| HB 508 - Lake Allatoona Preservation Authority; create |
First Reader Summary
A BILL to create the Lake Allatoona Preservation Authority; and
for other purposes.
| House |
Action |
Senate |
| 2/8/99 |
Read 1st Time |
2/12/99 |
| 2/9/99 |
Read 2nd Time |
|
| 2/11/99 |
Favorably Reported |
3/24/99 |
| 2/11/99 |
Read 3rd Time |
|
| 2/11/99 |
Passed/Adopted |
3/24/99 |
| 4/7/99 |
Sent to Governor |
|
| 4/22/99 |
Signed by Governor |
|
| 283 |
Act/Veto Number |
|
| 4/22/99 |
Effective Date |
|
HB 508 LC 18 9172
A BILL TO BE ENTITLED
AN ACT
1- 1 To create the Lake Allatoona Preservation Authority; to
1- 2 provide for legislative findings and purpose; to confer
1- 3 powers and impose duties on the authority; to provide for
1- 4 the membership and the nomination and appointment of members
1- 5 of the authority and their terms of office, qualifications,
1- 6 duties, powers, and compensation; to provide for vacancies,
1- 7 organization, meetings, and expenses; to provide for
1- 8 authority property; to provide for definitions; to provide
1- 9 for revenue bonds and their form, signatures thereon,
1-10 negotiability, sale, and use of proceeds from such sales; to
1-11 provide for interim documents and for lost or mutilated
1-12 documents; to provide for condition for issuance; to
1-13 prohibit the pledge of credit for the payment of bonds; to
1-14 provide for trust indentures and sinking fund; to provide
1-15 for payment of bond proceeds; to provide for bondholder
1-16 remedies and protection; to provide for refunding bonds; to
1-17 provide for bond validation; to provide for venue and
1-18 jurisdiction; to provide for trust funds; to provide for
1-19 authority purpose; to provide for charges; to provide for
1-20 rules and regulations; to provide for tort immunity; to
1-21 provide for covenants and tax exemptions; to provide for
1-22 supplemental powers; to provide for effect on other
1-23 governments; to provide for liberal construction; to provide
1-24 for an effective date; to repeal conflicting laws; and for
1-25 other purposes.
1-26 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
1-27 SECTION 1.
1-28 Legislative finding.
1-29 It is declared that there exists in the Cherokee County,
1-30 Cobb County, and Bartow County area a need for an authority
1-31 to function without profit in preserving Lake Allatoona for
1-32 the public good in this state.
-1-
2- 1 SECTION 2.
2- 2 Authority created.
2- 3 (a) There is created a body corporate and politic to be
2- 4 known as the Lake Allatoona Preservation Authority, and
2- 5 which shall be deemed to be a political subdivision of the
2- 6 State of Georgia and a public corporation and by that name,
2- 7 style, and title said body may contract and be contracted
2- 8 with, sue and be sued, implead and be impleaded, and
2- 9 complain and defend in all courts of law and equity.
2-10 (b) Without limiting the generality of any provisions of
2-11 this Act, the general purpose of the authority is declared
2-12 to be that of acquiring, constructing, equipping,
2-13 maintaining, and operating one or more projects consisting
2-14 of facilities to be used for the purpose of preserving Lake
2-15 Allatoona; acquiring the necessary property therefor, both
2-16 real and personal, with the right to contract for the use
2-17 of, or to lease or sell any or all of such facilities,
2-18 including real property, and to do any and all things deemed
2-19 by the authority necessary, convenient, and desirable for
2-20 and incident to the efficient and proper development of such
2-21 types of undertakings.
2-22 SECTION 3.
2-23 Membership; organization.
2-24 (a) The authority shall consist of nine members who shall
2-25 serve as members of Post 1, 2, 3, 4, 5, 6, 7, 8, or 9,
2-26 respectively. The governing authority of Cherokee County
2-27 shall appoint persons for Posts 1, 2, and 3; the governing
2-28 authority of Cobb County shall appoint persons for Posts 4,
2-29 5, and 6; and the governing authority of Bartow County shall
2-30 appoint persons for Posts 7, 8, and 9. Each governing
2-31 authority shall initially appoint two members for terms of
2-32 two years and one member for a term of four years.
