45-1996. Provisions of bonds; sale

A. The bonds shall provide that:

1. The bond is purchased and taken after a complete disclosure and with a full knowledge of all of the surrounding relevant facts and circumstances and not on the representation, faith or credit of the authority, this state or any of its political subdivisions.

2. The holder in order to obtain payment may not compel this state or any of its political subdivisions to exercise its appropriation or taxing power.

3. The bond does not constitute a debt of this state, any political subdivision of this state or any operating unit and is payable only from revenues of the authority.

B. The gross or net revenue derived from any project or any part of a project may be pledged to secure the payment of any series of bonds.

C. The authority may provide for reimbursement to the holder of all expenses of litigation and attorney fees incurred in collecting the bonds in the event of default and may provide for and fix the powers and duties of a trustee if necessary to enforce collection. Bond resolutions, agreements and bonds may be in such form and may contain such other conditions and terms as the authority deems appropriate or necessary to make the bonds fully salable and marketable.

D. The authority may provide that any holder of bonds, or a trustee designated by the authority at the time of issuing the bonds, on proper showing may secure an order of the superior court requiring the authority, subject to the contracts with operating units then in effect, to fix and collect rates and charges that will produce adequate revenues to permit setting up adequate yearly reserves with which to meet future payments according to the terms of the bond.

E. All bonds issued by the authority and agreements of the authority with respect to bonds are subject to this chapter, and no bond or agreement may contain any provision in conflict with this chapter. An amendment of this chapter does not diminish or impair the remedy and rights of the bondholder.

F. The bonds shall be signed by the chairman or vice-chairman and the secretary-treasurer of the authority in office at the date of signing and are valid obligations of the authority although before delivery or sale the persons whose signatures appear on the bonds may have ceased to be officers of the authority.

G. The validity of the bonds is not dependent on or affected by the legality of any proceeding relating to the acquisition, construction, improvement or extension of a project for which the bonds are issued. The bonds shall recite that they are regularly issued pursuant to this chapter and that recital is prima facie evidence of their legality and validity.

H. Bonds so issued may be sold when the money is needed for the purposes for which they are issued. Pending the preparation or execution of definite bonds, interim receipts or certificates or temporary bonds may be delivered to the purchaser or purchasers of bonds.