Power to secure bonds.

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(1) The board, in connection with the issuance of bonds and in order to secure the payment of the bonds and the interest thereon, has the power, by resolution:

(a) To provide that the bonds issued under this part 3 shall be payable from and may be secured by a pledge of and lien on any or all net revenues derived from, and shall be payable from:

  1. Fees, rentals, and other charges for the use of the additional facilities acquired orprovided with the proceeds of said bonds or any one or more additional facilities acquired or provided with proceeds of bonds issued pursuant to this part 3; and

  2. Contributions from nonstate sources for such facility or facilities;

(b) To covenant with or for the benefit of the holders of bonds issued under this part 3 that, so long as any of the bonds remain outstanding and unpaid, the board shall prescribe service charges, fees, and rentals and shall revise the same when necessary so that the additional facility or facilities for which the bonds are issued shall always remain self-supporting, with revenues, including donations from nonstate sources for such additional facility or facilities, sufficient:

  1. To provide for all expenses of operation, maintenance, expansion, and replacement ofany facilities from which such revenues are derived;

  2. To pay, when due, all bonds and interest thereon; and(III) To provide reasonable reserves for such purposes.

Source: L. 75: Entire part added, p. 1354, § 1, effective July 14. L. 83: IP(1) and IP(1)(b) amended, p. 1372, § 9, effective June 2. L. 89: (1)(a), IP(1)(b), and (1)(b)(I) amended, p. 1413, § 6, effective July 1. L. 97: Entire section amended, p. 817, § 8, effective June 30.


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