2-33 (b) Except for the initial members of the authority, all
2-34 subsequent members of the authority shall serve for a term
2-35 of four years or until their successors are selected and
2-36 qualified.
2-37 (c) Vacancies on the authority shall be filled in the same
2-38 manner described in subsection (a) of this section. The
2-39 appointment of any person to fill an expired term shall be
2-40 only for the remainder of such term and until a successor is
2-41 appointed and qualified.
-2-
3- 1 (d) The governing authorities of Cherokee, Cobb, and Bartow
3- 2 counties shall proceed to select the members of the
3- 3 authority immediately after the effective date of this Act.
3- 4 (e) The members shall organize and enter upon the
3- 5 performance of their duties.
3- 6 (f) The authority shall elect one of its members as chair
3- 7 and another as vice chair and shall elect a
3- 8 secretary-treasurer, who may, but need not necessarily, be a
3- 9 member of the authority.
3-10 (g) Five members of the authority shall constitute a quorum,
3-11 and no vacancy on the authority shall impair the right of
3-12 the quorum to exercise all the rights and perform all the
3-13 duties of the authority at every meeting, and in every
3-14 instance a majority vote shall authorize any legal act of
3-15 the authority, including all things necessary to authorize
3-16 and issue revenue bonds.
3-17 (h) The members of the authority shall not be entitled to
3-18 compensation for their services but shall be entitled to and
3-19 shall be reimbursed for their actual expenses properly
3-20 incurred in the performance of their duties. The authority
3-21 shall make rules and regulations for its own government and
3-22 may retain, employ, and engage professional and technical
3-23 supervisors, assistants, experts, other agents, and
3-24 employees, temporary or permanent, as it may require. The
3-25 members of the authority shall be accountable in all
3-26 respects as trustees, and the authority shall keep suitable
3-27 books and records of all its obligations, contracts,
3-28 transactions, and undertakings, and of all income and
3-29 receipts of every nature and all expenditures of every kind.
3-30 The authority shall have perpetual existence.
3-31 SECTION 4.
3-32 Public purposes and property.
3-33 It is found, determined, and declared that the creation of
3-34 the authority and the carrying out of its corporate purposes
3-35 is in all respects for the benefit of the people of this
3-36 state, and that the authority is an institution of purely
3-37 public charity, and that all property of said authority is
3-38 declared and shall in all respects be considered to be
3-39 public property and title to such property shall be held by
3-40 the authority only for the benefit of the public, and the
3-41 use of such property pursuant to the terms of this Act shall
3-42 be and is declared to be for public and governmental
3-43 purposes, that is, for the preservation of Lake Allatoona,
-3-
4- 1 and all the property, income, obligations, and interest on
4- 2 the obligations of the authority and the transfer thereof
4- 3 shall be and are declared to be nontaxable for any and all
4- 4 purposes.
4- 5 SECTION 5.
4- 6 As used in this Act, the term:
4- 7 (1) "Authority" means the Lake Allatoona Preservation
4- 8 Authority created by this Act.
4- 9 (2) "Cost of the project" shall embrace the cost of
4-10 construction, the cost of all lands, properties, rights,
4-11 easements, and franchises acquired, the cost of all
4-12 machinery and equipment, financing charges, interest
4-13 prior to and during construction, and for one year after
4-14 completion of construction, cost of engineering,
4-15 architectural and legal expenses, and of plans and
4-16 specifications, and other expenses necessary or incident
4-17 to the financing authorized in this Act, or the
4-18 construction of any project, the placing of the same in
4-19 operation, and the condemnation of property necessary
4-20 for such construction and operation. Any obligation or
4-21 expense incurred for any of the foregoing purposes shall
4-22 be regarded part of the cost of the project and may be
4-23 paid or reimbursed as such out of the proceeds of
4-24 revenue bonds issued under the provisions of this Act
4-25 for such project.
