§ 8D-6. Same—Revenue bonds.  

Latest version.
  • Revenue bonds issued under the provisions of this chapter shall not be deemed to constitute a pledge of the faith and credit of the County, but such bonds shall be payable solely from the funds provided therefor under the provisions of this chapter. All such bonds shall contain a statement on their face substantially to the effect that the County is not obligated to pay such bonds or the interest thereon except from such funds and that the faith and credit of the County are not pledged to the payment of the principal of or the interest on such bonds. The issuance of revenue bonds under the provisions of this chapter shall not directly or indirectly or contingently obligate the County or levy any taxes whatever therefor or to make any appropriation for their payment except from the funds pledged under the provisions of this chapter.

    In the discretion of the Board, any issue of revenue bonds may be secured by a trust agreement by and between the County and a corporate trustee, which may be any trust company within or outside of the State. The resolution authorizing the issuance of the revenue bonds or such trust agreement shall pledge the revenues to be received, but shall not convey or mortgage any project or any part thereof, and may contain such provisions for protecting and enforcing the rights and remedies of the bondholders as may be reasonable and proper and not in violation of law, including covenants setting forth the duties of the County and of the Board in relation to the construction, reconstruction, improvement, maintenance, operation, repair and insurance of the project or projects, and provisions for the custody, safeguarding and application of all moneys, and for the employment of consulting engineers in connection with such construction, reconstruction or operation. Such resolution or trust agreement may set forth the rights and remedies of the bondholders, and may restrict the individual right of action by the bondholders as is customary in trust agreements or trust indentures securing bonds or debentures of corporations. In addition to the foregoing, such resolution or trust agreement may contain such other provisions as the Board may deem reasonable and proper for the security of bondholders. Except as in this chapter otherwise provided, the Board may provide for the payment of the proceeds of the sale of the bonds and the revenues of the project or projects to such officer, board or depositary as it may designate for the custody thereof, and for the method of disbursement thereof, with such safeguards and restrictions as it may determine. All expenses incurred in carrying out the provisions of such resolution or trust agreement may be treated as a part of the cost of operation.

    The resolution or trust agreement providing for the issuance of revenue bonds may also contain such limitations upon the issuance of additional revenue bonds as the Board may deem proper, and such additional bonds shall be issued under such restrictions and limitations as may be prescribed by such resolution or trust agreement.

    No revenue bonds shall be issued under the authority of this chapter, unless the Board shall have theretofore found and determined:


    The estimated cost of the project or projects on account of which such bonds are to be issued;


    The estimated annual revenues of such project or projects; and


    The estimated annual cost of maintaining, repairing and operating such project or projects;

    nor unless it shall appear from such estimates that the annual revenues will be sufficient to pay such cost of maintenance, repair and operation and the interest on such bonds and the principal thereof as such interest and principal shall become due.

(Ch. 22960, § 5, Laws 1945; Ord. No. 78-27, § 2, 4-4-78)