Bill Text: GA HB553 | 2009-2010 | Regular Session | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Local Government Equipment Financing Authority Act; create
Spectrum: Partisan Bill (Republican 7-0)
Status: (Vetoed) 2009-05-11 - Veto V4 [HB553 Detail]
Download: Georgia-2009-HB553-Introduced.html
Bill Title: Local Government Equipment Financing Authority Act; create
Spectrum: Partisan Bill (Republican 7-0)
Status: (Vetoed) 2009-05-11 - Veto V4 [HB553 Detail]
Download: Georgia-2009-HB553-Introduced.html
09 LC 18
8160
House
Bill 553
By:
Representatives Lunsford of the
110th,
Butler of the
18th,
Stephens of the
164th,
Millar of the
79th,
Harbin of the
118th,
and others
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Title 36 of the Official Code of Georgia Annotated, relating to local
government, so as to provide for comprehensive regulation of local government
equipment financing; to provide for a short title; to provide for legislative
purposes; to provide for definitions; to create the Local Government Equipment
Financing Authority; to provide for members, qualifications, officers, meetings,
and procedures; to provide for powers, duties, and authority of the authority;
to provide for procedures, conditions, and limitations; to provide for certain
bonds, notes, certificates, bond anticipation notes, and other evidences of
indebetedness; to provide for nonapplicability of certain general laws; to
provide for certain tax exempt status of the authority, authority property, and
authority activities; to provide for cumulative effect of the foregoing; to
provide for liberal constuction of the foregoing; to provide for related
matters; to provide for an effective date; to repeal conflicting laws; and for
other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Title
36 of the Official Code of Georgia Annotated, relating to local government, is
amended by adding a new chapter to read as follows:
"CHAPTER
93
36-93-1.
This
chapter shall be known and may be cited as the 'Local Government Equipment
Financing Authority Act.'
36-93-2.
The
purpose of this chapter shall be to provide a mechanism through which local
governments may lease or purchase on an installment basis equipment at lower
than prevailing costs and to make this mechanism available to the largest number
of local governments feasible.
36-93-3.
As
used in this chapter, the term:
(1)
'Authority' means the Local Government Equipment Financing Authority created by
this chapter and any successor or successors thereto. Any change in name or
composition of the authority shall in no way affect the vested rights of any
person under this chapter.
(2)
'Bond' or 'bonds' means revenue bonds, notes, interim certificates, bond
anticipation notes, and other evidences of indebtedness of the authority issued
under this chapter.
(3)
'Cost' as applied to equipment financed under this chapter
includes:
(A)
The cost and the incidental and related costs of the acquisition, repair,
restoration, reconditioning, refinancing, or installation of
equipment;
(B)
The cost of any property interest in equipment, including an option to purchase
a leasehold interest;
(C)
The cost of architectural, engineering, legal, trustee, underwriting, and
related services; the cost of the preparation of plans, specifications, studies,
surveys, and estimates of cost; and all other expenses necessary or incident to
planning, providing, or determining the need for or the feasibility and
practicability of equipment;
(D)
The cost of financing charges, including premiums or prepayment penalties and
interest, accrued before the acquisition and installation or refinancing of such
equipment and for up to three years after such acquisition and installation or
refinancing;
(E)
The costs paid or incurred in connection with the financing of equipment,
including out-of-pocket expenses, the cost of any policy of insurance or other
credit enhancement, the cost of printing, engraving, and reproduction services,
and the cost of the initial or acceptance fee of any trustee or paying
agent;
(F)
The costs of the authority incurred in connection with providing equipment,
including reasonable sums to reimburse the authority for time spent by its
agents or employees in providing and financing equipment; and
(G)
The costs paid or incurred for the administration of any program for the
financing or refinancing of equipment by the authority and any program for the
installment sale or lease of equipment to any participating local government
unit.
(4)
'Equipment' means any fixture or personal property that is determined by the
authority to be necessary or desirable for the efficient operation of any
participating local government, regardless of whether such property is in
existence at the time of, or is to be provided after the making of, such
finding.
(5)
'Participating local government' means a municipality, county, consolidated
government, school district, or other political subdivision that contracts under
this chapter with the authority for the installment purchase or lease of
equipment.
