Ohio § 5531.10

§ 5531.10.

(A) As used in this chapter: (1) “ Bond proceedings ” means the resolution, order, trust agreement, indenture, lease, lease-purchase agreements,

and other agreements, amendments and supplements to the foregoing, or any one or more

or combination thereof, authorizing or providing for the terms and conditions applicable

to, or providing for the security or liquidity of, obligations issued pursuant to

this section, and the provisions contained in such obligations. (2) “ Bond service charges ” means principal, including mandatory sinking fund requirements for retirement of

obligations, and interest, and redemption premium, if any, required to be paid by

the state on obligations. (3) “ Bond service fund ” means the applicable fund and accounts therein created for and pledged to the payment

of bond service charges, which may be, or may be part of, the state infrastructure

bank revenue bond service fund created by division (R) of this section including all

moneys and investments, and earnings from investments, credited and to be credited

thereto. (4) “ Issuing authority ” means the treasurer of state, or the officer who by law performs the functions of

the treasurer of state. (5) “ Obligations ” means bonds, notes, or other evidence of obligation including interest coupons pertaining

thereto, issued pursuant to this section. (6) “ Pledged receipts ” means moneys accruing to the state from the lease, lease-purchase, sale, or other

disposition, or use, of qualified projects, and from the repayment, including interest,

of loans made from proceeds received from the sale of obligations;  accrued interest

received from the sale of obligations;  income from the investment of the special

funds;  any gifts, grants, donations, and pledges, and receipts therefrom, available

for the payment of bond service charges;  and any amounts in the state infrastructure

bank pledged to the payment of such charges.  If the amounts in the state infrastructure bank are insufficient for the payment

of such charges, “ pledged receipts ” also means moneys that are apportioned by the United States secretary of transportation

under United States Code, Title XXIII, as amended, or any successor legislation, or

under any other federal law relating to aid for highways, and that are to be received

as a grant by the state, to the extent the state is not prohibited by state or federal

law from using such moneys and the moneys are pledged to the payment of such bond

service charges. (7) “ Special funds ” or “ funds ” means, except where the context does not permit, the bond service fund, and any

other funds, including reserve funds, created under the bond proceedings, and the

state infrastructure bank revenue bond service fund created by division (R) of this

section to the extent provided in the bond proceedings, including all moneys and investments,

and earnings from investment, credited and to be credited thereto. (8) “ State infrastructure project ” means any public transportation project undertaken by the state, including, but

not limited to, all components of any such project, as described in division (A)(1) of section 5531.09 of the Revised Code . (9) “ District obligations ” means bonds, notes, or other evidence of obligation including interest coupons pertaining

thereto, issued to finance a qualified project by a transportation improvement district

created pursuant to section 5540.02 of the Revised Code , of which the principal, including mandatory sinking fund requirements for retirement

of such obligations, and interest and redemption premium, if any, are payable by the

department of transportation. (B) The issuing authority, after giving written notice to the director of budget and

management and upon the certification by the director of transportation to the issuing

authority of the amount of moneys or additional moneys needed either for state infrastructure

projects or to provide financial assistance for any of the purposes for which the

state infrastructure bank may be used under section 5531.09 of the Revised Code , or needed for capitalized interest, funding reserves, and 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, shall issue obligations of the state under this section in the required

amount.  The proceeds of such obligations, except for the portion to be deposited in special

funds, including reserve funds, as may be provided in the bond proceedings, shall

as provided in the bond proceedings be credited to the infrastructure bank obligations

fund of the state infrastructure bank created by section 5531.09 of the Revised Code and disbursed as provided in the bond proceedings for such obligations.  The issuing authority may appoint trustees, paying agents, transfer agents, and

authenticating 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 the issuing authority's judgment

to carry out this section.  The costs of such services are payable from funds of the state infrastructure bank

or as otherwise provided in the bond proceedings. (C) The holders or owners of such obligations shall have no right to have moneys raised

by taxation by the state of Ohio obligated or pledged, and moneys so raised shall

not be obligated or pledged, for the payment of bond service charges.  The right of such holders and owners to the payment of bond service charges is limited

to all or that portion of the pledged receipts and those special funds pledged thereto

pursuant to the bond proceedings for such obligations in accordance with this section,

and each such obligation shall bear on its face a statement to that effect.  Moneys received as repayment of loans made by the state infrastructure bank pursuant

to section 5531.09 of the Revised Code shall not be considered moneys raised by taxation by the state of Ohio regardless

of the source of the moneys. (D) Obligations shall be authorized by order of the issuing authority 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 twenty-five years from the date of issuance or, with

respect to obligations issued to finance a transportation facility pursuant to a public-private

agreement, not exceeding forty-five 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 are applicable 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 also shall provide, subject to the provisions of any other

