Ohio § 1555.08

§ 1555.08.

(A) Subject to the limitations provided in Section 15 of Article VIII, Ohio Constitution , the commissioners of the sinking fund, upon certification by the director of the

Ohio coal development office of the amount of moneys or additional moneys needed in

the coal research and development fund for the purpose of making grants or loans for

allowable costs, or needed for capitalized interest, for funding reserves, and for

paying costs and expenses incurred in connection with the issuance, carrying, securing,

paying, redeeming, or retirement of the obligations or any obligations refunded thereby,

including payment of costs and expenses relating to letters of credit, lines of credit,

insurance, put agreements, standby purchase agreements, indexing, marketing, remarketing

and administrative arrangements, interest swap or hedging agreements, and any other

credit enhancement, liquidity, remarketing, renewal, or refunding arrangements, all

of which are authorized by this section, or providing moneys for loan guarantees,

shall issue obligations of the state under this section in amounts authorized by the

general assembly;  provided that such obligations may be issued to the extent necessary

to satisfy the covenants in contracts of guarantee made under section 1555.05 of the Revised Code to issue obligations to meet such guarantees, notwithstanding limitations otherwise

applicable to the issuance of obligations under this section except the one-hundred-million-dollar

limitation provided in Section 15 of Article VIII, Ohio Constitution .  The proceeds of such obligations, except for the portion to be deposited in the

coal research and development bond service fund as may be provided in the bond proceedings,

shall as provided in the bond proceedings be deposited in the coal research and development

fund.  The commissioners of the sinking fund may appoint trustees, paying agents, and transfer

agents and may retain the services of financial advisors, accounting experts, and

attorneys, and retain or contract for the services of marketing, remarketing, indexing,

and administrative agents, other consultants, and independent contractors, including

printing services, as are necessary in their judgment to carry out this section. (B) The full faith and credit of the state of Ohio is hereby pledged to obligations issued

under this section.  The right of the holders and owners to payment of bond service charges is limited

to all or that portion of the moneys pledged thereto pursuant to the bond proceedings

in accordance with this section, and each such obligation shall bear on its face a

statement to that effect. (C) Obligations shall be authorized by resolution of the commissioners of the sinking

fund on request of the director of the Ohio coal development office as provided in section 1555.02 of the Revised Code and the bond proceedings shall provide for the purpose thereof and the principal

amount or amounts, and shall provide for or authorize the manner or agency for determining

the principal maturity or maturities, not exceeding forty years from the date of issuance,

the interest rate or rates or the maximum interest rate, the date of the obligations

and the dates of payment of interest thereon, their denomination, and the establishment

within or without the state of a place or places of payment of bond service charges. Sections 9.98 to 9.983 of the Revised Code apply to obligations issued under this section.  The purpose of such obligations may be stated in the bond proceedings in terms describing

the general purpose or purposes to be served.  The bond proceedings shall also provide, subject to the provisions of any other

applicable bond proceedings, for the pledge of all, or such part as the commissioners

of the sinking fund may determine, of the moneys credited to the coal research and

development bond service fund to the payment of bond service charges, which pledges

may be made either prior or subordinate to other expenses, claims, or payments and

may be made to secure the obligations on a parity with obligations theretofore or

thereafter issued, if and to the extent provided in the bond proceedings.  The moneys so pledged and thereafter received by the state are immediately subject

to the lien of such pledge without any physical delivery thereof or further act, and

the lien of any such pledges is valid and binding against all parties having claims

of any kind against the state or any governmental agency of the state, irrespective

of whether such parties have notice thereof, and shall create a perfected security

interest for all purposes of Chapter 1309. of the Revised Code, without the necessity

for separation or delivery of funds or for the filing or recording of the bond proceedings

by which such pledge is created or any certificate, statement, or other document with

respect thereto;  and the pledge of such moneys is effective and the money therefrom

and thereof may be applied to the purposes for which pledged without necessity for

any act of appropriation.  Every pledge, and every covenant and agreement made with respect thereto, made in

the bond proceedings may therein be extended to the benefit of the owners and holders

of obligations authorized by this section, and to any trustee therefor, for the further

security of the payment of the bond service charges. (D) The bond proceedings may contain additional provisions as to: (1) The redemption of obligations prior to maturity at the option of the commissioners

of the sinking fund at such price or prices and under such terms and conditions as

are provided in the bond proceedings; (2) Other terms of the obligations; (3) Limitations on the issuance of additional obligations; (4) The terms of any trust agreement or indenture securing the obligations or under which

the obligations may be issued; (5) The deposit, investment, and application of the coal research and development bond

service fund, and the safeguarding of moneys on hand or on deposit, without regard

to Chapter 131. or 135. of the Revised Code, but subject to any special provisions

of this chapter, with respect to particular moneys;  provided, that any bank or trust

company which acts as depository of any moneys in the fund may furnish such indemnifying

bonds or may pledge such securities as required by the commissioners of the sinking

