3.42.070 Revenue bonds.
A. Power to Borrow and Issue Bonds – Nature of Bonds. The board shall have the power to borrow money to provide funds for any project and to issue in its name revenue bonds to evidence the indebtedness created by such borrowing. The bonds of each issue shall constitute special obligations, and evidence a special indebtedness, of the authority, and shall be a charge upon and payable solely for such revenues and funds as are specified therein and in the proceedings for their issuance. Such bonds shall not constitute obligations nor evidence any indebtedness of the city.
B. Recitals. All such bonds shall recite upon their face, in substance, that they constitute special obligations, and evidence a special indebtedness, of the board, payable, both as principal and interest, and as to any premiums upon the redemption of any thereof, solely from such revenues and funds as are specified therein and in the proceedings for their issuance, and shall also recite upon their face that they are issued under this chapter.
C. Types of Bonds – Sources of Payment. The board may issue such types of bonds as it determines, including bonds on which the principal and interest are payable:
1. Exclusively from the income and revenue of the facilities or improvements financed with the proceeds of the bonds, or with such proceeds and financial assistance from the state or federal governments or from any other source in aid of such projects.
2. Exclusively from the income and revenue of certain designated facilities or improvements, whether or not such facilities were financed in whole or in part with the proceeds of the bonds, and including income or revenue from any future extension, betterment or addition to any such facilities thereafter to be established.
3. From its revenues generally, including revenue from the leasing of public facilities and improvements owned or leased to it.
4. From any contributions or other financial assistance from the city, the state or federal governments, or from any other source.
5. From any combination of these sources.
D. Terms and Conditions. Except as limited by express provision of this chapter, the board, by resolution, or by trust indenture, contract or other agreement with or for the benefit of the bondholders, may determine all the terms and conditions of each issue, series or division of bonds and of their sale and issuance, and all matters necessary or appropriate in connection with the bonds.
E. Contract with Bondholders. The board may provide that any resolution, trust agreement or indenture adopted or entered into in connection with the authorization of any bonds shall constitute a contract with the holders of such bonds, not subject to repeal, and not subject to any modification other than to the extent and in a manner provided in any such resolution.
F. Covenants and Agreements. The board may provide for such covenants and agreements on the part of the board as it deems necessary or advisable for the better security of any bonds.
G. Provisions for Security and Marketability. The board may provide for such other acts and matters as it may deem to be necessary, convenient or desirable to secure the bonds or to make them more marketable.
H. Issuance and Sale of Bonds.
1. The bonds may be issued and sold as the board determines and directs, at public or private sale, at or below their par value and at a rate of interest not to exceed the rate determined by the authority in the resolution providing for the issuance thereof. The bonds shall be payable at the times and in the amounts determined by the board in such resolution.
2. Without limiting the generality of the foregoing, the bonds may also be issued directly to the seller of land, improvements or property acquired for board purposes, as all or part of the purchase price thereof, on such terms as may be established by the agreement for acquisition. (Ord. 1059 § 1 (part), 1986)