§ 2-2-119. Provisions and obligations; remedies of bondholders; limitations and procedures.

Subject to the limitations and procedures provided by this section, the obligations of the authority evidenced by bonds, bond anticipation notes, trust indentures, deeds to secure obligations, security agreements or mortgages executed in connection therewith may contain such provisions not inconsistent with law as shall be determined by the board of directors of the authority, and the authority may provide in such instruments for the pledging of all or any part of its revenues, income or charges and for the mortgaging, encumbering or conveying of all or any part of its real or personal property; may covenant against pledging any or all of its revenues, income or charges; and may further provide for the disposition of proceeds realized from the sale of any bonds and bond anticipation notes, for the replacement of lost, destroyed, stolen, or mutilated bonds and notes, and for the payment and redemption of such bonds and notes. Similarly, subject to the limitations and procedures of this section, under-takings of the authority may prescribe the procedure by which bondholders and note holders may enforce rights against the authority and provide for rights upon breach of any covenant, condition or obligation of the authority, and bonds, resolutions, trust indentures, mortgages or deeds to secure obligations executed by the authority and bond anticipation notes executed by the authority may contain such provisions not otherwise contrary to law as the authority shall deem necessary or desirable.

(a)

Use of Bond and Note Proceeds: The proceeds derived from the sale of all bonds and bond anticipation notes issued by the authority shall be held and used for the ultimate purpose of paying, directly or indirectly as permitted in this act [article], all or part of the cost of any project, including the cost of extending, financing, adding to or improving such project or for the purpose of refunding any bond anticipation notes issued in accordance with the provisions of this act [article] refunding any previously issued bonds of the authority.

(b)

Revenue Obligations: All bonds and bond anticipation notes issued by the authority shall be revenue obligations of the authority, and may be made payable out of any revenues or other receipts, funds or monies of the authority, subject only to any agreements with the holders of other bonds or bond anticipation notes or to particular security agreements pledging any particular revenues, receipts, funds or moneys.

(c)

Subsequent Series of Bonds or Notes: Issuance by the authority of one or more series of bonds or bond anticipation notes for one or more purposes shall not preclude it from issuing other bonds or notes in connection with the same project or with any other projects, but the proceeding wherein any subsequent bonds or bond anticipation notes shall be issued shall recognize and protect any prior pledge or mortgage made in any prior security agreement or made for any prior issue of bonds or bond anticipation notes, unless in the resolution authorizing such prior issue the right is expressly reserved to the authority to issue subsequent bonds or bond anticipation notes on a parity with such prior issue.

(d)

Bond Anticipation Notes: The authority shall have the power and is hereby authorized, whenever revenue bonds of the authority shall have been validated as provided in this act [article], to issue, from time to time, its notes in anticipation of the issuance of such bonds as validated and to renew from time to time any such notes by the issuance of new notes, whether the notes to be renewed have or have not matured. The authority may issue notes only to provide funds which would otherwise be provided by the issuance of the bonds as validated. The notes may be authorized, sold, executed, and delivered in the same manner as bonds. As with its bonds, the authority may sell such notes at public or private sale. Any resolution or resolutions authorizing notes of the authority or any issue thereof may contain any provisions which the authority is authorized to include in any resolution or resolutions authorizing bonds of the authority or any issue thereof, and the authority may include in any notes any terms, covenants, or conditions which it is authorized to include in any bonds. Validation of such bonds shall be a condition precedent to the issuance of such notes, but it shall not be required that such notes be judicially validated. Bond anticipation notes shall not be issued in an amount exceeding the par value of the bonds in anticipation of which they are to be issued.

(e)

Interest rates on obligations of the Authority: The interest rate on or rates to be borne by any bonds, notes or other obligations issued by the authority shall be fixed by the board of directors of the authority and any limitations with respect to interest rates found in the 'Revenue Bond Law' (Ga. Laws 1937, p. 761), as amended, or the usury laws of the State of Georgia shall not apply to obligations issued under this act [article].

(f)

Validation and Issuance of Revenue Bonds: All revenue bonds issued by the authority under this act [article] shall be issued and validated under and in accordance with the 'Revenue Bond Law' of the State of Georgia, as heretofore and hereafter amended, except as provided in subsection (e) of this section and except as specifically set forth below in this subsection:

(1)

Revenue bonds issued by the authority may be in such form, either coupon or fully registered, or both coupon and fully registered, and may be subject to such exchangeability and transferability provisions, as the bond resolution authorizing the issuance of such bonds or any indenture or trust agreement may provide;

(2)

Revenue bonds shall bear a certificate of validation. The signature of the Clerk of the Superior Court of Henry County may be made on the certificate of validation of such bonds by facsimile or by manual execution stating the date on which such bonds were validated and such entry shall be original evidence of the fact of judgment and shall be received as original evidence in any court in this state;

(3)

In lieu of specifying the rate or rates of interest which revenue bonds to be issued by the authority are to bear, the notice to district attorney or attorney general and the notice to the public of the time, place and date of the validation hearing may state that the bonds when issued will bear interest at a rate not exceeding a maximum per annum rate of interest specified in such notices or that in the event the bonds are to bear different rates of interest for different maturity dates that none of such rates will exceed the maximum rate specified in the notices: Provided, however, that nothing contained herein shall be construed as prohibiting or restricting the right of the authority to sell such bonds at a discount, even if in so doing, the effective interest cost resulting therefrom would exceed the maximum per annum interest rate specified in such notices;

(4)

The term "cost of project" shall have the meaning prescribed in subsection (c) of Section 2 of this Act [section 2-12-112(c)] whenever referred to in bond resolutions of the authority, bonds and bond anticipation notes issued by the authority, or notices and proceedings to validate such bonds.

(Ga. Laws 1967, P. 2291, Act No. 108, § 8; Ga. Laws 1980, P. 3087, Act No. 728, § 4; Ga. Laws 1982, P. 4078, Act No. 989, § 2)

State law reference

Revenue Bond Law, Official Code of Georgia Annotated § 36-82-60.