§ 35-12-8. Notes of the corporation. (a) The corporation shall have the power and is authorized to issue from time to time negotiable notes in one or more series, in such principal amounts as in the opinion of the corporation shall be necessary to provide sufficient funds for achieving its purposes, including:

(1) Payment of interest on notes of the corporation;

(2) Establishment of reserves to secure these notes; and

(3) Making of all other expenditures of the corporation incident to and necessary or convenient to carrying out its corporate purposes and powers.

(b) All notes issued by the corporation may be secured by the full faith and credit of the corporation, or may be payable solely out of revenues and receipts derived from the pledge or assignment of, grant of security interest in, or sale of, accounts owned by it or any part thereof, or upon investment earnings of any of these revenues, receipts, proceeds, or payments, or upon any other form of security available to the corporation for that purpose, all as may be designated in the proceedings of the corporation under which the notes shall be authorized to be issued. The notes may be executed and delivered by the corporation at any time or from time to time, may be in such form and denominations and of such tenor and maturities, and may be in bearer form or in registered form, as to principal and interest or as to principal alone, all as the corporation may determine.

(c) Notes and any renewals thereof may be payable in such installments and at such times, not exceeding six (6) months from the date of the original issue of the notes, as shall be determined by the corporation.

(d) Notes may be payable at such places, whether within or without the state, may bear interest at such rate or rates payable at such time or times and at such place or places and evidenced in such manner, and may contain such provisions not inconsistent herewith, all as shall be provided in the proceedings of the corporation under which they shall be authorized to be issued.

(e) There may be retained by provisions made in the proceedings under which any notes of the corporation are authorized to be issued an option to redeem all or any part thereof, at the prices and upon such notice, and on such further terms and conditions, as shall be set forth on the record of the proceedings and on the face of the notes.

(f) Moneys of the corporation, including without limitation revenues, receipts, proceeds, payments, or earnings listed in subsection (b), may be invested and reinvested in such obligations, securities, and other investments consistent with the purposes of this chapter as shall be specified in the resolutions under which the notes are authorized.

(g) Issuance by the corporation of one or more series of notes for one or more purposes shall not preclude it from issuing other notes for the same purpose or purposes, but the proceedings whereunder any subsequent notes may be issued shall recognize and protect a prior pledge made for a prior issue of notes unless in the proceedings authorizing the prior issue the right is reserved to issue subsequent notes on a parity with the prior issue.

(h) The members of the corporation shall not be subject to personal liability or accountability by reason of the issue of notes under this chapter.

(i) Notes may be issued under the provisions of this chapter without obtaining the consent of any department, division, commission, board, body, bureau, or agency of the state, and without any other proceedings, conditions, or things other than those proceedings, conditions, or things which are specifically required by this chapter and by the provisions of the resolution authorizing the issuance of the notes or the trust agreement securing the same.

(j) Whether or not the notes are of such form and character as to be negotiable instruments under the terms of the Uniform Commercial Code, title 6A, the notes are hereby made negotiable instruments within the meaning of and for all the purposes of the Uniform Commercial Code, subject only to the provisions of the notes for registration.

(k) If a member of the corporation whose signature appears on the notes or coupons shall cease to be a member before the delivery of the notes, the member's signature shall, nevertheless, be valid and sufficient for all purposes, as if the member had remained in office until the delivery.

History of Section. (P.L. 1982, ch. 324, § 1.)