S.D. Codified Laws § 46A-1-50

Current through the 2024 Legislative Session

Section 46A-1-50 - Financing agreements-Provisions to provide for and secure repayment of bonds and loan

Any financing agreement under § 46A-1-49 shall provide for repayment of the loan through payments sufficient to pay the principal of, premium if any, and interest on the bonds issued in connection with the agreement and, in order to provide for and secure the repayment of the bonds and the amounts owing under the financing agreement, may contain provisions requiring, among other things, any one or more parties to:

(1) Incur a general obligation and to exercise its power to tax or levy special assessments;

(2) Incur a limited obligation payable only from designated sources;

(3) Pledge, assign, or mortgage any income and revenue (subject to the prior payment of the operation and maintenance expenses of the project) derived from the project; any fund, property or obligation related to such project; the loan proceeds themselves; any grant or loan received or to be received by a party; and the project, including real estate;

(4) Create and maintain a reserve fund or funds through the levy of taxes or other suitable means within a party's power, for prevention of default;

(5) Properly manage the project for the protection of the bondholders as provided in subdivisions 46A-1-38(2), (3), (4), and (8);

(6) Refrain from creating or causing to be created any debt, lien, mortgage, pledge, assignment, encumbrance, or other charge upon any income, revenues or property;

(7) Refrain from conveying or otherwise alienating project facilities or the real estate upon which the project is located or any property that is pledged or assigned;

(8) Deposit with a trustee or trustees all or any part of the proceeds from the sale of the bonds or all or any part of the income and revenue pledged or assigned for the benefit of the bondholder; and

(9) Perform any and all acts and do any and all things within the party's legal capacity as may be necessary, convenient, or desirable in order to provide for and secure the repayment of the bonds and the amounts owing under the financing agreement, notwithstanding that such terms are not enumerated herein.

SDCL 46A-1-50

SL 1980, ch 310, § 3; SL 1981 (2d SS), ch 1, § 21; SDCL Supp, § 46-17A-46.2.