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‘‘ARTICLE VIII. BONDS OF AUTHORITY. (1) The au-
thority is empowered and authorized, from time to time,
to issue bonds in such principal amounts as shall be nec-
essary to provide sufficient funds for achieving any of its
corporate purposes, including without limiting the gen-
erality of the foregoing, the financing of the acquisition,
construction, improvement of facilities or any combination
thereof, the payment of interest on bonds of the authority,
establishment of reserves to secure such bonds, expenses
incident to the issuance of such bonds, including bond in-
surance and to the implementation of programs or
projects, and any other capital expenditures but not oper-
ating costs of the authority incident to or necessary or
convenient to carry out its corporate purposes and powers.
‘‘(2) The authority may issue such types of bonds or
notes, in its discretion, subject only to any agreement with
the holders of particular bonds, including bonds as to
which the principal and interest are payable exclusively
from all or a portion of the revenues derived from one
or more facilities under the contracts entered into by pub-
lic agencies, and other persons, or any combination of any
of the foregoing, or which may be secured by a pledge or
any grant, subsidy or contribution from any public agency
or other person, or a pledge of an income or revenues,
funds or monies of the authority from any source whatso-
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ever, except that the authority may not issue bonds or
notes that are secured by ad valorem taxes.
‘‘(3) Bonds shall be authorized by a resolution or res-
olutions of the board. Such bonds shall bear such date or
dates, mature at such time or times (either serially, term
or a combination thereof), bear interest at such rate or
rates, be in such denomination or denominations, be in
such registered form, carry such conversion or registration
privileges, have such rank or priority, be executed in such
manner and by such officers, be payable from sources
other than ad valorem taxes, in such medium of payment
at such place or places within or without the state, pro-
vided that one (1) such place shall be within the state,
be subject to such terms of redemption before maturity,
all as may be provided by resolution or resolutions of the
compact.
‘‘(4) Any bonds of the authority may be sold at such
price or prices, at public or private sale, in such manner
and at such times as may be determined by the authority
to be in the public interest, and the authority may pay
all expenses, premiums, fees and commissions which it
may deem necessary and advantageous in connection with
the issuance and sale thereof.
‘‘(5) Any pledge of earnings, revenues or other mon-
ies made by the authority shall be valid and binding from
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the time the pledge is made and the earnings, revenues
or other monies so pledged and thereafter received by the
authority immediately shall be subject to the lien of such
pledge without any physical delivery thereof or further act.
The lien of any such pledge shall be valid and binding as
against all parties having claims of any kind of tort, con-
tract or otherwise against the authority regardless of
whether such parties have notice thereof. Neither the reso-
lution nor any other instrument by which a pledge is cre-
ated need be recorded.
‘‘(6) Neither the board members nor any person exe-
cuting the bonds shall be personally liable on the bonds
or be subject to any personal liability or accountability by
reason of the issuance thereof.
‘‘(7) Whenever any bonds shall have been signed by
the officers of the board designated by resolution of the
authority to sign the bonds who were in office at the time
of such signing but who may have ceased to be such offi-
cers prior to the sale and delivery of such bonds, or who
may not have been in office on the date such bonds may
bear, the manual or facsimile signatures of such officers
upon such bonds and the coupons appertaining thereto,
shall nevertheless be valid and sufficient for all purposes
and have the same effect as if the person so officially exe-
cuting such bonds had remained in office until the delivery
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of the same to the purchaser or had been in office on the
date such bonds may bear.
‘‘(8) The bonds issued by the authority under author-
ity of the compact shall be limited obligations of such com-
pact. The principal, interest and redemption premium, if
any, shall be payable solely out of the monies to be derived
by the compact. Revenue bonds and interest coupons,
issued under authority of this chapter shall never con-
stitute an indebtedness of the state or any county or mu-
nicipality within the meaning of any state constitutional
provision or statutory limitation and shall never constitute
nor give rise to a pecuniary liability of a county or munici-
pality or the state, or a charge against its general credit
or taxing powers, and such fact shall be plainly stated on
the face of each bond.
‘‘ARTICLE IX. TEMPORARY BORROWING BY AUTHOR-
ITY. (1) Pending the issuance of revenue bonds by the au-
thority, the board is authorized to make temporary bor-
rowings not to exceed two (2) years in anticipation of the
issue of bonds in order to provide funds in such amounts
as may, from time to time, be deemed advisable prior to
the issue of bonds. To provide for such temporary bor-
rowings, the authority may enter into any purchase, loan
or credit agreement, or agreements or other agreement or
agreements with any banks or trust companies or other
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lending institutions, investment banking firms or persons
in the United States having power to enter into the same.
