La. R.S. 47:338.87 — Ascension Parish School Board, use of sales and use tax proceeds; issuance of bonds

A. In the event the parish school board of the Parish of Ascension, State of Louisiana (herein referred to as "Ascension Parish School Board" or "board") should find and determine, after such investigation and study as it deems appropriate, that the anticipated avails or proceeds of the one per cent sales and use tax levied pursuant to R.S. 47:338.84 will be in excess of its requirements for the purposes for which the tax is authorized to be levied by R.S. 47:338.84, the board may allocate an amount not in excess of twenty-five per cent of the future avails or proceeds of said tax to be dedicated and expended for capital improvements, including the acquisition of lands for building sites and playgrounds, purchasing, erecting and improving school buildings and related facilities, and acquiring the necessary equipment and furnishings therefor, title to which shall be in the public. The formula or method of allocating the avails or proceeds of the tax for capital improvements shall be set forth in the question or proposition which must be submitted to the qualified electors of the parish of Ascension prior to the allocation of a portion of such avails or proceeds for capital improvements, and the proportion of the tax avails, not in excess of twenty-five per cent thereof, to be so allocated shall be stated in the question or proposition. In addition, said question or proposition may also include provisions authorizing the issuance of bonds in the manner and within the limitations hereinafter set forth.
B.(1) Subject to the approval at an election as hereinbefore required, the Ascension Parish School Board may fund the tax revenues into negotiable bonds in the manner herein provided. In order to obtain funds for the purpose of paying all or any part of the cost of any capital improvement on which the tax revenues may be expended, the board may issue bonds payable solely from an irrevocable pledge and dedication of the avails or proceeds of the tax, subject only to the prior payment of the costs and expenses of administration and collection of the tax.
(2) The Ascension Parish School Board shall, by resolution fix the form and terms of the bonds and the rate or rates of interest, payable annually or semiannually, within the maximum rate prescribed herein. The bonds shall be issued in the name of the parish school board of the parish of Ascension, State of Louisiana, and shall be payable in such medium and at such place or places within or without the state as may be fixed by such resolution. The bonds shall be serial coupon bonds, shall be payable in annual installments with maturities beginning not more than three years after the date of the bonds, and shall run for a period not to exceed twenty-five years from the date thereof. No bonds issued hereunder shall bear interest at a rate exceeding six per centum per annum, or be sold for less than par. All bonds shall be signed by the president and the secretary of the board, under its official seal, and the coupons shall be signed by the facsimile signatures of such officials. The delivery of any bonds or coupons so executed at any time thereafter shall be valid, although, before the date of delivery, any person or persons signing the bonds or coupons shall cease to hold office.
(3) Bonds issued hereunder shall constitute a borrowing solely upon the credit of the sales and use tax revenues received or to be received by the board, and shall not constitute an indebtedness or pledge of the general credit of the parish or the board within the meaning of any constitutional or statutory provision relating to the incurring of indebtedness, and the bonds shall contain a recital to that effect. Such bonds shall be in coupon form, but may be made registrable as to principal only if so provided in the resolution authorizing the issuance thereof. They may be made redeemable in advance of maturity at the option of the board at such premium or premiums not greater than five per centum of the principal amount of the bonds as the board may determine.
(4) Bonds issued hereunder shall be payable solely from and secured by an irrevocable pledge and dedication of such part of the sales tax revenues as may be pledged thereto in the authorizing resolution. Any holder of any of such bonds, or coupons attached thereto, may either at law or in equity, by suit, action, mandamus or other proceedings, enforce and compel performance of all duties required to be performed by the board as a result of issuing the bonds, and may similarly enforce the provisions of the ordinance imposing the tax and the resolution and proceedings authorizing the issuance of such bonds.
(5) The board may in any resolution authorizing such bonds provide for the respective priorities of its separate blocks, series or issues of bonds issued hereunder, and may provide for the issuance of additional bonds in the future on a parity therewith pursuant to such procedure or restrictions as may be specified in such resolution. In the absence of such provision, if more than one series of bonds shall be issued hereunder payable from the same sales tax revenues, priority of lien on such revenues shall depend on the time of the delivery of such bonds, each series enjoying a lien prior and superior to that enjoyed by any series of bonds subsequently delivered, except that as to any issue or series of bonds which may be authorized as a unit but delivered from time to time in blocks, the board may in the proceedings authorizing the issuance of such bonds provide that all of the bonds of such series or issue shall be co-equal as to lien regardless of the time of delivery; provided that nothing herein stated shall vest in any holder of bonds any right of lien or priority of any kind against any part of the sales and use tax revenues not pledged to the payment of the bonds by the proceedings authorizing the issuance thereof.
(6) When any bonds shall have been issued hereunder neither the legislature, the board, nor any other authority may discontinue or decrease the tax or permit to be discontinued or decreased the tax in anticipation of the collection of which such bonds have been issued, or in any way make any change in the allocation and dedication of the proceeds of such tax which would diminish the amount of the sales and use tax revenues to be received by the board until all of such bonds shall have been retired as to principal and interest, and there is hereby vested in the holders from time to time of such bonds and the coupons representing interest thereon a contractual right under the provisions of this Section.
(7) Any resolution may contain such covenants with the future holder or holders of the bonds as to the sales and use tax revenues, the disposition of such revenues, the issuance of future bonds, and such other pertinent matters as may be deemed necessary by the parish school board to assure the marketability of such bonds, provided such covenants are not inconsistent with the provisions of this Section.
