presumed, and no court shall have authority to inquire into such matters.

F. Bonds issued under the provisions of this Chapter shall not be deemed to constitute a pledge of the faith and credit of the state or of any governmental unit thereof. All such bonds shall contain a statement on their face substantially to the effect that neither the faith and credit of the state nor the faith and credit of any public entity of the state are pledged to the payment of the principal of or the interest of such bonds. The issuance of bonds under the provisions of this Chapter shall not directly, indirectly, or contingently obligate the state or any governmental unit of the state to levy any taxes whatever therefor or to make any appropriation for their payment, other than obligations to make payments by the state or public entities to the authority arising out of contracts authorized under this Chapter.

G. Neither the members of the authority nor any other persons executing bonds of the authority shall be subject to any personal liability or accountability by reason of the issuance thereof.

H. In the discretion of the authority, any bonds issued under the provisions of this Chapter may be secured by a trust agreement by and between the authority and a corporate trustee. Such corporate trustee, and any depository of funds of the authority, may be any trust company or bank having the powers of a trust company within or without the state. The resolution authorizing the issuance of the bonds or the trust agreement may pledge or assign all or a portion of the revenues to be received by the authority and may contain such provisions for protecting and enforcing the rights and remedies of the bondholders as may be reasonable and proper and not in violation of law and may restrict the individual right of action by bondholders. The trust agreement or the resolution providing for the issuance of such bonds may contain covenants, including but not limited to the following:

(1) The pledge or mortgage of all or any part of the revenues and properties of the authority.

(2) The rents, rates, fees, and charges to be established, maintained, and collected, and the use and disposal of revenues, gifts, grants, and funds received or to be received by the authority.

(3) The setting aside of reserves and the investment, regulation, and disposition thereof.

(4) The custody, collection, securing, investment, and payment of any monies held for the payment of bonds.

(5) Limitations or restrictions on the purposes to which the proceeds of sale of bonds then or thereafter to be issued may be applied.

(6) Limitations or restrictions on the issuance of additional bonds, the terms upon which additional bonds may be issued and secured or the refunding of outstanding or other bonds.

(7) The procedure, if any, by which the terms of any contract with bondholders may be amended, the percentage of bonds the bondholders of which must consent thereto, and the manner in which such consent may be given.

(8) Events of default and the rights and liabilities arising thereupon, the terms and conditions upon which bonds issued under this Chapter shall become or may be declared due before maturity, and the terms and conditions upon which such declaration and its consequences may be waived.

(9) The preparation and maintenance of a budget.

(10) The retention or employment of consulting engineers, independent auditors, attorneys, and other technical consultants.

(11) Limitations on or the prohibition of free service to any person, firm, or corporation, public or private.

(12) The acquisition or disposal of property, and the appointment of a receiver of the funds and property of the authority in the event of a default.

(13) Provisions for insurance and for accounting reports and the inspection and audit thereof.

(14) The continuing operation and maintenance of any airport or airport facility of the authority.

I. Any pledge made by the authority pursuant to this Chapter shall be valid and binding from the date the pledge is made. The revenues, securities, and other monies so pledged and then held or thereafter received by the authority or any fiduciary shall immediately be subject to the lien of the pledge without physical delivery thereof or further act, and the lien of the pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the authority without regard to whether such parties have notice thereof. The resolution or trust agreement or any financing statement, continuation statement, or other instrument by which a pledge is created need not be filed or recorded in any manner.

J. Any suit to determine the validity of bonds issued by the authority shall be brought only in accordance with the provisions of R.S. 13:5121 et seq.

Acts 2008, No. 927, §1, eff. July 14, 2008.