4-26 (3) "Project" means and includes the acquisition,
4-27 construction, equipping, maintenance, and operation of
4-28 facilities to be used for preservation of Lake
4-29 Allatoona, including, without limitation, septic
4-30 systems, sewer systems, and sediment ponds, and the
4-31 usual and convenient facilities appertaining to such
4-32 undertakings and the extension and improvements of such
4-33 facilities, acquiring the necessary property therefor,
4-34 both real and personal, acquiring the necessary real
4-35 property development rights, and the lease, sale, and
4-36 licensing of any part or all of such facilities,
4-37 including real and personal property, to any persons,
4-38 firms, or corporations whether public or private so as
4-39 to assure the efficient and proper preservation,
4-40 maintenance, and operation of such facilities and areas,
4-41 deemed by the authority to be necessary, convenient, or
4-42 desirable. The authority shall have the right to
-4-
5- 1 acquire and construct more than one project and any
5- 2 combination of facilities may be constructed as a
5- 3 separate project.
5- 4 (4) "Revenue bonds," "bonds," and "obligations" means
5- 5 revenue bonds as defined and provided for in Article 3
5- 6 of Chapter 82 of Title 36 of the O.C.G.A., the "Revenue
5- 7 Bond Law," as amended, and such type of obligations may
5- 8 be issued by the authority as authorized under said
5- 9 "Revenue Bond Law" and, in addition, shall also mean
5-10 obligations of the authority, the issuance of which are
5-11 specifically provided for in this Act.
5-12 (5) Any project shall be deemed "self-liquidating" if,
5-13 in the judgment of the authority, the revenues and
5-14 earnings to be derived by the authority therefrom and
5-15 all properties used, leased, and sold in connection
5-16 therewith will be sufficient to pay the principal and
5-17 interest of the revenue bonds which may be issued to
5-18 finance, in whole or in part, the cost of such project
5-19 or projects.
5-20 SECTION 6.
5-21 The authority shall have powers:
5-22 (1) To adopt and alter a corporate seal;
5-23 (2) To acquire by gift or by purchase on such terms and
5-24 conditions and in such manner as it may deem proper or
5-25 by exercise of the right of eminent domain in accordance
5-26 with the provisions of any and all existing laws
5-27 applicable to the condemnation of property for public
5-28 use, lands, easements, or rights in lands, or franchises
5-29 necessary or convenient for its corporate purposes and
5-30 to use, rent, or lease the same or make contracts with
5-31 respect to the use thereof, or to dispose of the same in
5-32 any manner it deems to the best advantage of the
5-33 authority and the purposes thereof. Title to such
5-34 property, however, shall be held by the authority only
5-35 for the benefit of the public;
5-36 (3) To receive and administer gifts, grants, loans,
5-37 appropriations, and donations of money or materials or
5-38 property of any kind, including loans and grants from
5-39 the United States of America or any agency or
5-40 instrumentality thereof upon such terms and conditions
5-41 as the United States of America or such agency or
-5-
6- 1 instrumentality thereof shall impose, and to administer
6- 2 trusts, and to sell, lease, transfer, convey,
6- 3 appropriate, pledge, mortgage, or encumber all of its
6- 4 property and assets;
6- 5 (4) To borrow money and issue notes or revenue bonds
6- 6 payable from the earnings of the projects of the
6- 7 authority, execute trust agreements or indentures, and
6- 8 sell, convey, mortgage, pledge, encumber, and assign any
6- 9 and all of its funds, assets, property, and income as
6-10 security for such notes or revenue bonds, and to provide
6-11 for the payment of the same and for the rights of the
6-12 holders thereof, and provide for foreclosure or forced
6-13 sale of any property of the authority upon default
6-14 either in payment of principal of or interest on such
6-15 obligations or under any term of or condition pursuant
6-16 to which such obligations were issued;
6-17 (5) To make contracts and leases and to execute all
6-18 instruments necessary or convenient, with any and all
6-19 persons, firms, and corporations and any city, town,
6-20 municipality, consolidated government, county, or other
6-21 political subdivision, or departments, institutions, or
6-22 agencies of this state, including contracts for
6-23 construction of any project and leasing of any project
6-24 and contracts with respect to the use and management of
6-25 any project, and any and all persons, firms, and
