Sec 36-491. Issuance of bonds

A. The board is authorized, for and on behalf of the authority, to issue bonds for the purpose of improving health care for residents of this state by providing less expensive financing for one or more health care facilities.

B. Such bonds may be issued in one or more series, bear such date or dates, be in such denomination or denominations, mature at such time or times, not exceeding forty years from the respective dates thereof, mature in such amount or amounts, bear interest at such rate or rates payable at least annually, be in such form either coupon or registered, carry such registration privileges, be executed in such manner, be payable in such medium of payment, at such place or places, be refundable either at or in advance of maturity, be subject to such terms of redemption, with or without premium, as the board directs. The bonds may be sold at either public or private sale in such manner and upon such terms as may be determined by the board to be most advantageous, with appropriate disclosures of all material information relating to the bonds and the security therefor. Such bonds shall be fully negotiable within the meaning and for all purposes of title 47. Such bonds and interest thereon shall be exempt from all taxes of the state or any of its political subdivisions.

C. Principal and interest on the bonds shall be payable solely from the revenues derived by the authority from the agreements authorized by this chapter. Unless agreed to in writing by each participating facility affected, the authority shall not pledge for the payment of the bonds issued for acquisition of any health care facility payments received from another participating facility.

D. Any agreement authorizing the issuance of bonds may provide for:

1. Execution of a trust indenture and assignment to a trustee of the agreements relating to the health care facility to be acquired by the series or issue of bonds in order to protect the bondholder or bondholders and facilitate the payment of the principal and interest on the bonds.

2. Payment of the bonds solely from the monies paid by the obligated participating facility or facilities.

3. Capitalization of a bond reserve from bond proceeds or other payments made by the participating facility when the board deems necessary.

4. Limitations on the issuance of future bonds or restrictions or formulas relative to the issuance of future bonds of equal or secondary lien, or for a lien upon or pledge of the revenues received from or by any participating facility.

5. Restrictions as to liens, encumbrances or alienation of any project or health care facility.

6. Covenants as to the procedures by which the terms of any agreement for the benefit of a holder or holders of such bonds may be amended or abrogated, the amount or percentage of bonds the holder or holders of which must consent thereto and the manner in which such consent may be given.

7. Assignment to a trustee of any or all agreements made or entered into by the authority and vesting in the trustee the right to enforce any covenant made to secure or pay the bonds.

8. Execution and delivery of trust agreements setting forth the powers, duties and remedies available to trustees, limiting liabilities, describing what occurrences shall constitute default and prescribing terms and conditions upon which trustees or holders of bonds of any specified amount or percentage of such bonds may exercise and enforce any rights, covenants and remedies.

9. Vesting in a trustee or holder of any specified amount or percentage of bonds the right to apply to any court of competent jurisdiction for, and have granted, the appointment of a receiver to act under the terms of any agreement.

10. A provision for reclamation of the facility if a payment required under an agreement or any other condition required in an agreement is not timely paid or is breached.

11. A provision for the appointment of a receiver to operate the facility during a period of default in the regular payment or performance under an agreement.

12. A prohibition against the leasing or subleasing of the facility without the specific written permission of the authority to any other project operator.

E. Bonds bearing the signatures of officers in office on the date of the signing thereof shall be valid and binding obligations, notwithstanding that before delivery and payment therefor any or all persons whose signatures appear thereon shall have ceased to be officers of the authority. The validity of the bonds shall not be dependent on nor affected by the validity or regularity of any proceedings to acquire the project financed by the bonds or taken in connection therewith. No action shall be brought questioning the legality of any agreement, proceedings or issuance of bonds hereunder after two months from the date the bonds are authorized to be issued by the board.