‘‘(2) All temporary borrowings made under this sec-
tion shall be evidenced by notes of the authority which
shall be issued, from time to time, for such amounts, in
such form and in such denominations and subject to terms
and conditions of sale and issue, prepayment or redemp-
tion and maturity, rate or rates of interest and time of
payment of interest as the board shall authorize and di-
rect. Such authorization and direction may provide for the
subsequent issuance of replacement notes to refund, upon
issuance thereof, such notes, and may specify such other
terms and conditions with respect to the notes and re-
placement notes thereby authorized for issuance as the
board may determine and direct.
‘‘ARTICLE X. REFUNDING BONDS. The authority may
issue refunding bonds for the purpose of paying any of
its bonds at or prior to maturity or upon acceleration or
redemption. Refunding bonds may be issued at such time
prior to the maturity or redemption of the refunded bonds
as the authority deems to be in the public interest. The
refunding bonds may be issued in sufficient amounts to
pay or provide the principal of the bonds being refunded,
together with any redemption premium thereof, any inter-
est accrued or to accrue to the date of payment of such
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bonds, the expenses of issue of the refunding bonds, the
expenses of redeeming the bonds being refunded, and such
reserves for debt service or other capital or current ex-
penses from the proceeds of such refunding bonds as may
be required by the resolution, trust indenture or other se-
curity instructions.
‘‘ARTICLE XI. GENERAL TERMS AND CONDITIONS OF
BONDS OF COMPACT. The authority shall have power in
the issuance of its bonds to:
‘‘(a) Covenant as to the use of any or all of its prop-
erty, real or personal.
‘‘(b) Redeem the bonds, to covenant for their redemp-
tion and to provide the terms and conditions thereof.
‘‘(c) Covenant to charge rates, fees and charges suffi-
cient to meet operating and maintenance expenses, renew-
als and replacements, principal and debt service on bonds,
creation and maintenance of any reserves required by a
bond resolution, trust indenture or other security instru-
ment and to provide for any margins or coverages over
and above debt service on the bonds deemed desirable for
the marketability of the bonds.
‘‘(d) Covenant and prescribe as to events of default
and terms and conditions upon which any or all of its
bonds shall become or may be declared due before matu-
rity, as to the terms and conditions upon which such dec-
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laration and its consequences may be waived and as to
the consequences of default and the remedies of bond-
holders.
‘‘(e) Covenant as to the mortgage or pledge of or the
grant of a security interest in any real or personal prop-
erty and all or any part of the revenues from any facilities
or any revenue-producing contract or contracts made by
the compact with any person to secure the payment of
bonds, subject to such agreements with the holders of
bonds as may then exist.
‘‘(f) Covenant as to the custody, collection, securing,
investment and payment of any revenue assets, monies,
funds or property with respect to which the compact may
have any rights or interest.
‘‘(g) Covenant as to the purpose to which the pro-
ceeds from the sale of any bonds then or thereafter to be
issued may be applied, and the pledge of such proceeds
to secure the payment of the bonds.
‘‘(h) Covenant as to the limitations on the issuance
of any additional bonds, the terms upon which additional
bonds may be issued and secured, and the refunding of
outstanding bonds.
‘‘(i) Covenant as to the rank or priority of any bonds
with respect to any lien or security.
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‘‘(j) Covenant as to the procedure by which the terms
of any contract with or for the benefit of the holders of
bonds may be amended or abrogated, the amount of bonds
the holders of which must consent thereto, and the manner
in which such consent may be given.
‘‘(k) Covenant as to the custody of any of its prop-
erties or investments, the safekeeping thereof, the insur-
ance to be carried thereon, and the use and disposition
of insurance proceeds.
‘‘(l) Covenant as to the vesting in a trustee or trust-
ees, within or outside the state, of such properties, rights,
powers and duties in trust as the authority may determine.
‘‘(m) Covenant as to the appointing and providing for
the duties and obligations of a paying agent or paying
agents or other fiduciaries within or outside the state.