6-26 corporations and any city, town, municipality,
6-27 consolidated government, county, or other political
6-28 subdivision, department, institution, or agency of this
6-29 state is authorized to enter into contracts, leases, or
6-30 agreements with the authority upon such terms and for
6-31 such purposes as they deem advisable;
6-32 (6) To construct, reconstruct, acquire, own, alter,
6-33 repair, maintain, add to, extend, improve, operate, and
6-34 manage projects, which shall be and are declared to be
6-35 public buildings to be used for lake preservation
6-36 purposes, and the purchase of lands, easements, rights
6-37 in lands, and franchises for the construction of such
6-38 facility or facilities and for use in connection
6-39 therewith; the cost of any such project to be paid in
6-40 whole or in part from the proceeds of the sale of
6-41 revenue bonds of the authority, and the title to such
6-42 property to be held by the authority only for the
6-43 benefit of the public;
-6-
7- 1 (7) To issue revenue bonds in such amounts and
7- 2 denominations during the life of the authority so as to
7- 3 finance in whole or in part the cost of the acquisition,
7- 4 construction, reconstruction, improvement, addition to,
7- 5 or extension of such project as the authority in its
7- 6 judgment may deem just, proper, and necessary. All
7- 7 revenue bonds issued pursuant to the provisions of this
7- 8 Act shall be fully negotiable instruments and shall have
7- 9 all the qualities and incidents of negotiable
7-10 instruments under the negotiable instruments law of
7-11 Georgia;
7-12 (8) To issue revenue bonds to call, refund, or
7-13 refinance, in whole or in part, all outstanding revenue
7-14 bonds secured by the anticipated revenue of such project
7-15 and to include in the cost of the issuance of such bonds
7-16 any call premium that may be required for the redemption
7-17 and refunding of such outstanding bonds;
7-18 (9) To do any and all things necessary or proper for the
7-19 accomplishment of the objectives of this Act and any
7-20 amendments hereof and to exercise any power usually
7-21 possessed by private corporations performing similar
7-22 functions which is not in conflict with the Constitution
7-23 and laws of this state; and
7-24 (10) To invest any accumulation of its funds and any
7-25 sinking funds or reserves in any manner that public
7-26 funds of the State of Georgia or any of its political
7-27 subdivisions may be invested and to purchase its own
7-28 bonds at a price of not more than the principal thereof
7-29 and accrued interest. All bonds so purchased shall be
7-30 canceled.
7-31 SECTION 7.
7-32 Revenue bonds.
7-33 The authority, or any authority or body which has or which
7-34 may in the future succeed to the powers, duties and
7-35 liabilities vested in the authority created in this Act,
7-36 shall have the power and is authorized to provide by
7-37 resolution for the issuance of negotiable revenue bonds of
7-38 the authority, for the purpose of paying all or part of the
7-39 cost as defined in this Act of any one or more projects.
7-40 The principal and interest of such revenue bonds shall be
7-41 payable solely from the special fund provided in this Act
7-42 for such payment. The bonds of each issue shall be dated,
7-43 shall bear interest from date at such rate or rates per
-7-
8- 1 annum payable at such time or times as shall be determined
8- 2 by the authority, principal shall mature at such time or
8- 3 times not exceeding 40 years from their date or dates, shall
8- 4 be payable in such medium of payment as to both principal
8- 5 and interest as may be determined by the authority and may
8- 6 be made redeemable before maturity, at the option of the
8- 7 authority, at such price or prices and under such terms and
8- 8 conditions as may be fixed by the authority in the
8- 9 resolution providing for the issuance of bonds.
8-10 SECTION 8.
8-11 Revenue bonds; form; denominations;
8-12 registration; place of payment.
8-13 The authority shall determine the form of the bonds,
8-14 including any interest coupons to be attached thereto, and
8-15 shall fix the denomination or denominations of the bonds,
8-16 and the place or places of payment of principal and interest
8-17 thereof, which may be at any bank or trust company within or
8-18 outside the state. The bonds may be issued in coupon or
8-19 registered form, or both, as the authority may determine.
8-20 Provisions may be made for the registration of any coupon
8-21 bond as to principal alone and also as to both the principal
8-22 and interest.
8-23 SECTION 9.
8-24 Revenue bonds; signatures; seal.
