HB1448: HB1448 Georgia Local Government Finance Authority Act; enact

26 LC 47 4024 House Bill 1448 By: Representatives Anderson of the 10th, Yearta of the 152nd, Leverett of the 123rd, Dempsey of the 13th, Richardson of the 125th, and others A BILL TO BE ENTITLED AN ACT To amend Title 36 of the Official Code of Georgia Annotated, relating to local government,1 so as to provide for comprehensive regulation of local governme nt assets financing; to2 provide for a short title; to provide for legislative purpose; to provide for definitions; to3 create the Georgia Local Government Finance Authority; to provi de for members,4 qualifications, officers, meetings, and procedures; to provide for powers, duties, and5 authority of the authority; to provide for procedures, conditions, and limitations; to provide6 for certain bonds, notes, certificates, bond anticipation notes , and other evidences of7 indebtedness; to provide for nonapplicability of certain general laws; to provide for certain8 tax-exempt status of the authority, the authority's property, and the authority's activities; to9 provide for cumulative effect of the foregoing; to provide for liberal construction of the10 foregoing; to provide for related matters; to repeal conflicting laws; and for other purposes.11 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:12 SECTION 1.13 Title 36 of the Official Code of Georgia Annotated, relating to local government, is amended14 by adding a new chapter to read as follows:15 H. B. 1448 - 1 - 26 LC 47 4024 "CHAPTER 9316 36-93-1.17 This chapter shall be known and may be cited as the 'Georgia Local Government Finance18 Authority Act.'19 36-93-2.20 The purpose of this chapter shall be to provide a mechanism thr ough which local21 governments may finance assets at lower than prevailing costs and to make this mechanism22 available to the largest number of local governments feasible.23 36-93-3.24 As used in this chapter, the term:25 (1) 'Assets' means any capital asset, fixture, or personal pro perty, which shall include,26 but not be limited to, public safety vehicles and equipment and school vehicles and27 equipment, that is determined by the authority to be necessary or desirable for the28 efficient operation of any participating local government, rega rdless of whether such29 property is in existence at the time of, or is to be provided a fter the making of, such30 finding.31 (2) 'Authority' means the Georgia Local Government Finance Authority created by this32 chapter and any successor or successors thereto. Any change in name or composition of33 the authority shall in no way affect the vested rights of any person under this chapter.34 (3) 'Bond' or 'bonds' means revenue bonds, notes, interim certificates, bond anticipation35 notes, and other evidences of indebtedness of the authority issued under this chapter.36 (4) 'Cost' as applied to assets financed under this chapter includes:37 (A) The cost and the incidental and related costs of the acquisition, construction, repair,38 restoration, reconditioning, refinancing, or installation of assets;39 H. B. 1448 - 2 - 26 LC 47 4024 (B) The cost of any property interest in any assets, including an option to purchase a40 leasehold interest;41 (C) The cost of architectural, engineering, legal, trustee, un derwriting, and related42 services; the cost of the preparation of plans, specifications, studies, surveys, and43 estimates of cost; and all other expenses necessary or incident to planning, providing,44 or determining the need for or the feasibility and practicability of any assets;45 (D) The cost of financing charges, including premiums or prepa yment penalties and46 interest, accrued before the acquisition and installation or refinancing of such assets and47 for up to three years after such acquisition and installation or refinancing;48 (E) The costs paid or incurred in connection with the financin g of assets, including49 out-of-pocket expenses; of any policy of insurance or other cre dit enhancement; of50 printing, engraving, and reproduction services; and the cost of the initial or acceptance51 fee of any trustee or paying agent;52 (F) The costs of the authority incurred in connection with providing assets, including53 reasonable sums to reimburse the authority for time spent by its agents or employees54 in providing and financing assets; and55 (G) The costs paid or incurred for the administration of any program for the financing56 or refinancing of assets by the authority and any program for t he installment sale or57 lease of assets to any participating local government.58 (5) 'Participating local government' means a county, municipal ity, consolidated59 government, school district, authority, special district, or ot her political subdivision of60 this state that contracts