266-55. Special facility revenue bonds
All special facility revenue bonds, including special facility revenue refunding bonds, authorized to be issued shall be issued pursuant to part III of chapter 39, except as follows:
(1) No special facility revenue bonds shall be issued
unless at the time of issuance the department shall have entered into a special
facility lease with respect to the special facility for which the revenue bonds
are to be issued;
(2) Special facility revenue bonds shall be issued in
the name of the department, and not in the name of the State;
(3) No further authorization of the legislature shall
be required for the issuance of the special facility revenue bonds, but the
approval of the governor shall be required for the issuance;
(4) Special facility revenue bonds shall be payable
solely from and secured solely by the revenues derived by the department from
the special facility for which they are issued, as defined in section 266-51;
(5) The final maturity date of the special facility
revenue bonds shall not be later than either the estimated life of the special
facility for which they are issued or the initial term of the special facility
lease;
(6) If deemed necessary or advisable by the
department, or to permit the obligations of the other person to the special
facility lease to be registered under the United States Securities Act of 1933,
the department with the approval of the state director of finance may appoint a
national or state bank within or without the State to serve as trustee for the
holders of the special facility revenue bonds and may enter into a trust
indenture or trust agreement with the trustee. The trustee may be authorized
by the department to collect, hold, and administer the revenues derived from
the special facility for which the special facility revenue bonds are issued
and to apply the revenues to the payment of the principal and interest on the
special facility revenue bonds. If any trustee shall be appointed, any trust
indenture or agreement entered into by the department with the trustee may
contain the covenants and provisions authorized by part III of chapter 39 to be
inserted in a resolution adopted or certificate issued, as though the words
"resolution" or "certificate" as used in that part read
"trust indenture or agreement". Those covenants and provisions shall
not be required to be included in the resolution or certificate authorizing the
issuance of the special facility revenue bonds if included in the trust
indenture or agreement. Any resolution or certificate, trust indenture, or
trust agreement adopted, issued, or entered into by the department pursuant to
this part may also contain any provisions required for the qualification
thereof under the United States Trust Indenture Act of 1939. The department
may pledge and assign to the trustee the special facility lease and the rights
of the department including the revenues thereunder;
(7) If the department with the approval of the state
director of finance shall have appointed or shall appoint a trustee for the
holders of the special facility revenue bonds, then notwithstanding the second
sentence of section 39-68, the director of finance may elect not to serve as
fiscal agent for the payment of the principal and interest, and for the
purchase, registration, transfer, exchange, and redemption, of the special
facility revenue bonds, or may elect to limit the functions the director shall
perform as fiscal agent. The department, with the approval of the director of
finance, may appoint the trustee to serve as fiscal agent and may authorize and
empower the trustee to perform any functions with respect to the payment of the
principal and interest and the purchase, registration, transfer, exchange, and
redemption of the special facility revenue bonds, as the department may deem
necessary, advisable, or expedient, including, without limitation, the holding
of the special facility revenue bonds and coupons that have been paid, and the
supervision and destruction thereof in accordance with sections 40-10 and
40-11. Nothing in this paragraph shall be a limitation upon or be construed as
a limitation upon the powers granted in the preceding paragraph to the
department with the approval of the director of finance to appoint the trustee,
or granted in sections 36-3 and 39-13 and the third sentence of section 39-68
to the director of finance to appoint the trustee or others, as fiscal agents,
paying agents, and registrars for the special facility revenue bonds or to
authorize and empower fiscal agents, paying agents, and registrars to perform
the functions referred to in the preceding paragraph and sections 36-3 and
39-13 and the third sentence of section 39-68, it being the intent of this
paragraph to confirm that the director of finance as aforesaid may elect not to
serve as fiscal agent for the special facility revenue bonds or may elect to
limit the functions the director shall perform as fiscal agent, as the director
of finance may deem necessary, advisable, or expedient;
(8) The department may sell special facility revenue
bonds either at public or private sale;
(9) If no trustee shall be appointed to collect,
hold, and administer the revenues derived from the special facility for which
the special facility revenue bonds are issued, the revenues shall be held in a
separate account in the treasury of the State, separate and apart from the
harbor special fund, to be applied solely to the carrying out of the
resolution, certificate, trust indenture, or trust agreement authorizing or
securing the special facility revenue bonds;
(10) If the resolution, certificate, trust indenture,
or trust agreement shall provide that no special facility revenue bonds issued
thereunder shall be valid or obligatory for any purpose unless certified or
authenticated by the trustee for the holders of the special facility revenue
bonds, signatures of the officers of the State upon the bonds and the coupons
thereof as required by section 39-56 may be evidenced by their facsimile
signatures;
(11) The proceeds of special facility revenue bonds
may be used and applied by the department to reimburse the other person to the
special facility lease for all preliminary costs and expenses, including
architectural and legal costs; and
(12) If the special facility lease shall require the
other person to operate, maintain, and repair the special facility that is the
subject of the lease, at the other person's expense, the requirement shall
constitute compliance by the department with section 39-61(a)(2), and none of
the revenues derived by the department from the special facility shall be
required to be applied to the purposes of section 39-62(2). Sections 39-62(4),
39-62(5), and 39-62(6) shall not be applicable to the revenues derived from a special
facility lease.
[L 1980, c 126, pt of §2; am L 1993, c 2, §3 and c 212, §3; am
L 2020, c 70, §19]