8-25 The bonds shall be signed by the chair of the authority
8-26 manually or by use of the facsimile signature of the chair
8-27 and the official seal of the authority shall be affixed
8-28 thereto and attested by the secretary-treasurer of the
8-29 authority and any coupons attached thereto shall bear the
8-30 facsimile signatures of the chair and secretary-treasurer of
8-31 the authority. Any coupon may bear the facsimile signature
8-32 of such persons and any bond may be signed, sealed, and
8-33 attested on behalf of the authority by such persons as at
8-34 the actual time of the execution of such bonds shall be duly
8-35 authorized or hold the proper office, although at the date
8-36 of such bonds such persons may not have been so authorized
8-37 or shall not have held such office. In case any officer
8-38 whose signature shall appear on any bonds, or whose
8-39 facsimile signature shall appear on any coupon, shall cease
8-40 to be such officer before the delivery of such bonds, such
8-41 signature shall nevertheless be valid and sufficient for all
8-42 purposes, the same as if such officer had remained in office
8-43 until such delivery.
-8-
9- 1 SECTION 10.
9- 2 Revenue bonds; negotiability; exemption from taxation.
9- 3 All revenue bonds issued under the provisions of this Act
9- 4 shall have and are declared to have all the qualities and
9- 5 incidents of negotiable instruments under the laws of this
9- 6 state. Such bonds are declared to be issued for an
9- 7 essential public and governmental purpose and such bonds and
9- 8 the interest thereon shall be exempt from all taxation
9- 9 within the state.
9-10 SECTION 11.
9-11 Revenue bonds; sale; proceeds.
9-12 The authority may sell such bonds in such manner and for
9-13 such price as it may determine to be for the best interests
9-14 of the authority and the proceeds derived from the sale of
9-15 such bonds shall be used solely for the purpose provided in
9-16 the proceedings authorizing the issuance of such bonds.
9-17 SECTION 12.
9-18 Revenue bonds; interim receipts and
9-19 certificates or temporary bonds.
9-20 Prior to the preparation of definitive bonds, the authority
9-21 may, under like restrictions, issue interim receipts,
9-22 interim certificates, or temporary bonds, with or without
9-23 coupons, which interim receipts, certificates, or temporary
9-24 bonds shall be exchanged, redeemed, paid or otherwise
9-25 discharged upon the issuance of the definitive bonds.
9-26 SECTION 13.
9-27 Revenue bonds; replacement of lost or mutilated bonds.
9-28 The authority may also provide for the replacement of any
9-29 bonds which shall become mutilated or be destroyed or lost.
9-30 SECTION 14.
9-31 Revenue bonds; conditions precedent
9-32 to issuance; object of issuance.
9-33 Such revenue bonds may be issued without any other
9-34 proceedings, or the happening of any conditions or things
9-35 other than those proceedings, conditions, and things which
9-36 are specified or required by this Act. In the discretion of
9-37 the authority, revenue bonds of a single issue may be issued
9-38 for the purpose of any particular project. Any resolution
9-39 providing for the issuance of revenue bonds under the
9-40 provisions of this Act shall become effective immediately
9-41 upon its passage and need not be published or posted, and
-9-
10- 1 any such resolution may be passed at any regular or special
10- 2 or adjourned meeting of the authority by a majority of its
10- 3 members.
10- 4 SECTION 15.
10- 5 Revenue bonds; credit not pledged.
10- 6 Revenue bonds issued under the provisions of this Act shall
10- 7 not be deemed to constitute a debt of the State of Georgia,
10- 8 Cherokee County, Cobb County, or Bartow County nor a pledge
10- 9 of the faith and credit of said state or counties, but such
10-10 bonds shall be payable solely from the funds provided for in
10-11 this Act, and the issuance of such revenue bonds shall not
10-12 directly, indirectly, or contingently obligate said state or
10-13 counties to levy or to pledge any form of taxation whatever
10-14 therefor, or to make any appropriation for the payment, and
10-15 all such bonds shall continue recitals on their face
10-16 covering substantially the foregoing provisions of this
10-17 section.
10-18 SECTION 16.
10-19 Revenue bonds; trust indenture as security.