under this chapter with the authority for the purchase, lease, or61 financing of assets.62 (6) 'Revenue bonds' means revenue bonds issued by the authority pursuant to the terms63 of Article 3 of Chapter 82 of this title, the 'Revenue Bond Law.'64 H. B. 1448 - 3 - 26 LC 47 4024 36-93-4.65 (a) There is created a public body corporate and politic to be known as the Georgia Local66 Government Finance Authority and by that name, style, and title such body may contract67 and be contracted with, bring and defend actions and implead an d be impleaded, and68 complain and defend in all courts of law and equity. Such authority, however, shall not be69 a state institution nor a department or agency of the state but shall be an instrumentality of70 purely public charity performing an essential governmental func tion, being a distinct71 corporate entity. The authority shall be separate and distinct from any public corporation72 or other entity heretofore created by the General Assembly. The authority shall be exempt73 from the provisions of Article 2 of Chapter 17 of Title 50 and Code Sections 45-15-1374 through 45-15-16.75 (b) The authority shall be governed by five members appointed as follows:76 (1) The Governor shall appoint three members and shall designa te two of the initial77 members appointed to a two-year term of office;78 (2) The President of the Senate shall appoint one member; and79 (3) The Speaker of the House of Representatives shall appoint one member;80 Each member of the authority shall be an elected member of a go verning authority of a81 county or municipal corporation of this state. In the event that a member ceases to be an82 elected member of a governing authority of a county or municipa l corporation, such83 member's seat on the authority shall be declared vacant and the relevant appointing84 authority shall appoint a qualified member to serve out the remainder of the unexpired term85 of office.86 (c) The members shall elect a chairperson, a vice chairperson, and other officers. The87 members shall not be compensated for their services, but they shall be reimbursed for their88 actual and necessary expenses as determined by the authority. A majority of the members89 of the authority shall constitute a quorum for the transaction of business. The vote of a90 majority of the members present at any meeting at which a quorum is present is necessary91 H. B. 1448 - 4 - 26 LC 47 4024 for any action to be taken by the authority. No vacancy in the membership of the authority92 shall impair the right of a quorum to exercise all rights and p erform all duties of the93 authority.94 (d) The authority may adopt and amend bylaws governing the pro cedures and internal95 operations of the authority.96 (e) Meetings of the members of the authority shall be held at the call of the chairperson or97 whenever any three members so request. The members shall meet at least once each year.98 The authority shall be authorized to conduct meetings by teleconference.99 (f) The authority shall be authorized to contract with the Georgia Municipal Association100 or its successors, or another Georgia nonprofit corporation whose income is exempt from101 federal income tax pursuant to Section 115 of the Internal Reve nue Code of 1986102 representing at least 300 municipalities of this state, to prov ide administrative staff and103 clerical services and to assist in the management of the routin e affairs of the authority,104 including the originating and processing of any applications fr om participating local105 governments for assets financing through the authority and the servicing of contracts106 between the authority and the participating local governments. If such a contract is entered107 into, the administrative staff may include an executive directo r who may serve as the ex108 officio secretary of the authority. The executive director may be an employee of the109 Georgia Municipal Association or its successors or another Georgia nonprofit corporation110 whose income is exempt from federal income tax pursuant to Section 115 of the Internal111 Revenue Code of 1986 representing at least 300 of the municipalities of this state.112 (g) The executive director shall attend the meetings of the members of the authority, shall113 keep a record of the proceedings of the authority, and shall maintain all books, documents,114 and papers filed with the authority, the minutes of the authority, and its official seal. He115 or she may cause copies to be made of all minutes and other records and documents of the116 authority and may give certificates under seal of the authority to the effect that such copies117 are true copies, and all persons dealing with the authority may rely upon such certificates. 