1. (a)

   1. (1) The bonds of the authority must be authorized by a resolution of the authority.
   2. (2) The bonds shall bear the date and mature at the time that the resolution provides, except that no bond may mature more than 40 years from its date of issue.
   3. (3) The bonds may be in the denominations, be executed in the manner, be payable in the medium of payment, be payable at the place and at the time, and be subject to redemption or repurchase and contain other provisions determined by the authority prior to their issuance.
   4. (4) The bonds may bear interest payable at a time and at a rate as determined by the authority.
   5. (5) Bonds may be sold by the authority at public or private sale at the price the authority determines and approves.

2. (b)

   1. (1) Bonds may be secured by a trust indenture between the authority and a corporate trustee, which may be the State Treasurer or any bank having trust powers or any trust company doing business in this state. A trust indenture may contain provisions for protecting and enforcing the rights and remedies of the bondholders which are reasonable and proper, including covenants setting forth the duties of the authority in relation to the exercise of its powers and the custody, safekeeping, and application of its money. The authority may provide by the trust indenture for the payment of the proceeds of the bonds and all or any part of the revenues of the authority to the trustee under the trust indenture or to some other depository, and for the method of its disbursement with safeguards and restrictions prescribed by it. All expenses incurred in performing the obligations of the authority under the trust indenture may be treated as part of its operating expenses.

   2. (2) Any resolution or trust indenture pursuant to which bonds are issued may contain provisions that are part of the contract with the bondholders of the bonds and that include the following:

      1. a. Pledging specific revenues of the authority to secure the payment of the bonds.
      2. b. Pledging specific assets of the authority, including loan obligations owned by the authority to secure the payment of the bonds.
      3. c. The use and disposition of the gross income from, and payment of the principal of, and interest on loan obligations owned by the authority or held by an indenture trustee.
      4. d. The establishment of reserves, sinking funds, and other funds and accounts, and their regulation and disposition.
      5. e. Limitations on the purposes to which the proceeds from the sale of the bonds may be applied and limitations on pledging the proceeds to secure the payment of the bonds.
      6. f. Limitations on the issuance of additional bonds, the terms upon which additional bonds may be issued and secured, and the refunding of outstanding or other bonds.
      7. g. The procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the amount of bonds, if any, the holders of which must consent to, and the manner in which any consent may be given.
      8. h. Limitations on the amount of money to be expended by the authority for its operating expenses.
      9. i. Vesting in a trustee property, rights, powers, and duties as the authority may determine, limiting or abrogating the right of bondholders to appoint a trustee, and limiting the rights, powers, and duties of the trustee.
      10. j. Defining the acts or omissions that constitute a default, the obligations or duties of the authority to the holders of the bonds, and the rights and remedies of the holders of the bonds in the event of default, including as a matter of right the appointment of a receiver, and all other rights generally available to creditors.
      11. k. Requiring the authority or the trustee under the trust indenture to take any and all other action to obtain payment of all sums required to eliminate any default as to any principal of and interest on loan obligations owned by the authority or held by a trustee, which may be authorized by the laws of this state.
      12. l. Any other matter relating to the terms of the bonds or the security or protection of the holders of the bonds which may be considered appropriate.

3. (c)

   1. (1) Any pledge made by the authority to secure its obligations with respect to bonds or other financial assistance is valid and binding from the time the pledge is made. The revenue, money, or property pledged and received by the authority is immediately subject to the lien of the pledge without any physical delivery or further act. The lien of any pledge is valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the authority, irrespective of whether the parties have notice of the pledge.
   2. (2) No recording or filing of the resolution authorizing the issuance of bonds or other financial assistance, the trust indenture or other financing agreement securing the bonds or other financial assistance, or any other instrument including filings under the Uniform Commercial Code is necessary to create or perfect any pledge or security interest granted by the authority to secure any bonds or other financial assistance.
4. (d) The authority, subject to agreements with bondholders as may then exist, may purchase outstanding bonds of the authority with any available funds, at any reasonable price. If the bonds are then redeemable, the price shall not exceed the redemption price then applicable plus accrued interest to the next interest payment date.
5. (e) Bonds of the authority shall be in a form and shall be executed in a manner prescribed by the authority.
6. (f) If any of the directors or officers of the authority cease to be directors or officers before the delivery of any bonds signed by them, their signatures or authorized facsimile signatures are nevertheless valid and sufficient for all purposes as if they had remained in office until the delivery of the bonds.
7. (g) Subsequent amendments to this article may not limit the rights vested in the authority with respect to any agreements made with, or remedies available to, the holders of bonds issued under this article before the enactment of the amendments until the bonds, with all premiums and interest on them, and all costs and expenses in connection with any proceeding by or on behalf of the holders, are fully satisfied and discharged.
8. (h) Notwithstanding the exemptions provided in Sections 41-10-28 and 41-10-44.13, any bonds issued by the authority under this article, the transfer of bonds, and the income from them, are free from taxation and assessment of every kind by the state and by the local governments and other political subdivisions of the state.

9. (i)

   1. (1) The bonds issued by the authority are legal investments in which all public officers or public bodies of the state and its political subdivisions; all municipalities and political subdivisions; all insurance companies and associations and other persons carrying on insurance business; all banks, bankers, banking associations, trust companies, savings banks, savings associations, including savings and loan association investment companies, and other persons carrying on a banking business; all administrators, guardians, executors, trustees, and other fiduciaries; and all other persons who are now or may be authorized in the future to invest in bonds or other obligations of the state, may invest funds in their control or belonging to them.
   2. (2) The bonds of the authority are also securities which may be deposited with and received by all public officers and bodies of the state or any agency or political subdivision of the state and all municipalities and public corporations for any purpose for which the deposit of bonds or other obligations of the state is now or may later be required by law.

10. (j)

    1. (1) The granting of other financial assistance by the authority shall be authorized by a resolution of the authority.
    2. (2) The authority may execute instruments and enter into financing agreements, including, without limitation, a trust indenture between the authority and a corporate trustee, which may be the State Treasurer or any bank having trust powers or any trust company doing business in this state, containing the terms and conditions as the authority shall determine in connection with the provision of other financial assistance and securing its obligations with respect to other financial assistance.
    3. (3) The authority may pledge any of its revenues or funds to the payment of other financial assistance provided by the authority, subject to any prior pledges for outstanding bonds or other financial assistance of the authority. Other financial assistance may be secured by a pledge of any loan obligation owned by the authority or held by an indenture trustee, any grant, contribution, or guaranty from the United States of America, the state, or any corporation, association, institution, or person, any other property or assets of the authority, or a pledge or grant of a security interest in or any money, income, or revenue of the authority from any source.
11. (k) Neither the authority, nor any member, officer, employee, or committee of the authority acting on behalf of it, while acting within the scope of authority granted by this article, is subject to any liability resulting from carrying out any of the powers given in this article, unless the officer or employee acted in an unreasonable or reckless manner.

(Act 2025-394, §1.)