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

may determine, of the pledged receipts and the applicable special fund or funds 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 pledged receipts and special funds so pledged and thereafter received by the

state immediately are 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 pledged

receipts and special funds 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. For purposes of this division, “transportation facility” and “public-private agreement”

have the same meanings as in section 5501.70 of the Revised Code . (E) The bond proceedings may contain additional provisions as to: (1) The redemption of obligations prior to maturity at the option of the issuing authority

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 same may be issued; (5) The 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, but subject to any special provisions of this section with respect to particular

funds or moneys, provided that any bank or trust company which acts as depository

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

such securities as required by the issuing authority; (6) Any or every provision of the bond proceedings being binding upon such 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; (7) Any provision that 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 relating to financial assistance for qualified projects

under section 5531.09 of the Revised Code . (F) The obligations may have the great seal of the state or a facsimile thereof affixed

thereto or printed thereon.  The obligations and any coupons pertaining to obligations shall be signed or bear

the facsimile signature of the issuing authority.  Any obligations or coupons may be executed by the person who, on the date of execution,

is the proper issuing authority although on the date of such bonds or coupons such

person was not the issuing authority.  In case the issuing authority whose signature or a facsimile of whose signature

appears on any such obligation or coupon ceases to be the issuing authority before

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

for all purposes as if the former issuing authority had remained the issuing authority

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. (G) All obligations 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 issuing

authority determines.  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. (H) Obligations may be sold at public sale or at private sale, as determined in the bond

proceedings. (I) Pending preparation of definitive obligations, the issuing authority may issue interim

receipts or certificates which shall be exchanged for such definitive obligations. (J) In the discretion of the issuing authority, obligations may be secured additionally

by a trust agreement or indenture between the issuing authority and a corporate trustee

which may be any trust company or bank possessing corporate trust powers that has

a place of business within or without the state.  Any such agreement or indenture may contain the order authorizing the issuance of

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

other provisions which 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 issuing authority 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 the 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 issuing authority agree upon, including

limitations, conditions, or qualifications relating to any of the foregoing. (K) Any holder of obligations or a trustee under the bond proceedings, except to the

extent that the holder's or trustee'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 issuing

authority and the director of transportation required by the bond proceedings or sections 5531.09 and 5531.10 of the Revised Code ;  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 issuing authority or the director of transportation

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

a receiver to receive and administer the pledged receipts and special funds, other

than those in the custody of the treasurer of state, which are pledged to the payment

of the bond service charges on such obligations or which 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 state or local governmental

entities, or agencies thereof, 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 facilities. Each duty of the issuing authority and the issuing authority's officers and employees,

and of each state or local governmental agency and its officers, members, or employees,

undertaken pursuant to the bond proceedings or any loan, loan guarantee, lease, lease-purchase

agreement, or other agreement made under authority of section 5531.09 of the Revised Code , and in every agreement by or with the issuing authority, is hereby established as

a duty of the issuing authority, 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 person who is at the time the issuing authority, or the issuing authority's officers

or employees, are not liable in their personal capacities on any obligations issued

by the issuing authority or any agreements of or with the issuing authority. (L) The issuing authority may authorize and issue obligations for the refunding, including

funding and retirement, and advance refunding with or without payment or redemption

prior to maturity, of any obligations previously issued by the issuing authority or

district obligations.  Such refunding obligations may be issued in amounts sufficient for payment of the

principal amount of the prior obligations or district obligations, any redemption

premiums thereon, principal maturities of any such obligations or district obligations

maturing prior to the redemption of the remaining obligations or district obligations

on a parity therewith, interest accrued or to accrue to the maturity dates or dates

of redemption of such obligations or district obligations, and any expenses incurred

or to be incurred in connection with such issuance and such refunding, funding, and

retirement.  Subject to the bond proceedings therefor, the portion of proceeds of the sale of

refunding obligations issued under this division to be applied to bond service charges

on the prior obligations or district obligations shall be credited to an appropriate

account held by the trustee for such prior or new obligations or to the appropriate

account in the bond service fund for such obligations or district obligations.  Obligations authorized under this division shall be deemed to be issued for those

purposes for which such prior obligations or district obligations were issued and

are subject to the provisions of this section pertaining to other obligations, except

as otherwise provided in this section.  The last maturity of obligations authorized under this division shall not be later