36-93-4.
(a)
There is created, with such duties and powers as are set forth in this chapter,
a public body corporate and politic, not a state agency but an instrumentality
of purely public charity performing an essential governmental function, to be
known as the Local Government Equipment Financing Authority. The authority
shall be exempt from the provisions of Article 2 of Chapter 17 of Title 50 and
Code Sections 45-15-13 through 45-15-16.
(b)
The authority shall be governed by an initial board of directors who shall be
the same persons who are municipal elected officials serving as members of the
board of trustees of a municipal interlocal risk management agency formed and
operational prior to January 1, 2009, pursuant to Code Section 36-85-3. Two of
the trustees shall serve a term on the board of directors expiring January 1,
2011; two of the trustees shall serve a term on the board of directors expiring
January 1, 2012; and one of the trustees shall serve a term on the board of
directors expiring January 1, 2013. Thereafter, each member shall be appointed
for a four-year term, and vacancies in office shall be filled by majority vote
of the remaining members of the board of directors. Each member of the board of
directors shall be an elected member of a governing authority of a Georgia
municipal corporation and, if such member ceases to be an elected member of a
governing authority of a Georgia municipal corporation, such member's seat on
the board shall be declared vacant and filled by majority vote of the remaining
members of the board.
(c)
The members shall elect a chairperson, a vice chairperson, and other officers.
The members shall not be compensated for their services, but they shall be
reimbursed for their actual and necessary expenses as determined by the
authority.
(d)
A majority of the members of the authority shall constitute a quorum for the
transaction of business. The vote of at least a majority of the members present
at any meeting at which a quorum is present is necessary for any action to be
taken by the authority. No vacancy in the membership of the authority shall
impair the right of a quorum to exercise all rights and perform all duties of
the authority.
(e)
Meetings of the members of the authority shall be held at the call of the
chairperson or whenever any two members so request. The members shall meet at
least once each year.
(f)
The authority shall be authorized to contract with Georgia Municipal
Association, Inc., or its successors or other state-wide organization
representing the municipalities of this state to provide an administrative staff
and clerical services and to assist in the management of the routine affairs of
the authority, including the originating and processing of any applications from
participating local governments for the lease or purchase from the authority of
equipment and to service the leases and installment purchase contracts between
the authority and the participating local governments. The administrative staff
shall include an executive director who shall serve as the ex officio secretary
of the authority. The executive director may be an employee of the Georgia
Municipal Association, Inc., or its successors or other state-wide organization
representing the municipalities of this
state.
(g)
The executive director shall attend the meetings of the members of the
authority, shall keep a record of the proceedings of the authority, and shall
maintain all books, documents, and papers filed with the authority, the minutes
of the authority, and its official seal. He or she may cause copies to be made
of all minutes and other records and documents of the authority and may give
certificates under seal of the authority to the effect that such copies are true
copies, and all persons dealing with the authority may rely upon such
certificates. If the executive director is unable to attend a meeting of the
members of the authority, the members of the authority shall designate a member
of the authority or an employee of the entity referred to in subsection (f) of
this Code section as the person responsible for carrying out the duties of the
executive director set out in this Code section.
36-93-5.
