An Act To Amend the Laws Governing the Loring Development Authority of Maine (AFfER DEADLINE)
Maine Legislature, Session 121, LD 1880
Committee: Business, Research and Economic Development
Sponsors: MARTIN, YOUNG, KNEELAND, STANLEY, CHURCHILL, FISCHER, JACKSON, PARADIS, SMITH, WOTTON
Amends: 5 MRSA §13080-A, 5 MRSA §13080-B, 5 MRSA §13080-G, 5 MRSA §130, 5 MRSA §13080-N

Legislative Document 
No. 1880 
S.P.728 
In Senate, February 26, 2004 
An Act To Amend the Laws Governing the Loring Development 
Authority of Maine 
(AFfER DEADLINE) 
(EMERGENCY) 
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
205. 
Reference to the Committee on Business, Research and Economic Development suggested 
and ordered printed. 
Presented by Senator MARTIN of Aroostook. 
Cosponsored by Representative YOUNG of Limestone and 
JOY J. O'BRIEN 
Secretary of the Senate 
Senators: KNEELAND of Aroostook, STANLEY of Penobscot, Representatives: 
CHURCHILL of Orland, FISCHER of Presque Isle, JACKSON of Fort Kent, PARADIS of 
Frenchville, SMITH of Van Buren, WOTTON of Littleton. 
Printed on recycled paper 
Emergency preamble. Whereas. Acts of the Legislature do not 
become effective until 90 days after adjournment unless enacted 
as emergencies; and 
Whereas. 
Loring 
Development 
Authority 
of 
Maine 
is 
considering several projects in 2004; and 
Whereas, one of these projects must commence construction ln 
2004; and 
Whereas, the financing of this project must be completed as 
soon as possible; and 
Whereas, there have been many changes to federal and state 
law dealing with bonding powers; and 
Whereas, 
the 
Loring 
Development 
Authority 
enabling statute was adopted in 1993; and 
of 
Maine' s 
Whereas, it is imperative that the changes in this bill take 
effect immediately to have the Loring Development Authority of 
Maine' s 
bonding powers be updated and conform to the bonding 
powers of other state agencies and federal law; and 
Whereas, in the judgment of the Legislature, these facts 
create an emergency within the meaning of the Constitution of 
Maine 
and 
require 
the 
following 
legislation 
as 
immediately 
necessary for the preservation of the public peace, health and 
safety; now, therefore, 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 5 MRSA §13080-A, sub-§6, as corrected by RR 1997, c. 
2, §19, is amended to read: 
6. 
Loring Air Force Base. 
"Loring Air Force Base" 
or 
"base" 
means 
those 
properties 
and 
facilities 
within 
the 
geographic boundaries of the United States Department of Defense 
air force base at Limestone existing on July 13, 1993. 
"Base" 
also includes the Madawaska dam site, the Loring Water System, 
the Loring #3 communications site in Limestone, the pipeline from 
Searsport to Limestone and other geographically separate property 
that the authority determines should be aeemea considered part of 
the base, if the municipality in which the property is located 
has chosen not to accept the property and utilize it for other 
purposes. 
Sec. 2. 5 MRSA §13080-B. sub-§I, 1f1fG, J and K, as enacted by PL 
1993, c. 474, §1, are amended to read: 
Page l-LR2758(1) 
G. 
Contract 
with 
the 
Federal 
Government 
or 
its 
instrumentalities or agencies, this State or its agencies, 
instrumentalities or municipalities, public bodies, private 
corporations, 
partnerships, 
associations 
aBQ~ individuals 
and 
other 
persons 
to 
carry 
out 
the 
purposes 
of 
this 
article: 
J. 
Borrow money, make, issue and sell at public or private 
sale 
negotiable 
notes, 
bonds 
and 
other 
evidences 
of 
indebtedness or obligation of the authority for the purposes 
under this article and secure the payment of that obligation 
or any part of that obligation by pledge of all or any part 
of the operating revenues or other revenues or property of 
the authority: 
K. 
Enter into loan or security agreements with borrowers or 
one or more lending institutions, including, but not limited 
to, 
banks, 
insurance 
companies 
and 
pension 
funds, 
or 
trustees for those institutions for the purposes for which 
bonds may be issued and exercise with respect to those loan 
or security agreements all of the powers delineated in this 
article for the issuance of bonds: 
Sec. 3. 5 MRSA §13080-G, sub-§l, as enacted by PL 1993, c. 
474, §1, is amended to read: 
1. 
Hearing required. 
The authority may issue bonds 
to 
finance its activities only after giving notice of the proposed 
issuance aBQ--i-t-i3--t-eFRlS at least twice in a newspaper of general 
circulation in the county and holding a duly advertised public 
hearing on the issuance. 