118 H. B. 1448 - 5 - 26 LC 47 4024 If the executive director is unable to attend a meeting of the members of the authority, the119 members of the authority shall designate a member of the authority or an employee of the120 organization referred to in subsection (f) of this Code section as the person responsible for121 carrying out the duties of the executive director set out in this Code section.122 36-93-5.123 The authority is granted all powers necessary to carry out and effectuate its public and124 corporate purposes, including but not limited to the following:125 (1) To have perpetual succession as a public body corporate an d politic and an126 independent public instrumentality exercising essential public functions;127 (2) To adopt, amend, and repeal bylaws and rules consistent with this chapter to regulate128 its affairs, to carry into effect its powers and purposes, and to conduct its business;129 (3) To sue and be sued in its own name, bring and defend actio ns, implead and be130 impleaded, and complain and defend in all courts of law and equity;131 (4) To have an official seal;132 (5) To maintain an office in the State of Georgia;133 (6) To make and execute contracts and all other instruments necessary or convenient for134 the performance of its duties and the exercise of its powers an d functions under this135 chapter;136 (7) To employ architects, engineers, independent legal counsel, inspectors, accountants,137 and financial experts and such other advisers, consultants, and a g e n t s a s m a y b e138 necessary in its judgment without the approval or consent of any other public official and139 to fix their compensation;140 (8) To procure insurance against any loss in connection with its property and other assets141 in such amounts and from such insurers as it considers advisabl e and to pay premiums142 on any such insurance;143 H. B. 1448 - 6 - 26 LC 47 4024 (9) To procure insurance, guarantees, or other credit enhancem ent from any public or144 private entities, including any department, agency, or instrumentality of the United States,145 to secure payment:146 (A) On a lease, purchase, or financing payment owed by a parti cipating local147 government to the authority; or148 (B) Of any bonds issued by the authority and to pay premiums on any such insurance,149 guarantee, or other credit enhancement;150 (10) To procure letters of credit or other credit or liquidity facilities or agreements from151 any national or state banking association or other entity autho rized to issue a letter of152 credit or other credit or liquidity facilities or agreements to secure the payment of any153 bonds issued by the authority or to secure the payment of any l ease, purchase, or154 financing payment owed by a participating local government to the authority;155 (11) To pay the cost of obtaining such letters of credit or ot her credit or liquidity156 facilities or agreements;157 (12) To receive and accept from any source any money, property, or thing of value to be158 held, used, and applied to carry out the purposes of this chapter, subject to the conditions159 upon which the grants or contributions are made, including gift s, loans, or grants from160 any department, agency, political subdivision, authority, or instrumentality of the United161 States, the State of Georgia, or any other state, or of any pol itical subdivision, of the162 foregoing;163 (13) To provide, or cause to be provided by a participating lo cal government, by164 acquisition, construction, operation, lease, fabrication, repair, restoration, reconditioning,165 refinancing, or installation, assets to be located within the State of Georgia;166 (14) To lease as lessor any assets for such rentals and upon s uch terms and conditions167 as the authority considers advisable and which are not in conflict with this chapter;168 H. B. 1448 - 7 - 26 LC 47 4024 (15) To sell by installment or otherwise, to sell by option or contract for sale, and to169 convey all or any part of any assets for such price and upon such terms and conditions as170 the authority considers advisable and which are not in conflict with this chapter;171 (16) To make contracts and incur liabilities, borrow money at such rates of interest as the172 authority determines, issue its bonds in accordance with this chapter, and secure any of173 its bonds or obligations by an assignment or pledge of all or a ny part of its property,174 contract rights, and income or as otherwise provided in this chapter;175 (17) To purchase, receive, lease as lessee or lessor, or other wise acquire, own, hold,176 improve, use, or otherwise deal in and with assets, or any inte rest therein, wherever177 situated;178 (18) To sell, convey, hypothecate, pledge, assign, lease, exch ange, transfer, and179 otherwise dispose of all or any part of its property and assets;180 (19) To charge to