The
authority is granted all powers necessary to carry out and effectuate its public
and corporate purposes, including but not limited to the following
powers:
(1)
To have perpetual succession as a public body corporate and politic and an
independent public instrumentality exercising essential public
functions;
(2)
To adopt, amend, and repeal bylaws and rules consistent with this chapter to
regulate its affairs; to carry into effect its powers and purposes; and to
conduct its business;
(3)
To sue and be sued in its own name;
(4)
To have an official seal;
(5)
To maintain an office in Georgia;
(6)
To make and execute contracts and all other instruments necessary or convenient
for the performance of its duties and the exercise of its powers and functions
under this chapter;
(7)
To employ architects, engineers, independent legal counsel, inspectors,
accountants, and financial experts and such other advisers, consultants, and
agents as may be necessary in its judgment without the approval or consent of
any other public official and to fix their compensation;
(8)
To procure insurance against any loss in connection with its property and other
assets in such amounts and from such insurers as it considers advisable and to
pay premiums on any such insurance;
(9)
To procure insurance, guarantees, or other credit enhancement from any public or
private entities, including any department, agency, or instrumentality of the
United States, to secure payment:
(A)
On a lease or installment purchase payment owed by a participating local
government to the authority; or
(B)
Of any bonds issued by the authority
and
to pay premiums on any such insurance, guarantee, or other credit
enhancement;
(10)
To procure letters of credit or other credit or liquidity facilities or
agreements from any national or state banking association or other entity
authorized to issue a letter of credit or other credit or liquidity facilities
or agreements to secure the payment of any bonds issued by the authority or to
secure the payment of any lease or installment purchase payment owed by a
participating local government to the authority; and to pay the cost of
obtaining such letter of credit or other credit or liquidity facilities or
agreements;
(11)
To receive and accept from any source any money, property, or thing of value to
be held, used, and applied to carry out the purpose of this chapter, subject to
the conditions upon which the grants or contributions are made, including gifts
or grants from any department, agency, or instrumentality of the United States
or the State of Georgia for any purpose consistent with this
chapter;
(12)
To provide, or cause to be provided by a participating local government, by
acquisition, lease, fabrication, repair, restoration, reconditioning,
refinancing, or installation, equipment to be located within
Georgia;
(13)
To lease as lessor any item of equipment for such rentals and upon such terms
and conditions as the authority considers advisable and which are not in
conflict with this chapter;
(14)
To sell by installment or otherwise, to sell by option or contract for sale, and
to convey all or any part of any item of equipment for such price and upon such
terms and conditions as the authority considers advisable and which are not in
conflict with this chapter;
(15)
To make contracts and incur liabilities, borrow money at such rates of interest
as the authority determines, issue its bonds in accordance with this chapter,
and secure any of its bonds or obligations by an assignment or pledge of all or
any part of its property, contract rights, and income or as otherwise provided
in this chapter;
(16)
To purchase, receive, lease as lessee or lessor, or otherwise acquire, own,
hold, improve, use, or otherwise deal in and with equipment, or any interest
therein, wherever situated;
(17)
To sell, convey, hypothecate, pledge, assign, lease, exchange, transfer, and
otherwise dispose of all or any part of its property and assets;
(18)
To charge to and apportion among participating local governments its
administrative costs and expenses incurred in the exercise of the powers and
duties conferred by this chapter;
(19)
To collect fees and charges, as the authority determines to be reasonable, in
connection with its leases, sales, advances, insurance, commitments, and
servicing;
(20)
To cooperate with and exchange services, personnel, and information with any
federal, state, or local governmental agency;
(21)
To sell or assign its rights under its leases, installment purchase contracts,
or other contracts or its right to receive payments thereunder, either directly
or through trust or custodial arrangements whereby interests are created in such
leases, installment purchase contracts, or other contracts, or the payments to
be received thereunder through the issuance of trust certificates, certificates
of participation, custodial receipts, or other similar instruments;
and
(22)
Subject to any agreement with bondholders, to invest moneys of the authority not
required for immediate use to carry out the purposes of this chapter, including
the proceeds from the sale of any bonds and any moneys held in reserve funds, in
the following obligations and no others:
(A)
Bonds or other obligations of this state or bonds or other obligations the
principal and interest of which are guaranteed by this state;
(B)
Bonds or other obligations of the United States or of subsidiary corporations of
the United States government fully guaranteed by such government;
(C)
Obligations of agencies of the United States government issued by the Federal
Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, and
the Bank for Cooperatives;
(D)
Bonds or other obligations issued by any public housing agency or municipality
in the United States, which bonds or obligations are fully secured as to the
payment of both principal and interest by a pledge of annual contributions under
an annual contributions contract or contracts with the United States government,
or project notes issued by any public housing agency, urban renewal agency, or