Sec. 4. 5 MRSA §13080-G, sub-§2, as amended by PL 1995, c. 
495, §§6 and 7, is further amended to read: 
2. 
Authority. 
In addition to the authority provided in 
subsection I-A, the authority may issue bonds from time to time 
in its discretion to finance the undertaking of an authorized 
activi ty under this article, including but not limited to the 
payment of costs of acquisition, construction, 
reconstruction, 
renovation, equipping, start-up, testing, capitalized interest, 
reserves, reuse or improvement within the base undertaken by a 
person and the payment of principal and interest upon advances 
for surveys and plans, 
and may issue refunding bonds for the 
payment or retirement of bonds previously issued. 
A. 
The 
that may 
must 
be 
revenues 
pr incipal aBQL 
interest eli and all other amounts 
at any time become due and payable under the bonds 
made 
payable solely from 
the 
income, 
proceeds, 
and funds of the authority derived from or held for 
activities under this article. 
Payment of the principal and 
interest of bonds may be further secured by a pledge of a 
loan, grant or contribution from the Federal Government or 
other source in aid of activities of the authority under 
this article or solely from income, proceeds, revenues, loan 
repayments, 
funds 
and other property, 
real 
or personal, 
pledged, assigned or mortgaged by or to the authority in 
connection with the provision of financial assistance by the 
authority to any person or any combination of the foregoing 
and by a mortgage of an urban activity or a project or part 
of a project, title to which is in the authority. 
B. 
Bonds issued under this section and paragraph do not 
constitute 
an 
indebtedness 
within 
the 
meaning 
of 
any 
constitutional or statutory debt limitation or restriction 
and are not subject to other laws or charters relating to 
the 
authorization, 
issuance 
or 
sale 
of 
bonds. 
Notwithstanding this 
paragraph, 
the 
authority 
may 
issue 
bonds 
in 
an 
original 
principal 
amount 
not 
to 
exceed 
$100,000,000 to which the authority may designate section 
l3080-N 
to 
apply. 
Bonds 
issued under 
this article are 
declared 
to 
be 
issued 
for 
an 
essential 
public 
and 
governmental 
purpose 
and, 
together with interest on 
and 
income from the bonds, are exempt from all taxes. 
c. 
Bonds 
may not be issued by the authority until the 
authority has received a certificate of approval from the 
Finance Authority of Maine authorizing issuance of bonds. 
Before issuing a certificate of approval under this section, 
the 
a~tRe~ity Finance Authority of Maine shall determine 
that there is 
a 
reasonable 
likelihood that the 
income, 
proceeds, revenues and funds of the authority derived from 
or held for activities under 
this article or 
otherwise 
pledged to payment of the bonds will be sufficient to pay 
principal, interest and all other amounts that may at any 
time become due and payable under the bonds. 
In making this 
determination, the Finance Authority of Maine must consider 
the authority's analysis of the proposed bond issue and the 
revenues to make payments on the bond and may require such 
information, projections, studies and independent analyses 
as it considers necessary or desirable and may charge the 
authority reasonable fees and expenses. 
The issuance by the 
Finance Authority of Maine of 
a certificate of approval 
under this section does not constitute an endorsement of the 
bonds or the projects or purposes for which those bonds are 
issued and neither the authority nor any other person or 
entity, including, without limitation, any holders of bonds 
of the authority, 
have 
any 
cause of action against the 
Finance 
Authority 
of 
Maine 
with 
respect 
to 
any 
such 
certificate of approval. 
The Finance Authority of Maine may 
require that it be indemnified, defended and held harmless 
by 
the authority for 
any liability or 
cause of action 
arising out of or with respect to the bonds. 
Sec. 5. 5 MRSA §13080-G, sub-§4, §A, as enacted by PL 1993, c. 
474, §1, is amended to read: 
A. 
Sold at--n£>-t.- -1-e&& --t.fl.a.n- -p-a-F- - a-t.- -pub-l-i-G- - saJes- -he-1-d--afte F 
Betiee--£a~--~--P-~&l-~&heG--iB--a--~--~~--~eBeFa± 
eiFe~±atieB-iB--t.Be-~~~-~~~~~-~-a-ny-9the~-meai~m 
e:E--p-uN.-i-£-a-t~~-t,.aa-t,.--t.Be--aut-ho-r-.i-t.-y..-aesi~Bates to any person 
on such terms as the authority may negotiate; 
Sec. 6. 5 MRSA §13080-G, sub-§§7 and 9, as enacted by PL 1993, 
c. 474, §l, are amended to read: 
7. 
No 
personal 
liability; 
not 
debt 
of 
State 
or 
municipality. 
Neither the trustees of the authority nor the 
person executing the bonds is liable personally on the bonds by 
reason of 
the 
issuance 
of 
the 
bonds. 