‘‘(n) Make all other covenants and to do any and all
such acts and things as may be necessary or convenient
or desirable in order to secure its bonds without a pledge
of ad valorem taxes, or in the absolute discretion of the
authority tend to make the bonds more marketable, not-
withstanding that such covenants, acts or things may not
be enumerated herein; it being the intention hereof to give
the authority power to do all things in the issuance of
bonds and in the provisions for security thereof which are
not inconsistent with the constitution of the state.
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‘‘(o) Execute all instruments necessary or convenient
in the exercise of the powers herein granted or in the per-
formance of covenants or duties, which may contain such
covenants and provisions, as any purchaser of the bonds
of the authority may reasonably require.
‘‘ARTICLE XII. APPOINTMENT OF TRUSTEE OR RE-
CEIVER FOR ENFORCEMENT OR PROTECTION OF RIGHTS
OF BONDHOLDERS. The authority may, in any authorizing
resolution of the board of directors, trust indenture or
other security instrument relating to its bonds, provide for
the appointment of a trustee who shall have such powers
as are provided therein to represent the bondholders of
any issue of bonds in the enforcement or protection of
their rights under any such resolution, trust indenture or
security instrument. The authority may also provide in
such resolution, trust indenture or other security instru-
ment that the trustee, or if the trustee so appointed fails
or declines to protect and enforce such bondholders’ rights
then the percentage of bondholders as shall be set forth
in, and subject to the provisions of, such resolution, trust
indenture or other security instrument, may petition the
court of proper jurisdiction for the appointment of a re-
ceiver of the facilities, the revenues of which are pledged
to the payment of the principal of and interest on the
bonds held by such bondholders. Such receiver may exer-
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cise any power as may be granted in any such resolution,
trust indenture or security instrument to enter upon and
take possession of, acquire, construct or reconstruct, or
operate and maintain such facilities, fix, charge, collect,
enforce and receive all revenues derived from such facili-
ties, and perform the public duties and carry out the con-
tracts and obligations of the authority in the same manner
as the authority itself might do, all under the direction
of such a proper court.
‘‘ARTICLE XIII. EXEMPTION FROM TAXATION. (1)
The exercise of the powers granted by this chapter will
be in all respects for the benefit of the people of the states
for their well-being and prosperity and for the improve-
ment of their social and economic conditions, and neither
the compact or authority shall be required to pay any tax
or assessment on any property owned by the compact or
the authority upon the income therefrom.
‘‘(2) Any bonds issued by the authority under the
compact, their transfer and the income therefrom shall at
all times be free from taxation by the state or any unit
of local government or other instrumentality of the state,
except for inheritance and gift taxes.
‘‘ARTICLE XIV. POWERS OF COUNTIES, MUNICIPALI-
TIES OR OTHER POLITICAL SUBDIVISIONS AND AGENCIES
AND INSTRUMENTALITIES THEREOF AS TO ASSISTANCE
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AND COOPERATION WITH THE COMPACT. For the purpose
of attaining the objectives of this chapter, any county, mu-
nicipality or other unit of local government, public cor-
poration, agency or instrumentality of the state, a county
or municipality or person may, upon terms and with or
without consideration, as it may determine, do any or all
of the following:
‘‘(a) Lend, contribute or donate money to the author-
ity or perform services for the benefit thereof;
‘‘(b) Donate, sell, convey, transfer, lease, option or
grant upon such terms as the parties may agree, without
the necessity of authorization at any election of qualified
voters, any property of any kind; and
‘‘(c) Do any and all things, whether or not specifically
authorized in this section, not otherwise prohibited by law,
that are necessary or convenient to aid and cooperate with
any authority in attaining the objectives of this chapter.
‘‘ARTICLE XV. CONTRACTING FOR PROJECTS. Con-
tracts for acquisition, purchase, construction or installa-
tion of a project shall be effected in the manner prescribed
by law for public contracts, except when:
‘‘(a) The authority finds and records such finding on
its minutes, that because of availability or particular na-
ture of a project, it would not be in the public interest
or would less effectively achieve the purposes of this chap-
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ter to enter into such contracts upon the basis of public
bidding pursuant to advertising;
‘‘(b) The industry concurs in such finding; and
‘‘(c) Such finding is approved by the board, public
bidding pursuant to advertisement may be dispensed with
and such contracts may be entered into based upon nego-
tiation; and provided further, that the industry or enter-
prise locating within the compact area, at its option, may
negotiate such contracts in the name of the compact or
authority.
‘‘ARTICLE XVI. CONTRACTS WITH PUBLIC AGENCIES.