municipality in the United States and fully secured as to payment of both
principal and interest by a requisition, loan, or payment agreement with the
United States government;
(E)
Certificates of deposit of national or state banks located within this state
that have deposits insured by the Federal Deposit Insurance Corporation and
certificates of deposit of federal savings and loan associations and state
building and loan or savings and loan associations located within this state
that have deposits insured by the Savings Association Insurance Fund of the
Federal Deposit Insurance Corporation, including the certificates of deposit of
any bank, savings and loan association, or building and loan association acting
as depository, custodian, or trustee for any such funds; provided, however, that
the portion of such certificates of deposit in excess of the amount insured by
the Federal Deposit Insurance Corporation or the Savings Association Insurance
Fund of the Federal Deposit Insurance Corporation, if any such excess exists,
shall be secured by deposit with the Federal Reserve Bank of Atlanta, Georgia,
the Federal Home Loan Bank of Atlanta, Georgia, or any national or state bank
located within this state, of one or more of the securities described in
subparagraphs (A), (B), (C), or (D) of this paragraph, in an aggregate principal
amount equal at least to the amount of such excess; and
(F)
Repurchase agreements, forward delivery agreements, or other similar banking
arrangements with respect to securities described in subparagraphs (A), (B),
(C), or (D) of this paragraph with a bank or trust company having capital and
surplus aggregating at least $50 million, with any government bond dealer
reporting to, trading with, and recognized as a primary dealer by the Federal
Reserve Bank of New York having capital aggregating at least $50 million, or
with any corporation that is subject to registration with the Board of Governors
of the Federal Reserve System pursuant to the requirements of the Bank Holding
Company Act of 1956, provided that each such repurchase agreement, forward
delivery agreement, or other similar banking arrangement shall permit the moneys
so placed to be available for use at the time provided with respect to the
investment or reinvestment of such moneys.
36-93-6.
(a)
The authority may initiate one or more programs of providing equipment to be
purchased or leased by participating local governments. In furtherance of this
objective, the authority may also:
(1)
Establish eligibility standards for participating local governments, provided
that such standards shall encourage maximum feasible participation for
participating local governments;
(2)
Contract with any entity securing or enhancing the payment of bonds, authorizing
the entity to approve the participating local governments that can lease or
purchase equipment financed with proceeds of bonds secured or enhanced by that
entity;
(3)
Lease to a participating local government specific items of equipment upon terms
and conditions that the authority considers proper, charge and collect rents
therefor, and include in any such lease provisions that the lessee has the
option to purchase any or all of the equipment to which the lease
applies;
(4)
Sell to a participating local government unit under any installment purchase
contract specific items of equipment upon such terms and conditions as the
authority considers proper;
(5)
Sell or otherwise dispose of any unneeded or obsolete equipment under terms and
conditions as determined by the authority;
(6)
Maintain, repair, replace, and otherwise improve or cause to be maintained,
repaired, replaced, and otherwise improved any equipment owned by the
authority;
(7)
Obtain or aid in obtaining property insurance on all equipment owned or financed
or accept payment if any equipment is damaged or destroyed; and
(8)
Enter into any agreement, contract, or other instrument for any insurance,
guarantee, or letter of credit accepting payment in such manner and form as
provided therein if a participating local government defaults and assign any
such insurance, guarantee, or letter of credit as security for bonds issued by
the authority.
(b)
Before exercising any of the powers conferred by subsection (a) of this Code
section, the authority may:
(1)
Require that the lease or installment purchase contract involved be insured by a
financial guaranty insurer, be credit enhanced by a credit enhancer, or be
secured by a letter of credit; or
(2)
Require any other type of security from the participating local governments that
it considers reasonable and necessary.
36-93-7.
(a)
The authority may issue, sell, and deliver its bonds, in accordance with this
chapter, for the purpose of paying for all or any part of the cost of equipment,
to finance the acquisition of equipment for lease or sale to participating local
governments, and for any other purposes authorized by this chapter.
(b)
The bonds may be issued as serial bonds or as term bonds or a combination of
each in one or more series and shall bear such date or dates, mature at such
time or times, not exceeding 30 years from their respective dates of issue, bear
interest at such fixed or variable rates without regard to any limitations
contained in any other statute or laws of this state, bear interest at different
rates, and mature at different dates within a series, bear interest at one or
more variable or fixed rates within a series, and may be converted from such
variable rate or rates to a fixed rate or rates, or may be converted from such
fixed rate or rates to a variable rate or rates from time to time, be payable at
such time or times, be in such denominations, be in such form, either coupon or
fully registered, carry such registration and conversion privileges, have such
rank or priority, be payable in lawful money of the United States at such
places, within or outside this state, and be subject to such terms of redemption
and tender for purchase as such bond resolution may provide.
