2023 Louisiana Laws › Revised Statutes › Title 48 - Roads, Bridges and Ferries › §48:77.2. Bonds

RS 48:77.2 - Bonds
A.(1) Without reference to any provision of the Constitution of Louisiana and the laws of this state, and as a grant of power in addition to any other general or special law, the State Bond Commission, referred to in this Section as "the commission", is hereby authorized to issue motor vehicle sales and use tax bonds, referred to in this Section as "motor vehicle sales and use tax bonds" or "bonds", and pledge for the payment of the principal and interest such portion of the motor vehicle sales and use tax as is to be deposited into the Megaprojects Leverage Fund pursuant to R.S. 48:77.1. Such bonds shall only be issued for individual projects and secured by funds held or to be received in a corresponding specific account provided for in R.S. 48:77.1. Proceeds of any such bonds, except monies needed to fund reserves and pay costs of issuance, and to the extent not needed to pay debt service or other amounts due under the resolution authorizing the bonds, shall be deposited in the Construction Subfund of the Transportation Trust Fund and expended only in accordance with R.S. 48:77.1. The commission is further authorized, in its discretion, to pledge all or any part of any gift, grant, donation, or other sum of money, aid, or assistance from the United States, the state, or any political subdivision, thereof, unless otherwise restricted by the terms thereof, all or any part of the proceeds of bonds, credit agreements, instruments, or other money of the commission, from whatever source derived, for the further securing of the payment of the principal and interest of the bonds, including any monies provided to the commission from the Department of Transportation and Development. Any bonds shall be payable solely from revenues and bond proceeds, pending their disbursement, and investment income thereon. Such bonds are deemed to be "revenue bonds" as permitted under Article VII, Section 6(C) of the Constitution of Louisiana, as amended.
(2) In accordance with the provisions of Article VII, Section 9(A)(6) of the Constitution of Louisiana, as amended, there is hereby established a special fund to be designated and hereafter referred to as the Motor Vehicle Sales and Use Tax Bond Fund, with appropriate subaccounts to be established, for the purpose of providing for the securitization of any bonds which may be issued pursuant to the provisions of this Section which shall include requirements for reserves and credit enhancement devices, all as may be provided in any resolution, trust agreement, indenture, or other instrument pursuant to which such bonds were issued. The Motor Vehicle Sales and Use Tax Bond Fund shall be administered by a trustee as designated by the commission. The source of monies for the Motor Vehicle Sales and Use Tax Bond Fund shall be such portion of the avails of the taxes imposed by Chapters 2, 2-A, and 2-B of Subtitle II of Title 47 of the Louisiana Revised Statutes of 1950 from the sale, use, or lease of motor vehicles that are taxable referred to in this Section as "motor vehicle sales and use tax receipts" pursuant to Chapters 2, 2-A, and 2-B of Subtitle II of Title 47 of the Louisiana Revised Statutes of 1950 as may be transferred to the commission pursuant to R.S. 48:77.1. All such transferred funds shall be classified and set aside in the separately identifiable fund or account outside of the state treasury and named above, but maintained by the state treasury, and such revenues shall be assigned and pledged to the trustee under the documents pursuant to which the bonds were issued for the benefit of the holders of the bonds.
(3) The motor vehicle sales and use tax receipts which have been transferred to the commission pursuant to R.S. 48:77.1 and this Section shall be applied to pay or provide for the payment of debt service and all related costs and expenses associated therewith on motor vehicle sales and use tax bonds issued by the commission for specific projects as set forth in R.S. 48:77.1.
(4) The resolution or resolutions under which motor vehicle sales and use tax bonds are authorized to be issued may contain any or all of the following:
(a) Provisions respecting custody of the proceeds from the sale of the bonds, including any requirements that such proceeds be held separate from or not be commingled with other funds of the state.
(b) Provisions for the investment and reinvestment of motor vehicle sales and use tax bond proceeds until used to pay the costs of the projects for which the bonds were issued or the costs of financing the bonds, and for the disposition of any excess bond proceeds or investment earnings thereon.