and apportion among participating local governments its administrative181 costs and expenses incurred in the exercise of the powers and d uties conferred by this182 chapter;183 (20) To collect fees and charges, as the authority determines to be reasonable, in184 connection with its leases, sales, financing, advances, insuran ce, commitments, and185 servicing;186 (21) To cooperate with and exchange services, personnel, and i nformation with any187 federal, state, or local governmental agency;188 (22) To sell or assign its rights under its leases, purchase contracts, or other contracts or189 its right to receive payments thereunder, either directly or th rough trust or custodial190 arrangements, whereby interests are created in such leases, purchase contracts, or other191 contracts, or the payments to be received thereunder through th e issuance of trust192 certificates, certificates of participation, custodial receipts, or other similar instruments; 193 (23) To exercise any power granted by the laws of this state t o public or private194 corporations which is not in conflict with the public purpose of the authority;195 H. B. 1448 - 8 - 26 LC 47 4024 (24) To exercise the powers conferred upon a public corporation or a public authority by196 Article IX, Section III, Paragraph I of the Constitution of Georgia, such authority being197 expressly declared to be a public corporation or a public authority within the meaning of198 such provisions of the Constitution of the State of Georgia;199 (25) To do all things necessary or convenient to carry out the powers conferred by this200 chapter;201 (26) To hold funds in deposit accounts with banking institutions as otherwise authorized202 by law; and203 (27) Subject to any agreement with bondholders, to invest moneys of the authority not204 required for immediate use to carry out the purposes of this ch apter, including the205 proceeds from the sale of any bonds and any moneys held in rese rve funds, in206 investments authorized pursuant to Code Section 36-82-7.207 36-93-6.208 (a) The authority may initiate one or more programs of providing assets to be purchased209 or leased by participating local governments. In furtherance of this objective, the authority210 may also:211 (1) Establish eligibility standards for participating local governments, provided that such212 standards shall encourage maximum feasible participation by par ticipating local213 governments;214 (2) Contract with any entity securing or enhancing the payment of bonds, authorizing the215 entity to approve the participating local governments that can lease or purchase assets216 financed with proceeds of bonds secured or enhanced by that entity;217 (3) Lease assets to a participating local government upon terms and conditions that the218 authority considers proper, charge and collect rents therefor, and include in any such219 lease provisions that the lessee has the option to purchase any or all of the assets to which220 the lease applies;221 H. B. 1448 - 9 - 26 LC 47 4024 (4) Sell assets to a participating local government under any lease, purchase, or other222 legal contract upon such terms and conditions as the authority considers proper;223 (5) Sell or otherwise dispose of any unneeded or obsolete asse ts under terms and224 conditions as determined by the authority;225 (6) Maintain, repair, replace, and otherwise improve or cause to be maintained, repaired,226 replaced, and otherwise improved any assets owned by the authority;227 (7) Obtain or aid in obtaining property insurance, in establis hing self-insurance, or in228 participating in an interlocal risk management agency under Cha pter 85 of this title,229 covering all assets owned or financed or accept payment if any asset is damaged or230 destroyed; and231 (8) Enter into any agreement, contract, or other instrument for any insurance, guarantee,232 or letter of credit accepting payment in such manner and form a s provided therein if a233 participating local government defaults and assign any such insurance, guarantee, or letter234 of credit as security for bonds issued by the authority.235 (b) Before exercising any of the powers conferred by subsection (a) of this Code section,236 the authority may:237 (1) Require that the lease, purchase, or other contract involved be insured by a financial238 guaranty insurer, be credit enhanced by a credit enhancer, or b e secured by a letter of239 credit; or240 (2) Require any other type of security from a participating lo cal government that it241 considers reasonable and necessary.242 36-93-7.243 (a) The authority may issue, sell, and deliver its bonds, in accordance with this chapter, for244 the purpose of paying for all or any part of the cost of assets, to finance the acquisition of245 assets for lease or sale to