§ 35-12-8 - Notes of the corporation.
SECTION 35-12-8
§ 35-12-8 Notes of the corporation. –(a) The corporation shall have the power and is authorized to issue from timeto time negotiable notes in one or more series, in such principal amounts as inthe opinion of the corporation shall be necessary to provide sufficient fundsfor achieving its purposes, including:
(1) Payment of interest on notes of the corporation;
(2) Establishment of reserves to secure these notes; and
(3) Making of all other expenditures of the corporationincident to and necessary or convenient to carrying out its corporate purposesand powers.
(b) All notes issued by the corporation may be secured by thefull faith and credit of the corporation, or may be payable solely out ofrevenues and receipts derived from the pledge or assignment of, grant ofsecurity interest in, or sale of, accounts owned by it or any part thereof, orupon investment earnings of any of these revenues, receipts, proceeds, orpayments, or upon any other form of security available to the corporation forthat purpose, all as may be designated in the proceedings of the corporationunder which the notes shall be authorized to be issued. The notes may beexecuted and delivered by the corporation at any time or from time to time, maybe in such form and denominations and of such tenor and maturities, and may bein bearer form or in registered form, as to principal and interest or as toprincipal alone, all as the corporation may determine.
(c) Notes and any renewals thereof may be payable in suchinstallments and at such times, not exceeding six (6) months from the date ofthe original issue of the notes, as shall be determined by the corporation.
(d) Notes may be payable at such places, whether within orwithout the state, may bear interest at such rate or rates payable at such timeor times and at such place or places and evidenced in such manner, and maycontain such provisions not inconsistent herewith, all as shall be provided inthe proceedings of the corporation under which they shall be authorized to beissued.
(e) There may be retained by provisions made in theproceedings under which any notes of the corporation are authorized to beissued an option to redeem all or any part thereof, at the prices and upon suchnotice, and on such further terms and conditions, as shall be set forth on therecord of the proceedings and on the face of the notes.
(f) Moneys of the corporation, including without limitationrevenues, receipts, proceeds, payments, or earnings listed in subsection (b),may be invested and reinvested in such obligations, securities, and otherinvestments consistent with the purposes of this chapter as shall be specifiedin the resolutions under which the notes are authorized.
(g) Issuance by the corporation of one or more series ofnotes for one or more purposes shall not preclude it from issuing other notesfor the same purpose or purposes, but the proceedings whereunder any subsequentnotes may be issued shall recognize and protect a prior pledge made for a priorissue of notes unless in the proceedings authorizing the prior issue the rightis reserved to issue subsequent notes on a parity with the prior issue.
(h) The members of the corporation shall not be subject topersonal liability or accountability by reason of the issue of notes under thischapter.
(i) Notes may be issued under the provisions of this chapterwithout obtaining the consent of any department, division, commission, board,body, bureau, or agency of the state, and without any other proceedings,conditions, or things other than those proceedings, conditions, or things whichare specifically required by this chapter and by the provisions of theresolution authorizing the issuance of the notes or the trust agreementsecuring the same.
(j) Whether or not the notes are of such form and characteras to be negotiable instruments under the terms of the Uniform Commercial Code,title 6A, the notes are hereby made negotiable instruments within the meaningof and for all the purposes of the Uniform Commercial Code, subject only to theprovisions of the notes for registration.
(k) If a member of the corporation whose signature appears onthe notes or coupons shall cease to be a member before the delivery of thenotes, the member's signature shall, nevertheless, be valid and sufficient forall purposes, as if the member had remained in office until the delivery.