§ 9. Bonds of the Authority.

(1)

(a)

The bonds of the authority issued pursuant to the provisions of this chapter shall be authorized by resolution of the members thereof and may be either term or serial bonds, shall bear such date or dates, mature at such time or times, not exceeding forty years from their respective dates, bear interest at such rate or rates, not exceeding six percent per annum, payable, semi-annually, be in such denominations, be in such form, either coupon or fully registered, shall cary [carry] such registration, exchangeability and interchangeability privileges, be payable in such medium of payment and at such place or places, be subject to such terms of redemption and be entitled to such priorities on the revenues, rates, fees, rentals, or other charges or receipts of the authority, as such resolution or any resolution subsequent thereto may provide. The bonds shall be executed either by manual or facsimile signature by such officers as the authority shall determine, provided that such bonds shall bear at least one signature which is manually executed thereon, and the coupons attached to such bonds shall bear the facsimile signature or signatures of such officer or officers as shall be designated by the authority and shall have the seal of the authority affixed, imprinted, reproduced or lithographed thereon, all as may be prescribed in such resolution or resolutions.

(b)

Prior to any sale of bonds the authority shall cause notice to be given by publication in some newspaper published in the county that the authority will receive bids for the purchase of the bonds at the office of the authority in the county. Said notice shall be published twice and the first publication shall be given not less than fifteen days prior to the date set for receiving the bids. Said notice shall specify the amount of the bonds offered for sale and shall state that the bids shall be sealed bids, shall give the schedule of the maturities of the proposed bonds and such other pertinent information as may be prescribed in the resolution authorizing the issuance of such bonds or nay [any] resolution subsequent thereto. Bidders may be invited to name the rate of interest which the bonds are to bear or the authority may name rates of interest and invite bids thereon. Notice in writing shall also be given to at least three recognized bond dealers in the state not less than ten days prior to the date set for receiving the bids.

(c)

All bonds and refunding bonds issued pursuant to this chapter shall be sold to the highest and best bidder at such public sale unless sold at a better price or yield basis within thirty days after failure to receive an acceptable bid at a duly advertised public sale, provided that the interest cost to the authority on such bonds shall not exceed six percent per annum, and provided further, that the authority shall have the right to reject all bids and cause a new notice to be given in like manner inviting other bids for such bonds. In determining the highest and best bidder for bonds offered for sale, the net interest cost to the authority as shown in standard bond tables shall govern; provided, that the determination of the authority as to the highest and best bidder shall be final. Pending the preparation of definitive bonds, interim certificates may be issued to the purchaser or purchasers of such bonds, and may contain such terms and conditions as the authority may determine.

(d)

The authority may require all bidders for said bonds to give security by bond or deposit to the authority to insure that the bidder shall comply with the terms of the bid, and any bidder who [whose] bid shall be accepted shall be liable to the authority for all damages on account of the nonperformance of the terms of such bid or to a forfeiture of the deposit required by the authority.

(2)

Any such resolution or resolutions authorizing any bonds hereunder may contain provisions which shall be part of the contract with the holders of such bonds, as to:

(a)

The pledging of all or any part of the revenues, rates, fees, rentals, or other charges or receipts of the authority derived by the authority.

(b)

The completion, improvement, operation, extension, maintenance, repair, lease or lease-purchase agreement of said system, and the duties of the authority and others, with reference thereto;

(c)

Limitations on the purposes to which the proceeds of the bonds, then or thereafter to be issued, or of any loan or grant by the United States or the state may be applied;

(d)

The fixing, charging, establishing and collecting of rates, fees, rentals, or other charges for use of the services and facilities of the authority or any part thereof;

(e)

The setting aside of reserves or sinking funds or repair and replacement funds and the regulation and disposition thereof;

(f)

Limitations on the issuance of additional bonds;

(g)

The terms and provisions of any lease-purchase agreement, deed or trust or indenture securing the bonds, or under which the same may be issued; and

(h)

Any other or additional agreements with the holders of the bonds which the authority may deem desirable and proper.

(3)

The authority may enter into any deeds of trust, indentures or other agreements with, or with any bank or trust company within or without the state, with the consent of said board, as security for such bonds, and may, under such agreements, assign and pledge all or any of the revenues, rates, fees, rentals, or other charges or receipts of the authority. Such deed of trust, indenture or other agreement, may contain such provisions as is customary in such instruments or, as the authority may authorize, including, but without limitation, provisions as to:

(a)

The completion, improvement, operation, extension, maintenance, repair and lease of, the buildings, equipment and facilities of the authority, and the duties of the authority and others, with reference thereto;

(b)

The application of funds and the safeguarding of funds on hand or on deposit;

(c)

The rights and remedies of the trustee and the holders of the bonds; and

(d)

The terms and provisions of the bonds or the resolutions authorizing the issuance of the same.

(4)

Any of the bonds issued pursuant to this chapter are, and are hereby declared to be, negotiable instruments, and shal [shall] have all the qualities and incidents of negotiable instruments under the law merchant and the negotiable instruments law of the state.