18-815. Regional metropolitan transit authority; finances; powers; issue bonds or certificates; powers and duties.

(1) A regional metropolitan transit authority shall have the continuing power to borrow money for the purpose of acquiring any transportation system and necessary cash or working funds, for reconstructing, extending, or improving any public transit system of the authority or any part thereof, and for acquiring any property and equipment useful for the reconstruction, extension, improvement, and operation of any public transit system of the authority or any part thereof.

(2) For purposes of evidencing the obligation of the authority to repay any money borrowed under this section, the authority may, pursuant to resolution adopted by the board from time to time, issue and dispose of its interest-bearing revenue bonds or certificates. The authority may also from time to time issue and dispose of its interest-bearing revenue bonds or certificates to refund any revenue bonds or certificates at maturity, or pursuant to redemption provisions, or at any time before maturity with the consent of the holders thereof.

(3) All such revenue bonds and certificates shall be payable solely from the revenue or income to be derived from the public transit system and related facilities, including, but not limited to, the revenue derived from rates, fares, and charges fixed under subdivision (19) of section 18-812, from property taxes levied pursuant to section 18-822, from any grants or loans received under subdivision (17) of section 18-812, and from any donations or other funds received from other sources. Such revenue bonds and certificates may bear such date or dates, may mature at such time or times as may be fixed by the board, may bear interest at such rate or rates as may be fixed by the board, payable semiannually, may be in such form, may carry such registration privileges, may be executed in such manner, may be payable at such place or places, may be made subject to redemption in such manner and upon such terms with or without premium as is stated on the face thereof, may be authenticated in such manner, and may contain such terms and covenants as may be provided in such resolution. Notwithstanding the form or tenor thereof, and in the absence of an express recital on the face thereof that they are nonnegotiable, all such revenue bonds and certificates shall be negotiable instruments.

(4) Pending the preparation and execution of any such revenue bonds or certificates, temporary bonds or certificates may be issued with or without interest coupons as may be provided by resolution of the board. To secure the payment of any or all of such temporary bonds or certificates, and for the purpose of setting forth the covenants and undertakings of the authority in connection with the issuance thereof and the issuance of any additional temporary bonds or certificates, as well as the use and application of the revenue or income to be derived from the public transit system, from property taxes levied, and from any grants or loans, as provided in the Regional Metropolitan Transit Authority Act, the authority may execute and deliver a trust agreement or agreements. No lien upon any physical property of the authority shall be created by such trust agreement or agreements. A remedy for any breach or default of the terms of any such trust agreement by the authority may be by mandamus or other appropriate proceedings in any court of competent jurisdiction to compel performance and compliance therewith. The trust agreement may prescribe by whom or on whose behalf such action may be instituted.

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