10-20 In the discretion of the authority, any issue of such
10-21 revenue bonds may be secured by a trust indenture by and
10-22 between the authority and a corporate trustee, which may be
10-23 any trust company or bank having the powers of a trust
10-24 company within or outside of the state. Such trust
10-25 indenture may pledge or assign fees, tolls, revenues, and
10-26 earnings to be received by the authority. Either the
10-27 resolution providing for the issuance of revenue bonds or
10-28 such trust indenture may contain such provisions for
10-29 protecting and enforcing the rights and remedies of the
10-30 bondholders as may be reasonable and proper and not in
10-31 violation of law, including covenants setting forth the
10-32 duties of the authority in relation to the acquisition of
10-33 property, and the construction of the project, the
10-34 maintenance, operation, repair, and insurance of the
10-35 project, and the custody, safeguarding, and application of
10-36 all moneys, and may also provide that any project shall be
10-37 constructed and paid for under the supervision and approval
10-38 of consulting engineers or architects employed or designated
10-39 by the authority, and satisfactory to the original
10-40 purchasers of the bonds issued therefor, and may also
10-41 require that the security given by contractors and by any
10-42 depositary of the proceeds of the bonds or revenues or other
10-43 moneys be satisfactory to such purchasers, and may also
10-44 contain provisions concerning the conditions, if any, upon
-10-
11- 1 which additional revenue bonds may be issued pari passu with
11- 2 the revenue bonds initially issued pursuant to such
11- 3 resolution or trust indenture. It shall be lawful for any
11- 4 bank or trust company incorporated under the laws of this
11- 5 state to act as such depositary and to furnish such
11- 6 indemnifying bonds or pledge such securities as may be
11- 7 required by the authority. Such indenture may set forth the
11- 8 rights and remedies of the bondholders as is customary in
11- 9 trust indentures securing bonds and debentures of
11-10 corporations. In addition to the foregoing provisions of
11-11 this section, such trust indenture or resolution may contain
11-12 such other provisions as the authority may deem reasonable
11-13 and proper for the security of the bondholders. All
11-14 expenses incurred in carrying out such trust indenture or
11-15 resolution may be treated as a part of the cost of
11-16 maintenance, operation, and repair of the project affected
11-17 by such indenture.
11-18 SECTION 17.
11-19 Revenue bonds; to whom proceeds shall be paid.
11-20 The authority shall, in the resolution providing for the
11-21 issuance of revenue bonds or in the trust indenture, provide
11-22 for the payment of the proceeds of the sale of the bonds to
11-23 any officer or person who, or any agency, bank, or trust
11-24 company which, shall act as trustee of such funds and shall
11-25 hold and apply the same to the purposes of this Act, subject
11-26 to such regulations as this Act and such resolution or trust
11-27 indenture may provide.
11-28 SECTION 18.
11-29 Revenue bonds; sinking fund.
11-30 The revenues, fees, tolls, and earnings derived from any
11-31 particular project or projects, regardless of whether or not
11-32 such fees, earnings, and revenues were produced by a
11-33 particular project for which bonds have been issued, unless
11-34 otherwise pledged and allocated, may be pledged and
11-35 allocated by the authority to the payment of the principal
11-36 and interest on revenue bonds of the authority as the
11-37 resolution authorizing the issuance of the bonds or in the
11-38 trust indenture may provide, and such funds so pledged, from
11-39 whatever source received, which said pledge may include
11-40 funds received from one or more or all sources, shall be set
11-41 aside at regular intervals as may be provided in the
11-42 resolution or trust indenture, into a sinking fund which
11-43 said sinking fund shall be pledged to and charged with the
11-44 payment of:
-11-
12- 1 (1) The interest upon such revenue bonds as such
12- 2 interest shall fall due;
12- 3 (2) The principal of the bonds as the same shall fall
12- 4 due;
12- 5 (3) The necessary charges of paying agents for paying
12- 6 principal and interest;
12- 7 (4) Any premium upon bonds acquired by redemption,
12- 8 payment, or otherwise; and
12- 9 (5) Any investment fees or charges. The use and
12-10 disposition of such sinking fund shall be subject to
12-11 such regulations as may be provided in the resolution
12-12 authorizing the issuance of the revenue bonds or in the
12-13 trust indenture, but, except as may otherwise be
12-14 provided in such resolution or trust indenture, such
12-15 sinking fund shall be a fund for the benefit of all
12-16 revenue bonds without distinction or priority of one
12-17 over another. Subject to the provisions of the
12-18 resolution authorizing the issuance of the bonds or in
12-19 the trust indenture, surplus moneys in the sinking fund
12-20 may be applied to the purchase or redemption of bonds
12-21 and any such bonds so purchased or redeemed shall
12-22 forthwith be canceled and shall not be reissued,
12-23 printed, and delivered.
