RS 39:462.5

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RS 39:462.5

§462.5. General power to issue and incur debt; guarantees of the debt of other entities

A. The commission, on behalf of the state, may issue, incur, and deliver debt evidenced by bonds, notes, or other evidences of indebtedness, payable from or secured by sums deposited in, credited to, or to be received by the commission in order to provide monies for deposit into the fund. The commission may undertake and issue and deliver evidences of its guarantee of the debt of other entities and may enter into and execute pledges of the sums deposited in, credited to, or to be received by the commission, including payments pursuant to letters of credit, to secure the debt or performance of obligations of a local government for a project.

Bonds, notes, or other evidences of indebtedness, guarantees, and pledges issued and delivered pursuant to this authority shall constitute special and limited obligations of the commission and shall not be secured by the full faith and credit of the state or any source of revenue of the state other than those sums on deposit in or credited to the revolving loan fund, or to be received by the commission, including payments to be made pursuant to letters of credit. Debt issued pursuant to the provisions of this Chapter shall be deemed to be in compliance with the provisions of Article VII, Section 14 of the Constitution of Louisiana.

B. In no event shall any bond, note, or other evidence of indebtedness or guarantee, pledge, or other obligation of any type whatsoever entered into by the commission constitute net state tax supported debt within the meaning of Article VII, Section 6(F) of the Constitution of Louisiana.

C. Any withdrawal of monies from the revolving loan fund to pay debt service on any bond, note, or other evidence of indebtedness; obligation of guarantee of any debt; pledge to secure any debt; or fees and associated costs to administer a loan shall not constitute and shall not be subject to appropriation by the legislature as provided by Article III, Section 16 of the Constitution of Louisiana.

Acts 2023, No. 424, §1, eff. July 1, 2023.