TCA § 64-4-110 — Bonds

The port authority has the power to issue negotiable bonds in order to accomplish any of the purposes authorized by this chapter in any of the following manners: Upon resolution of the board of commissioners, and in the manner provided by this chapter, the port authority may issue bonds of the port authority without the participation of any county; provided, that such bonds are repaid solely from the revenues of the port authority; Upon resolution of the board of commissioners, requesting one (1) or more counties to participate in the issuance of bonds of the port authority or to issue bonds on behalf of the port authority, such bonds may be issued as provided in this chapter or by law; or Upon resolution of the board of commissioners, acting in their capacity as an industrial development corporation, the port authority may issue bonds in compliance with title 7, chapter 53. Any one (1) or more of the participating counties of Decatur, Hardin, Perry and Wayne, upon recommendation of the board of commissioners of the port authority, have power and authority to issue and sell their bonds to finance the acquisition, construction, improvement or expansion of the facilities authorized in this chapter and to refund bonds previously issued or refinance indebtedness previously incurred for such purposes. The counties of Decatur, Hardin, Perry and Wayne may, in all respects, provide for the rights of the holders of all bonds, including the manner in which future bonds may be issued on a parity with such bonds. The counties of Decatur, Hardin, Perry and Wayne shall follow the procedures for the issuance of bonds established in title 9, chapter 21. Prior to the issuance of any general obligation bonds by any county under the authority of this chapter, a referendum shall be held concurrently with a general election in the county. The substance of a resolution adopted pursuant to § 9-21-205 shall be printed on the ballot. In order for the bonds to be issued, three fourths (¾) of the votes cast shall answer the following question affirmatively: Question: Do you favor the guarantee of the bonds issued pursuant to the above resolution: For ( ) Against ( ) The ballots shall be counted and returns made and canvassed as provided by law for other elections and the results certified to the secretary of state, who shall publicly proclaim the results. The bonds to be issued by the port authority shall be authorized by resolution of the county legislative body or bodies of such county or counties and may be issued in one (1) or more series, may bear such date or dates, may mature at such time or times, not exceeding forty (40) years from their respective dates, may be in such denomination or denominations, may be in such form, either coupon or registered, may carry such registration and conversion privileges, may be executed in such manner, may be payable in such medium of payment, at such place or places, may be sold or hypothecated in such blocks, may be subject to such terms of redemption with or without premium, may be declared or become due after the maturity date thereof, and may be in such amount as may be provided by resolution of the legislative body of a participating county. Such bonds may be issued for money or property, at public or private sale, for such price and at such rate of interest and may be hypothecated in such manner as the counties may determine; but the interest cost to maturity of the bonds, when issued for property, at the value determined by the counties, which determination shall be conclusive, or the money received for any issue of such bonds shall not exceed the maximum rate fixed by law, payable semiannually. Such bonds shall have all the qualities and incidents of negotiability. Pending the preparation of the definitive bonds, interim receipts or certificates in such form, and with such provisions, as provided in the resolution authorizing such bonds, may be issued to the purchaser or purchasers of bonds sold pursuant to this chapter. The bonds and interim receipts or certificates shall be fully negotiable. In case any of the officers whose signatures or countersignatures appear on such bonds cease to be officers before the delivery of the bonds, the signatures and countersignatures shall nevertheless be valid and sufficient for all purposes, the same as though such officers had remained in office until the bonds had been delivered. The bonds may be issued, notwithstanding and without regard to any limit or restriction on the amount or percentage of indebtedness or of outstanding obligations of the participating counties of Decatur, Hardin, Perry and Wayne contained in any other statute, general or special, and notwithstanding and without regard to the requirements of any other general or special statute, including requirements as to elections for the approval of such bonds. Prior to a vote by the county legislative body of counties authorizing the issuance of bonds to be financed wholly or in part through tax levies by the county legislative body, the board of commissioners shall prepare and submit to the county legislative body of each of the counties of Decatur, Hardin, Perry and Wayne a recommendation that bonds in a stated amount be issued under this part, supported by a report on the need for and projected use of the facilities for the financing of which such bond issue is proposed, including a review of alternate solutions, if any, and a justification of the solution proposed. Bonds may be issued as direct and general obligations of each of the counties of Decatur, Hardin, Perry and Wayne payable out of their several and separate general income and revenue. Bonds may also be issued as obligations of the port authority payable out of the revenues of the port authority. In case the bonds are issued as general obligations of the counties, it is the duty of the