RS 330 - Bond issues
A. The board shall have authority to incur debt for any one or more of the lawful purposes of the district set forth in this Part, to issue, in the name of the district, negotiable bonds evidencing such debt and to provide for the security and payment thereof. Such bonds may be of various types but shall be issued and secured for payment in compliance with the provisions of one of the following:
(1) Industrial inducement revenue bonds may be issued by the board for the purposes, in the manner, and subject to the requirements set forth in R.S. 39:991 through 1001 and Article VI, Section 21 of the Constitution of Louisiana, and secured for payment as therein provided. Also, the board shall have full and complete authority to negotiate and enter into all necessary leases, contracts of sale, or other agreements, and the authority to take any other actions which may be necessary to accomplish the results contemplated by this constitutional and statutory authority.
(2) Industrial inducement general obligation bonds may be issued by the board for the purposes, in the manner, and subject to the requirements set forth in R.S. 39:551 through 578 and Article VI, Sections 21 and 33 of the Constitution of Louisiana, and shall be secured by and payable from the annual levy and collection of an ad valorem tax on all taxable property in the district sufficient in amount to pay such bonds in principal and interest as the same mature. However, no such bonds shall be issued until the board has received prior approval by a majority vote of the qualified electors within the district voting at an election called by the district for that purpose and conducted in accordance with applicable election laws. The board shall also have full and complete authority to negotiate and enter into all necessary leases, contracts of sale, or other agreements, and the authority to take any other actions which may be necessary to accomplish the results contemplated by this constitutional and statutory authority.
(3) General obligation bonds may be issued by the board for the purposes of acquiring sites and other necessary property or appurtenances for industrial parks or industrial plant buildings located within the district and constructing, acquiring and developing industrial parks and industrial plant buildings, including but not limited to roads, street lighting, bridges, rail facilities, drainage, sewers, sewerage disposal facilities, solid waste disposal facilities, waterworks, and other utilities and properties. Such bonds shall be issued substantially in the manner and subject to the requirements set forth in R.S. 39:551 through 578 and Article VI, Sections 21 and 33 of the Constitution of Louisiana, and shall be secured by and payable from the annual levy and collection of an ad valorem tax on all taxable property in the district sufficient in amount to pay such bonds in principal and interest as the same mature. However, no such bonds shall be issued until the board has received prior approval by a majority vote of the qualified electors within the district voting at an election called by the district for that purpose and conducted in accordance with applicable election laws. The board shall have the authority to lease all or any part of the lands, buildings, or other properties acquired or constructed from the funds derived from the sale of such bonds.
(4) Negotiable bonds bearing such name as the board may designate may be issued by the board for any one or more of the lawful purposes of the district within the authority set forth in R.S. 34:340.1 through 340.6, R.S. 39:551 through 578, and Article VI, Sections 21 and 33 of the Constitution of Louisiana, all of which authority is hereby delegated to the district and its board. Such bonds may be payable and secured in principal, interest, and redemption premiums, if any, by a pledge and dedication of the income and revenues of the district and its board derived or to be derived from the properties and facilities owned, leased, or operated by it and any other income or revenue received from fees, taxes, grants, or other sources. In addition to such pledge, the board may further secure the payment of the bonds of the district by a conventional mortgage upon any or all of the properties constructed or acquired or to be constructed and acquired by it. The board is further authorized to receive, by gift, grant, donation, or otherwise, any sum of money, or property, aid, or assistance from the United States, the state of Louisiana, or any political subdivision thereof, and unless otherwise provided by the terms of such gift, grant, or donation, in its discretion, to pledge all or any part of such monies for the further securing of the payment of the principal and interest of the bonds. In addition to whatever security may be pledged for the payment of such bonds, the board, at its option, shall have authority to provide that such bonds shall additionally constitute general obligations of the district, to which its full faith and credit, including, if necessary, the right to levy ad valorem taxes within the district to pay such bonds, shall be pledged. However, such general obligation bonds shall not be issued until the board has adopted an appropriate resolution giving notice of its intention to issue general obligation bonds, including a general description of such bonds and the security therefor, and notice of this intention has been published in four consecutive weekly issues of a newspaper of general circulation published in the district, setting forth a date and time when the board will meet in open and public session to hear any objections to the proposed issuance of such bonds and provided, further, if at such public hearing a petition, duly signed by more than five percent of the qualified electors in the district object to the issuance of bonds as proposed, then such bonds shall not be issued until the board has received prior approval by a majority vote of the qualified electors within the district voting at an election called by the district for that purpose and conducted in accordance with applicable election laws. No bonds shall be issued by the district under the authority conferred in this Paragraph unless the board has prepared, or caused to be prepared, an economic feasibility study or report reflecting that adequate revenues will be available from the sources pledged in an amount sufficient to pay the bonds as they mature in principal and interest. The economic feasibility study or report shall be filed in the permanent records of the board and shall be available for public inspection. Subject to the above limitations, bonds may be issued by the board under the authority conferred in this Paragraph for such purposes and in such amount or amounts as the State Bond Commission may determine. Such bonds shall be authorized by a resolution of the board and shall be of such series, bear such date or dates, mature at such time or times not exceeding forty years from their respective dates, bear interest, payable semiannually or annually, be in such denominations, be in such form, either coupon or fully registered without coupons, carry such registration and exchangeability privilege, be payable in such medium of payment and at such place or places, be subject to such terms of redemption not exceeding one hundred five percent of the principal amount thereof, and be entitled to such priority on the revenues of the district as such resolution or resolutions may provide in compliance with the provisions and within the restrictions of R.S. 34:340.1 through 340.6.
