RS 48:2187

§2187. Bonds A. Without reference to any provision of the Constitution of Louisiana and the laws of Louisiana, and as a grant of power in addition to any other general or special law, a compact created pursuant to this Chapter may issue bonds for any corporate purpose and pledge revenues for the payment of the principal and interest of such bonds. A compact is further authorized, in its discretion, to pledge all or any part of any gift, grant, donation, or otherwise any sum of money, aid, or assistance from the United States, the state, or any political subdivision thereof, unless otherwise restricted by the terms thereof, all or any part of the proceeds of bonds, credit agreements, instruments, or any other money of the compact, from whatever source derived, for the further securing of the payment of the principal and interest of the bonds. B. Bonds issued under the provisions of this Chapter shall not be deemed to constitute a pledge of the full faith and credit of the state or of any governmental unit thereof. All such bonds shall contain a statement on their face substantially to the effect that neither the full faith and credit of the state nor the full faith and credit of any public entity of the state are pledged to the payment of the principal or the interest on such bonds. The issuance of bonds under the provisions of this Chapter shall not directly, indirectly, or contingently obligate the state or any governmental unit of the state to levy any taxes whatever therefor or to make any appropriation for their payment, other than obligations to make payments by the state or public entities to the compact arising out of contracts authorized under this Chapter. C. Prior to the issuance of any bonds for a project, a business plan shall be prepared detailing the estimated expenditures for and revenues from the operation of all capital improvements and the time schedule for such expenditures and receipts. The compact shall employ a financial advisor, and the plan shall be recommended by the compact's financial advisor as fiscally sound and approved by the compact prior to the issuance of any bonds. D. 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, bear interest at such rate or rates, including but not limited to fixed, variable, or zero rates, be payable at such time or times, be in such denominations, be in such form, 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 prior to maturity at such price or prices as determined by the compact, and be entitled to such priority on the revenues as such resolution or resolutions may provide. E. Bonds shall be sold by the compact at public sale by competitive bid or negotiated private sale and at such price or prices as the compact may determine to be in the best interest of the compact. F. The issuance of bonds shall not be subject to any limitations, requirements, or conditions contained in any other law, and bonds may be issued without obtaining the consent of the state or any political subdivision, or of any agency, commission, or instrumentality thereof, except that the issuance of such bonds shall be subject to the approval of the State Bond Commission. The bonds shall be issued in compliance with the provisions of this Chapter. G. For a period of thirty days after the date of publication of a notice of intent to issue bonds in the official journal of the compact authorizing the issuance of bonds hereunder, any persons in interest shall have the right to contest the legality of the resolution and the legality of the bond issue for any cause, but after that time no one shall have any cause or right of action to contest the legality of the resolution or of the bonds or the security therefor for any cause whatsoever. If no suit, action, or proceeding is begun contesting the validity of the resolution, the bonds or the security therefor within the thirty days herein prescribed, the compact to issue the bonds and to provide for the payment thereof, the legality thereof, and of all of the provisions of the resolution authorizing the issuance of the bonds shall be conclusively presumed to be legal and shall be incontestable. Any notice of intent so published shall set forth in reasonable detail the purpose of the bonds, the security therefor, and the parameters of amount, duration, and interest rates. A compact shall designate any paper of general circulation in its geographical jurisdiction as its official journal. Any suit to determine the validity of bonds issued by the compact shall be brought only in accordance with the provisions of the Bond Validation Procedures Act (R.S. 13:5121 et seq.). In addition, the Bond Validation Procedures Act may also be used to establish the validity of any contract entered into pursuant to R.S. 48:2180(18). H. All bonds issued pursuant to this Chapter shall have all the qualities of negotiable instruments under the commercial laws of the state. I. Any pledge of revenues or other monies made by a compact shall be valid and binding from the time when the pledge is made. The revenues or monies so pledged and thereafter received by the compact shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act, and the lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the compact irrespective of whether such parties have notice thereof. J. Neither the directors of the board nor any person executing the bonds shall be liable personally for the bonds or be subject to any personal liability or accountability by reason of the issuance thereof. K. Bonds of a compact, their transfer, and the income therefrom shall at all times be exempt from all taxation by the state or any political subdivision thereof, and may or may not be exempt for federal income tax purposes. The bonds issued pursuant to this Chapter shall be and are hereby declared to be legal and authorized investments for banks, savings banks, trust companies, building and loan associations, insurance companies, fiduciaries, trustees, and guardians. Such bonds shall be eligible to secure the deposit of any and all public funds of the state and any and all public funds of municipalities, parishes, school districts, or other political corporations or subdivisions of the state. Such bonds shall be lawful and sufficient security for said deposits to the extent of their value. L. A compact organized pursuant to this Chapter is hereby authorized to provide by resolution for the issuance of refunding bonds of the compact for the purpose of refunding any bonds then outstanding and issued by the provisions of this Chapter, whether or not such outstanding bonds have matured or are then subject to redemption. The compact is further authorized to provide by resolution for the issuance of a single issue of bonds of the compact for the combined purposes of (1) paying the costs of any project, and (2) refunding bonds of the compact which shall then be outstanding, whether or not such outstanding bonds have matured or are then subject to redemption. The issuance of such refunding bonds, the maturities, and the other details thereof, the rights and remedies of the holders thereof, and the rights, powers, privileges, duties, and obligations of the compact with respect to the same, shall be governed by the foregoing provisions of this Chapter insofar as the same may be applicable. M. A compact created hereunder shall have the authority to employ all professionals it deems necessary in the issuance of its bonds, including but not limited to bond counsel, issuer counsel, financial advisors, and fiduciaries. N. A compact created hereunder shall be deemed to be a public entity for purposes of Chapters 13, 13-A, 14, 14-A, 14-B, and 15-A of Title 39 of the Louisiana Revised Statutes of 1950, as amended, which statutes shall apply to bonds of a compact, provided that in the event of a conflict with the provisions of this Chapter, the provisions of this Chapter shall control. Acts 2010, No. 838, §2, eff. July 1, 2010; Acts 2010, No. 858, §1, eff. June 30, 2010.