(c)
All revenue bonds issued by the authority shall be subject to validation in
accordance with Article 3 of Chapter 82 of Title 36, known as the 'Revenue Bond
Law.' Notes and other types of obligations of the authority shall not be
required to be so validated. All proceedings to validate revenue bonds of the
authority shall be held in the Superior Court of Fulton County, and judgments of
validation obtained in the manner set forth in such chapter shall be forever
conclusive upon the validity of such bonds and the security for such bonds as
therein provided. The petition and complaint for validation may also make party
defendant to such action any participating local government that has contracted
with the authority in connection with the issuance of the revenue bonds or
regarding the manner in which such bonds are to be secured; and such
participating local government shall be required to show cause, if any exists,
why such contract and the terms and conditions thereof should not be inquired
into by the court, the validity of the terms thereof determined, and the
contract adjudicated as a binding obligation of the participating local
government for the security of any such bonds of the authority. The revenue
bonds when validated and the judgment of validation shall be final and
conclusive with respect to such bonds against the authority, any parties to the
validation proceedings, or any persons who might properly have become parties to
such proceedings. The certificate of validation, however, may be signed with
the facsimile or manually executed official signature of the clerk or deputy
clerk of the Superior Court of Fulton County.
(d)
The authority may sell its bonds in such manner and for such price, at public or
private sale, as it may determine to be in the best interest of the authority.
Prior to the preparation of definitive bonds, the authority may, under like
restrictions, issue interim certificates or receipts or temporary bonds for
definitive bonds upon issuance of the latter. The authority may also provide
for the replacement of any bonds that shall become mutilated or be stolen,
destroyed, or lost.
(e)
The bonds shall be signed by the chairperson of the authority, and the corporate
seal of the authority shall be thereunto impressed, imprinted, or otherwise
reproduced and attested by the signature of the secretary of the authority. The
coupons, if any, shall be signed in such manner as may be directed by the
authority. The signatures of the officers of the authority and the seal of the
authority upon any bond issued by the authority may be by facsimile if the
instrument is manually authenticated or countersigned by a trustee other than
the authority itself or an officer or employee of the authority. All bonds
issued under the authority of this chapter bearing signatures or facsimiles of
the signatures of officers of the authority in office on the date of the signing
thereof shall be valid and binding, notwithstanding that before the delivery
thereof and payment therefor such officers whose signatures appear thereon shall
have ceased to be officers of the authority.
(f)
The authority may provide for the issuance of bonds of the authority for the
purpose of refunding any bonds of the authority then outstanding, including the
payment of any redemption premium thereon and any interest accrued or to accrue
to the earliest or any subsequent date of redemption, purchase, or maturity of
such bonds, and, if considered advisable by the authority, for the additional
purpose of paying all or any part of the cost of equipment.
(g)
The proceeds of any bonds issued for the purpose of refunding outstanding bonds
may, in the discretion of the authority, be applied to the purchase or
retirement at maturity or redemption of such outstanding bonds either on their
earliest or any subsequent redemption date or upon the purchase or at the
maturity thereof and may, pending such application, be placed in escrow to be
applied to such purchase or retirement at maturity or redemption on such date as
may be determined by the authority. Subject to the provisions of any trust
indenture to the contrary, any such escrowed proceeds, pending such use, may be
invested and reinvested in such obligations specified in paragraph (22) of Code
Section 36-93-5 as are determined by the authority in order to assure the prompt
payment of the principal and interest and redemption premium, if any, on the
outstanding bonds to be so refunded. The interest, income, and profits, if any,
earned or realized on any such investment may also be applied to the payment of
the outstanding bonds to be so refunded. Only after the terms of the escrow
have been fully satisfied and carried out shall any balance of such proceeds and
interest, income, and profits, if any, earned or realized on the investments
thereof be returned to the authority or the participating local governments for
use by them in any lawful manner.
