2019 Louisiana Laws
Revised Statutes
Title 33 - Municipalities and Parishes
§4710.17.1. Additional authority to issue bonds
RS 4710.17.1 - Additional authority to issue bonds
A. Without reference to any other provision of the Constitution of Louisiana or of the laws of Louisiana and as a grant of power in addition to the authority to issue bonds contained in R.S. 33:4710.17 and to carry out the purposes of this Chapter, the authority may, from time to time, with the approval of the State Bond Commission, issue negotiable bonds in one or more series for the purpose of providing funds to finance an expansion project or projects, including engineering, architectural, inspection, legal, and financial fees and costs, interest on such bonds during construction and for a reasonable period thereafter, establishment of reserves to secure such bonds, all costs associated with the issuance of such bonds, including credit enhancement, derivative products, underwriter's discount, and funding of accounts, if any, required by the terms of the resolution or trust indenture authorizing their issuance, and all other expenditures of the authority incidental or necessary or convenient thereto. Such bonds shall be authorized and issued by a resolution or resolutions of the board and shall be of such series, bear such date or dates, be of such type, mature at such time or times, bear interest at such rate or rates payable on such date or dates, be in such denominations, be in such form, carry such registration and exchangeability privilege, be payable in such medium of payment and at such place or places, be subject to such terms of redemption, and be secured in such manner consistent with the authority contained in this Section as the resolution authorizing such bonds may provide. Payment of the bonds authorized by this Section may be secured by a pledge of the avails or proceeds of the hotel occupancy taxes and food and beverage tax authorized by this Chapter, such other taxes, fees, and charges authorized by this Chapter, and any other income and revenue of the authority as may be determined by the board and as authorized or permitted by law. The word "bonds" as used in this Section means and includes bonds, notes, certificates of indebtedness, or other evidence of indebtedness for the repayment of borrowed money.
B. Bonds issued pursuant to this Section also may be secured by a trust agreement by and between the authority and one or more corporate trustees or fiscal agents, which may be any trust company or bank having the powers of a trust company within or without this state.
C. All bonds issued by the authority shall be sold in such manner and for such prices as the board may determine.
D. The board may, in any resolution authorizing the issuance of such bonds, enter into such covenants with the future owner or owners of the bonds as to the management and operation of expansion projects, the lease or rental thereof, the imposition and collection of fees and charges for services and facilities furnished by the authority, the disposition of such fees and revenues, the issuance of future bonds and the creation of future liens and encumbrances against the expansion projects and the revenues therefrom, the carrying of insurance on the expansion projects, the keeping of books and records, and other pertinent matters, including the appointment of a receiver in the event of default, as may be deemed proper by the board to assure the marketability of the bonds.
E. Any bonds may, in the discretion of the board, be additionally secured by a 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 may see fit for the making and enforcement of such mortgage and the provisions to be therein contained.
F. The board may issue refunding bonds of the authority for the purpose of refunding outstanding bonds issued pursuant to the provisions of this Section in accordance with Chapter 14-A of Title 39 of the Louisiana Revised Statutes of 1950 or the Consolidated Local Government Public Finance Act.
G. Any pledge of taxes, fees and charges, revenues, securities, and other monies made by the authority pursuant to this Section shall be valid and binding from time to time when the pledge is made. Such taxes, fees and charges, 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 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, whether or not such parties have notice thereof. The instrument by which such a pledge is created need not be filed or recorded except in the official minutes of the authority.
H. The bonds shall be executed in the name of the authority in the manner provided in the resolution authorizing the issuance of such bonds.
I. Pending the preparation of definitive bonds, the authority may issue interim receipts or temporary bonds, exchangeable for definitive bonds when such bonds have been executed and are available for delivery.
J. No member of the board or of the authority or any person executing such bonds shall be liable personally on such bonds.
K. All bonds issued pursuant to this Section are negotiable instruments within the meaning of and for all purposes of the negotiable instruments law of Louisiana, subject only to the provisions of bonds for registration.
L. All bonds and the income therefrom are exempt from all taxation by this state or any political subdivision thereof. The bonds shall be legal and authorized investments for banks, savings banks, insurance companies, homestead and building and loan associations, trustees, and other fiduciaries and may be used for deposit with any officer, board, municipality, or other political subdivision of the state of Louisiana, in any case where deposit or security is required.
M. When any bonds secured in whole or in part by any taxes, fees, or charges authorized by this Chapter have been issued, neither the legislature nor the authority shall discontinue or decrease the applicable taxes, fees, or charges, or permit to be discontinued or decreased the applicable taxes, fees, or charges in anticipation of the collection of which such bonds have been issued, or in any way make any change in the allocation and dedication of the proceeds of such taxes, fees, or charges which would diminish the amount of the revenues to be received therefrom by the authority until all of such bonds have been retired as to principal and interest or irrevocable provision is made for the payment of principal and interest on such bonds.
N. The bonds and the interest thereon shall not be considered a debt of the state or any political subdivision thereof within the meaning of the constitution or the statutes of the state and shall not constitute a charge against the credit or taxing power of the state or any other political subdivision thereof. Neither the state nor any other political subdivision thereof shall in any manner be liable for the payment of the principal, interest or premium, sinking or reserve fund requirements, or other requirements of the bonds or for the performance of any agreement or pledge of any kind which may be undertaken by the authority.
O. The powers and rights conferred by this Section shall be in addition and supplemental to the powers and rights conferred by any other general or special law. This Section does and shall be construed to provide a complete and additional method for the doing of the things authorized thereby. The issuance of bonds or refunding bonds or other obligations pursuant to the provisions of this Section need not comply with the requirements of any other state law applicable to the issuance of the bonds or other obligations for the financing of any project, except as provided. No proceedings, notice, or approval shall be required for the issuance of any bonds or any instrument as security therefor, except as provided in this Section. The provisions of this Section shall be liberally construed for the accomplishment of its purposes.
P. Any resolution authorizing the issuance of bonds shall be published one time in the official journal of the authority; however, it shall not be necessary to publish any exhibits to such resolution if exhibits are available for public inspection and such fact is stated in the publication. For thirty days after the date of publication, any person in interest may contest the legality of the resolution, any provision of the bonds to be issued pursuant to it, the provisions therein made for the security and payment of the bonds, or the validity of any of the provisions and proceedings relating to the authorization and issuance of such bonds. After that time, no person may contest the regularity, formality, legality, or effectiveness of the resolution, any provision of the bonds to be issued pursuant to it, the provisions for the security and payment of the bonds, and the validity of all other provisions and proceedings relating to their authorization and issuance, for any cause. Thereafter, it shall be conclusively presumed that the bonds are legal and that every legal requirement for the issuance of the bonds has been complied with. No court shall have authority to inquire into any of these matters after the thirty days.
Acts 2019, No. 172, §1.
