Issuance of revenue bonds

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  1. (a) Whenever the legislative body of any municipality shall determine to acquire, purchase, and construct exhibition grounds and buildings under the provisions of this chapter, it shall cause an estimate to be made of the cost thereof and by ordinance shall provide for the issuance of revenue bonds under the provisions of this chapter.

  2. (b) The ordinance shall set forth:

    1. (1) A brief description of the contemplated improvement;

    2. (2) The estimated cost thereof;

    3. (3) The amount, rate of interest, and time and place of payment; and

    4. (4) Other details in connection with the issuance of the bonds.

  3. (c) The bonds shall bear interest at such rate or rates, payable semiannually, and shall be payable at such times and places, not exceeding twenty (20) years from their dates, as shall be prescribed in the ordinance providing for their issuance.

  4. (d) The ordinance shall also:

    1. (1) Declare that a statutory mortgage lien shall exist upon the property so to be acquired or constructed;

    2. (2) Fix the rents or charges to be collected prior to the payment of all of the bonds; and

    3. (3) Pledge the revenues derived from the exhibition grounds and buildings for the purpose of paying the bonds and interest thereon.

  5. (e) The pledge shall definitely fix and determine the amount of revenue which shall be necessary to be set apart and applied to the payment of the principal of, and interest on, the bonds and the proportion of the balance of the revenues and income which are to be set aside as a proper and adequate depreciation account, and the remainder shall be set aside for the reasonable and proper operation thereof.

  6. (f) The rents or charges from the exhibition grounds and buildings shall be sufficient to provide for:

    1. (1) The payment of interest upon all bonds and to create a sinking fund to pay the principal thereof as and when the bonds shall become due;

    2. (2) The operation and maintenance of the project; and

    3. (3) An adequate depreciation fund.


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