§338.71. Bonds not indebtedness or pledge of general credit; rights of holder; priorities; enforcement, collection and application of revenues

A. Bonds issued hereunder shall not constitute an indebtedness or pledge of the general credit of the parish, parish school board or municipality within the meaning of any constitutional or statutory provision relating to the incurring of indebtedness, and shall contain a recital to that effect. Such bonds shall be in coupon form, but may be made registrable as to principal if so provided in the resolution authorizing the issuance thereof. They may be made redeemable in advance of maturity at the option of the governing body at such premium or premiums not greater than five per cent (5%) of the principal amount as the governing body may determine.

B. Bonds issued hereunder shall be payable from and secured by irrevocable pledge and dedication of all or such part of the sales tax revenues as may be pledged thereto in the authorizing resolution. Any holder of any of such bonds, or coupons thereto attached, may either at law or in equity, by suit, action, mandamus or other proceeding, enforce and compel performance of all duties required to be performed by the governing body issuing the bonds, and the governing authority and officials of the parish imposing the tax, and to enforce the provisions of the resolution imposing the tax, and the resolution and proceedings authorizing the issuance of such bonds.

C. The governing body may in any resolution authorizing such bonds provide for the respective priorities of separate block, series or issues of bonds issued payable from the same sales tax revenues, or may provide for the issuance of additional bonds in the future on a parity under such conditions as may be therein specified. In the absence of any such provision, if more than one series of bonds shall be issued hereunder payable from the same sales tax revenues, priority of lien on such revenues shall depend on the time of the delivery of such bonds, each series enjoying a lien prior and superior to that enjoyed by any series of bonds subsequently delivered, except that as to any issue or series of bonds which may be authorized as a unit but delivered from time to time in blocks, the governing body may in the proceedings authorizing the issuance of such bonds provide that all of the bonds of such series or issue shall be co-equal as to lien regardless of the time of delivery; provided that nothing herein stated shall vest in any holder of bonds any right of lien or priority of any kind against any part of the sales tax revenues not pledged to the payment of the bonds by the proceedings authorizing the issuance thereof.

D. When any bonds shall have been issued hereunder neither the legislature nor the parish may discontinue or decrease or permit to be discontinued or decreased the tax in anticipation of the collection of which such bonds have been issued, or in any way make any change in the allocation of the proceeds of such tax which would diminish the amount of the sales tax revenues to be received by the entity which issued the bonds, until all of such bonds shall have been retired as to principal and interest, and there is hereby vested in the holders from time to time of such bonds and the coupons representing interest thereon a contract right in the provisions of this Sub-section and of R.S. 47:338.48 through 338.78.

E. Any resolution may contain such covenants with the future holder or holders of the bonds as to the sales tax revenues, the disposition of such revenues, the issuance of future bonds, and such other pertinent matters as may be deemed necessary by the governing body to assure the marketability of such bonds, provided such covenants are not inconsistent with the provisions of R.S. 47:338.48 through 338.78.

F. Any resolution authorizing the issuance of bonds hereunder may contain such provisions to assure the enforcement, collection and proper application of the sales tax revenues as the governing body issuing the bonds may think proper, where not inconsistent with the provisions of R.S. 47:338.48 through 338.78, and when any bonds payable from the sales tax revenues shall have been issued, R.S. 47:338.48 through 338.78, the resolution of the governing body of the parish imposing the tax and pursuant to which the tax is being levied, collected and allocated, and the obligation of the governing body of the parish to continue to levy, collect and allocate the tax as therein provided and to apply the revenues derived therefrom in accordance with the provisions of said resolution, shall be irrevocable until such bonds have been paid in full as to principal and interest, and shall not be subject to amendment in any manner which would impair the rights of the holders from time to time of such bonds or which would in any way jeopardize the prompt payment of principal thereof or interest thereon.

Acts 1957, No. 50, §1; Redesignated from R.S. 33:2727 pursuant to Acts 2011, No. 248, §4.