§7610.2. New community trust fund; mandatory contributions

A.(1) There shall be established by and for the benefit of each new community development corporation created under R.S. 33:7604 a new community trust fund. Funds allocated to and deposited into this fund shall be made available to the corporation as security to finance or refinance any new community development the corporation undertakes pursuant to the approved new community development plan.

(2) No new community development corporation may receive, expend, commit to expend, or pledge an interest in its right to receive any increment revenues pursuant to this Section unless and until:

(a) It has submitted to the governing body a complete description of the project which it proposes to undertake which description must specify the maximum indebtedness it may incur in connection with undertaking the project that is to be secured in whole or in part by increment revenues;

(b) Either the governing body or the governing body and one or more of the other taxing districts within the governmental subdivision have by ordinance or resolution provided for the funding of the new community trust fund by agreeing to dedicate the increment revenues to facilitate the corporation's undertaking the proposed project; and

(c) The governing body and those taxing districts which have adopted a resolution pursuant to (b) above have called a special election submitting to the qualified electors of the local governmental subdivision the proposition for the corporation's undertaking the project and the dedication and contribution of its and each other taxing district's increment revenues to the new community trust fund and received a favorable vote of a majority of the electors thereon.

B. The dedication and contribution of the increment revenues shall not impair existing obligations of any taxing district and shall not include tax revenues of a taxing district previously dedicated to any debt service or the contribution of which would violate the Constitution of Louisiana.

C. Upon the adoption of the ordinance or resolution and the favorable vote of a majority of the electors as provided in Subsection A above, each taxing district which has adopted such ordinance or resolution, as defined herein, shall annually contribute to the new community trust fund all increment revenues, less and except those amounts which are to be excluded as provided in Subsection B above, up to its proportional share of the maximum dollar amount needed by the corporation to satisfy obligations or indebtedness incurred for a project or projects theretofore approved that is secured by increment revenues. The proportional amount of each taxing district shall be its share of the amount required by the corporation multiplied by a fraction, the numerator of which is such taxing district's increment revenues and the denominator of which is the total increment revenues of all such taxing districts.

D. While any bond indebtedness of the corporation remains outstanding no taxing district shall reduce its millage if such reduction would result in a diminution of its obligations to make contributions of increment revenues the dedication and contribution of which were theretofore approved by the local governing body and voted on favorably by a majority of the qualified electors of the local governmental subdivision.

E.(1) Except for the purpose of funding the trust fund pursuant to Subsection F, upon the adoption of an ordinance providing for funding of the new community trust fund and the favorable vote of the majority of its electors as herein provided, each taxing district shall, by January first of each year, appropriate and pay to such fund for so long as any indebtedness secured by the pledge of increment revenues is outstanding, but not to exceed thirty years, a sum which is no less than the amounts required pursuant to Subsections B and C of this Section. If the new community development plan is amended or modified pursuant to R.S. 33:7612(D) each such taxing district shall make such annual appropriation for a period not to exceed thirty years after the date the governing body amends the plan but not more than amounts previously approved pursuant to Subsections B and C.

(2) Any taxing district which does not pay the amounts required pursuant to Subsections B and C of this Section to the new community trust fund by January 1, shall pay to the new community trust fund an amount equal to five percent of the amount of such required payment and shall pay interest on such amount equal to one percent for each month such amount is outstanding.

(3) No taxing district, as defined herein, is exempt from the provisions of Section 7610.2.

F. Notwithstanding the provisions of Subsection D, the obligation of each taxing district pursuant to Subsections B and C of this Section to fund the new community trust fund annually shall continue until all obligations on any bonds issued by the new community development corporation in connection with a project or projects, previously approved as provided in Subsection A above, have been paid in full.

G. The revenue bonds and notes of every issue under this Chapter may, by the terms thereof be payable solely out of the revenues pledged to and received by a new community development corporation and deposited to its new community trust fund. Furthermore, the lien created by such bonds or notes shall not attach to the assets of the corporation unless the bonds are issued with the full faith and credit of the corporation. The lien created by such bonds or notes shall not attach to any sums a taxing district is required to contribute to the new community trust fund until the increment revenues referred to herein are deposited in the new community trust fund. The holders of such bonds or notes have no right to require the imposition of any tax or the establishment of any rate of taxation in order to obtain the amounts necessary to pay and retire such bonds or notes.

H. Revenue bonds issued under the provisions of this Chapter shall not be deemed to constitute a debt, liability or obligation of the governing body of the state or any political subdivision thereof, or a pledge of the full faith and credit of the governing body or the state or any political subdivision thereof, but in accordance with R.S. 33:7617 shall be payable solely from the revenues which each taxing district is required or has agreed to contribute to the new community trust fund and, if the indebtedness has been issued with the full faith and credit of the corporation, the assets of the corporation. All such revenue bonds issued by the corporation shall contain on the face thereof a statement to the effect that neither the full faith and credit nor the taxing power of the governing body or of the state or of any political subdivision thereof, other than the corporation if such bonds are issued with the corporation's full faith and credit, is pledged to the payment of the principal of, or the interest on, such bonds.

I. Moneys in the new community trust fund may be expended from time to time for the following purposes, when directly related to financing or refinancing of development in a new community development area pursuant to an approved new community development plan:

(1) Administrative and overhead expenses necessary or incidental to the implementation of a new community development plan adopted by the corporation.

(2) Expenses of redevelopment planning, surveys, and financial analysis, including the reimbursement of the governing body of the new community development corporation for such expenses incurred before the new development plan was approved and adopted.

(3) The acquisition of real property in the new community area.

(4) The clearance and preparation of any new community development area for redevelopment and relocation of site occupants as provided in R.S. 33:7612.

(5) The repayment of principal and interest or any redemption premium for the corporation's loans, advances, bonds, bond anticipation notes, and any other form of indebtedness.

(6) All expenses incidental to or connected with the issuance, sale, redemption, retirement, or purchase of corporation bonds, bond anticipation notes, or other form of indebtedness, including funding of any reserve, redemption, or other fund or account provided for in the corporation's resolution authorizing such bonds, notes, or other form of indebtedness.

J. On the last day of the fiscal year of the new community development corporation, any money which remains in the trust fund after the payment of expenses pursuant to Subsection I for such year shall be:

(1) Returned to each taxing district which paid the increment in the proportion that the amount of the payment of such taxing district bears to the total amount paid into the new community trust fund by all participating taxing bodies within the new community development area for that year;

(2) Used to reduce the amount of any indebtedness to which increment revenues are pledged; or

(3) Deposited into an escrow account for the purpose of later reducing any indebtedness to which increment revenues are pledged.

K. The trustee of the new community trust fund shall be a banking corporation doing business in the parish or municipality in which the corporation is located.

Acts 1987, No. 815, §1, eff. July 20, 1987.