(h)
The proceeds of the bonds, other than refunding bonds, of each series shall be
used for the payment of all or part of the cost of the equipment for which such
bonds have been authorized and, at the option of the authority, for the deposit
to a reserve fund or reserve funds for the bonds; however, the authority may be
paid, out of proceeds of the sale and delivery of its bonds issued in accordance
with this chapter, all of the authority's out-of-pocket expenses and costs in
connection with the issuance, sale, and delivery of such bonds and the costs of
obtaining insurance, guarantees, other credit enhancement, and letters of credit
securing payment of the bonds and the lease and the installment purchase
payments, plus an amount equal to the compensation paid to any employees or
agents of the authority for the time those employees or agents have spent on
activities relating to the issuance, sale, and delivery of the bonds. Bond
proceeds shall be disbursed in the manner and under the restrictions determined
by the authority.
36-93-8.
(a)
The bonds may be secured by a trust indenture by and between the authority and a
corporate trustee, which may be any bank having the power of a trust company, or
any trust company. The trust indenture may contain such provisions for
protecting and enforcing the rights and remedies of the holders of the bonds as
may be reasonable and proper and not in violation of law, including covenants
setting forth the duties of the authority in relation to the exercise of its
powers and the custody, investing, safekeeping, and application of all money.
The authority may provide by the trust indenture for the payment of the proceeds
of the bonds and any lease or installment purchase payments to the trustee under
the trust indenture or other depository and for the method of disbursement
thereof with such safeguards and restrictions as the authority may determine.
All expenses incurred in carrying out the trust indenture may be treated as a
part of the operating expenses of the authority.
(b)(1)
Any bond resolution or related trust indenture may contain the following
provisions, which must be a part of the contract with the holders of the bonds
to be authorized:
(A)
Pledging or assigning the lease or installment purchase payments made for the
equipment or pledging or assigning the contract rights under the leases or
installment purchase contracts with the participating local governments whose
equipment has been financed with the proceeds of such bonds or other specified
revenues or property of the authority;
(B)
The rentals, installment purchase payments, fees, and other amounts to be
charged by the authority, the schedule of payments, the sums to be raised in
each year thereby, and the use, investment, and disposition of such
sums;
(C)
Setting aside any reserves or sinking funds and the regulation, investment, and
disposition thereof;
(D)
Limitation on the use of the equipment;
(E)
Limitations on the purpose for which or the investments in which the proceeds of
sale of any series of bonds then or thereafter may be applied;
(F)
Limitations on the issuance of additional bonds, terms upon which additional
bonds may be issued and secured, and the terms upon which additional bonds may
rank on a parity with, or be subordinate or superior to, other
bonds;
(G)
The refunding of outstanding bonds;
(H)
The procedure, if any, by which the terms of any contract with holders of the
bonds may be amended or abrogated, the amounts of bonds the holders of which
must consent thereto, the manner in which such consent may be given, and
restrictions on the individual rights of action by holders of the
bonds;
(I)
Acts or omissions that constitute a default in the duties of the authority to
holders of its bonds and providing the rights and remedies of such holders in
the event of default; and
(J)
Any other matters relating to the bonds that the authority considers
desirable.
(2)
Bonds of the authority may also be secured by and payable from a pooling of
leases or of installment purchase contracts whereby the authority may assign its
rights, as lessor, and pledge rents under two or more leases of equipment with
two or more participating local governments, as lessees, or assign its rights as
seller and pledge the installment purchase payments under two or more
installment purchase contracts of equipment with two or more participating local
governments, as purchasers, upon such terms as may be provided for in bond
resolutions, trust indentures, or other instruments under which such bonds are
issued.
(c)
Every series of bonds is payable solely out of revenues, assets, or money of the
authority as the authority determines, subject only to any agreements with the
holders of particular bonds pledging any particular money or revenue. The bonds
may be additionally secured by a pledge of any grant, contribution, or guarantee
from the federal government or any corporation, association, institution, or
person or a pledge of any money, income, or revenue of the authority from any
source.
36-93-9.
Neither
the members of the authority nor any person executing bonds on behalf of the
authority shall be personally liable thereon by reason of the issuance
thereof.