The 
bonds 
and 
other 
obligations of the authority must have stated on their face that 
they are not a debt of the State and that the State is not liable 
on the bonds. 
The bonds or obligations may not be payable out of 
funds or properties other than those of the authority acquired 
for the purposes of this article or otherwise pledged therefor. 
may: 
9. 
Investment of funds; redemption of bonds. 
The authority 
A. 
Invest, in property or 
may legally invest funds 
held in reserves, sinking 
immediate disbursement; aBa 
securities in which savings banks 
subject to their control, 
funds 
funds or funds not required for 
B. 
Cancel its bonds by redeeming them at the redemption 
price established in the bonds or by purchasing them at less 
than redemption priceT; and 
C. 
Invest funds in accordance with Title 30-A, chapter 223, 
subchapter 3-A. 
Sec. 7. 5 MRSA §13080-G. sub-§§10 and 11 are enacted to read: 
10. 
Issue of bonds. 
With respect to all or any portion of 
any issue of any bonds or any series of bonds that the authority 
may issue in accordance with this article, the authority may 
convenant 
and 
consent 
that 
the 
interest 
on 
the 
bonds 
is 
includable, under the United States Internal Revenue Code of 1986 
or 
any 
subsequent corresponding internal 
revenue 
law of 
the 
United States, in the gross income of the holders of the bonds to 
the same extent and in the same manner that the interest on the 
bills, bonds, notes or other obligations of the United States is 
includable in the gross income of the holders under the United 
States Internal Revenue Code of 1986 or any subsequent law. 
11. 
Pledge of security interests. 
Any pledge or assignment 
of revenue or collateral or other security interests under this 
article is valid and binding and perfected from the time when the 
pledge is made. 
All the revenues or collateral pledged by the 
authority is subject immediately to the lien of the pledge or 
assignment without any physical delivery or further action under 
the Uniform Commercial Code or otherwise. 
The lien of any pledge 
or assignment and perfection is valid and binding against aLl. 
parties having claims of any kind in tort, contract or otherwise 
against the authority, whether the parties have notice of the 
pledge or assignment. 
Sec. S. 5 MRSA §130S0.I, sub·§2, ,B, as enacted by PL 1993, c. 
474, §1, is amended to read: 
B. 
Apply to or limit the right of an obligee to foreclose 
or otherwise enforce 
a 
mortgage of the authority or to 
pursue remedies for the enforcement of a pledge or lien 
given 
by 
the 
authority 
on its 
rents, 
fees, 
grants 
or 
revenues or any other sources pledged by the authority to 
the payment of its bonds. 
Sec. 9. 5 MRSA §130S0·K, sub·§2. as enacted by PL 1993, c. 
474, §1, is amended to read: 
2. 
Payment of bonds, premiums and interest. 
The bonds, 
premium, if any, 
and interest have been paid or a sufficient 
amount for the payment of the bonds and interest to maturity or a 
prior redemption date have been irrevocably set aside in trust 
for the benefit of the bondholders in accordance with agreements 
with the bondholders. 
Sec. 10. 5 MRSA §130S0.N, sub-§5, as enacted by PL 1993, c. 
729, §10, is amended to read: 
5. 
Appropriation. 
On or before December 1st, annually, the 
authority shall certify to the Governor the 
amount, 
if any, 
necessary to restore the amount in any capital reserve fund. 
In 
trust 
agreements 
or 
other 
pertinent 
documents 
ge~weea--~Re 
iHi~Re!'~~y-~-t....fie.-GeVeIi'Re!', it must be clearly stated that this 
subsection applies 
to 
the 
capital 
reserve 
requirement. 
The 
Governor shall pay from the Contingent Account to that fund as 
much of the amount as is available in the Contingent Account and 
shall transmit to the Legislature a certification and a statement 
of the amount, 
if any, 
remaining 
certified must be appropriated and 
the then current state fiscal year. 
to be paid and the amount 
paid to the authority during 
Sec. 11. 5 MRSA §13080-N, sub-§7 is enacted to read: 
7. 
Other capiJ:al reserve :funds. 
Thi s 
subsection 5, may not be construed to reguire 
reserve 
fund established under this section 
described in subsection 5. 
section, including 
that each capital 
have the benefit 
Emergency clause. 
In view of the emergency cited in the 
preamble, this Act takes effect when approved. 
SUMMARY 
This bill 
conforms 
the 
Loring 
Development 
Authority 
of 
Maine's bonding powers to those bonding powers of other agencies 
of 
the 
State 
and 
makes 
the 
authority's 
enabling 
statute 
consistent with federal law by incorporating the changes that 
have been made to federal and state law since the adoption of the 
Loring Development Authority of Maine's enabling statute in 1993.