(c) Provisions for the execution of reimbursement agreements or similar agreements in connection with credit facilities, including but not limited to letters of credit or policies of bond insurance, remarketing agreements, and credit enhancement devices, for the purpose of moderating interest rate fluctuations.
(d) Provisions for the collection, custody, investment, reinvestment, and use of the pledged revenues or other receipts, funds, or monies pledged therefor and transferred or to be transferred pursuant to this Section.
(e) Provisions regarding the establishment and maintenance of reserves, sinking funds, and any other funds, and accounts as shall be approved by the commission in such amounts as may be established by the commission, and the regulation and disposition thereof, including requirements that any such funds and accounts be held, separate from or not be commingled with other funds.
(f) Covenants for the establishment of pledged revenue coverage requirements for the motor vehicle sales and use tax bonds.
(g) Provisions for the issuance of additional motor vehicle sales and use tax bonds on a parity or subordinate basis with motor vehicle sales and use tax bonds theretofore issued, including establishment of coverage requirements with respect thereto for the projects permitted in R.S. 48:77(C).
(h) Provisions or covenants of like or different character from the foregoing that are determined in such proceedings as necessary, convenient, or desirable in order to better secure the motor vehicle sales and use tax bonds, or will tend to make the motor vehicle sales and use tax bonds more marketable, and that are in the best interests of the state, including, without limitation, cooperative endeavor agreements with the division of administration on behalf of the state with respect to replenishment of any reserve funds for the bonds, which cooperative endeavor agreements are authorized to be executed by the commission and the division of administration if deemed necessary and desirable by these parties to enhance the creditworthiness of the bonds.
B. Bonds issued under the provisions of this Section shall not be deemed to constitute a pledge of the full faith and credit of the state or of any governmental unit thereof. All such bonds shall contain a statement on their face substantially to the effect that neither the full faith and credit of the state nor the full faith and credit of any public entity of the state are pledged to the payment of the principal of or the interest on such bonds. The issuance of bonds under the provisions of this Section shall not directly, indirectly, or contingently obligate the state or any governmental unit of the state to levy any taxes whatever therefor or to make any appropriation for their payment, other than obligations to make payments by the state or any public entity to the commission arising out of contracts including but not limited to the bonds, the bond resolution, and trust indentures authorized under this Section.
C. Bonds shall be authorized by a resolution of the commission and shall be of such series, bear such date or dates, mature at such time or times, bear interest at such rate or rates, including but not limited to fixed, variable, or zero rates, be payable at such time or times, be in such denominations, be in such form, carry such registration and exchangeability privilege, be payable in such medium of payment and at such place or places, be subject to such terms of redemption prior to maturity at such price or prices as determined by the commission, and be entitled to such priority on the revenues as such resolution or resolutions may provide.
D. Bonds shall be sold by the commission at public sale by competitive bid or negotiated private sale and at such price as the commission may determine to be in the best interest of the state.
E. The issuance of motor vehicle sales and use tax bonds shall not be subject to any limitations, requirements, or conditions contained in any other law, and bonds may be issued without obtaining the consent of the state or any political subdivision, or of any agency, commission, or instrumentality thereof. Bonds issued pursuant to this Section shall not be included in the calculation of "net state tax supported debt" as defined in R.S. 39:1367. The bonds shall be issued in compliance with the provisions of this Section.
F. For a period of thirty days after the date of publication of a notice of intent to issue bonds in the official journal of the state authorizing the issuance of bonds pursuant to this Section, any person in interest shall have the right to contest the legality of the resolution and the legality of the bond issue for any cause, but after that time no one shall have any cause or right of action to contest the legality of the resolution or of the bonds, or the security therefor for any cause whatsoever. If no suit, action, or proceeding is begun contesting the validity of the resolution, the bonds, or the security therefor within this prescribed thirty-day period, the commission is authorized to issue the bonds and to provide for the payment thereof, the legality thereof, and of all of the provisions of the resolution authorizing the issuance of the bonds shall be conclusively presumed to be legal and shall be incontestable. Any notice of intent so published shall set forth in reasonable detail the purpose of the bonds, the security therefor, and the parameters of amount, duration, and interest rates. The commission may designate any paper of general circulation in its geographical jurisdiction to publish the notice of intent or may utilize electronic media available to the general public. Any suit to determine the validity of bonds issued by the commission shall be brought only in accordance with the provisions of R.S. 13:5121 et seq.