fund; (6) Any other provision of the bond proceedings being binding upon the commissioners

of the sinking fund, or such other body or person as may from time to time have the

authority under law to take such actions as may be necessary to perform all or any

part of the duty required by such provision; (7) Any provision which may be made in a trust agreement or indenture; (8) Any other or additional agreements with the holders of the obligations, or the trustee

therefor, relating to the obligations or the security therefor, including the assignment

of mortgages or other security obtained or to be obtained for loans under this chapter. (E) The obligations may have the great seal of the state or a facsimile thereof affixed

thereto or printed thereon.  The obligations shall be signed by such members of the commissioners of the sinking

fund as are designated in the resolution authorizing the obligations or bear the facsimile

signatures of such members.  Any coupons attached to the obligations shall bear the facsimile signature of the

treasurer of state.  Any obligations may be executed by the persons who, on the date of execution, are

the commissioners although on the date of such bonds the persons were not the commissioners.  Any coupons may be executed by the person who, on the date of execution, is the

treasurer of state although on the date of such coupons the person was not the treasurer

of state.  In case any officer or commissioner whose signature or a facsimile of whose signature

appears on any such obligations or any coupons ceases to be such officer or commissioner

before delivery thereof, such signature or facsimile is nevertheless valid and sufficient

for all purposes as if the individual had remained such officer or commissioner until

such delivery;  and in case the seal to be affixed to obligations has been changed

after a facsimile of the seal has been imprinted on such obligations, such facsimile

seal shall continue to be sufficient as to such obligations and obligations issued

in substitution or exchange therefor. (F) All obligations except loan guarantees are negotiable instruments and securities

under Chapter 1308. of the Revised Code, subject to the provisions of the bond proceedings

as to registration.  The obligations may be issued in coupon or in registered form, or both, as the commissioners

of the sinking fund determine.  Provision may be made for the registration of any obligations with coupons attached

thereto as to principal alone or as to both principal and interest, their exchange

for obligations so registered, and for the conversion or reconversion into obligations

with coupons attached thereto of any obligations registered as to both principal and

interest, and for reasonable charges for such registration, exchange, conversion,

and reconversion. (G) Obligations may be sold at public sale or at private sale, as determined in the bond

proceedings. (H) Pending preparation of definitive obligations, the commissioners of the sinking fund

may issue interim receipts or certificates which shall be exchanged for such definitive

obligations. (I) In the discretion of the commissioners of the sinking fund, obligations may be secured

additionally by a trust agreement or indenture between the commissioners and a corporate

trustee, which may be any trust company or bank having a place of business within

the state.  Any such agreement or indenture may contain the resolution authorizing the issuance

of the obligations, any provisions that may be contained in any bond proceedings,

and other provisions that are customary or appropriate in an agreement or indenture

of such type, including, but not limited to: (1) Maintenance of each pledge, trust agreement, indenture, or other instrument comprising

part of the bond proceedings until the state has fully paid the bond service charges

on the obligations secured thereby, or provision therefor has been made; (2) In the event of default in any payments required to be made by the bond proceedings,

or any other agreement of the commissioners of the sinking fund made as a part of

the contract under which the obligations were issued, enforcement of such payments

or agreement by mandamus, the appointment of a receiver, suit in equity, action at

law, or any combination of the foregoing; (3) The rights and remedies of the holders of obligations and of the trustee, and provisions

for protecting and enforcing them, including limitations on rights of individual holders

of obligations; (4) The replacement of any obligations that become mutilated or are destroyed, lost,

or stolen; (5) Such other provisions as the trustee and the commissioners of the sinking fund agree

upon, including limitations, conditions, or qualifications relating to any of the

foregoing. (J) Any holder of obligations or a trustee under the bond proceedings, except to the

extent that the holder's rights are restricted by the bond proceedings, may by any

suitable form of legal proceedings protect and enforce any rights under the laws of

this state or granted by such bond proceedings.  Such rights include the right to compel the performance of all duties of the commissioners

of the sinking fund, the department of development, or the Ohio coal development office

required by this chapter and Chapter 1551. of the Revised Code or the bond proceedings;

 to enjoin unlawful activities;  and in the event of default with respect to the payment

of any bond service charges on any obligations or in the performance of any covenant

or agreement on the part of the commissioners, the department, or the office in the

bond proceedings, to apply to a court having jurisdiction of the cause to appoint

a receiver to receive and administer the moneys pledged, other than those in the custody

of the treasurer of state, that are pledged to the payment of the bond service charges

on such obligations or that are the subject of the covenant or agreement, with full

power to pay, and to provide for payment of bond service charges on, such obligations,

and with such powers, subject to the direction of the court, as are accorded receivers

in general equity cases, excluding any power to pledge additional revenues or receipts

or other income or moneys of the commissioners of the sinking fund or the state or

governmental agencies of the state to the payment of such principal and interest and

excluding the power to take possession of, mortgage, or cause the sale or otherwise