For the purpose of aiding in the planning, design, under-
taking and carrying out of the project or any facility re-
lated to the project, any public agency is authorized and
empowered upon such terms, with or without consider-
ation, as it may determine:
‘‘(a) To enter into agreements, which may extend
over any period, with the authority respecting action to
be taken by such public agency with respect to the acquisi-
tion, planning, construction, improvement, operation,
maintenance or funding of the project or any such facility,
and which agreements may include (i) the appropriation
or payment of funds to the compact or authority or to
a trustee in amounts which shall be sufficient to enable
the authority to defray any designated portion or percent-
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age of the expenses of administering, planning, designing,
constructing, acquiring, improving, operating and main-
taining the project or any facility related to the project,
and (ii) the furnishing of other assistance in connection
with the project or facility related to the project;
‘‘(b) To dedicate, sell, donate, convey or lease any
property or interest in property to the authority or grant
easements, licenses or other rights or privileges therein to
the authority;
‘‘(c) To incur the expense of any public improvements
made or to be made by such public agency in exercising
the powers granted in this section;
‘‘(d) To lend, grant or contribute funds to the author-
ity;
‘‘(e) To cause public buildings and public facilities,
including parks, playgrounds, recreational areas, commu-
nity meeting facilities, water, sewer or drainage facilities,
or any other works which it is otherwise empowered to
undertake, to be furnished to or with respect to the project
or any such facility;
‘‘(f) To furnish, dedicate, close, vacate, pave, install,
upgrade or improve highways, streets, roads, sidewalks,
airports, railroads or ports with the approval of the proper
state, federal or local regulatory authority;
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‘‘(g) To plan or replan, zone or rezone any parcel of
land within the public agency or make exceptions from
land use, building and zoning regulations; and
‘‘(h) To cause administrative and other services to
be furnished to the authority, including services pertaining
to the acquisition of real property and the furnishing of
relocation assistance. Any contract between a public agen-
cy entered into with the authority pursuant to any of the
powers granted by this chapter shall be binding upon the
public agency according to its terms, and the public agen-
cy shall have the power to enter into such contracts as
in the discretion of the governing authorities thereof,
would be to the best interest of the people of the public
agency. If at any time title to or possession of the project
or any such facility is held by any public body or govern-
mental agency other than the authority, including any
agency or instrumentality of the United States of America,
the agreements referred to in this section shall inure to
the benefit of and may be enforced by such public body
or governmental agency.
‘‘ARTICLE XVII. ESTABLISHMENT OF JOINT VEN-
TURE. The board is empowered to establish and create
such nonprofit corporations, joint ventures, limited liabil-
ity companies as from time to time the board may deem
necessary or desirable in the performance of any acts or
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other things necessary to the exercise of the powers pro-
vided in this chapter, and to delegate to such departments,
boards or other agencies such administrative duties and
other powers as the board deems necessary or desirable.
‘‘ARTICLE XVIII. OWNERSHIP AND DISPOSITION OF
PROPERTY. The authority is authorized to acquire prop-
erty, real, personal or mixed, within or without its terri-
torial limits, in fee simple or any lesser interest or estate,
by purchase, gift, devise or lease, on such terms and condi-
tions as the board may deem necessary or desirable; to
acquire mineral rights and leases; to acquire title to sub-
merged lands and riparian rights and easements or rights-
of-way with or without restrictions within or without the
limits of the authority; to accept the dedication of streets
and other rights-of-way on such terms and conditions as
the authority may approve; to make purchase money mort-
gages and deed trusts and other forms of encumbrance
on any property acquired by the authority and to purchase
property subject to purchase money mortgages, or other
encumbrances; and to mortgage, hold, manage, control,
convey, lease, sell, grant or otherwise dispose of the same,
and of any of the assets and properties of the authority,
with or without consideration.
‘‘ARTICLE XIX. LEASE OF FACILITIES. Whenever
deemed necessary or desirable by the authority, the au-
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thority may lease as lessor or lessee to or from any person,
firm, corporation, association or body public or private,
any projects of the type that the authority is authorized
to undertake and facilities or property of any nature for
the use of the authority and to carry out any of the pur-
poses of the compact.
‘‘ARTICLE XX. AUTHORITY SERVICES AUTHORIZED.
The authority, in furtherance of its purposes and to facili-
tate or provide the necessary services for the development
of the compact area is authorized by agreement, owner-
ship, contract, lease, joint venture or otherwise to do the
following within the compact or service area.