than the latest permitted maturity of the original securities issued for the original

purpose. (M) The authority to issue obligations under this section includes authority to issue

obligations in the form of bond anticipation notes and to renew the same from time

to time by the issuance of new notes.  The holders of such notes or interest coupons pertaining thereto shall have a right

to be paid solely from the pledged receipts and special funds that may be pledged

to the payment of the bonds anticipated, or from the proceeds of such bonds or renewal

notes, or both, as the issuing authority provides in the order authorizing such notes.  Such notes may be additionally secured by covenants of the issuing authority to

the effect that the issuing authority and the state will do such or all things necessary

for the issuance of such bonds or renewal notes in the appropriate amount, and apply

the proceeds thereof to the extent necessary, to make full payment of the principal

of and interest on such notes at the time or times contemplated, as provided in such

order.  For such purpose, the issuing authority may issue bonds or renewal notes in such

principal amount and upon such terms as may be necessary to provide funds to pay when

required the principal of and interest on such notes, notwithstanding any limitations

prescribed by or for purposes of this section.  Subject to this division, all provisions for and references to obligations in this

section are applicable to notes authorized under this division. The issuing authority in the bond proceedings authorizing the issuance of bond anticipation

notes shall set forth for such bonds an estimated interest rate and a schedule of

principal payments for such bonds and the annual maturity dates thereof. (N) 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 agency of the state with respect to investments by

them, and are also acceptable as security for the deposit of public moneys. (O) 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 issuing authority only in notes, bonds, or other obligations

of the United States, or of any agency or instrumentality of the United States, obligations

guaranteed as to principal and interest by the United States, obligations of this

state or any political subdivision of this state, and 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.  If the law or the instrument creating a trust pursuant to division (J) 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 as defined in division (A) of section 1111.01 of the Revised Code and consisting exclusively of any such securities.  The income from such investments shall be credited to such funds as the issuing

authority determines, and such investments may be sold at such times as the issuing

authority determines or authorizes. (P) 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.  Unless otherwise provided in any applicable bond proceedings, moneys to the credit

of or in the several special funds established pursuant to this section 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. (Q)(1) The issuing authority may pledge all, or such portion as the issuing authority determines,

of the pledged receipts 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 are controlling notwithstanding

any other provisions of law pertaining thereto. (2) An action taken under division (Q)(2) of this section does not limit the generality

of division (Q)(1) of this section, and is subject to division (C) of this section

and, if and to the extent otherwise applicable, Section 13 of Article VIII, Ohio Constitution .  The bond proceedings may contain a covenant that, in the event the pledged receipts

primarily pledged and required to be used for 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, are insufficient to make any

such payment in full when due, or to maintain any such reserve, the director of transportation

shall so notify the governor, and shall determine to what extent, if any, the payment

may be made or moneys may be restored to the reserves from lawfully available moneys

previously appropriated for that purpose to the department of transportation.  The covenant also may provide that if the payments are not made or the moneys are

not immediately and fully restored to the reserves from such moneys, the director

shall promptly submit to the governor and to the director of budget and management

a written request for either or both of the following: (a) That the next biennial budget submitted by the governor to the general assembly include

an amount to be appropriated from lawfully available moneys to the department for

the purpose of and sufficient for the payment in full of bond service charges previously

due and for the full replenishment of the reserves; (b) That the general assembly be requested to increase appropriations from lawfully available

moneys for the department in the current biennium sufficient for the purpose of and

for the payment in full of bond service charges previously due and to come due in

the biennium and for the full replenishment of the reserves. The director of transportation shall include with such requests a recommendation that

the payment of the bond service charges and the replenishment of the reserves be made

in the interest of maximizing the benefits of the state infrastructure bank.  Any such covenant shall not obligate or purport to obligate the state to pay the

bond service charges on such bonds or notes or to deposit moneys in a reserve established

for such payments other than from moneys that may be lawfully available and appropriated

for that purpose during the then-current biennium. (R) There is hereby created the state infrastructure bank revenue bond service fund,

which shall be in the custody of the treasurer of state but shall not be a part of

the state treasury.  All moneys received by or on account of the issuing authority or state agencies

and required by the applicable bond proceedings, consistent with this section, to

be deposited, transferred, or credited to the bond service fund, and all other moneys

transferred or allocated to or received for the purposes of the fund, shall be deposited

and 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.  The state infrastructure bank revenue 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. (S) The obligations issued pursuant to this section, the transfer thereof, and the income

therefrom, including any profit made on the sale thereof, shall at all times be free

from taxation within this state.