participating local governments, an d for any other purpose246 authorized by this chapter.247 H. B. 1448 - 10 - 26 LC 47 4024 (b) The bonds may be issued as serial bonds or as term bonds or a combination of each in248 one or more series and shall bear such date or dates, mature at such time or times not249 exceeding 30 years from their respective dates of issue, bear i nterest at such fixed or250 variable rates without regard to any limitations contained in any other statute or laws of this251 state, bear interest at different rates, and mature at differen t dates within a series, bear252 interest at one or more variable or fixed rates within a series, and may be converted from253 such variable rate or rates to a fixed rate or rates, or may be converted from such fixed rate254 or rates to a variable rate or rates from time to time, be payable at such time or times, be255 in such denominations, be in such form, either coupon or fully registered, carry such256 registration and conversion privileges, have such rank or prior ity, be payable in lawful257 money of the United States at such places within or outside thi s state, and be subject to258 such terms of redemption and tender for purchase as such bond resolution may provide.259 (c) All revenue bonds issued by the authority shall be subject to validation in accordance260 with Article 3 of Chapter 82 of this title, the 'Revenue Bond Law.' Notes and other types261 of obligations of the authority shall not be required to be so validated. All proceedings to262 validate revenue bonds of the authority shall be held in the Su perior Court of Fulton263 County, and judgments of validation obtained in the manner set forth in such chapter shall264 be forever conclusive upon the validity of such bonds and the security for such bonds as265 therein provided. The petition and complaint for validation may also make party defendant266 to such action any participating local government that has contracted with the authority in267 connection with the issuance of the revenue bonds or regarding the manner in which such268 bonds are to be secured; and such participating local government may be required to show269 cause, if any exists, why such contract and the terms and conditions thereof should not be270 inquired into by the court, the validity of the terms thereof d etermined, and the contract271 adjudicated as a binding obligation of the participating local government for the security272 of any such bonds of the authority. The revenue bonds when validated and the judgment273 of validation shall be final and conclusive with respect to such bonds against the authority,274 H. B. 1448 - 11 - 26 LC 47 4024 any parties to the validation proceedings, or any persons who might properly have become275 parties to such proceedings. The certificate of validation, however, may be signed with the276 facsimile or manually executed official signature of the clerk or deputy clerk of the277 Superior Court of Fulton County.278 (d) The authority may sell its bonds in such manner and for such price, at public or private279 sale, as it may determine to be in the best interest of the authority. Prior to the preparation280 of definitive bonds, the authority may issue interim certificat es or receipts or temporary281 bonds for definitive bonds upon issuance of the latter. The authority may also provide for282 the replacement of any bonds that shall become mutilated or be stolen, destroyed, or lost.283 (e) The bonds shall be signed by the chairperson of the author ity or such other person284 designated by the authority, and the corporate seal of the auth ority shall be thereunto285 impressed, imprinted, or otherwise reproduced and attested by the signature of the secretary286 of the authority or such other person designated by the authority. The coupons, if any, shall287 be signed in such manner as may be directed by the authority. The signatures of the288 officers of the authority and the seal of the authority upon any bond issued by the authority289 may be by facsimile if the instrument is manually authenticated or countersigned by a290 trustee other than the authority itself or an officer or employee of the authority. All bonds291 issued under the authority of this chapter bearing signatures or facsimiles of the signatures292 of officers of the authority in office on the date of the signi ng thereof shall be valid and293 binding, notwithstanding that before the delivery thereof and p ayment therefor such294 officers whose signatures appear thereon shall have ceased to be officers of the authority.295 (f) The authority may provide for the issuance of bonds of the authority for the purpose296 of refunding any bonds of the authority then outstanding, inclu ding the payment of any297 redemption premium thereon and any