‘‘(a) RECLAMATION AND DRAINAGE. To adopt a plan
of reclamation, and own, acquire, construct, reconstruct,
equip, operate, maintain, extend and improve canals,
ditches, drains, dikes, levees, pumps, plants and pumping
systems and other works, machinery and plants.
‘‘(b) WATER AND SEWER SYSTEM. To facilitate the
development or own, acquire, construct, reconstruct,
equip, operate, maintain, extend and improve water sys-
tems and sewer systems or combined water and sewer sys-
tems; to cooperate with the proper public agency to regu-
late the use of sewers and the supply of water within the
compact area and cooperate with the proper public agency
in prohibiting or regulating the use and maintenance of
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outhouses, privies, septic tanks or other sanitary struc-
tures or appliances within the compact area; to coordinate
with the proper public agencies in prescribing methods of
pretreatment of wastes not amenable to treatment with
domestic sewage before accepting such wastes for treat-
ment and to refuse to accept such wastes when not suffi-
ciently pretreated as may be prescribed by the proper pub-
lic agency; to sell or otherwise dispose of the effluent,
sludge or other by-products as a result of sewage treat-
ment; and to construct and operate connecting, inter-
cepting or outlet sewers and sewer mains and pipes and
water mains, conduits or pipelines in, along or under any
street, alleys, highways or other public places or ways
within the compact services area, when deemed necessary
or desirable by the authority and the proper public agency
in accomplishing the purposes of this chapter.
‘‘(c) WASTE COLLECTION AND DISPOSAL. To own, ac-
quire, construct, reconstruct, equip, operate, maintain, ex-
tend and improve a waste collection and disposal system,
and to sell or otherwise dispose of any affluent, residue
or other by-products of such systems, provided that such
actions comply with existing state and federal laws and
regulations.
‘‘(d) RECREATION FACILITIES. To provide, acquire,
construct, equip, operate, maintain, if necessary, extend
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and improve parks, playgrounds, picnic grounds, golf
courses, auditoriums, libraries, recreational centers, con-
vention halls and facilities, and cultural, recreational and
other appropriate projects.
‘‘(e) PARKING
FACILITIES. To own, acquire, con-
struct, reconstruct, equip, operate, maintain, extend and
improve parking facilities, to install or cause to be in-
stalled parking meters at or near the curbs of streets,
roads and other public ways within the compact area, and
to adopt such regulations and impose such charges in con-
nection with any parking facilities as the board may deem
necessary or desirable.
‘‘(f) FIRE PROTECTION. To provide for or own, ac-
quire, construct, reconstruct, equip, maintain, operate, ex-
tend and improve fire control facilities for the compact,
including fire stations, water mains and plugs, fire trucks
and other vehicles and equipment, and to undertake such
works and construct such facilities as may be determined
necessary by the board to carry out a program of fire pre-
vention and fire control within the compact or service area.
‘‘(g) CONSERVATION AREAS AND SANCTUARIES. To
designate, set aside and maintain lands and areas within
the compact area as conservation areas; to promulgate and
enforce rules and regulations with respect thereto and to
protect and preserve the natural beauty thereof.
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‘‘ARTICLE XXI. PURSUIT OF EMINENT DOMAIN. The
authority shall not have the power to exercise eminent do-
main. The authority shall have the authority to request
and pursue eminent domain through the state or a unit
of local government for the particular purpose of the ac-
quisition of property designated by plan to sufficiently ac-
commodate the location of the specific facilities and utili-
ties, and such requirements related directly thereto pursu-
ant to the provisions of applicable state law. However, be-
fore the exercises of this power, the board shall enter on
its minutes the determination of the need to pursue the
power of eminent domain through the state or unit of local
government for the acquisition of a part of the acreage
involved, not to exceed ten percent (10%) of the acreage
involved, and the board shall so specify in its minutes.
‘‘ARTICLE XXII. SHORT TERM BORROWINGS. The au-
thority at any time may obtain loans, in such amount, and
on such terms and conditions as the board may approve,
for the purpose of paying any of the expenses of the au-
thority or any costs incurred or that may be incurred in
connection with any of the projects of the authority, which
loans shall have a term not exceeding two (2) years from
the date of issuance thereof, and may be renewable for
a like term or terms, and may be payable from and se-
cured by a pledge of such funds, revenues and assess-