Sec. 32-23f. Bonds and notes.
Sec. 32-23f. Bonds and notes. (a) Subject to the approval of the Treasurer of the
state or the Treasurer's deputy appointed pursuant to section 3-12, and other applicable
limitations of the authority legislation, as defined in subsection (hh) of section 32-23d,
the authority may borrow money and issue its bonds and notes from time to time and
use the proceeds thereof for the purposes of the authority, as defined in subsection (t)
of section 32-23d, and in order to carry out its powers under said authority legislation
and to pay all other expenditures of the authority incident to and necessary in connection
with such purposes including providing funds to be paid into any fund or funds to secure
such bonds or notes. All such bonds issued by the authority, secured by a special capital
reserve fund within the meaning of subsection (b) of section 32-23j, shall be general
obligations of the authority payable out of any revenues or other receipts, funds, or
moneys of the authority, subject only to any agreements with the holders of particular
notes or bonds pledging any particular revenues, receipts, funds or moneys, provided
the authority may issue general obligation bonds of the authority without the security
of a special capital reserve fund. Any other such bonds or notes not issued in anticipation
of the issuance of bonds referred to in the preceding sentence shall be special obligations
of the authority payable solely out of any revenues or other receipts, funds or moneys
of the authority pledged therefor. All such notes and such bonds may be executed and
delivered in such manner and at such times, may be in such form and denominations
and of such tenor and maturity or maturities, may be in bearer or registered form, as to
principal and interest or as to principal alone, may be payable at such time or times not
exceeding forty years from the date thereof, may be payable at such place or places
whether within or without the state, may bear interest at such rate or rates payable at
such time or times and at such place or places and evidenced in such manner, and may
contain such provisions not inconsistent with said chapters and sections, as shall be
provided in the resolution of the authority authorizing the issuance of the bonds and
notes.
(b) Issuance by the authority of one or more series of bonds or notes for one or more
purposes shall not preclude it from issuing other bonds or notes in connection with the
same project or any other projects, but the proceeding wherein any subsequent bonds
or notes may be issued shall recognize and protect any prior pledge or mortgage made
for any prior issue of bonds or notes unless in the resolution authorizing such prior issue
the right is reserved to issue subsequent bonds on a parity with such prior issue.
(c) Subject to the approval of the Treasurer of the state or his deputy appointed
pursuant to section 3-12, any bonds or notes of the authority may be sold at such price
or prices, at public or private sale, in such manner and from time to time as may be
determined by the authority, and the authority may pay all expenses, premiums and
commissions which it may deem necessary or advantageous in connection with the
issuance and sale thereof; and any moneys of the authority, including proceeds from
the sale of any bonds and notes, and revenues, receipts and income from any of its
projects, may be invested and reinvested in such obligations, securities and other investments, including time deposits or certificates of deposit, or deposited or redeposited in
such bank or banks as shall be provided in the resolution or resolutions authorizing the
issuance of the bonds and notes.
(d) The authority is authorized to provide for the issuance of its bonds for the purpose
of refunding any bonds of the authority then outstanding, including the payment of any
redemption premium thereon and any interest accrued or to accrue to the earliest or
subsequent date of redemption, purchase or maturity of such bonds, and, if deemed
advisable by the authority, for the additional purpose of paying all or any part of the
cost of constructing and acquiring additions, improvements, extensions or enlargements
of a project or any portion thereof. The proceeds of any such bonds issued for the purpose
of refunding outstanding bonds may, in the discretion of the authority, be applied to the
purchase or retirement at maturity or redemption of such outstanding bonds either on
their earliest or any subsequent redemption date, and may, pending such application,
be placed in escrow to be applied to such purchase or retirement at maturity or redemption on such date as may be determined by the authority.
(e) Whether or not the bonds or notes are of such form and character as to be negotiable instruments under article eight of title 42a, the bonds or notes shall be and are hereby
made negotiable instruments within the meaning of and for all the purposes of article
eight of said title 42a, subject only to the provisions of the bonds or notes for registration.