interest accrued or to accru e to the earliest or any298 subsequent date of redemption, purchase, or maturity of such bo nds, and, if considered299 advisable by the authority, for the additional purpose of paying all or any part of the cost300 of assets.301 H. B. 1448 - 12 - 26 LC 47 4024 (g) The proceeds of any bonds issued for the purpose of refunding outstanding bonds may,302 in the discretion of the authority, be applied to the purchase or retirement at maturity or303 redemption of such outstanding bonds either on their earliest or any subsequent redemption304 date or upon the purchase or at the maturity thereof and may, pending such application, be305 placed in escrow to be applied to such purchase or retirement at maturity or redemption on306 such date as may be determined by the authority. Subject to th e provisions of any trust307 indenture to the contrary, any such escrowed proceeds, pending such use, may be invested308 and reinvested in accordance with Code Section 36-82-7 in order to assure the prompt309 payment of the principal and interest and redemption premium, if any, on the outstanding310 bonds to be so refunded. The interest, income, and profits, if any, earned or realized on any311 such investment may also be applied to the payment of the outst anding bonds to be so312 refunded. Only after the terms of the escrow have been fully satisfied and carried out shall313 any balance of such proceeds and interest, income, and profits, if any, earned or realized314 on the investments thereof be returned to the authority or the participating local315 governments for use by them in any lawful manner.316 (h) The proceeds of the bonds, other than refunding bonds, of each series shall be used for317 the payment of all or part of the cost of the assets for which such bonds have been318 authorized and, at the option of the authority, for the deposit to a reserve fund or reserve319 funds for the bonds; however, the authority may be paid, out of proceeds of the sale and320 delivery of its bonds issued in accordance with this chapter, a ll of the authority's321 out-of-pocket expenses and costs in connection with the issuance, sale, and delivery of such322 bonds and the costs of obtaining insurance, guarantees, other c redit enhancement, and323 letters of credit securing payment of the bonds and the lease and the purchase payments,324 plus an amount equal to the compensation paid to any employees or agents of the authority325 for the time those employees or agents have spent on activities relating to the issuance,326 sale, and delivery of the bonds. Bond proceeds shall be disbursed in the manner and under327 the restrictions determined by the authority.328 H. B. 1448 - 13 - 26 LC 47 4024 36-93-8.329 (a) The bonds may be secured by a trust indenture by and betwe en the authority and a330 corporate trustee, which may be any bank having the power of a trust company, or any trust331 company. The trust indenture may contain such provisions for p rotecting and enforcing332 the rights and remedies of the holders of the bonds as may be reasonable and proper and333 not in violation of law, including covenants setting forth the duties of the authority in334 relation to the exercise of its powers and the custody, investi ng, safekeeping, and335 application of all money. The authority may provide by the trust indenture for the payment336 of the proceeds of the bonds and any lease, purchase, or other contractual payments to the337 trustee under the trust indenture or other depository and for t he method of disbursement338 thereof with such safeguards and restrictions as the authority may determine. All expenses339 incurred in carrying out the trust indenture may be treated as a part of the operating340 expenses of the authority.341 (b) Every series of bonds is payable solely out of revenues, a ssets, or money of the342 authority as the authority determines, subject only to any agreements with the holders of343 particular bonds pledging any particular money or revenue. The bonds may be additionally344 secured by a pledge of any grant, contribution, or guarantee from the federal government345 or any corporation, association, institution, or person or a pledge of any money, income,346 or revenue of the authority from any source.347 (c)(1) Any bond resolution or related trust indenture may cont ain the following348 provisions, which must be a part of the contract with the holde rs of the bonds to be349 authorized:350 (A) Pledging or assigning the lease or installment purchase pa yments made for the351 assets or pledging or assigning the contract rights under the l eases or installment352 purchase contracts with the participating local governments who se assets have been353 financed with the proceeds of such bonds or other specified revenues