12-24 SECTION 19.
12-25 Revenue bonds; remedies of bondholders.
12-26 Any holder of revenue bonds issued under the provisions of
12-27 this Act or any of the coupons appertaining thereto, and the
12-28 trustee under the trust indenture, if any, except to the
12-29 extent the rights given in this Act may be restricted by
12-30 resolution passed before the issuance of the bonds or by the
12-31 trust indenture, may, either at law or in equity, by suit,
12-32 action, mandamus, or other proceedings, protect and enforce
12-33 any and all rights under the laws of the State of Georgia,
12-34 or granted under this Act, or under such resolution or trust
12-35 indenture, and may enforce and compel performance of all
12-36 duties required by this Act or by such resolution or trust
12-37 indenture to be performed by the authority, or any officer
12-38 thereof, including the fixing, charging, and collecting of
12-39 revenues, fees, tolls, and other charges for the use of the
12-40 facilities and services furnished.
-12-
13- 1 SECTION 20.
13- 2 Revenue bonds; refunding bonds.
13- 3 The authority is authorized to provide by resolution for the
13- 4 issuance of bonds of the authority for the purpose of
13- 5 funding or refunding any revenue bonds issued under the
13- 6 provisions of this Act and then outstanding, together with
13- 7 accrued interest thereon. The issuance of such funding or
13- 8 refunding bonds, the maturities and all other details
13- 9 thereof, the rights of the holders thereof, and the duties
13-10 of the authority in respect to the same, shall be governed
13-11 by the foregoing provisions of this Act insofar as the same
13-12 may be applicable.
13-13 SECTION 21.
13-14 Revenue bonds; venue and jurisdiction.
13-15 Any action to protect or enforce any rights under the
13-16 provisions of this Act or any suit or action against the
13-17 authority shall be brought in the Superior Court of Cherokee
13-18 County, Georgia, and any action pertaining to validation of
13-19 any bonds issued under the provisions of this Act shall
13-20 likewise be brought in said court which shall have
13-21 exclusive, original jurisdiction of such actions.
13-22 SECTION 22.
13-23 Revenue bonds; validation.
13-24 Bonds of the authority shall be confirmed and validated in
13-25 accordance with the procedure of Article 3 of Chapter 82 of
13-26 Title 36 of the O.C.G.A., the "Revenue Bond Law," as now or
13-27 hereafter amended. The petition for validation shall also
13-28 make party defendant to such action any municipality,
13-29 county, authority, subdivision, or instrumentality of the
13-30 State of Georgia which has contracted with the authority for
13-31 services and facilities of the project for which bonds are
13-32 to be issued and sought to be validated, and such
13-33 municipality, county, authority, subdivision, or
13-34 instrumentality shall be required to show cause, if any, why
13-35 such contract or contracts and the terms and conditions
13-36 thereof should not be inquired into by the court and the
13-37 validity of the terms thereof be determined and the contract
13-38 or contracts adjudicated as security for the payment of any
13-39 such bonds of the authority. The bonds, when validated, and
13-40 the judgment of validation shall be final and conclusive
13-41 with respect to such bonds, against the authority issuing
13-42 the same, and any municipality, county, authority,
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14- 1 subdivision, or instrumentality contracting with the
14- 2 authority.
14- 3 SECTION 23.
14- 4 Revenue bonds; interest of bondholders protected.
14- 5 While any of the bonds issued by the authority remain
14- 6 outstanding, the powers, duties, or existence of said
14- 7 authority or of its officers, employees, or agents shall not
14- 8 be diminished or impaired in any manner that will affect
14- 9 adversely the interests and rights of the holders of such
14-10 bonds, and no other entity, department, agency, or authority
14-11 will be created which will compete with the authority to
14-12 such an extent as to affect adversely the rights and
14-13 interests of the holders of such bonds, nor will the state
14-14 itself so compete with the authority. The provisions of
14-15 this Act shall be for the benefit of the authority and the
14-16 holders of any such bonds and upon the issuance of bonds
14-17 under the provisions of this Act, shall constitute a
14-18 contract with the holders of such bonds.
14-19 SECTION 24.
14-20 Moneys received considered trust funds.
