2014 Louisiana Laws
Revised Statutes
TITLE 48 - Roads, Bridges and Ferries
RS 48:2114 - Transportation Mobility Fund; loans for qualified projects; authorizing and issuing debt; security; interest rates

§2114. Transportation Mobility Fund; loans for qualified projects; authorizing and issuing debt; security; interest rates

A. Notwithstanding any provision of law to the contrary, and in addition to the authority to borrow money or incur indebtedness provided by any other provision of law, sums on deposit in, credited to, or to be received by the board of the Louisiana Transportation Authority in the Transportation Mobility Fund may be loaned by the board to any qualified applicant for funding or may be used by the board to purchase debt obligations of such applicants. Any qualified applicant may make loans from and incur debt payable to the board in accordance with the provisions of this Section. The making of a loan from the Transportation Mobility Fund and the issuance of debt evidencing such loan by any qualified applicant shall be subject to approval by the State Bond Commission. This Section shall not be deemed to be the exclusive authority under which qualified applicants may borrow money from or incur indebtedness to the board.

B. All bonds, notes, or other evidence of indebtedness of any qualified applicant issued to represent a loan from the Transportation Mobility Fund shall be authorized and issued pursuant to a resolution from such applicant, 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, mortgage, 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 agreement, mortgage, 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 qualified applicant upon entering into a loan agreement for funds from the Transportation Mobility Fund 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 qualified applicant for a term not exceeding thirty-five 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 board in connection with such loan; however, 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 board shall have a term not to exceed two years from the date thereof.

D. Any evidence of indebtedness authorized pursuant to the provisions of this Section 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 qualified applicant shall be sold at a private, negotiated sale to the board at such price or prices, including premiums and discounts as shall be authorized in the resolution of the qualified applicant authorizing the issuance of any such obligation and agreed to by the board. 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 pursuant to this Section shall be published once in the official journal of the board. 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 qualified applicant 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 person in interest may contest the legality of the resolution authorizing such evidence of indebtedness and any provision 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 contesting the validity of the bonds, notes, or other evidence of indebtedness authorized pursuant to such resolution is begun 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 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.

H. The Louisiana Transportation Authority is hereby authorized to sell such bonds, notes, or other evidences of indebtedness of a qualified applicant pursuant to negotiated or competitive sale after financial feasibility of a project has been achieved, and the proceeds of any such sale shall be deposited in the Transportation Mobility Fund.

Acts 2006, No. 685, §1.