(f) The principal of and interest on bonds or notes issued by the authority may be
secured by a pledge of any revenues and receipts of the authority derived from any
project and may be additionally secured by a mortgage or deed of trust covering all or
any part of a project, including any additions, improvements, extensions to or enlargements of any projects thereafter made. Such bonds or notes may also be secured by a
pledge or assignment of a loan agreement, conditional sale agreement or agreement of
sale or by an assignment of the lease of any project for the construction and acquisition
of which said bonds or notes are issued and by an assignment of the revenues and receipts
derived by the authority from such project. The payments of principal and interest on
such bonds or notes may be additionally secured by a pledge of any other property,
revenues, moneys, or funds available to the authority for such purpose. The resolution
authorizing the issuance of any such bonds or notes and any such mortgage or deed of
trust or lease or loan agreement, conditional sale agreement or agreement of sale or
credit agreement may contain agreements and provisions respecting the establishment
of reserves to secure such bonds or notes, the maintenance and insurance of the projects
covered thereby, the fixing and collection of rents for any portion thereof leased by
the authority to others or the sums to be paid under any conditional sale agreement or
agreement of sale entered into by the authority with others, the creation and maintenance
of special funds from such revenues and the rights and remedies available in the event
of default, the vesting in a trustee or trustees of such property, rights, powers and duties
in trust as the authority may determine, which may include any or all of the rights,
powers and duties of any trustee appointed by the holders of any bonds and notes and
limiting or abrogating the right of the holders of any bonds and notes of the authority
to appoint a trustee under this chapter, chapter 578 and subsection (a) of section 10-409,
or limiting the rights, powers and duties of such trustee; provision for a trust agreement by
and between the authority and a corporate trust which may be any trust company or
bank having the powers of a trust company within or without the state, which agreement
may provide for the pledging or assigning of any revenues or assets or income from
assets to which or in which the authority has any rights or interest, and may further
provide for such other rights and remedies exercisable by the trustee as may be proper
for the protection of the holders of any bonds or notes and not otherwise in violation of
law, and such agreement may provide for the restriction of the rights of any individual
holder of bonds or notes of the authority and may contain any further provisions which
are reasonable to delineate further the respective rights, duties, safeguards, responsibilities and liabilities of the authority; persons and collective holders of bonds or notes of
the authority and the trustee; and covenants to do or refrain from doing such acts and
things as may be necessary or convenient or desirable in order to better secure any bonds
or notes of the authority, or which, in the discretion of the authority, will tend to make
any bonds or notes to be issued more marketable notwithstanding that such covenants,
acts or things may not be enumerated herein; and any other matters of like or different
character, which in any way affect the security or protection of the bonds or notes, all
as the authority shall deem advisable and not in conflict with the provisions hereof. Each
pledge, agreement, mortgage and deed of trust made for the benefit or security of any
of the bonds or notes of the authority shall be in effect until the principal of and interest
on the bonds or notes for the benefit of which the same were made have been fully paid,
or until provision has been made for payment in the manner provided in the resolution
or resolutions authorizing their issuance. Any pledge made in respect of such bonds or
notes shall be valid and binding from the time when the pledge is made; the revenues,
money or property so pledged and thereafter received by the authority shall immediately
be subject to the lien of such pledge without any physical delivery thereof or further
act; and the lien of any such pledge shall be valid and binding as against all parties
having claims of any kind in tort, contract or otherwise against the authority irrespective
of whether such parties have notice thereof. Neither the resolution, trust indenture nor
any other instrument by which a pledge is created need be recorded. The resolution
authorizing the issuance of such bonds or notes may provide for the enforcement of
any such pledge or security in any lawful manner. The authority may elect to have the
provisions of title 42a, the Connecticut uniform commercial code, apply to any pledge
made by or to the authority to secure its bonds or notes by filing a financing statement
with respect to the security interest created by the pledge and, in such case, the financing
statement shall be filed as if the debtor were located in this state.
