(1) The authority may issue and sell electric transmission bonds, payable solely from the electric transmission bonding fund, in compliance with this article 42 for the purpose of entering into a project when the authority determines that the project is needed. This article 42 is, without reference to any other law, full authority for the issuance and sale of bonds. Bonds have all the qualities of investment securities under the "Uniform Commercial Code", title 4, and shall not be deemed invalid for any irregularity or defect or be contestable in the hands of bona fide purchasers or holders of the bonds for value. (2) (a) Bonds may be executed and delivered by the authority at such times; may be in such form and denominations and include such terms and maturities; may be subject to optional or mandatory redemption prior to maturity with or without a premium; may be in fully registered form or bearer form registrable as to principal or interest or both; may bear such conversion privileges; may be payable in such installments and at such times not exceeding thirty years; may be payable at such place or places whether within or without the state; may bear interest at such rate or rates per annum, which may be fixed or vary according to index, procedure, or formula or as determined by the authority or its agents, without regard to any interest rate limitation appearing in any other law of the state; may be subject to purchase at the option of the holder or the authority; may be evidenced in such manner; may be executed by such officers of the authority, including the use of one or more facsimile signatures so long as at least one manual signature appears on the bonds, which may be either of an officer of the authority or of an agent authenticating the same; may be in the form of coupon bonds that have attached interest coupons bearing a manual or facsimile signature of an officer of the authority; and may contain such provisions not inconsistent with this article 42, all as provided in the resolution of the authority under which the bonds are authorized to be issued or as provided in a trust indenture between the authority and any commercial bank or trust company having full trust powers. (b) (I) Bonds may be sold at public or private sale at such price or prices, in such manner, and at such times as determined by the board, and the board may pay all fees, expenses, and commissions that it deems necessary or advantageous in connection with the sale of bonds. (II) The board may delegate to an officer or agent of the board the power to: (A) Fix the date of sale of bonds; (B) Receive bids or proposals; (C) Award and sell bonds; (D) Fix interest rates; and (E) Take all other action necessary to sell and deliver bonds. (III) The authority may refund any outstanding bonds pursuant to article 56 of title 11. (IV) All bonds and any interest coupons applicable to the bonds are declared to be negotiable instruments. (c) Bonds are exempt from taxation by the state and any county, city and county, municipality, or other political subdivision of the state. (d) Public entities, as defined in section 24-75-601 (1), may invest public money in bonds so long as the bonds satisfy the investment requirements established in part 6 of article 75 of title 24. (e) Neither a member of the board nor an employee of the authority nor any person executing bonds is liable personally on the bonds or subject to any personal liability by reason of the issuance of the bonds. (3) (a) (I) The electric transmission bonding fund is created in the authority. The bonding fund consists of: (A) Revenue received by the authority from operating or leasing eligible facilities; (B) Fees and service charges collected; (C) Bond proceeds; (D) Money from payments of principal and interest on loans if the authority has provided financing for eligible facilities; and (E) All interest and income derived from the deposit and investment of money in the bonding fund. (II) The authority may create separate accounts within the bonding fund in connection with any issuance of bonds and may deposit in the separate accounts revenue received by the authority from the financing or leasing of eligible facilities. Any separate account shall be held by a trustee acting under a trust indenture relating to the bonds connected to the account. Interest and income derived from the deposit and investment of money in a separate account shall be credited to the account. (III) Balances in the bonding fund at the end of any state fiscal year remain in the bonding fund, except as otherwise provided in this section. (b) (I) Money in the bonding fund shall be deposited in a bank designated by the authority in an account or accounts as the authority may establish. Money in accounts shall be withdrawn on the order of persons the authority may authorize. All deposits of money shall be secured in such manner as the authority may determine. (II) All funds and activities of the authority, including its receipts, disbursements, contracts, leases, funds, investments, and any other records and papers relating to its financial standing, are subject to annual audit, at the authority's expense, in accordance with section 29-1- 603. (c) Money in the bonding fund is pledged for the payment of principal and interest on bonds issued pursuant to this article 42. Money in any separate account may be pledged solely to payment of the bonds for which the separate account was created. The authority may expend money in the bonding fund or a separate account for the purpose of paying debt service, including redemption premiums, on bonds and expenses incurred in the issuance, payment, and administration of the bonds. (4) Twice annually the authority shall estimate the amounts needed to make debt service and other payments on bonds during the next twelve months from the bonding fund and from any separate account created in the bonding fund plus the amount that may be needed for any required reserves or other requirements as may be set forth in the trust indenture related to the bonds. The authority shall transfer to the electric transmission authority operational fund any balance in the bonding fund or any separate account created in the bonding fund above the estimated amounts. Payments for administrative costs shall be deposited in the operational fund. (5) Bonds are payable solely from the bonding fund or from any separate account created within the bonding fund or, with the approval of the bondholders, such other special funds as may be provided by law, and the bonds do not create an obligation or indebtedness of the state within the meaning of any constitutional provision or law. A breach of a contractual obligation incurred pursuant to this article 42 does not impose a pecuniary liability or a charge upon the general credit or taxing power of the state. (6) The state pledges that the bonding fund, including any separate account within the bonding fund, shall be used only for the purposes specified in this section and is pledged first to repay bonds issued pursuant to this article 42. The state further pledges that any law requiring the deposit of revenue in the bonding fund or authorizing expenditures from the bonding fund shall not be amended or repealed or otherwise modified so as to impair the bonds to which the bonding fund is dedicated as provided in this section.
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