Ohio § 1557.03

§ 1557.03.

(A)(1) The commissioners of the sinking fund are authorized to issue and sell, as provided

in this section and in amounts from time to time authorized by the general assembly,

general obligations of this state for the purpose of financing or assisting in the

financing of the costs of projects.  The full faith and credit, revenues, and taxing power of the state are and shall

be pledged to the timely payment of debt charges on outstanding obligations, all in

accordance with Section 2l of Article VIII, Ohio Constitution , and Chapter 1557. of the Revised Code, excluding from that pledge fees, excises,

or taxes relating to the registration, operation, or use of vehicles on the public

highways, or to fuels used for propelling those vehicles, and so long as such obligations

are outstanding there shall be levied and collected excises and taxes, excluding those

excepted above, in amount sufficient to pay the debt charges on such obligations and

financing costs relating to credit enhancement facilities. (2) For meetings of the commissioners of the sinking fund pertaining to the obligations

under this chapter, each of the commissioners may designate an employee or officer

of that commissioner's office to attend meetings when that commissioner is absent

for any reason, and such designee, when present, shall be counted in determining whether

a quorum is present at any meeting and may vote and participate in all proceedings

and actions of the commissioners at that meeting pertaining to the obligations, provided,

that such designee shall not execute or cause a facsimile of the designee's signature

to be placed on any obligation, or execute any trust agreement or indenture of the

commissioners.  Such designation shall be in writing, executed by the designating member, and shall

be filed with the secretary of the commissioners and such designation may be changed

from time to time by a similar written designation. (B) The total principal amount of obligations outstanding at any one time shall not exceed

two hundred million dollars, and not more than fifty million dollars in principal

amount of obligations to pay costs of projects may be issued in any fiscal year, all

determined as provided in Chapter 1557. of the Revised Code. (C) The state may participate by grants or contributions in financing projects under

this section made by local government entities.  Of the proceeds of the first two hundred million dollars principal amount in obligations

issued under this section to pay costs of projects, at least twenty per cent shall

be allocated in accordance with section 1557.06 of the Revised Code to grants or contributions to local government entities.  The director of budget and management shall establish and maintain records in such

manner as to show that the proceeds credited to the Ohio parks and natural resources

fund have been expended for the purposes and in accordance with the limitations set

forth herein. (D) Each issue of obligations shall be authorized by resolution of the commissioners

of the sinking fund.  The bond proceedings shall provide for the principal amount or maximum principal

amount of obligations of an issue, and shall provide for or authorize the manner or

agency for determining the principal maturity or maturities, not exceeding the earlier

of twenty-five years from the date the debt represented by the particular obligations

was originally contracted, the interest rate or rates, the date of and the dates of

payment of interest on the obligations, their denominations, and the establishment

within or without the state of a place or places of payment of debt charges. Sections 9.96 and 9.98 to 9.983 of the Revised Code are applicable to the obligations.  The purpose of the obligations may be stated in the bond proceedings as “financing

or assisting in the financing of projects as provided in Section 2l of Article VIII, Ohio Constitution .” (E) The proceeds of the obligations, except for any portion to be deposited in special

funds, or in escrow funds for the purpose of refunding outstanding obligations, all

as may be provided in the bond proceedings, shall be deposited in the Ohio parks and

natural resources fund established by section 1557.02 of the Revised Code . (F) The commissioners of the sinking fund may appoint paying agents, bond registrars,

securities depositories, and transfer agents, and may retain the services of financial

advisers and accounting experts, 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 the judgment of the

commissioners to carry out this chapter of the Revised Code.  Financing costs are payable, as provided in the bond proceedings, from the proceeds

of the obligations, from special funds, or from other moneys available for the purpose. (G) The bond proceedings, including any trust agreement, may contain additional provisions

customary or appropriate to the financing or to the obligations or to particular obligations,

including, but not limited to: (1) The redemption of obligations prior to maturity at the option of the state or of

the holder or upon the occurrence of certain conditions at such price or prices and

under such terms and conditions as are provided in the bond proceedings; (2) The form of and other terms of the obligations; (3) The establishment, deposit, investment, and application of special funds, and the

safeguarding of moneys on hand or on deposit, without regard to Chapter 131. or 135.

of the Revised Code, provided that any bank or trust company that acts as a depository

of any moneys in special funds may furnish such indemnifying bonds or may pledge such

securities as required by the commissioners of the sinking fund; (4) Any or every provision of the bond proceedings binding upon the commissioners of

the sinking fund and such state agency or local government entities, officer, board,

commission, authority, agency, department, or other person or body 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; (5) The maintenance of each pledge, any trust agreement, or other instrument composing

part of the bond proceedings until the state has fully paid or provided for the payment

of the debt charges on the obligations or met other stated conditions; (6) 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 part of a

contract under which the obligations were issued or secured, the enforcement of such

payments or agreements by mandamus, suit in equity, action at law, or any combination

of the foregoing; (7) The rights and remedies of the holders of obligations and of the trustee under any

trust agreement, and provisions for protecting and enforcing them, including limitations

