70-1804. REVENUE BONDS — SOURCES OF PAYMENT — SINKING FUNDS — NEGOTIABLE INSTRUMENTS. Bonds issued under the provisions of this act shall be payable solely out of revenues of the port district other than those revenues derived from ad valorem taxes. Such bonds shall be authorized by resolution of the port commission, which resolution shall create a special fund or funds into which the port commission shall obligate and bind the port district to set aside and pay any part or parts of, or all of, or a fixed proportion of, or a fixed amount of the gross revenue of the port district sufficient to pay the principal of and interest on such bonds as the same shall become due and, if deemed necessary, to maintain adequate reserves therefor. Such fund or funds shall be drawn upon for the sole purpose of paying the principal of and interest on bonds issued pursuant to this act.

The bonds shall be negotiable instruments within the provisions and intent of the laws of this state even though they shall be payable solely from such special fund or funds, and the ad valorem tax revenue of the port district may not be used to pay, secure or guarantee the payment of the principal of an interest on such bonds. The bonds and any coupons attached thereto shall state upon their face that they are payable solely from such special fund or funds. If the port commission fails to set aside and pay into such fund or funds the payment provided for in such resolution, the holder of any such bonds may bring suit to compel compliance with the provisions of the resolution.

History:

[70-1804, added 1969, ch. 55, sec. 103, p. 144.]