§992. Resolution; nature and form of bonds

Bonds issued under this Part shall be authorized by resolution of the governing body and shall be limited obligations of the municipality, the principal of and interest on which shall be payable solely from the income and revenue derived from the sale, lease, or other disposition of the project or facility to be financed by the bonds issued hereunder and/or from the income and revenue derived from the sale, lease, or other disposition of any existing project or facility acquired, constructed, or improved under the provisions of this Part, or under R.S. 39:551.1 or R.S. 39:551.2; however, in the discretion of the governing body, the bonds may be additionally secured by a mortgage covering all or any part of the project from which the revenue so pledged may be derived. Any refunding bonds issued pursuant to this Part shall be payable from any source described above and/or from the proceeds of such refunding bonds and/or the income earned from the investment of any of the proceeds of the refunding bonds deposited in escrow pursuant to said Section 999. The bonds shall not constitute an indebtedness or pledge of the general credit of the municipal corporation within the meaning of any constitutional or statutory limitation of indebtedness and shall contain a recital to that effect. They shall be in coupon form, but may be made registrable as to principal if so provided in the resolution authorizing their issuance. The bonds shall be in the denominations of one thousand dollars or a multiple thereof, shall bear interest at a coupon rate or rates not exceeding the interest rate stated in the resolution of the governing body authorizing such bonds, shall mature serially or otherwise in the manner provided by the governing body, but not later than thirty years from their date, and shall be made payable at the place or places provided by the governing body. They may be made redeemable at the option of the issuing municipality prior to maturity at the premium (not greater than ten percent of the principal amount thereof) which the governing body determines. The bonds shall be executed with the manual or facsimile signature of the presiding officer and attested with the manual or facsimile signature of the secretary or clerk of the municipality, provided that at least one of such signatures shall be a manual signature under the official seal of the municipality, in the manner provided in the resolution authorizing their issuance. Interest coupons to be attached thereto may be executed with the facsimile signatures of the officers, and in the event that any officer whose signature appears on the bonds or coupons ceases to hold office before the delivery of the bonds to the purchaser, his signature shall nevertheless be valid and sufficient for all purposes. The bonds issued under this Part and the income therefrom shall be exempt from all taxation in the state of Louisiana.

Acts 1964, No. 520, §2. Amended by Acts 1968, No. 649, §1. Acts 1974, No. 620, §1; Acts 1975, No. 155, §1; Acts 1977, No. 391, §1, eff. July 10, 1977.