Skip to Content
The 192nd General Court of the Commonwealth of Massachusetts

Section 13: Authorization for authority to issue bonds; purposes of bonds

Section 13. (a) The authority is hereby authorized to provide by resolution at one time or from time to time for the issue of bonds of the authority for any one or more of the following purposes:

(1) To acquire, plan, design, construct, reconstruct, alter, recondition and improve mass transportation facilities and equipment for express service for use by or under contract with the authority;

(2) Subject to the limitations contained in subsection (f) of section 3, to finance agreements with railroads to provide passenger service to and from Boston;

(3)(i) To acquire, plan, design, construct, reconstruct, alter, recondition and improve mass transportation facilities and equipment for local service for use by or under contract with the authority and (ii) to provide relief to any private company, whether by agreement or arbitration award, under the provisions of section 22;

(4) To pay any capital costs of the authority, whether or not bonds for any such purpose may also be issued under any other provision of this section.

Bonds may be issued for any costs of the foregoing incurred either before or after the issue of the bonds. Bonds issued under any of the foregoing clauses may be issued in sufficient amount to pay the expenses of issue and to establish such reserves as may be required by any applicable trust agreement or bond resolution. No bonds of the authority shall be sold by the authority unless prior to such sale the authority shall have consulted with the state finance and governance board established under section 97 of chapter 6 as to the timing and terms thereof.

(b) Each application or reapplication of the authority for grants from the federal government, whether directly or through an intermediary, shall be filed with the joint legislative committee on transportation at the same time as such application is filed with the federal government. Upon the filing of each such application with said committee, the authority shall certify to said committee such information regarding the proposed grant, including without limitation itemization of proposed expenditures and of financing sources, as shall be prescribed from time to time by said committee.

(c) Bonds issued by the authority may be general obligations of the authority or may be secured by a pledge or conveyance of any revenues, receipts or other assets or funds of the authority, or any combination of the foregoing, all as may be determined by the authority. In connection with the issuance of bonds, the authority may enter into additional security, insurance or other forms of credit enhancement which may be secured on a parity or subordinate basis with the bonds. The bonds of each issue shall be dated, shall bear interest at such rates, shall mature at such time or times not exceeding 40 years from their date or dates as may be determined by the authority, and may be made redeemable before maturity at the option of the authority, at such price or prices and under such terms and conditions as may be fixed by the authority prior to the issue of the bonds. The authority shall determine the form of the bonds, including any interest coupons to be attached thereto, and the manner of execution of the bonds, and shall fix the denomination or denominations of the bonds and the place or places of payment of principal and interest, which may be at any bank or trust company within or without the commonwealth. In case any officer whose signature or a facsimile of whose signature shall appear on any bonds or coupons shall cease to be such officer before the delivery of such bonds, such signature or such facsimile shall nevertheless be valid and sufficient for all purposes, the same as if he had remained in office until such delivery. All bonds issued under the provisions of this chapter shall have and are hereby declared to have all the qualities and incidents of negotiable instruments under chapter 106. The bonds may be issued in coupon or in registered form, or both, as the authority may determine, and provision may be made for the registration of any coupon bonds as to principal alone, and also as to both principal and interest and for the exchange of coupon or registered bonds. Subject to the requirement of consultation with the finance advisory board established by section 97 of chapter 6, the authority may sell such bonds in such manner, either at public or private sale, and for such price as it may determine to be for the best interests of the authority. The proceeds of such bonds shall be disbursed in such manner and under such restrictions, if any, as the authority may provide. The authority may also provide for the replacement of any bonds which shall become mutilated or shall be destroyed or lost. Bonds and bond anticipation notes may be issued under the provisions of this chapter without obtaining the consent of any department, division, commission, board, bureau or agency of the commonwealth, and without any other proceedings or the happening of any other conditions or things than those proceedings, conditions or things which are specifically required by this chapter. Provisions of this chapter relating to the preparation, adoption or approval of plans, programs, projects, budgets and expenditures shall not affect the issue of bonds and notes and the bonds and notes may be issued either before or after such preparation, adoption or approval.

(d) In addition to the foregoing the authority is hereby authorized to provide by resolution for the issue of refunding bonds of the authority for the purpose of refunding any principal, interest and sinking fund requirements on any bond issued by the authority or on any indebtedness assumed by the authority pursuant to law, including payment of any redemption premium thereon, any interest accrued, or to accrue to the date of payment or redemption of the bonds or indebtedness being refunded, and any expenses of issuing and refunding bonds. Such refunding bonds may be issued at such time prior to the payment or redemption of the bonds or indebtedness being refunded as the authority may determine to be in the best interests of the authority. The issue of such bonds, the maturities and other details thereof, and the duties of the authority in respect to the same, shall be governed by the provisions of this chapter in so far as the same may be applicable. While any bonds or notes issued or assumed by the authority remain outstanding, the powers, duties and existence of the authority and the provisions for payments by the commonwealth to the authority shall not be diminished or impaired in any way that will affect adversely the interests and rights of the holders of such bonds or notes. Bonds issued by the authority after July 1, 2000 shall receive no guaranty, pledge, or support from the commonwealth other than that specified in section 8 of this chapter and section 35T of chapter 10, unless specifically authorized by legislation enacted after July 1, 2000.