36-93-10.
Bonds
issued under this chapter shall not be deemed to constitute a debt or pledge of
the faith and credit of this state or any political subdivision or municipal
corporation thereof within the meaning of any provision of the Constitution or
laws of this state. Bonds issued by the authority shall not directly,
indirectly, or contingently obligate this state or any of its political
subdivisions or municipal corporations to levy or to pledge any form of taxation
whatever therefor or to make any appropriation for the payment thereof; and all
such bonds or other obligations of the authority shall contain recitals on their
face covering substantially the foregoing provisions of this Code
section.
36-93-11.
The
creation of the authority and the carrying out of its corporate purposes is in
all respects for the benefit of the people of this state and is a public
purpose, and the authority will be performing an essential governmental function
in the exercise of the power conferred upon it by this chapter; the state
covenants with the holders of the bonds and any interest coupons appertaining
thereto that the authority shall be required to pay no taxes or assessments
imposed by the state or any of its counties, municipal corporations, political
subdivisions, or taxing districts upon any of the property acquired or leased or
sold by it or under its jurisdiction, control, possession, or supervision or
upon its activities in the operation or maintenance of the equipment acquired by
it or upon any fees, rentals, charges, or purchase price, received in
installments or otherwise, pertaining to such equipment or upon other income
received by the authority; that the bonds of the authority, their transfer, and
the interest and income therefrom shall at all times be exempt from taxation
within this state; and that the recording of any indenture or security agreement
by the authority shall be exempt from recording taxes and fees and from
intangibles tax. The tax exemption provided in this Code section shall not
include any exemption from sales or use tax on property purchased by the
authority or for use by the authority, except that the authority shall be
entitled to such exemption with respect to property as is available to the
participating local government unit pursuant to Article 1 of Chapter 8 of Title
48.
36-93-12.
While
any of the bonds issued by the authority remain outstanding, the powers, duties,
or existence of the authority or of any of its officers shall not be diminished
or impaired in any manner that will affect adversely the interest and right of
the holders of such bonds. This chapter shall be for the benefit of the holders
of any such bonds and, upon the issuance of the bonds as provided in this
chapter, such provisions shall constitute a contract with the holders of such
bonds. The provisions of any bond resolution, indenture, or trust agreement
shall be a contract with every holder of such bonds, and the duties of the
authority under any such bond resolution, indenture, or trust agreement shall be
enforceable by any bondholder by mandamus or other appropriate action or
proceeding at law or in equity.
36-93-13.
All
moneys received by the authority pursuant to this chapter, whether as grants or
other contributions or as revenues, rents, installment purchase payments, and
earnings, shall be held in trust and applied solely as provided for in this
chapter.
36-93-14.
The
authority may hold title to any equipment financed by it but shall not be
required to do so.
36-93-15.
The
authority's legal situs or residence for the purpose of this chapter shall be
Fulton County. Any action to protect or enforce any rights under this chapter,
including the validation of revenue bonds issued by the authority as permitted
in this chapter, shall be brought in the Superior Court of Fulton County, and
such court shall have exclusive original jurisdiction of all such
actions.
36-93-16.
Nothing
in this chapter may be construed as a restriction or limitation upon any powers
that the authority might otherwise have under any other law of this state, and
this chapter is cumulative to such powers. This chapter shall be construed to
provide a complete, additional, and alternative method for the doing of the
things authorized and shall be construed as supplemental to powers conferred by
any other laws. The adoption by the authority of bylaws and rules and the
issuance of bonds by the authority under this chapter need not comply with the
requirements of any other state laws applicable to the adoption of bylaws and
rules and the issuance of bonds, notes, and other obligations. No proceedings,
notice, or approval is required for the issuance of any bonds or any instrument
or the security therefor or for the proper conduct of the authority's business,
affairs, or operations, except as provided in this chapter.
36-93-17.
This
chapter, being for the welfare of this state and its inhabitants, shall be
liberally construed to effect its
purposes."
SECTION
2.
This
Act shall become effective upon its approval by the Governor or upon its
becoming law without such approval.
SECTION
3.
All
laws and parts of laws in conflict with this Act are repealed.