dispose of any project. Each duty of the commissioners of the sinking fund and their employees, and of each

governmental agency and its officers, members, or employees, undertaken pursuant to

the bond proceedings or any grant, loan, or loan guarantee agreement made under authority

of this chapter, and in every agreement by or with the commissioners, is hereby established

as a duty of the commissioners, and of each such officer, member, or employee having

authority to perform such duty, specifically enjoined by the law resulting from an

office, trust, or station within the meaning of section 2731.01 of the Revised Code . The persons who are at the time the commissioners of the sinking fund, or their employees,

are not liable in their personal capacities on any obligations issued by the commissioners

or any agreements of or with the commissioners. (K) Obligations issued under this section are lawful investments for banks, societies

for savings, savings and loan associations, deposit guarantee associations, trust

companies, trustees, fiduciaries, insurance companies, including domestic for life

and domestic not for life, trustees or other officers having charge of sinking and

bond retirement or other special funds of political subdivisions and taxing districts

of this state, the commissioners of the sinking fund of the state, the administrator

of workers' compensation, the state teachers retirement system, the public employees

retirement system, the school employees retirement system, and the Ohio police and

fire pension fund, notwithstanding any other provisions of the Revised Code or rules

adopted pursuant thereto by any governmental agency of the state with respect to investments

by them, and are also acceptable as security for the deposit of public moneys. (L) If the law or the instrument creating a trust pursuant to division (I) of this section

expressly permits investment in direct obligations of the United States or an agency

of the United States, unless expressly prohibited by the instrument, such moneys also

may be invested in no-front-end-load money market mutual funds consisting exclusively

of obligations of the United States or an agency of the United States and in repurchase

agreements, including those issued by the fiduciary itself, secured by obligations

of the United States or an agency of the United States;  and in collective investment

funds established in accordance with section 1111.14 of the Revised Code and consisting exclusively of any such securities, notwithstanding division (A)(1)(c)

of that section.  The income from such investments shall be credited to such funds as the commissioners

of the sinking fund determine, and such investments may be sold at such times as the

commissioners determine or authorize. (M) Provision may be made in the applicable bond proceedings for the establishment of

separate accounts in the bond service fund and for the application of such accounts

only to the specified bond service charges on obligations pertinent to such accounts

and bond service fund and for other accounts therein within the general purposes of

such fund.  Moneys to the credit of the bond service fund shall be disbursed on the order of

the treasurer of state;  provided, that no such order is required for the payment

from the bond service fund when due of bond service charges on obligations. (N) The commissioners of the sinking fund may pledge all, or such portion as they determine,

of the receipts of the bond service fund to the payment of bond service charges on

obligations issued under this section, and for the establishment and maintenance of

any reserves, as provided in the bond proceedings, and make other provisions therein

with respect to pledged receipts as authorized by this chapter, which provisions control

notwithstanding any other provisions of law pertaining thereto. (O) The commissioners of the sinking fund may covenant in the bond proceedings, and any

such covenants control notwithstanding any other provision of law, that the state

and applicable officers and governmental agencies of the state, including the general

assembly, so long as any obligations are outstanding, shall: (1) Maintain statutory authority for and cause to be levied and collected taxes so that

the pledged receipts are sufficient in amount to meet bond service charges, and the

establishment and maintenance of any reserves and other requirements provided for

in the bond proceedings, and, as necessary, to meet covenants contained in any loan

guarantees made under this chapter; (2) Take or permit no action, by statute or otherwise, that would impair the exemption

from federal income taxation of the interest on the obligations. (P) All moneys received by or on account of the state and required by the applicable

bond proceedings, consistent with this section, to be deposited, transferred, or credited

to the coal research and development bond service fund, and all other moneys transferred

or allocated to or received for the purposes of the fund, shall be credited to such

fund and to any separate accounts therein, subject to applicable provisions of the

bond proceedings, but without necessity for any act of appropriation.  During the period beginning with the date of the first issuance of obligations and

continuing during such time as any such obligations are outstanding, and so long as

moneys in the bond service fund are insufficient to pay all bond service charges on

such obligations becoming due in each year, a sufficient amount of moneys of the state

are committed and shall be paid to the bond service fund in each year for the purpose

of paying the bond service charges becoming due in that year without necessity for

further act of appropriation for such purpose.  The bond service fund is a trust fund and is hereby pledged to the payment of bond

service charges to the extent provided in the applicable bond proceedings, and payment

thereof from such fund shall be made or provided for by the treasurer of state in

accordance with such bond proceedings without necessity for any act of appropriation.  All investment earnings of the fund shall be credited to the fund. (Q) For purposes of establishing the limitations contained in Section 15 of Article VIII, Ohio Constitution , the “principal amount” refers to the aggregate of the offering price of the bonds

or notes.  “Principal amount” does not refer to the aggregate value at maturity or redemption

of the bonds or notes. (R) This section applies only with respect to obligations issued and delivered prior

to September 30, 2000.