11-307. Issuance of bonds; negotiability; investment; definition

A. A governing body of any county, city or town may issue bonds for and on behalf of the county, city or town to provide funds to construct, purchase or lease, as lessee, any health care institution. The bonds shall be payable solely from the revenues of the issuer received from the payment of leases or purchase agreements for the lease or sale of the health care institution constructed, purchased or leased, as lessor, by the issuer.

B. Bonds issued under this article shall be fully negotiable within the meaning and for all purposes of title 44. They may be in one or more series which may be secured by revenues from the lease or sale of one or more health care institutions, may bear such dates, may be payable in such medium of payment, at such places, may carry such registration privileges, shall be executed in such manner, contain such terms, covenants and conditions and shall be in such form, either coupon or registered, as the governing body may by resolution prescribe. The bonds shall be payable at one time, or from time to time in such manner and in such maturities no longer than forty years from their date as the governing body may prescribe. The bonds may be additionally secured by reserve or sinking funds which may either be capitalized in whole or in part from bond proceeds or accumulated over the term of the bonds from pledged revenues. Any or all of the bonds may be callable at such times, on such terms and in such manner as the governing body by resolution may prescribe. The bonds may be refunded by the issuance of refunding bonds either at or in advance of maturity, but the mere issuance of refunding bonds shall never be construed to advance the maturity or change stated call dates of the bonds being refunded. The bonds shall bear such rate or rates of interest as the governing body may provide and may be sold above, at, or below par at either public or private sale. The issuer may assign its interest in any or all of the leases, purchase contracts, reserve or sinking funds securing any issue or series of bonds to a bank or trust company doing business in this state as an indenture trustee. The resolution of the governing body authorizing the issuance of the bonds may contain such covenants, conditions and provisions as deemed necessary to secure the bonds.

C. Bonds issued under the provisions of this article shall be legal investments for all banks, trust companies and insurance companies organized and operating under the laws of this state. The bonds and interest thereon shall be paid solely in accordance with their terms and shall not be obligations general, special or otherwise of this state. Such bonds shall not constitute a legal debt of this state and shall not be enforceable against the state. The issuer shall not in any event be liable for the payment of the principal of or interest on the bonds from any source of revenues other than those pledged for the payment of the bonds. The bonds shall never be construed to constitute an indebtedness of the issuer within the meaning of any constitutional or statutory provisions whatsoever.

D. For purposes of this article, the term " health care institutions" shall include but not be limited to land, buildings, aircraft and ground vehicles reasonably necessary to conduct an ambulance service.