2023 Louisiana Laws › Revised Statutes › Title 39 - Public Finance › §39:462.4. Revolving loan fund; eligibility requirements; loans for eligible infrastructure projects; authorizing and issuing debt; security; interest rates; tax exemption

RS 39:462.4 - Revolving loan fund; eligibility requirements; loans for eligible infrastructure projects; authorizing and issuing debt; security; interest rates; tax exemption
A.(1) Notwithstanding any provision of law to the contrary, and in addition to the authority to lend or borrow money or incur or guarantee indebtedness provided by any other provision of law, sums on deposit in and credited to the fund may be loaned to local governments for use in connection with eligible infrastructure projects. However, this Section shall not be deemed to be the exclusive authority under which a local government may borrow money or incur indebtedness.
(2) In order for a local government to be eligible for a loan pursuant to the provisions of this Chapter, the local government shall comply with all of the following:
(a) The local government shall demonstrate that it has financial resources and a financial strategy for the duration of the lifecycle of the project to ensure that the project is sufficiently funded, maintained, and replaced as needed.
(b) The local government shall be in good standing and comply with the audit requirements provided for in R.S. 24:513 at the time that the local government applies for and receives the loan as well as during the duration of the term of the loan.
(3) A local government is limited to one loan from the revolving loan fund; however, once all of the principal, interest, and any other fees and obligations due under the loan agreement are paid in full, the local government may apply for a new loan from the revolving loan fund.
(4) No loan shall be made nor debt evidencing the loan be issued or incurred without the approval of the commission.
B. All bonds, notes, or other evidences of indebtedness of any local government issued to represent a loan shall be authorized and issued pursuant to a resolution or ordinance of the governing authority of that entity, hereinafter referred to collectively as "resolution". The resolution shall prescribe the form and details thereof, including the terms, security for, manner of execution, repayment schedule, and redemption features thereof, and the resolution may provide that an officer of the entity may execute in connection with the obligation any related contract, including but not limited to a credit enhancement device, indenture of trust, loan agreement, pledge agreement, or other agreement or contract needed to accomplish the purposes for which the evidence of indebtedness is given, in substantially the form referenced in the resolution, but which final executed credit enhancement device, indenture of trust, loan agreement, pledge agreement, or other contract or agreement may contain changes, additions, and deletions as shall in the sole opinion of the executing officer be appropriate under the circumstances. The resolution shall include a statement as to the maximum principal amount of any obligation; the maximum interest rate to be incurred or borne by the obligation or guaranteed by the obligation; the maximum redemption premium, if any; and the maximum term in years for the obligation, guarantee, or pledge.
C. Notwithstanding any other provision of law to the contrary, a local government, upon entering into a loan as provided in this Chapter, may dedicate and pledge a portion of any revenues it has available to be pledged and dedicated, including but not limited to revenues from the general revenue fund, sales taxes, sewer user fees, assessments, parcel fees, or ad valorem property taxes, for a sufficient term to repay the principal of, interest on, and any premium, administrative fee, or other fee or cost incurred in connection with the loan.
D. Any evidence of indebtedness authorized pursuant to this Chapter shall bear a rate or rates of interest that shall not exceed the rate or rates set forth in the resolution authorizing and providing for the issuance thereof. Any rate or rates of interest may be fixed, variable, or adjustable rates.
E. The general laws of the state governing fully registered securities of public entities shall be applicable to the bonds, notes, or other evidences of indebtedness issued pursuant to this Chapter.
F. A resolution authorizing a loan pursuant to this Section shall be published once in the official journal or a newspaper of general circulation in the parish or local government entity incurring the loan. It shall not be necessary to publish exhibits to the resolution, but the exhibits shall be made available for public inspection at the offices of the governing authority of the parish, municipality, or other political subdivision at reasonable times, and notice of the availability of these documents shall be stated in the publication within the official journal or newspaper of general circulation in the parish or local government entity incurring the loan. For a period of thirty days after the date of publication, any person in interest may contest the legality of the resolution authorizing the evidence of indebtedness or other loan and any provision thereof made for the security and payment of the debt. After the thirty-day period, no one shall have any cause or right of action to contest the regularity, formality, legality, or effectiveness of the resolution and the provisions thereof or of the bonds, notes, or other evidences of indebtedness or other loan, or to provide for the payment of the debt, or the legality thereof, and all of the provisions of the resolution and evidence of indebtedness shall be conclusively presumed valid, and no court shall have authority or jurisdiction to inquire into the matter.
G. Interest on bonds, notes, or other evidences of indebtedness issued for any loan entered into under the authority of this Chapter shall be exempt from all state taxation pursuant to the provisions of R.S. 39:511 and R.S. 47:48. The bonds, notes, or other evidences of indebtedness or loans may be used for deposit with any officer, board, municipality, or other political subdivision of the state in any case where, by present or future laws, deposit of security is required for state funds. Additionally, the proceeds of bonds, notes, or other evidences of indebtedness or loans issued pursuant to the provisions of this Chapter may be used for costs associated with the issuance of bonds, notes, or other evidences of indebtedness.
Acts 2023, No. 424, §1, eff. July 1, 2023.