or property of the354 authority;355 H. B. 1448 - 14 - 26 LC 47 4024 (B) The rentals, installment purchase payments, fees, and other amounts to be charged356 by the authority, the schedule of payments, the sums to be raised in each year thereby,357 and the use, investment, and disposition of such sums;358 (C) Setting aside any reserves or sinking funds and the regula tion, investment, and359 disposition thereof;360 (D) Limitation on the use of the assets;361 (E) Limitations on the purpose for which or the investments in which the proceeds of362 sale of any series of bonds then or thereafter may be applied;363 (F) Limitations on the issuance of additional bonds, terms upon which additional bonds364 may be issued and secured, and the terms upon which additional bonds may rank on a365 parity with, or be subordinate or superior to, other bonds;366 (G) The refunding of outstanding bonds;367 (H) The procedure, if any, by which the terms of any contract with holders of the bonds368 may be amended or abrogated, the amounts of bonds the holders of which must consent369 thereto, the manner in which such consent may be given, and res trictions on the370 individual rights of action by holders of the bonds;371 (I) Acts or omissions that constitute a default in the duties of the authority to holders372 of its bonds and providing the rights and remedies of such hold ers in the event of373 default; and374 (J) Any other matters relating to the bonds that the authority considers desirable.375 (2) Bonds of the authority may also be secured by and payable from a pooling of leases376 or of installment purchase contracts whereby the authority may assign its rights, as lessor,377 and pledge rents under two or more leases of assets with two or more participating local378 governments, as lessees, or assign its rights as seller and pledge the installment purchase379 payments under two or more installment purchase contracts of assets with two or more380 participating local governments, as purchasers, upon such terms as may be provided for381 H. B. 1448 - 15 - 26 LC 47 4024 in bond resolutions, trust indentures, or other instruments und er which such bonds are382 issued.383 36-93-9.384 (a) Neither the members of the authority nor any person executing bonds on behalf of the385 authority shall be personally liable thereon by reason of the issuance thereof.386 (b) The authority shall have the same immunity and exemption from liability as this state,387 and the members, agents, and employees of the authority when in the performance of work388 of the authority shall have the same immunity and exemption fro m liability as officers,389 agents, and employees of this state.390 (c) The offer, sale, or issuance of bonds by the authority shall not be subject to regulation391 under Chapter 5 of Title 10, the 'Georgia Uniform Securities Ac t of 2008.' No notice,392 proceeding, or publication except those required in this chapter shall be necessary to the393 performance of any act authorized in this chapter; nor shall an y such act be subject to394 referendum.395 (d) No lease, purchase, or other contract between the authority and any participating local396 government shall be deemed to be a contract subject to any law requiring that a lease,397 purchase, or other contract shall be let or entered into only a fter auction or receipt of398 competitive bids or proposals.399 36-93-10.400 Bonds issued under this chapter shall not be deemed to constitute a debt or pledge of the401 faith and credit of this state, any political subdivision or municipal corporation thereof, or402 any participating local government within the meaning of any provision of the Constitution403 or laws of this state. Bonds issued by the authority shall not directly, indirectly, or404 contingently obligate this state or any of its political subdivisions or municipal corporations405 or any participating local governments to levy or to pledge any form of taxation whatever406 H. B. 1448 - 16 - 26 LC 47 4024 therefor or to make any appropriation for the payment thereof; and all such bonds or other407 obligations of the authority shall contain recitals on their fa ce covering substantially the408 foregoing provisions of this Code section.409 36-93-11.410 The creation of the authority and the carrying out of its corporate purposes is in all respects411 for the benefit of the people of this state and is a public purpose, and the authority will be412 performing an essential governmental function in the exercise of the power conferred upon413 it by this chapter; the state covenants with the holders of the bonds and any interest414 coupons appertaining thereto that the authority shall be requir ed to pay no taxes or415 assessments imposed by the state or any of its counties, municipal corporations, political416 