Ohio § 5528.54

§ 5528.54.

(A) 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 bond service charges on outstanding obligations,

all in accordance with Section 2m of Article VIII, Ohio Constitution , and sections 5528.51 to 5528.53 of the Revised Code , and so long as such obligations are outstanding there shall be levied and collected

excises, taxes, and other revenues in amounts sufficient to pay the bond service charges

on such obligations and costs relating to credit enhancement facilities. (B) Not more than two hundred twenty million dollars principal amount of obligations,

plus the principal amount of obligations that in any prior fiscal years could have

been, but were not issued within that two-hundred-twenty-million-dollar fiscal year

limit, may be issued in any fiscal year, and not more than one billion two hundred

million dollars principal amount of obligations may be outstanding at any one time,

all determined as provided in sections 5528.51 to 5528.53 of the Revised Code . (C) The state may participate in financing projects by grants, loans, or contributions

to local government entities. (D) Each issue of obligations shall be authorized by resolution of the commissioners.  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 for

determining the principal maturity or maturities, not exceeding the earlier of thirty

years from the date of issuance of the particular obligations or thirty 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 outside the state

of a place or places of payment of bond service charges. Sections 9.96 , 9.98 , 9.981 , 9.982 , and 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 highway capital improvement projects as

provided in Section 2m of Article VIII, Ohio Constitution .” (E) The proceeds of the obligations, except for any portion to be deposited into special

funds, or into escrow funds for the purpose of refunding outstanding obligations,

all as may be provided in the bond proceedings, shall be deposited into the highway

capital improvement fund established by section 5528.53 of the Revised Code . (F) The commissioners may appoint or provide for the appointment of 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 sections 5528.51 to 5528.53 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, in lieu of otherwise applicable provisions

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

of this section with respect to particular funds or moneys, and 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; (4) Any or every provision of the bond proceedings binding upon the commissioners 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 bond service 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 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 that will then no longer be outstanding for purposes of sections 5528.51 to 5528.56 of the Revised Code 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) Any other or additional agreements with the holders of the obligations relating to

any of the foregoing; (12) Such other provisions as the commissioners determine, including limitations, conditions,

or qualifications relating to any of the foregoing. (H) The great seal of the state or a facsimile of that seal may be affixed to or printed

on the obligations.  The obligations requiring signatures by the commissioners shall be signed by or

bear the facsimile signatures of two or more of the commissioners 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

that 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) The obligations are negotiable instruments and securities under Chapter 1308. of

the Revised Code, subject to the provisions of the bond proceedings as to registration.  Obligations may be issued in coupon or in fully registered form, or both, as the

commissioners 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 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 in the bond proceedings. (K) In the discretion of the commissioners, 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 its employees, and of each state agency and local

government 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 of the sinking fund, or its employees,

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, subject to the approval

of the workers' compensation board and the industrial commission, 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 only in notes, bonds, or other direct obligations

of the United States or of any agency or instrumentality thereof, 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 thereof, and in

repurchase agreements, including those issued by any fiduciary, secured by direct

obligations of the United States or an agency or instrumentality thereof, and in common

trust funds established in accordance with section 1109.20 of the Revised Code and consisting exclusively of direct obligations of the United States or of an agency

or instrumentality thereof, notwithstanding division (A)(4) of that section.  The income from investments shall be credited to such special funds or otherwise

as the commissioners 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, provided

that no such order is required for the payment from the bond service fund or other

special fund when due of bond service charges or required payments under credit enhancement

facilities. (P) The commissioners 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, shall,

so long as any obligations are outstanding in accordance with their terms, 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 bond service charges and for the establishment and maintenance

of any reserves and other requirements, including payment of financing costs, provided

for in the bond proceedings. (Q) The obligations, and the transfer of, and the interest, interest equivalent, and

other income and accreted amounts from, including any profit made on the sale, exchange,

or other disposition of, the obligations shall at all times be free from taxation,

direct or indirect, within the state. (R) This section applies only with respect to obligations issued and delivered prior

to September 30, 2000.