county legislative body of each of the counties to levy a tax each year, over and above the taxes levied for general county purposes and other special county purposes, to pay the interest and principal of the bonds as they mature. In case the revenues derived from the operation of the facilities provided for in this chapter are sufficient to pay the principal and interest of such bonds, or a part thereof, as they may severally mature, then a special levy for the full payment of such principal and interest shall not be required; but the county legislative bodies shall each year levy an amount of tax, which, when added to the account of revenue derived from the operation of the facilities then on hand and available for that purpose, will be sufficient to pay the principal and interest maturing prior to the collection of the next succeeding tax levy. The bonds shall be sold at public or private sale and in such manner as may be determined by resolution of each of the county legislative bodies authorizing their issuance. The bonds shall contain a recital that they are issued pursuant to and in accordance with this chapter, and such recital shall be conclusive evidence of their legality. Prior to the adoption by the governing body of the port authority or any one (1) or more of the participating counties of Decatur, Hardin, Perry and Wayne of the resolution authorizing the issuance of any bonds under this chapter, a plan of financing shall be submitted to the comptroller of the treasury or the comptroller's designee for review; and the comptroller of the treasury or the comptroller's designee may report thereon to the governing body of the port authority or of the appropriate county or counties within fifteen (15) days from the date the plan is received and shall immediately acknowledge receipt in writing of the proposed financing plan. After receiving the report of the comptroller of the treasury or the comptroller's designee or after the expiration of fifteen (15) days from the date the financing plan is received by the comptroller of the treasury or the comptroller's designee, whichever date is earlier, the appropriate governing body may take such action with reference to such proposed financing plan as it deems advisable. In order to secure the payment of any of the bonds issued pursuant to this chapter, the interest thereon, or in connection with such bonds, the board of commissioners or the county legislative bodies of Decatur, Hardin, Perry and Wayne counties have power, as to such bonds, to the extent not inconsistent with the mandatory provisions of this chapter, to: Pledge the full faith and credit of the port authority or county and unlimited taxing power of each of the counties to the punctual payment of the principal of and interest on such bonds; Pledge all or any part of the revenue derived from the operation of the facilities authorized in this chapter and to pledge all or any part of the proceeds derived from the sale, transfer, lease or other disposition of any land or other facilities as provided for in this chapter; Provide for the terms, form, registration, exchange, execution and authentication of such bonds; Provide for the replacement of lost, destroyed or mutilated bonds; Covenant as to the use and disposition of the proceeds from the sale of such bonds; Covenant as to the rates and charges for the use of facilities of the port authority and for its services; Redeem such bonds and covenant for their redemption and provide the terms and conditions thereof; Covenant and prescribe as to what happenings or occurrences shall constitute “events of default,” and the terms and conditions upon which any or all of such bonds shall become or may be declared due, before maturity, and as to the terms and conditions upon which such declaration and its consequences may be waived; Covenant as to the rights, liabilities, powers and duties arising upon the breach by it of any covenant, condition or obligation; Vest in a trustee or trustees the right to receive all or any part of the income and revenues pledged and assigned to or for the benefit of the holder or holders of bonds issued under this section and to hold, apply and dispose of the same, and the right to enforce any covenant made to secure or pay, or in relation to the bonds; and to execute and deliver a trust agreement or trust agreements, which may set forth the powers and duties and the remedies available to such trustee or trustees, and limiting the liability thereof, and describing what occurrences shall constitute “events of default,” and prescribing the terms and conditions upon which such trustee or trustees, or the holder or holders of bonds or any specified amount or percentage of such bonds, may exercise such rights and enforce any and all such covenants and resort to such remedies as may be appropriate; Make covenants other than and in addition to the covenants authorized in this chapter, of like or different character, necessary or advisable to effectuate the purposes of this chapter; and Execute all instruments necessary or convenient in the exercise of the powers granted in this section or in the performance of its covenants or duties. All public officers and bodies of the state, municipal corporations, political subdivisions, all insurance companies and associations, all savings banks and savings institutions, including savings and loan associations, all executors, administrators, guardians, trustees and all other fiduciaries in the state may legally invest funds within their control in bonds issued pursuant to this chapter. Nothing in this chapter shall be construed to allow the board of commissioners of the port authority to pledge unilaterally the full faith and credit and unlimited taxing power of any county as surety to the payment of the authority's bonds or to impose unilaterally an ad valorem tax in any county.