§89. Submission of resolution authorizing qualified borrower to enter into loan or financing agreement

A. Prior to executing a loan or financing agreement, the board shall require submission of a resolution of the governing body of the qualified borrower authorizing the borrower to enter into such loan or financing agreement.

(1) Such resolution shall prescribe the form and details of the public purpose of the eligible transportation project, the cooperative endeavor agreement, the loan or financing agreement, including the terms, security for, manner of execution and repayment schedule, and such resolution may authorize an officer of such governing body to execute contracts relating to a credit enhancement device, indenture of trust, loan or pledge agreement, or any other agreement and authorize that officer to approve changes, additions, and deletions to such documents as, in the sole opinion of the officer, may be appropriate under the circumstances.

(2) Any such resolution shall include a statement as to the maximum principal amount of any such obligation, the maximum interest rate to be incurred or borne by said obligation or guaranteed by said obligation, the maximum redemption premium, if any, and the maximum term in years for such obligation, guarantee, or pledge.

B. Any evidence of indebtedness authorized pursuant to this Subpart shall bear a rate or rates of interest that shall not exceed the rate or rates set forth in the resolution authorizing and providing for the issuance thereof.

C. Any resolution authorizing an infrastructure bank loan or financing agreement pursuant to this Section shall be published once in the official journal of the qualified borrower incurring such loan or seeking to accept financial assistance. It shall not be necessary to publish exhibits to any such resolution, but such exhibits shall be made available for public inspection at the offices of the governing authority of the qualified borrower at reasonable times, and such fact shall be stated in the publication within the official journal. For a period of thirty days after the date of such publication, any person in interest may contest the legality of the resolution authorizing such evidence of indebtedness or other infrastructure bank loan and any provision thereof made for the security and payment thereof. After the thirty-day period, no one shall have any cause or right of action to contest the regularity, formality, legality, or effectiveness of the resolution and the provisions thereof or of the bonds, notes, or other evidence of indebtedness or other infrastructure bank loan or financing agreement, or the legality thereof, and all of the provisions of the resolutions and such evidence of indebtedness shall be conclusively presumed to be executed in accordance with applicable law or regulation, and no court shall have authority or jurisdiction to inquire into any such matter.

Acts 2015, No. 431, §2.