FINANCING OF OTHER PROJECTS 

37-5-401.  Legislative findings.

 (a)  The legislature finds that:

 (i)  There are in Wyoming extensive reserves of energy and insufficient
facilities to warrant the timely development and marketing of those reserves;

 (ii)  Timely development of Wyoming energy sources will stabilize and
increase revenue to the state;

 (iii)  New infrastructure will increase development of Wyoming energy
sources;

 (iv)  It is in the public interest of the citizens of this state to promote the
economic welfare of the state and its residents by increasing employment,
stimulating economic activity, augmenting sources of tax revenue, fostering
economic stability and improving the balance of the state's economy;

 (v)  This article constitutes a valid public purpose of primary benefit to all citizens of this state.

 

37-5-402.  Definitions.

 (a)  As used in this article:

 (i)  "Bonds" means notes, warrants, bonds, temporary bonds and anticipation notes issued by the authority pursuant to this article.

 

37-5-403.  Authority revenue bonds; issuance; amount.

 (a)  In order to finance projects not owned by the authority, the authority may issue and have outstanding bonds to finance electric transmission facilities and related infrastructure, which shall be located at least partially within Wyoming, in an amount not to exceed one billion dollars ($1,000,000,000.00). The authority shall have contracts sufficient to justify the issuance of bonds.

 (b)  The principal amount of any bonds which have been retired, redeemed, defeased or refunded by the authority need not be taken into account in computing compliance with the maximum amounts of bonds authorized to be issued under subsection (a) of this section.

 (c)  Subject to subsection (a) of this section, the authority may issue bonds in principal amounts the authority determines necessary to provide sufficient funds for achieving its purposes under this article, including the reduction of principal, the payment of interest, the establishment of reserves, the costs of administration and for the purpose of defraying all other associated costs.  All bonds issued under this article are negotiable instruments under the laws of the state unless expressly provided to the contrary on the face of the bonds. The authority may enter into contracts to insure the payment of principal and interest, for interest rate exchange contracts and for financial guarantees to lower the cost of its borrowing.

 (d)  All bonds issued by the authority are payable solely out of special funds consisting of all or part of its revenues, receipts, monies and assets, as designated in the proceedings under which the bonds are authorized.  The bonds shall bear interest at the rates, be executed and delivered at times and in denominations, be of terms and maturities, be in registered form as to principal and interest or principal alone, and bear manual or facsimile signatures and seals as determined by the authority.  Bonds issued by the authority are not general obligations of this state nor of any political subdivision of this state.  The bonds shall be solely the obligation of the authority and shall recite on their face that they do not constitute obligations of the state or any political subdivision of the state.

 (e)  Bonds may be payable in installments and may bear maturities not exceeding forty (40) years from the date issued as determined by the authority.

 (f)  As determined by the authority, bonds and interest may be payable at a time or place whether within or without the state.  Bonds may contain other provisions not inconsistent with this article.

 (g)  Any bonds issued by the authority may contain an option to redeem all or any part as may be specified.  The price of redemption, the terms and conditions and the procedure of notice shall be set forth in the proceedings of the authority and may appear on the face of the bonds.

 (h)  Any bonds of the authority may be sold at, above or below par value, at public or private sale, in a manner and from time to time as determined by the authority.  The authority may pay professional fees, insurance, expenses, premiums and commissions which it finds necessary or advantageous to this state in connection with the issuance and sale.

 (j)  The authority may provide for the issuance of its bonds to refund any bonds of the authority then outstanding, including the payment of any redemption premium and any interest or premium accrued or to accrue to, the earliest or subsequent date of redemption, purchase or maturity of the bonds.  Refunding shall be accomplished in the manner prescribed by W.S. 16-5-101 through 16-5-119 to the extent it is not inconsistent with this article.

 

37-5-404.  Authority revenue bonds; security; payments after retirement.