(g) The authority may provide in any resolution authorizing the issuance of bonds
or notes that any project or part thereof or any addition, improvement, extension or
enlargement thereof, may be constructed by the authority or the lessee or any designee
of the authority, and may also provide in such proceedings for the time and manner
of and requisites for disbursements to be made for the cost of such construction and
disbursements as the authority shall deem necessary or appropriate.
(h) The authority may issue notes and bonds in accordance herewith for one or more
projects or to provide funds to be used for the purposes of the authority, as defined in
subsection (t) of section 32-23d, without reference to a particular project or projects.
(i) The authority is further authorized and empowered to issue bonds, notes or other
obligations under this section the interest on which may be includable in the gross income
of the holder or holders thereof under the Internal Revenue Code of 1986, or any subsequent corresponding Internal Revenue Code of the United States, as from time to time
amended, to the same extent and in the same manner that interest on bills, notes, bonds
or other obligations of the United States is includable in the gross income of the holder
or holders thereof under any such Internal Revenue Code. Any such bonds, notes or
other obligations may be issued only upon a finding by the authority that such issuance
is necessary, is in the public interest, and is in furtherance of the purposes and powers
of the authority. The state hereby consents to such inclusion only for the bonds, notes
or other obligations of the authority so authorized.
(1972, P.A. 195, S. 5; P.A. 73-599, S. 11; P.A. 78-303, S. 110-112, 136; P.A. 81-384, S. 6, 7, 13; P.A. 82-434, S. 2,
6; P.A. 84-512, S. 21-23, 30; P.A. 89-211, S. 34; P.A. 01-132, S. 169; 01-179, S. 11, 12; P.A. 03-62, S. 26.)
History: P.A. 73-599 added references to powers of deputy treasurer, replaced Connecticut development commission
with Connecticut development authority, specified in Subsec. (a) that bonds secured by a special reserve fund shall be
general obligations of authority and that other bonds shall be special obligations and rephrased Subsec. (h) adding power
to issue notes and bonds without reference to a particular project or projects; P.A. 78-303 deleted references to Sec. 4-60a
in Subsecs. (a), (f) and (h); P.A. 81-384 added the words "in order to carry out its powers under" in the first sentence of
Subsec. (a) and allowed the authority to elect to apply the Connecticut uniform commercial code to its pledges in Subsec.
(f); P.A. 82-434 added Subsec. (i) allowing the issuance of taxable bonds; P.A. 84-512 deleted references to Secs. 4-5 and
4-24a in Subsecs. (a), (f) and (h); P.A. 89-211 clarified reference to the Internal Revenue Code of 1986; (Revisor's note:
In 1993 the obsolete references in Subsecs. (a), (f) and (h) to repealed Sec. 36-322 were deleted editorially by the Revisors);
P.A. 01-132 amended Subsec. (f) to replace reference to Sec. 42a-9-104(e) with Sec. 42a-9-109(d)(14) and add provision
re filing of the financing statement as if the debtor were located in this state; P.A. 01-179 amended Subsec. (a) by providing
that the authority may issue general obligation bonds not secured by a special capital reserve fund, deleting references to
chapters 578 and 579 and Sec. 10-320b(a), adding references to authority legislation as defined in Sec. 32-23d(hh) and
the purposes of the authority as defined in Sec. 32-23d(t) and making technical and conforming changes and amended
Subsec. (h) by deleting references to chapter 578 and 579 and Sec. 10-320b(a) and adding reference to the purposes of the
authority as defined in Sec. 32-23d(t); P.A. 03-62 amended Subsec. (f) to delete "notwithstanding the exclusions provided
in subdivision (14) of subsection (d) of section 42a-9-109" from provision that authorizes the authority to elect to have
provisions of title 42a apply to any pledge, reflecting the deletion of said Subdiv. by same public act, and to make technical
changes.
See Sec. 32-22 re bond issues for purposes of this chapter.
See Sec. 32-23s re interpretation of amendments to this section effective on June 29, 1981.