on rights of individual holders of obligations; (8) The replacement of any obligations that become mutilated or are destroyed, lost,

or stolen; (9) Provision for the funding, refunding, or advance refunding or other provision for

payment of obligations which will then no longer be or be deemed to be outstanding

for purposes of this section or of the bond proceedings; (10) Any provision that may be made in bond proceedings or a trust agreement, including

provision for amendment of the bond proceedings; (11) Such other provisions as the commissioners of the sinking fund determine, including

limitations, conditions, or qualifications relating to any of the foregoing; (12) Any other or additional agreements with the holders of the obligations relating to

the obligations or the security for the obligations. (H) The great seal of the state or a facsimile of that seal may be affixed to or printed

on the obligations.  The obligations shall be signed by or bear the facsimile signatures of two or more

of the commissioners of the sinking fund as provided in the bond proceedings.  Any obligations may be signed by the person who, on the date of execution, is the

authorized signer although on the date of such obligations such person was not a commissioner.  In case the individual whose signature or a facsimile of whose signature appears

on any obligation ceases to be a commissioner before delivery of the obligation, such

signature or facsimile is nevertheless valid and sufficient for all purposes as if

the individual had remained the member until such delivery, and in case the seal to

be affixed to or printed on obligations has been changed after the seal has been affixed

to or a facsimile of the seal has been printed on the obligations, that seal or facsimile

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

in substitution or exchange therefor. (I) Obligations may be issued in coupon or in fully 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

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 of any obligations registered as to both principal and interest, and for

reasonable charges for such registration, exchange, conversion, and reconversion.  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. (J) Obligations may be sold at public sale or at private sale, and at such price at,

above, or below par, as determined by the commissioners of the sinking fund in the

bond proceedings. (K) In the discretion of the commissioners of the sinking fund, obligations may be secured

additionally by a trust agreement between the state and a corporate trustee which

may be any trust company or bank having a place of business within the state.  Any trust agreement may contain the resolution authorizing the issuance of the obligations,

any provisions that may be contained in the bond proceedings, and other provisions

that are customary or appropriate in an agreement of the type. (L) Except to the extent that their rights are restricted by the bond proceedings, any

holder of obligations, or a trustee under 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 the bond proceedings.  Such rights include the right to compel the performance of all duties of the commissioners

and the state.  Each duty of the commissioners and employees of the commissioners, and of each state

agency and local public entity and its officers, members, or employees, undertaken

pursuant to the bond proceedings, is hereby established as a duty of the commissioners,

and of each such agency, local government entity, officer, member, or employee having

authority to perform such duty, specifically enjoined by the law and 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, or employees of the commissioners,

are not liable in their personal capacities on any obligations or any agreements of

or with the commissioners relating to obligations or under the bond proceedings. (M) Obligations 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, 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 state agency with respect

to investments by them, and are also acceptable as security for the deposit of public

moneys. (N) Unless otherwise provided in any applicable bond proceedings, moneys to the credit

of or in the special funds established by or pursuant to this section may be invested

by or on behalf of the commissioners of the sinking fund only in notes, bonds, or

other direct obligations of the United States or of any agency or instrumentality

of the United States, in obligations of this state or any political subdivision of

this state, in certificates of deposit of any national bank located in this state

and any bank, as defined in section 1101.01 of the Revised Code , subject to inspection by the superintendent of financial institutions, in the Ohio

subdivision's fund established pursuant to section 135.45 of the Revised Code , in no-front-end-load money market mutual funds consisting exclusively of direct

obligations of the United States or of an agency or instrumentality of the United

States, and in repurchase agreements, including those issued by any fiduciary, secured

by direct obligations of the United States or an agency or instrumentality of the

United States, and in collective investment funds established in accordance with section 1111.14 of the Revised Code and consisting exclusively of direct obligations of the United States or of an agency

or instrumentality of the United States, notwithstanding division (A)(1)(c) of that

section.  The income from investments shall be credited to such special funds or otherwise

as the commissioners of the sinking fund determine in the bond proceedings, and the

investments may be sold or exchanged at such times as the commissioners determine

or authorize. (O) Unless otherwise provided in any applicable bond proceedings, moneys to the credit

of or in a special fund shall be disbursed on the order of the commissioners of the

sinking fund, provided that no such order is required for the payment from the bond

service fund or other special fund when due of debt charges or required payments under

credit enhancement facilities. (P) The commissioners of the sinking fund may covenant in the bond proceedings, and any

such covenants shall be controlling notwithstanding any other provision of law, that

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

assembly, so long as any obligations are outstanding in accordance with their terms,

shall maintain statutory authority for and cause to be charged and collected taxes,

excises, and other receipts of the state so that the receipts to the bond service

fund shall be sufficient in amounts to meet debt charges and for the establishment

and maintenance of any reserves and other requirements, including payment of the costs

of credit enhancement facilities, provided for in the bond proceedings. (Q) The obligations, the transfer thereof, and the interest, other accreted amounts,

and other income therefrom, including any profit made on the sale thereof, at all

times shall be free from taxation, direct or indirect, within the state. (R) This section applies only with respect to obligations issued and delivered before

September 30, 2000.