305.535. Bonds, issue procedure--resolution to issue may contain.

Bonds, issue procedure--resolution to issue may contain.

305.535. The authority, if it desires to issue bondspursuant to section 305.530, shall adopt a resolution describingin a general way the airport or airports and the related facilityor facilities to be acquired, established, constructed,reconstructed, expanded, or improved and refer to the plans andspecifications therefor prepared for that purpose, or ifrefunding bonds, describing the bonds or other obligations to berefunded, or both. Any such resolution shall set out theestimated cost therefor, or in the case of refunding bonds, theamount of the bonds to be refunded, and shall fix the maximumamount of revenue bonds proposed to be issued therefor. Thisamount shall not exceed the estimated cost thereof, includingengineering, legal, and other expenses together with interestcost to a date six months subsequent to the estimated date ofcompletion, or, in the case of refunding bonds, the principalamount of the bonds to be refunded and legal and other expenses,and such other sums as in the discretion of the authority may bedesirable to create a reserve fund sufficient to pay the maximumamount of principal and interest estimated to fall due on thebonds in any future twelve month period. Such resolution maycontain such covenants, which shall be part of the contractbetween the authority and the holder of the bonds and thetrustee, if any, for such bondholders having such rights andduties as may be provided therein for the enforcement andprotection of such covenants, as may be deemed necessary oradvisable as to:

(1) The issuance of additional bonds that may thereafter beissued payable from the income and revenues derived from theoperation of any such airport or airports, and related facilityor facilities, and for the payment of the principal and interestupon such bonds;

(2) The regulations as to the use of any such airport orairports, and related facility or facilities, to assure themaximum use or occupancy thereof;

(3) The kind and amount of insurance to be carried,including use and occupancy insurance, the cost of which shall bepayable only from the income and revenues derived from suchairport or airports, and related facility or facilities;

(4) The operation, maintenance, management, accounting andauditing, employment of airport engineers and consultants and thekeeping of records, reports and audits of any such airport orairports, and related facility or facilities;

(5) The obligation of the authority to maintain the airportor airports, and related facility or facilities, in goodcondition and to operate the same in an economical and efficientmanner;

(6) Provide for setting aside of sinking funds, reservefunds, depreciation funds and such other special funds as may befound needful and the regulation and disposition thereof;

(7) Provide for the setting aside of a sinking fund, intowhich shall be payable from the income and revenues of suchairport or airports, and related facility or facilities, frommonth to month, as such income and revenues are collected, suchsums as will be sufficient to pay the accruing interest andretire the bonds at maturity;

(8) Fix and collect rents, rates of toll and other chargesfor the use of such airport or airports, and related facility orfacilities, sufficient, together with other available money, toproduce income and revenues adequate to pay the bonds at maturityand accruing interest and reserves therefor and sufficient to paycost of maintenance, operation and depreciation thereof in suchorder of priority as shall be provided by the resolutionauthorizing the bonds;

(9) Fix procedures by which the terms of any contract withthe holders of the bonds may be amended, the amount of bondsinvolved, the holders of which must consent;

(10) Provide the procedure for refunding such bonds;

(11) Provide whether and to what extent and upon what termsand conditions, if any, the holder of bonds or coupons issuedunder such resolution or the trustee, if any, therefor may,either in law or in equity, by suit, action, mandamus or otherproceeding, enforce or compel the performance of all dutiesrequired by this section and section 305.530, including thefixing, maintaining and collecting of such rents, rates or othercharges for the use of such airport or airports, and relatedfacility or facilities, or for any service rendered by theauthority in the operation thereof as will be sufficient,together with other available money, to pay the principal orinterest upon those revenue bonds as the same become due andreserves therefor and sufficient to pay the cost of maintenance,operation and depreciation of the airport or airports, andrelated facility or facilities, in the order of priority asprovided in the resolution authorizing the bonds, and theapplication of the income and revenues thereof;

(12) Such other covenants as may be deemed necessary ordesirable to assure a successful and profitable operation of theairport or airports, and related facility or facilities, andprompt payment of the principal and interest upon the bonds soauthorized.

(L. 1972 H.B. 1341 § 8)

Effective 2-4-72