Section 17: Bonds; issuance authorized; limitations; terms; requirements; conditions; rules and regulations for assistance to private companies; disbursement of proceeds
Section 17. An 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 by purchase or otherwise, plan, design, construct, reconstruct, alter, recondition and improve for lease to any eligible private company, mass transportation facilities and equipment.
(2) To pay any capital costs of the authority, whether or not bonds for any such purchase may also be issued under clause (1).
Bonds may be issued for any costs of the foregoing incurred either before or after the issue of the bonds. Bonds issued under either of the foregoing clauses may be issued in sufficient amount to pay the expenses of issues and to establish such reserves as may be required by any applicable trust agreement or bond resolution. The aggregate principal amount of bonds for all authorities established under this chapter which may be outstanding at any one time under this section shall not exceed the sum of twenty million dollars; provided, however, that no such bonds may be issued under this section without the prior approval of the secretary. Seventy-five percent of the bond proceeds shall be extended only for projects for which the authority has agreements with the federal government, or other sources, including but not limited to, other governmental jurisdictions or private entities providing for matching grants or for expenditures which are preliminary to the obtaining of federal grants.
The secretary shall make, and from time to time revise, guidelines for the allocation and distribution of the principal amount of said bonds, or any part thereof, among the authorities established by this act.
The secretaries of the executive offices for administration and finance and of transportation and construction shall adopt rules and regulations governing the procedures by which private companies shall apply for assistance pursuant to any agreements financed from proceeds of bonds or bond anticipation notes as provided in paragraph (e) of section five and governing the use of such assistance. Such rules and regulations shall include (a) requiring any private company which receives such assistance to agree to limit its profits and its expenses for salaries and overhead so as to make available as much of its earnings as possible for repayment to the authority of such assistance; (b) requiring such repayment; (c) enabling the authority and the secretary of the executive office for administration and finance to examine and audit the books and records of such company for the purpose of establishing and enforcing such limitation and repayment; and (d) requiring the authority to transfer to the commonwealth, the commonwealth's share of such repayment.
The bonds of each issue shall be dated, shall bear interest at such rates, shall mature at such time or times not exceeding forty 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 act shall have and are hereby declared to have all the qualities and incidents of negotiable instruments under the Uniform Commercial Code. The bonds may be issued in coupon or in registered form, or both, as the authority may determine, and provisions may be made for the registration of any coupon bonds as to principal alone, and also as to both principal and interest, for the reconversion into coupon bonds of any bonds registered as to both principal and interest and for the exchange of coupon and registered bonds. 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 interest 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.
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.