TITLE 40

HIGHWAYS AND BRIDGES

CHAPTER 4

IDAHO TURNPIKE AUTHORITY

40-412.  Bonds of board as turnpike authority. (1) The board is authorized to provide by resolution for the issuance of bonds of the board for any of its corporate purposes, including the refunding of its bonds. The principal of and the interest on any issue of bonds shall be payable solely from and may be secured by a pledge of tolls and other revenues of all or any part of the turnpike project financed in whole or in part with the proceeds of the issue or with the proceeds of bonds refunded or to be refunded by the issue. The proceeds of the bonds may be used or pledged for the payment or security of the principal of or interest on bonds and for the establishment of any or all reserves for payment or security, or for other corporate purposes as the board may authorize in the resolution authorizing the issuance of bonds or in a trust agreement securing them. The bonds of each issue shall be dated, shall bear interest at a rate, shall mature at a time not exceeding thirty (30) years from their date, as may be determined by the board and may be made redeemable before maturity, at the option of the board, at a price and under terms and conditions as may be fixed by the board prior to the issuance of the bonds. The board shall determine the form of the bonds including any interest coupons to be attached, and shall fix the denomination of the bonds and the place of payment of principal and interest, which may be at any bank or trust company within or without the state. The bonds shall be signed by the chairman of the board or shall bear his facsimile signature, and the official seal of the board or a facsimile shall be impressed, imprinted, engraved or otherwise reproduced on them. The official seal or facsimile shall be attested by the secretary of the board or by other officer or agent as the board shall appoint and authorize. Any coupons attached to the bonds shall bear the facsimile signature of the chairman of the board. In the event any officer whose signature or a facsimile of whose signature shall appear on any bonds or coupons shall cease to be an officer before the delivery of the bonds, the signature or facsimile shall nevertheless be valid and sufficient for all purposes, the same as if he had remained in office until delivery. Bonds issued shall have and are declared to have all the qualifications and incidents of negotiable instruments. Bonds may be issued in coupon or in registered form, or both, as the board may determine, and provision may be made for the registration of any coupon bonds as to principal alone and also as to both principal and interest, and for the reconversion into coupon bonds of any bonds registered as to both principal and interest. The board may sell bonds in a manner and for a price, as it may determine to be for the best interest of the board. Neither the members of the board nor any person executing the bonds shall be personally liable on the bonds or be accountable by reason of the issuance of them.

(2)  Proceeds of the bonds of each issue shall be disbursed in a manner and under restrictions, if any, as the board may provide in the resolution authorizing the issuance of the bonds or in a trust agreement securing them.

(3)  Prior to the preparation of definitive bonds, the board may, under like restrictions, issue interim receipts or temporary bonds, with or without coupons, exchangeable for definitive bonds when those bonds shall have been executed and are available for delivery. The board may also provide for the replacement of any bonds which shall become mutilated or shall be destroyed or lost. Bonds may be issued without obtaining consent of any department, division, bureau, commission, board or agency of the state, and without any other proceedings or the happening of any other conditions or things than those proceedings, conditions or things which are specifically required.

(4)  The state does agree with holders of bonds that the state will not limit or restrict rights hereby vested in the board to establish and collect charges and tolls as may be convenient or necessary to produce sufficient revenue to meet the expenses of maintenance and operation of a turnpike project and to fulfill the terms of any agreements made with holders of bonds, or in any way impair the rights or remedies or holders of bonds until the bonds, together with interest are fully paid and discharged.

History:

[40-412, added 1985, ch. 253, sec. 2, p. 610.]