G. All bonds issued pursuant to this Section shall have all the qualities of negotiable instruments under the commercial laws of the state.
H. Any pledge of revenues or other monies made by the commission shall be valid and binding from the time when the pledge is made. The revenues or monies so pledged and thereafter received by the commission shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act, and the lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the commission irrespective of whether such parties have notice thereof. Any trust agreement or other instrument by which a pledge is created need not be filed or recorded except in the official records of the commission.
I. Neither the members of the commission nor any person executing the bonds shall be liable personally for the bonds or be subject to any personal liability or accountability by reason of the issuance thereof.
J. Bonds of the commission, their transfer, and the income therefrom shall at all times be exempt from all taxation by the state or any political subdivision thereof, and may or may not be exempt for federal income tax purposes. The bonds issued pursuant to this Section shall be and are hereby declared to be legal and authorized investments for banks, savings banks, trust companies, building and loan associations, insurance companies, fiduciaries, trustees, and guardians. Such bonds shall be eligible to secure the deposit of any and all public funds of the state and any and all public funds of municipalities, parishes, school districts, or other political corporations or subdivisions of the state. Such bonds shall be lawful and sufficient security for the deposits to the extent of their value. When any bonds shall have been issued hereunder, neither the legislature, the commission, nor any other entity may discontinue or decrease the revenues pledged to the payment of the bonds authorized pursuant to this Section or permit to be discontinued or decreased the revenues in anticipation of the collection of which such bonds have been issued, or in any way make any change in the allocation and dedication of the revenues which would diminish the amount of the revenues to be received by the commission, until all of such bonds shall have been retired as to principal and interest, and there is hereby vested in the holders from time to time of such bonds a contract right in the provisions of this Section.
K. The commission may provide by resolution for the issuance of refunding bonds pursuant to R.S. 39:1444 et seq.
L. The holders of any bonds issued pursuant to this Section shall have such rights and remedies as may be provided in the resolution or trust agreement authorizing the issuance of the bonds, including but not limited to the appointment of a trustee for the bondholders and any other available civil action to compel compliance with the terms and provisions of the bonds and the resolution or trust agreement.
M. Subject to the agreements with the holders of bonds, all proceeds of bonds and all revenues pledged under a resolution or trust agreement authorizing or securing such bonds shall be deposited and held in trust in a fund or funds separate and apart from all other funds of the state. Subject to the resolution or trust agreement, the trustee shall hold the same for the benefit of the holders of the bonds for the application and disposition thereof solely to the respective uses and purposes provided in such resolution or trust agreement.
N. The commission is authorized to employ all professionals it deems necessary in the issuance of its bonds.
O. The commission is authorized to enter into any and all agreements or contracts, execute any and all instruments, and do and perform any and all acts necessary, convenient, or desirable for the issuance of the bonds or to carry out any power expressly given in this Section.
P. The commission shall be deemed to be a public entity for purposes of Chapters 13, 13-A, 14, 14-A, 14-B, and 15-A of Title 39 of the Louisiana Revised Statutes of 1950, as amended, which statutes shall apply to bonds of the commission, provided that in the event of a conflict with the provisions of this Section, the provisions of this Section shall control.
Q. The provisions of this Section shall become null, void, and of no effect on the date that all bonds issued by the commission pursuant to this Section are paid or deemed paid in full and are no longer considered outstanding or the projects permitted in R.S. 48:77(C) are deemed completed by the Department of Transportation and Development, whichever is later.
R. Notwithstanding any other provision of law to the contrary, any revenues deposited in the bond fund that are pledged to the repayment of any bonds issued in accordance with this Section may be collected and disbursed in accordance with the documents pursuant to which such bonds were issued.
Acts 2022, No. 505, §2, eff. June 16, 2022.