§ 254. Authority bonds
(a) From time to time the Authority may issue bonds to pay project costs of a project
that has been approved by the Authority, to reimburse a user for the payment of costs
made before or after the bonds are issued or to refund bonds previously issued.
(b) No bonds shall be issued under this section without the prior approval of the Governor
or designee and the State Treasurer.
(c) Bonds issued under this section shall bear the manual, electronic, or facsimile signature
of the manager or treasurer of the Authority, or authorized designee and agent; provided,
however, that such signatures shall be manual unless the bonds are to be manually
authenticated by a bank or trust company serving as trustee for the bonds. The details
of the bonds shall be fixed by the signing officers in accordance with section 244 of this title. Bonds shall be sold by the signing officers at public or private sale, and the proceeds
thereof shall be paid to the trustee, lender, or disbursing agent under the security
document that secures the bonds.
(d) No financing or security document or bond issued or entered into under this subchapter
shall in any way obligate the State to raise any money by taxation or use other funds
for any purpose to pay any debt or meet any financial obligation to any person at
any time in relation to an eligible facility financed in whole or in part by the issue
of the Authority’s bonds under this subchapter, except from monies received or to
be received under a financing or security document entered into under this subchapter
or except as may be required by any other provision of law. Notwithstanding the provisions
of this subsection, the State may accept and expend with respect to an eligible facility
any gifts or grants received from any source in accordance with the terms of the gifts
or grants.
(e) In carrying out the purposes of this subchapter, the Authority may, with the consent
of the users, undertake a combined financing of projects for two or more users, and,
thereupon, all other provisions of this subchapter shall apply to and for the benefit
of the Authority and the participants in such joint financing.
(f) Bonds may be issued by the Authority under this subchapter for the purpose of making
loans to local development corporations for industrial park planning and development,
constructing, or improving a speculative building or small business incubator facility
on land owned or held under lease by the local development corporation, purchase or
improvement of existing buildings suitable or that can be made suitable for industrial
or business incubation purposes, and purchase of land in connection with any of the
foregoing.
(1) Before issuing bonds for construction of a speculative building or small business
incubator facility and the purchase of land in connection therewith, the Authority
shall make the determinations and incorporate in its minutes the findings required
by section 232 of this title.
(2) Before issuing bonds for industrial park planning and development and the purchase
of land in connection therewith, the Authority shall make the determinations and incorporate
in its minutes the findings required by section 237 of this title.
(3) Financing and security documents shall contain provisions such that under no circumstances
is the State obligated directly or indirectly to pay project costs; debt service;
or expenses of operation, maintenance, and upkeep of the facility except from bond
proceeds or from funds received under the financing or security documents, exclusive
of funds received thereunder by the State for its own use.
(4) Financing and security documents shall not create any debt of the State with respect
to the eligible facility, other than a special obligation of the State under this
chapter.
(g) All determinations and findings made by the Authority pursuant to this section shall
be conclusive.
(h) The Authority is authorized to pledge security and to enter into security, insurance,
or other forms of credit enhancement. A pledge in any agreement shall be valid and
binding from the time such pledge shall be made without any physical delivery or further
act, and the lien of such pledge shall be valid and binding as against all parties
having claims of any kind in tort, contract, or otherwise, irrespective of whether
such parties have notice thereof. Any such pledge shall be perfected by filing of
the agreement in the records of the Authority and no filing need be made under any
other provision of law.
(i) The Authority may purchase any bond issued under this subchapter 4. Subject to the
terms of any agreement with the bondholders, the Authority may hold, pledge, resell,
or cancel any bond purchased under this paragraph, expect that a purchase under this
paragraph shall not cause the extinguishment of such bond unless the Authority cancels
the bond or otherwise certifies its intention that the bond be extinguished.
(j) No designated member, director, officer, employee, or agent of the Authority shall
be liable personally on the bonds or any contract entered into by the Authority or
subject to any personal liability or accountability by reason of the issuance of the
bonds unless the personal liability or accountability is the result of intentional
misconduct. (Added 1973, No. 197 (Adj. Sess.), § 1; amended 1975, No. 18, § 18, eff. March 27, 1975; 1975, No. 187 (Adj. Sess.), § 3; 1981, No. 54, § 11, eff. April 28, 1981; 1983, No. 33,§§ 5, 6, eff. April 22, 1983; 1983, No. 159 (Adj. Sess.), § 3, eff. April 14, 1984; 1985, No. 25, § 2; 1985, No. 136 (Adj. Sess.), § 10, eff. April 24, 1986; 1993, No. 89, § 3(b), eff. June 15, 1993; 2025, No. 26, § 1, eff. July 1, 2025.)