subdivisions, or taxing districts upon any of the property acquired or leased or sold by it417 or under its jurisdiction, control, possession, or supervision or upon its activities in the418 operation or maintenance of the assets acquired by it or upon any fees, rentals, charges, or419 purchase price, received in installments or otherwise, pertaini ng to such assets or upon420 other income received by the authority; that the bonds of the authority, their transfer, and421 the interest and income therefrom shall at all times be exempt from taxation within this422 state; and that the recording of any indenture or security agreement by the authority shall423 be exempt from recording taxes and fees and from intangible tax . The tax exemption424 provided in this Code section shall not include any exemption f rom sales and use tax on425 property purchased by the authority or for use by the authority , except that the authority426 shall be entitled to such exemption with respect to property as i s a v a i l a b l e t o t h e427 participating local government unit pursuant to Article 1 of Chapter 8 of Title 48.428 36-93-12.429 While any of the bonds issued by the authority remain outstanding, the powers, duties, or430 existence of the authority or of any of its officers shall not be diminished or impaired in any431 H. B. 1448 - 17 - 26 LC 47 4024 manner that will affect adversely the interest and right of the holders of such bonds. This432 chapter shall be for the benefit of the holders of any such bonds and, upon the issuance of433 the bonds as provided in this chapter, such provisions shall constitute a contract with the434 holders of such bonds. The provisions of any bond resolution, indenture, or trust435 agreement shall be a contract with every holder of such bonds, and the duties of the436 authority under any such bond resolution, indenture, or trust agreement shall be enforceable437 by any bondholder by mandamus or other appropriate action or pr oceeding at law or in438 equity.439 36-93-13.440 All moneys received by the authority pursuant to this chapter, whether as grants or other441 contributions or as revenues, rents, installment purchase payments, and earnings, shall be442 held in trust and applied solely as provided for in this chapter.443 36-93-14.444 The authority may hold title to any assets leased, purchased, sold, or financed by it but shall445 not be required to do so.446 36-93-15.447 The authority's legal situs or residence for the purpose of thi s chapter shall be Fulton448 County. Any action to protect or enforce any rights under this chapter, including the449 validation of revenue bonds issued by the authority as permitte d in this chapter, shall be450 brought in the Superior Court of Fulton County, and such court shall have exclusive451 original jurisdiction of all such actions.452 H. B. 1448 - 18 - 26 LC 47 4024 36-93-16.453 Nothing in this chapter may be construed as a restriction or limitation upon any powers that454 the authority might otherwise have under any other law of this state, and this chapter is455 cumulative to such powers. This chapter shall be construed to provide a complete,456 additional, and alternative mechanism for the doing of the things authorized and shall be457 construed as supplemental to powers conferred by any other laws . The adoption by the458 authority of bylaws and rules and the issuance of bonds by the authority under this chapter459 need not comply with the requirements of any other state laws applicable to the adoption460 of bylaws and rules and the issuance of bonds, notes, and other obligations. No461 proceedings, notice, or approval is required for the issuance of any bonds or any instrument462 or the security therefor or for the proper conduct of the autho rity's business, affairs, or463 operations, except as provided in this chapter.464 36-93-17.465 This chapter, being for the welfare of this state and its inhab itants, shall be liberally466 construed to effect its purposes."467 SECTION 2.468 Said title is further amended in Code Section 36-82-250, relati ng to definitions relative to469 interest rate management agreements, by revising paragraph (6) as follows:470 "(6) 'Local governmental entity' means:471 (A) Any any governmental body as defined in paragraph (2) of Code Section 36-82-61,472 as amended; provided, however, that such term shall only include authorities which are473 local public authorities included in the definition thereof set forth in subparagraphs (C)474 and (D) of paragraph (2) of Code Section 36-82-61, as amended; and475 (B) The Georgia Local Government Finance Authority created by Chapter 93 of this476 Title."477 H. B. 1448 - 19 - 26 LC 47 4024 SECTION 3.478 All laws and parts of laws in conflict with this Act are repealed.479 H. B. 1448 - 20 -