(8) Any resolution authorizing the issuance of bonds hereunder may contain such provisions to assure the enforcement, collection and proper application of the sales and use tax revenues as the board may think proper, where not inconsistent with the provisions of this Section, and when any bonds payable from the tax revenues shall have been issued, this Section, the ordinance of the board imposing the tax and pursuant to which the tax is being collected, and the obligation of the board to continue to levy, collect and allocate the tax, and to apply the revenues derived therefrom in accordance with the provisions of said ordinance, shall be irrevocable until such bonds have been paid in full as to principal and interest, and shall not be subject to amendment in any manner which would impair the rights of the holders from time to time of such bonds or which would in any way jeopardize the prompt payment of principal thereof or interest thereon.
(9) All bonds issued hereunder shall be advertised for sale on sealed bids, which advertisement shall be published at least once a week for three weeks, the first publication to be made at least twenty-one days preceding the date fixed for the reception of bids. Advertisement shall be in the official journal of the board and also in a financial paper published in the city of New York, the city of Chicago, or the city of New Orleans, or in a newspaper of general circulation published in a city of this state having a population of not less than 50,000 inhabitants, according to the last federal census. The board may reject any and all bids. If the bonds are not sold pursuant to the advertisement, they may be sold by the board at private sale within sixty days after the date advertised for the reception of sealed bids, but no private sale shall be made at a price less than the highest bid which shall have been received. If not so sold, the bonds shall be re-advertised in the manner herein prescribed.
(10) The proceeds derived from the sale of bonds issued hereunder shall be used exclusively by the board for the purpose or purposes for which the bonds are authorized to be issued, but the purchasers of the bonds shall not be obligated to see to the application thereof.
(11) Before bonds are issued hereunder, the parish school board shall investigate and determine the regularity of the proceedings. The resolution authorizing the bonds may direct that they contain the following recital:
"It is certified that this bond is authorized by and is issued in conformity with the requirements of the constitution and statutes of this state."
Such recital shall be deemed to be an authorized declaration of the board and to import that there is constitutional and statutory authority for issuing the bonds and imposing the tax; that all the proceedings therefor are regular; that all acts, conditions and things required to exist, happen and be performed precedent to and in the issuance of the bonds and imposition of the tax have existed, have happened and have been performed in due time, form and manner as required by law; that the amount of the bonds, together with all other indebtedness of the board does not exceed any limit or limits prescribed by the constitution or statutes of this state; and that the required notices have been duly and regularly given by publication in the manner required by law. If any bonds are issued containing the above recital, the same shall be construed according to the import herein declared, and it shall be conclusively presumed that the recital is true, and neither the board nor any taxpayer shall be permitted to question the validity or regularity of the bonds, obligations or tax in any court or in any action or proceeding.
(12) After the time within which the validity of the bonds may be contested has elapsed, that is, thirty days from the date of publication of the resolution authorizing the bonds and pledging and dedicating the sales tax revenues, the bonds shall be registered with the Secretary of State without charge and shall have endorsed thereon the words:
"Incontestable. Secured by a pledge and dedication of a sales and use tax in the Parish of Ascension, Louisiana. Registered this _____ day of ______________, 20___.
___________________________
SECRETARY OF STATE"
All bonds issued under the provisions of this Section and the interest thereon shall be exempt from taxation. Said bonds may be used for deposit with any officer, board, municipality or other political subdivision of the State of Louisiana in any case where deposit of security is required.
(13) The provisions of this Section shall be construed as cumulative authority for the exercise of the powers herein granted. The powers conferred by this Section shall not be affected or limited by any other provision of any statute of the state, and no provision, publication, election or right of referendum shall be required or afforded in the performance of any act herein authorized to be done, including the imposition, collection and application of the tax and issuance of bonds payable therefrom, except as herein otherwise specifically provided.
(14) Bonds issued hereunder shall have all the qualities of negotiable paper and shall constitute negotiable instruments under the Negotiable Instruments Law of the State of Louisiana. They shall not be invalid for any irregularity or defect in the proceedings for the issuance and sale thereof and shall be incontestable in the hands of bona fide purchasers or holders for value.
(15) The resolution authorizing the issuance of the bonds hereunder and pledging and dedicating sales and use tax revenues to the payment thereof shall be recorded in the mortgage records of the parish of Ascension and shall be published in one issue of the official journal of the board. For a period of thirty days from the date of the publication of said resolution, any person in interest may contest the legality of the bonds provided for or the tax, the proceeds of which are so pledged and dedicated, for any cause after which time no one shall have any cause or right of action to contest the legality, formality or regularity of the proceedings, the tax, or bond authorization, for any cause whatsoever. If the question of the validity of any proceedings, tax or bond authorization provided for under the provisions of this Section is not raised within the thirty days, the authority to issue the bonds, the regularity thereof, the validity of the tax or portion thereof pledged and dedicated to provide for the payment of principal and interest, and the enforceability of the pledge thereof, shall be conclusively presumed, and no court may inquire into such matters. If any resolution is adopted or proceedings had more than thirty days after the publication of the resolution authorizing the issuance of bonds hereunder and pledging and dedicating any of the sales tax revenues, such supplemental resolution or proceedings shall be similarly published, and no contest, action or proceeding to question the validity or legality of such supplemental resolution or proceedings shall be begun in any court by any person for any cause whatsoever after the expiration of thirty days from the date on which such supplemental resolution or proceeding is published.