The authority is authorized to provide from time to time for the issuance of revenue
bonds and general obligation bonds of the authority to pay all or any part of the
cost of a water system or any additions, extensions, or improvements thereto. The
principal of and interest on any such bonds shall be payable from revenue received
under water supply agreements and the rates, fees, charges, or other revenues derived
from the operation of any water distribution system, without limitation as to the
rate or amount, except as provided by law, sufficient to pay the bond in the manner
provided in the bond by the authority, and may be secured by the full faith and credit
and taxing power of the authority and payable from ad valorem taxes levied and collected
on all taxable property within the boundaries of the district in the manner provided
in this article and the resolution authorizing such revenue bonds and all general
obligation bonds. Such revenue bonds may also be additionally secured by the pledge
of special assessments levied pursuant to this article. Any bonds which pledge the
full faith and credit and ad valorem taxing power of the authority shall be submitted
to the qualified voters within the boundaries of the district as required by the state
constitution. Said bonds may be authorized by resolution or resolutions of the authority,
which may be adopted at the same meeting at which they are introduced by a majority
of all the members thereof then in office and need not be published or posted. Said
bonds shall bear interest at a rate or rates without limitation, except as provided
by law, as determined by resolution of the authority, may be in one or more series,
may bear such date or dates and may mature at any time or times not exceeding 40 years
from their respective dates, may be payable in such medium of payment, at such place
or places within or without the state, may carry such registration privileges, may
be subject to such terms of prior redemption, with or without premium, may be executed
in such manner, may contain such terms, covenants, and conditions, and may be in such
form otherwise as such resolution or subsequent resolutions shall provide. Said bonds
may be sold or exchanged for refunding bonds, or delivered to contractors in payment
for any part of the work or improvements financed by such bonds, or delivered in exchange
for any properties, either real, personal, or mixed, including franchises, to be acquired
for such works or improvements, all at one time or in blocks from time to time, in
such manner as the authority in its discretion shall determine. Pending the preparation
of the definitive bonds, interim certificates or receipts or temporary bonds in such
form and with such provisions as the authority may determine may be issued to the
purchaser or purchasers of the bonds issued hereunder. Said bonds and such interim
certificates or receipts or temporary bonds shall be fully negotiable and shall be
and constitute negotiable instruments within the meaning of and for all purposes of
the law merchant and the uniform commercial code of the state or transferability may
be subject to registration. The proceeds of the sale of any such bonds shall be used
solely for the payment of the costs of the construction or acquisition of any water
system or the reconstruction or construction or acquisition or extensions, improvements,
and additions thereto, and shall be disbursed in such manner and under such restrictions,
as the authority may provide in the authorizing resolution. The authority may also
provide for the replacement of any bonds which become mutilated or are destroyed or
lost, upon proper indemnification. Revenue bonds and general obligation bonds may
be issued under the provisions of this act without obtaining the consent of any commission,
board, bureau, or agency of the state, and without any other proceeding or happening
of any other condition or thing than those proceedings, conditions, or things which
are specifically required by this article. A resolution providing for the issuance
of revenue bonds or general obligation bonds may also contain such limitations upon
the issuance of additional bonds secured on a parity with the bonds theretofore issued,
as the authority may deem proper, and such additional bonds shall be issued under
such authorizing resolution.