 (a)  The principal and interest on any bonds issued by the authority shall be secured by a pledge of revenues from the operation of the project financed, by a first mortgage on the facilities, by guarantees and pledges of the entity owning the project or of the parent corporation owning said entity or by any combination thereof or other security as may be determined by the authority to be reasonable and prudent.  The guarantees and pledges shall be no less favorable to the authority than those granted other lenders of the same class.

 (b)  The authority may require additional payments, as negotiated, to bondholders to be made either in a lump sum at the time of retirement of the bonds or annually from the time of retirement of the bonds until project use is terminated or may require additional incentives from the owner of the project to prospective bondholders so long as the incentives are not contrary to the Wyoming constitution.

 (c)  The authority may require such other security for repayment of the bonds as it deems necessary.

 (d)  Each pledge, agreement, mortgage or other instrument made for the benefit or security of any bonds of the authority is valid and binding from the time when made.  The revenues, receipts, monies and assets pledged are immediately subject to the lien of the pledge without delivery or further act.  The lien is valid and binding against persons having claims of any kind against the authority whether or not the persons have actual notice of the lien.  Neither the resolution nor the indenture or other instrument by which a pledge is created need be recorded or filed.

 

37-5-405.  Exemptions from taxation.

 The exercise of the powers granted by this article constitutes the performance of an essential governmental function.  Any bonds issued under this article and the income therefrom, shall be free from taxation of every kind by the state, municipalities and political subdivisions of the state.

 

37-5-406.  Bonds as legal investments.

 The bonds of the authority are legal investments which may be used as collateral for public funds of the state, insurance companies, banks, savings and loan associations, investment companies, trustees and other fiduciaries which may properly and legally invest funds in their control or belonging to them in bonds of the authority.  With the written approval of the state loan and investment board and the attorney general, the state treasurer may invest monies from the permanent Wyoming mineral trust fund in bonds of the authority in an amount specified by the state loan and investment board and the attorney general but not to exceed the amount specified in W.S. 37-5-403(a), and the interest payable on the bonds shall be at least four percent (4%) and revenue under W.S. 37-5-404(b) shall be credited as received to the state general fund.  The limitation on legislatively designated investments under W.S. 9-4-712 shall not apply to investments made under this section.

 

37-5-407.  State pledge not to impair bondholder's rights and remedies.

 The state pledges to the holders of any bonds issued under this article, that the state will not limit or alter the rights vested in the authority to fulfill the terms of agreements made with the holders, or in any way impair the rights and remedies of the holders until the bonds together with the interest, with interest on any unpaid installments of interest, and all costs and expenses in connection with any action or proceeding by or on behalf of the holders are fully met and discharged.  The authority is authorized to include this pledge of the state in any agreement with the holders of the bonds.

 

37-5-408.  Powers; duties; limitations.

 (a)  The authority has the powers granted by W.S. 37-5-301 through 37-5-307 as necessary to carry out the purposes of this article including the power to hire technical consultants, financial advisors and legal advisors and specifically including the powers granted by W.S. 37-5-304(a)(ii).  In addition to the powers otherwise granted to the authority, the authority shall have the power to:

 (i)  Enter into loan or other agreements with respect to one (1) or more projects upon the terms and conditions the authority considers advisable;

 (ii)  Make and execute agreements, contracts and other instruments necessary or convenient in the exercise of its powers and functions, including contracts, with any individual, firm, corporation, governmental agency or other entity.

 (b)  The authority may assess and collect fees that are nonrefundable from applicants seeking to obtain authority financing of a project.

 (c)  The authority shall maintain such records and accounts of revenues and expenditures as required by the director of the state department of audit.  The director or his designee shall conduct an annual financial and legal compliance audit of the accounts of the authority and file copies thereof with the governor and the legislature.

 (d)  The authority is subject to the requirements of:

 (i)  W.S. 16-3-101 through 16-3-105;

 (ii)  W.S. 16-4-201 through 16-4-205; and

 (iii)  W.S. 16-4-401 through 16-4-407.

 (e)  The authority shall require that any project owner receiving a loan under this article shall maintain records and accounts relating to receipt and disbursements of loan proceeds, transportation costs and information on energy sales and deliveries and make the records available to the state auditor for inspection.