2018 Louisiana Laws
Revised Statutes
TITLE 38 - Public Contracts, Works and Improvements
RS 38:3085.5 - Bonds; rights of bond holders; refunding bonds
§3085.5. Bonds; rights of bond holders; refunding bonds
A. In any resolution authorizing the issuance of such bonds, the board may enter into such covenants with the future holder or holders of the bonds with respect to the management and operation of facilities, the imposition and collection of fees and charges for water and services furnished by the district, the disposition of such fees and revenues, the issuance of future bonds, and the creation of future liens and encumbrances against such facilities and the revenues therefrom, the carrying of insurance on the facilities, the keeping of books and records, and other pertinent matters, as are deemed proper by the board to assure the marketability of the bonds, but such covenants shall not be inconsistent with the provisions of this Part. Any holder of the bonds or of any of the coupons thereto attached may by appropriate legal action compel performance of all duties required of the board and officials of the district by this Part. If any bond issued hereunder is permitted to go into default as to principal or interest, any court of competent jurisdiction may, pursuant to the application of the holder of the bond, appoint a receiver for the facilities of the district. The receiver shall operate the facilities and collect and distribute the revenues thereof pursuant to the provisions and requirements of this Part and the resolution authorizing the bonds. In the discretion of the board the bonds may be additionally secured by conventional mortgage on all or any part of the properties or facilities acquired, constructed, extended, or improved with the proceeds thereof, and the board shall have full discretion to make such provisions as it deems appropriate for the making and enforcement of the mortgage and the provisions to be therein contained.
B. If more than one series of bonds is issued hereunder which are payable from the revenues of any facility, priority of lien on such revenues shall depend on the time of delivery of the bonds. Each series shall enjoy a lien prior and superior to that enjoyed by any series of bonds subsequently delivered, except that where provision is made in the proceedings authorizing any issue or series of bonds for the issuance of additional bonds in the future on a parity therewith pursuant to procedure or restrictions provided in such proceedings, additional bonds may be issued in the future on a parity with such issue or series in the manner so provided in such proceedings. With respect to any issue or series of bonds which may be authorized as a unit but delivered from time to time in blocks, the board, in the proceedings authorizing the issuance of the bonds, may provide that all of the bonds of the series or issue shall be coequal with respect to lien, regardless of the time of delivery.
C. The board may authorize revenue bonds issued under this Part and payable from the revenues to be derived from two or more facilities owned and operated by the district, whether or not such facilities are related or used in conjunction, for the purpose of constructing, acquiring, extending, or improving any one or more of the facilities.
D. The board may authorize the issuance of refunding revenue bonds of the district for the purpose of refunding outstanding revenue bonds. Such refunding bonds may be sold and the proceeds applied to or deposited in escrow for the retirement of the outstanding bonds, or they may be delivered in exchange for the outstanding bonds. The refunding bonds shall be authorized in all respects as original bonds are herein required to be authorized. In authorizing the refunding bonds the board shall provide for the security of the bonds, the sources from which the bonds are to be paid, and for the rights of the holders thereof in all respects as herein provided for other bonds issued under authority of this Part. The board also may provide that the refunding bonds shall have the same priority of lien on the revenues pledged for their payment as was enjoyed by the bonds refunded. No bonds may be refunded hereunder unless they either mature or are callable for redemption under their terms within twelve months from the date of issuance of the refunding bonds, or unless the holders thereof voluntarily surrender them for exchange or payment.
E. A resolution authorizing any bonds hereunder may provide that such bonds shall recite that they are issued under authority of this Part. Such recital shall conclusively import full compliance with all of the provisions of this Part, and all bonds issued containing such recital shall be incontestable for any cause whatsoever after their delivery for value. The bonds shall be signed by such officers as the board shall determine, and coupon bonds shall have attached thereto interest coupons bearing the facsimile signatures of such officer or officers of the board as it shall designate. The bonds may be issued and delivered notwithstanding that one or more of the officers signing such bonds or the officer or officers whose facsimile signature or signatures may be upon the coupons have ceased to be such officer or officers at the time the bonds actually have been delivered. The bonds shall be sold for not less than par and accrued interest to the highest bidder at a public sale after advertisement by the board at least once a week for not less than thirty days in a newspaper of general circulation within the district and in a financial newspaper or journal published in New Orleans, New York, or Chicago, reserving to the board the right to reject any and all bids. If after such advertisement, no bids are received, or if the board determines that bids received are unsatisfactory, the board may negotiate for the sale of the bonds within a period of sixty days thereafter. However, no negotiated sale of bonds shall be made for a price not as good as the most favorable bid received at the public offering.
F. No proceedings with respect to the issuance of any such bonds shall be necessary except those required by this Part.
Added by Acts 1975, No. 28, §1.