14-21 All moneys received pursuant to the authority of this Act,
14-22 whether as proceeds from the sale of revenue bonds, interim
14-23 receipts and certificates or temporary bonds, as grants or
14-24 other contributions, or as revenues, income, fees, and
14-25 earnings, shall be deemed to be trust funds to be held and
14-26 applied solely as provided in this Act and in accordance
14-27 with the proceedings authorizing the issuance of such bonds.
14-28 SECTION 25.
14-29 Moneys received; exemption from taxation; covenant of state.
14-30 It is found, determined, and declared that the creation of
14-31 the authority and the carrying out of its corporate purpose
14-32 is in all respects for the benefit of the people of this
14-33 state and that the authority is an institution of purely
14-34 public charity and will be performing an essential
14-35 governmental function in the exercise of the power conferred
14-36 upon it by this Act, and this state covenants with the
14-37 holders of the bonds issued by the authority that the
14-38 authority shall not be required to pay any taxes or
14-39 assessments upon any of the property acquired or leased by
14-40 it or under its jurisdiction, control, possession, or
14-41 supervision or upon its activities in the operation or
14-42 maintenance of the projects erected by it or any fees,
14-43 tolls, or other charges for the use of such projects or
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15- 1 other income received by the authority, and that the bonds
15- 2 of the authority, their transfer, and the income therefrom
15- 3 shall at all times be exempt from taxation within the state.
15- 4 The exemption from taxation provided in this section shall
15- 5 not extend to tenants nor lessees of the authority and shall
15- 6 not include exemptions from sales and use taxes on property
15- 7 purchased by the authority or for use by the authority.
15- 8 SECTION 26.
15- 9 Rates, charges, and revenues; use.
15-10 The authority is authorized to prescribe and fix and collect
15-11 rates, fees, tolls, and charges and to revise from time to
15-12 time and collect such rates, fees, tolls, and charges for
15-13 the services, facilities, or commodities furnished,
15-14 including leases, concessions, or subleases of its land or
15-15 facilities, or contracts for the use of its land and
15-16 facilities, and to determine the price and terms at and
15-17 under which its lands or facilities may be sold, and, in
15-18 anticipation of the collection of the revenues and income of
15-19 such undertakings or projects, is authorized to issue
15-20 revenue bonds as provided in this Act to finance, in whole
15-21 or in part, the cost of the acquisition, construction,
15-22 reconstruction, improvement, equipment, betterment, or
15-23 extension of its lands and facilities and to pledge to the
15-24 punctual payment of said bonds and interest thereon all or
15-25 any part of the revenues and income of such undertakings or
15-26 projects, including the revenues of improvements,
15-27 betterments, or extensions thereto, thereafter made or the
15-28 sale of any of its land and facilities.
15-29 SECTION 27.
15-30 Rules and regulations for operation of projects.
15-31 It shall be the duty of the authority to prescribe rules and
15-32 regulations for the operation of the project or projects
15-33 constructed under the provisions of this Act.
15-34 SECTION 28.
15-35 Tort immunity.
15-36 The authority shall have the same immunity and exemption
15-37 from liability for torts and negligence as any county of
15-38 this state; and the officers, agents, and employees of the
15-39 authority when in the performance of the work of the
15-40 authority shall have the same immunity and exemption from
15-41 liability for torts and negligence as the officers, agents,
15-42 and employees of any county of this state when in the
15-43 performance of their public duties or work.
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16- 1 SECTION 29.
16- 2 Statutory construction.
16- 3 This Act, being for the welfare of the state and its
16- 4 inhabitants, shall be liberally construed to effect the
16- 5 purposes of this Act.
16- 6 SECTION 30.
16- 7 Supplemental powers.
16- 8 The provisions of this Act shall be regarded as
16- 9 supplementary and additional to powers conferred by other
16-10 laws and shall not be regarded as being in derogation of any
16-11 powers now existing.
16-12 SECTION 31.
16-13 Effective date.
16-14 This Act shall become effective upon its approval by the
16-15 Governor or upon its becoming law without such approval.
16-16 SECTION 32.
16-17 All laws and parts of laws in conflict with this Act are
16-18 repealed.
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Clerk of the House
Robert E. Rivers, Jr., Clerk
Last Updated on 05/05/99
