§ 11-38-115. Notes or bonds.

A.  An Urban Renewal Authority shall have the power to issue notes or bonds, including revenue bonds, from time to time at its discretion to finance the undertaking of any urban renewal project under this article, including, without limiting the generality thereof, the payment of principal and interest upon any advances for surveys and plans, and shall also have power to issue refunding notes or bonds for the payment or retirement of such notes or bonds previously issued by it.  Such notes or bonds shall be made payable, as to both principal and interest, solely from:

1.  The income, proceeds, revenues, and funds of the Urban Renewal Authority derived from or held in connection with its undertaking and carrying out urban renewal projects under this article;

2.  Any private source, contribution or other financial assistance;

3.  Contributions or other financial assistance from the state or federal government;

4.  Any other monies derived from gifts, grants, the sale of properties or any other legally available source;

5.  The proceeds from any additional borrowings;

6.  Taxes on incremental property values allocated to a special fund of the city and appropriated by the city to the Urban Renewal Authority, under the provisions of Sections 3 through 6 of this act; or

7.  Any combination of these methods.

Provided, however, that payment of such notes or bonds, both as to principal and interest, may be further secured by a pledge of any loan, grant or contribution from the federal government or any other source, in aid of any urban renewal projects of the Urban Renewal Authority under this article, and by a mortgage of any such urban renewal projects, or any part thereof, title to which is in the Urban Renewal Authority.

B.  Notes or bonds issued under this section shall not constitute an indebtedness of the state or any municipality.

C.  Notes or bonds issued under the provisions of this article are declared to be issued for an essential public and governmental purpose, and together with interest thereon and income therefrom shall be exempted from all taxes.

D.  Notes or bonds issued under this section shall be authorized by resolution of the Urban Renewal Authority and may be issued in one or more series and shall bear such date or dates, be payable upon demand or mature at such time or times, bear interest at such rate determined feasible by the Urban Renewal Authority, be in such denomination or denominations, be in such form, carry such conversion or registration privileges, have such rank or priority, be executed in such manner, be payable in such medium of payment, at such place or places and be subject to such terms of redemption, with or without premium, be secured in such manner, and have such other characteristics, as may be provided by such resolution or trust indenture or mortgage issued pursuant thereto.

E.  Such notes or bonds must be sold to the lowest and best bidder at public sale held after notice published prior to such sale in a newspaper having general circulation in the area of operation and in such other medium of publication as the Authority may determine.  Provided, that such notes may be sold to the federal government at private sale at not less than par, and, in the event less than all of the authorized principal amount of such notes or bonds is sold to the federal government, the balance may be sold at private sales at not less than par at an interest cost of not to exceed the interest cost of the portion of the notes sold to the federal government.

F.  In case any of the public officials of the Authority or any other public body whose signature appears on any notes or bonds issued under this article shall cease to be such officials before the delivery of the notes or bonds, the signatures shall, nevertheless, be valid and sufficient for all purposes, the same as if such officials had remained in office until such delivery.  Any provision of any law to the contrary notwithstanding any notes or bonds issued pursuant to this article shall be fully negotiable.

G.  In any suit, action or proceeding involving the validity or enforceability of any notes or bonds, issued under this article or the security therefor, any such note reciting in substance that it has been issued by the Urban Renewal Authority in connection with an urban renewal project, as defined in this article, shall be conclusively deemed to have been issued for such purpose and such project shall be conclusively deemed to have been planned, located and carried out in accordance with the provisions of this article.

Amended by Laws 1983, c. 310, § 2, eff. Nov. 1, 1983.