Title 42
State Affairs and Government

Chapter 99
Convention Center Authority Act

§ 42-99-9. Bonds and notes of the corporation.

(a) The corporation is authorized to issue its negotiable bonds and notes from time to time for any of its corporate purposes; provided, however, that the authorization be limited such that the aggregate principal amount of such negotiable bonds and notes outstanding at any time does not exceed the sum of three hundred five million dollars ($305,000,000); provided further, however, there shall be excluded from any calculation of the foregoing limitations, the principal amount of any bond anticipation notes retired with the proceeds of notes or bonds, as well as the portion of any refunding bonds issued after January 1, 2002, that exceeds the outstanding principal amount of the bonds being refunded, as well as the principal amount of any other obligation issued to fund operating reserve accounts or debt service reserve accounts. All bonds and notes issued by the corporation may be secured by the full faith and credit of the corporation or may be payable solely out of the revenues and receipts derived from the lease, mortgage, or sale by the corporation of its facilities or of any part thereof or from any other financing arrangement with respect thereto as may be designated in the proceedings of the corporation under which the bonds or notes shall be authorized to be issued. The bonds and notes may be executed and delivered by the corporation at any time and from time to time, may be in a form and denominations and of that tenor and maturities, may be in bearer form or in registered form, as to principal and interest or as to principal alone, may be payable in installments and at a time or times, may be payable at places whether within or without the state, may bear interest at a rate or rates payable at a time or times and at a place or places and evidenced in a manner, and may contain provisions not inconsistent herewith, all that shall be provided in the proceedings of the corporation under which the bonds shall be authorized to be issued; provided, however, that bonds of the corporation shall be payable not more than forty (40) years from the date thereof and notes shall be payable not more than ten (10) years from the date thereof. If deemed advisable by the corporation, there may be retained in the proceedings under which any bonds or notes of the corporation are authorized to be issued an option to redeem all or any part thereof as may be specified in the proceedings, at a price or prices and after notice or notices and on the terms and conditions as may be set forth in the proceedings and as may be recited in the face of the bonds or notes, but nothing herein contained shall be construed to confer on the corporation any right or option to redeem any bonds or notes except as may be provided in the proceedings under which they shall be issued. Any bonds or notes of the corporation may be sold at a price or prices, at public or private sale, in a manner and from time to time as may be determined by the corporation, and the corporation may pay all expenses, premiums, and commissions which it may deem necessary or advantageous in connection with the issuance and sale thereof. Any moneys of the corporation, including proceeds from the sale of any bonds or notes, and revenues, receipts, and income from any of its projects, may be invested and reinvested in such obligations, securities and other investments that shall be provided in the resolution or resolutions under which the bonds or notes are authorized.

(b) Issuance by the corporation of one or more series of bonds or notes for one or more purposes shall not preclude it from issuing other bonds or notes in connection with the project or any other projects, but the proceedings whereunder any subsequent bonds or notes may be issued shall recognize and protect any prior pledge or mortgage made for any prior issue of bonds or notes unless in the proceedings authorizing prior issue the right is reserved to issue subsequent bonds or notes on a parity with prior issue.

(c) The corporation is authorized to provide for the issuance of its bonds or notes for the purpose of refunding any bonds or notes of the corporation then outstanding, including the payment of any redemption premium thereon and any interest accrued or to accrue to the earliest or subsequent date of redemption, purchase, or maturity of the bonds or notes, and, if deemed advisable by the corporation, for the additional purpose of paying all or any part of the cost of constructing and acquiring additions, improvements, extensions, or enlargements of a project or any portion thereof.

(d) The proceeds of any bonds or notes issued for the purpose of refunding outstanding bonds or notes may, in the discretion of the corporation, be applied to the purchase or retirement at maturity or redemption of the outstanding bonds or notes either on their earliest or any subsequent redemption date, and may, pending the application, be placed in escrow to be applied to the purchase or retirement at maturity or redemption on such date as may be determined by the corporation.

(e) Any escrowed proceeds, pending this use, may be invested and reinvested in obligations of or guaranteed by the United States of America, or in certificates of deposit or time deposits secured by direct obligations of or guaranteed by the United States of America, maturing at a time or times that shall be appropriate to assure the prompt payment, as to principal, interest and redemption premium, if any, on the outstanding bonds or notes to be refunded. The interest, income and profits, if any, earned or realized on any investment may also be applied to the payment of the outstanding bonds or notes to be refunded. After the terms of the escrow have been fully satisfied and carried out, any balance of the proceeds and interest, income and profits, if any, earned or realized on the investments thereof may be returned to the corporation for use by it in any lawful manner. The portion of the proceeds of any bonds or notes issued for the additional purpose of paying all or any part of the cost of constructing and acquiring additions, improvements, extensions, or enlargements of a project may be invested and reinvested in obligations of or guaranteed by the United States of America, or in certificates of deposit or time deposits secured by direct obligations of or guaranteed by the United States of America, maturing not later than the time or times when the proceeds will be needed for the purpose of paying all or any part of the cost. The interest, income and profits, if any, earned or realized on the investments may be applied to the payment of all or any part of the cost or may be used by the corporation in any lawful manner.

(f) All of the bonds or notes shall be issued and secured and shall be subject to the provisions of this chapter in the same manner and to the same extent as any other bonds and notes issued pursuant to this chapter. All bonds and notes authorized under this section and the interest coupons, if any, applicable to these are made and shall be construed to be negotiable instruments.

(g) Money borrowed by the corporation for the purpose of providing temporary financing of a project pending the issuance of bonds or other notes shall be evidenced by notes or other obligations. The principal of and interest on all notes or other obligations of the corporation issued under the provisions of this section shall be payable from the following:

(i) From the proceeds of bonds subsequently issued; or

(ii) From the proceeds of subsequent borrowings which comply with the provisions of this chapter.

(h) Notwithstanding any other provisions of this chapter, all notes shall be deemed to be negotiable instruments under the laws of the state subject only to the provisions for registration contained therein. These notes or other obligations or any issue of these shall be in a form and contain any other provisions as the corporation may determine and any votes or resolutions or proceedings authorizing those notes or other obligations or any issue of these may contain, in addition to any provisions, conditions, covenants, or limitations authorized by this chapter, any provisions, conditions, covenants, or limitations which the corporation is authorized to include in any resolution or resolutions authorizing bonds or notes or in any trust indenture relating thereto. The corporation may issue notes or other obligations in a manner either publicly or privately on any terms it may determine to be in its best interests. These notes or other obligations may be issued under the provisions of this chapter without obtaining the consent of any department, division, commission, board, body, or agency of the state, without any other proceedings or the happening of any conditions or things other than those proceedings, conditions or things which are specifically required by this chapter and by the provisions and resolutions authorizing the issuance of the notes or obligations. Notwithstanding anything in this chapter or any other general or special law to the contrary, the issuance of bonds or notes or other evidences of indebtedness hereunder for the purpose of financing the development of any hotel, parking garages, connection walkways, or any facilities ancillary to a hotel shall be subject to chapter 18 of title 35.