B. The board, as the governing authority of the district, is authorized to adopt all necessary resolutions or ordinances which may be necessary for ordering, holding, canvassing, and promulgating the returns of any election required by this Section or providing for the issuance of any bonds authorized by this Section including covenants for the security and payment of any bonds so issued. For a period of thirty days from the date of the publication of any resolution or ordinance of the board authorizing the issuance of any bonds of the district, any interested person may contest the legality of such resolution or ordinance and the validity of such bonds issued or proposed to be issued thereunder and the security of their payment, after which time no one shall have any cause of action to contest the legality of said resolution or ordinance or to draw in question the legality of said bonds, the security therefor, or the debts represented thereby for any cause whatever, and it shall be conclusively presumed that every legal requirement has been complied with, and no court shall have authority to inquire into such matters after the lapse of thirty days.
C.(1) Revenue bonds may be issued by the board to accomplish any authorized public function. All such bonds shall be negotiable instruments and shall be solely the obligations of the district. Such bonds shall be authorized and issued by resolution adopted by a majority vote of the board and shall be of such series, bear such date or dates, mature at such time or times, bear interest at such rate or rates, be in such denominations, be in such form, either coupon or fully registered without coupons, carry such registration and exchangeability privileges, be payable at such place or places, be subject to such terms of redemption, and be entitled to such priorities on the income, revenue, and receipts of the district as such resolution may provide. The bonds shall be signed by such officers as the board shall determine and such signatures may be by facsimile.
(2) Such bonds shall be sold in such manner as may be determined by the board to be most beneficial to the district and the board may pay all expenses and commissions which it may deem necessary or advantageous in connection with the issuance and sale of such bonds. Such bonds may in the discretion of the board be additionally secured by a mortgage on all or any part of the projects acquired, constructed, extended, or improved with the proceeds thereof, and the board shall have full discretion to make such provisions as it may see fit for the making and enforcement of such mortgage and provisions to be contained therein.
(3) The issuance and sale of such bonds shall be approved by the State Bond Commission. At least seven days prior to the sale of such bonds, the board shall cause to have published a notice of sale in a newspaper of general circulation in the city of Morgan City, Louisiana. This notice of sale shall state whether any proposals have been made for the purchase of the bonds and that other proposals will be considered and that the proposal most advantageous to the board will be accepted at the time of the sale. For a period of thirty days from the date of publication of the notice of sale, any person or persons with interest shall have the right to contest the legality of the notice of sale, resolution, or other proceeding authorizing the issuance of the bonds and the legality of the bond issue for any cause, after which time no one shall have any cause or right of action to contest the legality of said resolution or other proceedings or of the bonds authorized thereby for any cause whatsoever. If no suit, action, or proceedings are begun contesting the validity of the bonds within the thirty days herein prescribed, the authority to issue the bonds and to provide for the payment thereof, the legality thereof, and of all of the provisions of the resolution or other proceedings authorizing the issuance of the bonds shall be conclusively presumed, and no court shall have authority to inquire into such matters.
(4) Such bonds shall have all the qualities of negotiable instruments under the commercial laws of the state of Louisiana. All such bonds shall be special and limited obligations of the board. In no event shall any such bonds constitute an obligation, either general or special, of the general credit of the board or of the state of Louisiana within the meaning of any constitutional or statutory provision whatsoever, and the bonds shall contain a recital to that effect.
Acts 1952, No. 530, §10. Amended by Acts 1956, No. 428, §2; Acts 1999, No. 1152, §1.