§ 16-83. Borrowing power.

(1)

(a) The term "anticipation notes" means indebtedness authorized pursuant to subsections (2)—(6) which are payable from funds of the district as set forth therein.

(b)

The term "indebtedness" means any bonds, notes, certificates, lease participations, guaranties or other forms of indebtedness payable from general revenues and other legally available funds of the district.

(2)

The district may, in order to provide facilities, including real and personal property, and to carry out, exercise and perform its powers and duties, and for any other lawful purpose, borrow money from time to time, as the board determines is in the best interest of the district, and issue and sell the anticipation notes of the district and refund the same by issuing the refunding anticipation notes of the district, all upon such terms, having such maturities, form and terms as may be determined by the board of commissioners or, if issued in the form of commercial paper, as may be determined by the chairman, the vice-chairman or the secretary-treasurer within guidelines and limits determined by the board of commissioners as hereinafter provided in this section. The rate or rates of interest for such borrowing shall be as provided by general law. Further, all indebtedness incurred by the district shall, where required by the constitution, be contingent upon voter approval.

(3)

The district may borrow money and issue bond anticipation notes in anticipation of the issuance of bonds under section 10 [16-84] and, in anticipation of the issuance of bonds under this section, all as provided in general law, expend the proceeds thereof for the purposes for which such bonds are to be issued and pledge, by resolution or contract, the proceeds to be derived from the sale of such bonds and other legally available funds of the district for the payment of the principal thereof, premium, if any, and interest thereon.

(4)

The district may borrow money and issue grant anticipation notes having such maturity as the board may determine in anticipation of the receipt of any federal, state, private or other grant; expend the proceeds thereof for the purposes for which such grant has been made; and pledge, by resolution or contract, the moneys to be received from such grant and other legally available funds of the district for the payment of the principal thereof, premium, if any, and interest thereon.

(5)

The district may borrow money and issue revenue anticipation notes having such maturity as the board may determine in anticipation of the receipt of revenues; expend the proceeds thereof for any other lawful purpose; and pledge, by resolution or contract, revenues of the district for the payment of the principal thereof, premium, if any, and interest thereon.

(6)

The district may borrow money and issue tax anticipation notes having such maturity as the board may determine and levy and appropriate and pledge, by resolution or contract, ad valorem taxes and other legally available funds of the district in payment of the principal thereof, premium, if any, and interest thereon.

(7)

The district may issue, from time to time, indebtedness (which may be denominated as notes or bonds) of the district for the purpose of paying all or part of the cost of acquisition, construction, planning repairing, extensions to, additions, equipping, furnishing and reconstruction of any hospital or hospitals or related facilities incidental to the foregoing as in the opinion of the board of commissioners are necessary or beneficial for the district, or for refinancing any indebtedness incurred to finance any of the foregoing, or for reimbursement of the district for any cost it incurred for any of the foregoing. The indebtedness of each issuance shall be dated, shall mature at such time or times not exceeding fifty (50) years after their date or dates, shall be in such denominations, shall bear interest at such rate or rates, including variable rates, allowed by general law and may be made redeemable before maturity at the option of the board of commissioners at such price or prices and under such terms and conditions as may be fixed by the board of commissioners prior to the issuance of the indebtedness.

(8)

The district may issue all forms of indebtedness described in subsections (3), (4), (5), (6) and (7) in the form of commercial paper; and, if issued in such form, the resolution authorizing the issuance thereof may provide for the renewal, refunding or rollover thereof from time to time, having such maturity as the board shall determine. The resolution authorizing the issuance of such indebtedness in the form of commercial paper may set forth guidelines and limits pertaining to the maximum aggregate principal amount of such indebtedness which may be outstanding at any one (1) time, the longest maturity any such indebtedness may bear, the form of such indebtedness, the terms (including redemption provisions, the maximum redemption premium which may be permitted, schedules for the amortization of principal and interest which may be permitted, and such other provisions as the board of commissioners may determine), and the maximum rate of interest authorized by general law and may authorize the chairman, the vice-chairman or the secretary-treasurer or any one (1) or more of them, from time to time, to determine, within such guidelines and limits, the date or dates on which said indebtedness shall be issued, the aggregate principal amount of indebtedness to be issued at such time, the maturity date or dates of such indebtedness, the form and terms (including provisions for redemption thereof, the amount of any redemption premium, the schedule for the amortization of principal and payment of interest and other provisions as authorized by the board), and to sell, issue, and deliver the same pursuant to such authorization. Any resolution authorizing a negotiated sale of indebtedness in the form of commercial paper to any class of purchaser may likewise authorize the negotiated sale of renewal, refunding or rollover indebtedness to such class of purchaser and may contain such other provisions as the board may authorize.

(9)

Any indebtedness authorized pursuant to subsections (3), (4), (5), (6) and (7) may be issued in the form of demand obligations or obligations which the holder thereof may request payment for by the district upon the occurrence of specified events. The board of commissioners shall determine the form of such indebtedness, which shall be executed according to general law, and shall fix the denomination or denominations of indebtedness and the place or places of payment of principal of and interest thereon, which may be at any bank or trust company within or without the state. All forms of indebtedness shall be executed in the name of the district by the chairman of the board of commissioners and countersigned and attested by the secretary of the board, and its corporate seal or facsimile shall be attached thereto or reproduced thereon, all in the manner provided by the resolution authorizing such indebtedness. All indebtedness issued under the provisions of this act [article] shall have and are hereby declared to have all the qualities and incidents of negotiable instruments under the Uniform Commercial Code and the laws of this state. Such indebtedness shall be issuable in bearer form or shall be registrable in the name of the owner or nominee thereof in the manner provided by general law.

(10)

The district is hereby authorized to enter into agreements providing for the issuance, repayment and securing of letters of credit, insurance or any other credit enhancement device, with any financial institution, as the board of commissioners may determine, to further secure any of its indebtedness.

(Sp. Acts 1951, Ch. 27438, § 9; Sp. Acts, Ch. 65-1316, § 2; Sp. Acts, Ch. 69-898, § 1; Sp. Acts, Ch. 71-578, § 1; Sp. Acts, Ch. 76-338, § 1; Sp. Acts, Ch. 84-399, § 2)