TITLE XX
TRANSPORTATION

Chapter 237-A
TURNPIKE SYSTEM REVENUE BONDS

Section 237-A:1

    237-A:1 Definitions. –
This chapter may be referred to as the "Turnpike System Revenue Bond Act." For purposes of this chapter, unless a different meaning clearly appears from the context, the following words shall have the following meanings:
I. "Bonds" means any bonds, notes or other evidences of indebtedness issued under this chapter.
II. "Construction" means acquisition, construction, reconstruction, equipping, enlargement or other capital improvement.
III. "Project costs" means all the costs of constructing, reconstructing, altering or dismantling a turnpike and, without limiting the generality of the foregoing, may include the costs of planning, designing, constructing, reconstructing, altering, dismantling, and landscaping such turnpike and all approaches, bridges and roads connecting thereto or connecting parts thereof, of all lands, property rights, rights-of-way, easements and franchises necessary or convenient for such construction, of all machinery and equipment, and of traffic estimates, administration, engineering, architectural and legal services, labor, plans, specifications, surveys, and estimates of costs and revenues, financing charges, interest prior to or during construction, and all such other expenses as may be necessary or incident to the financing and construction of such turnpike and the placing of the same fully in operation, and may include the funding of reserves for debt service and other expenses as may be determined in a bond resolution or trust or security agreement relating to such turnpike.
IV. "Revenues" means the tolls, rates, rents, fees, charges, receipts and other income derived or to be derived by the state from the operation of the turnpike system and all rights to receive the same, including grants, loans and other contributions from any governmental unit, investment earnings, and the proceeds of any borrowing hereunder or of any sale or disposition or insurance of any assets of the turnpike system.
V. "Turnpike" means any toll highway planned, constructed or operated under the provisions of RSA 237.
VI. "Turnpike system" means the central New Hampshire turnpike, the eastern New Hampshire turnpike, and the New Hampshire turnpike system as defined in RSA 237, turnpike service plazas, and such further toll highways and improvements, modifications, and extensions of toll highways as the general court may hereafter authorize under the provisions of said chapter.

Source. 1986, 203:14, eff. June 3, 1986. 2010, Sp. Sess., 1:77, eff. June 10, 2010.

Section 237-A:2

    237-A:2 Issuance of Revenue Bonds. – The state may issue bonds under this chapter to be known as "turnpike system revenue bonds." The bonds may be issued from time to time for the purpose of financing the project costs of construction of any turnpike or of paying or refunding any bonds issued pursuant to RSA 237 or interest thereon. Any such bonds issued to pay or refund bonds issued pursuant to RSA 237 or interest thereon may be issued in sufficient amount to cover items described in RSA 237-A:7. Bonds issued hereunder shall be special obligations of the state and the principal of, premium, if any, and interest on all bonds shall be payable solely from the particular funds provided therefor under this chapter. The bonds shall be issued by the treasurer in such amounts as the governor and council shall determine, not exceeding in the aggregate $766,050,000. Bonds of each issue shall be dated, shall bear interest at such rate or rates, including rates variable from time to time as determined by such index, banker's loan rate or other method as may be determined by the treasurer, and shall mature at such time or times as may be determined by the treasurer, except that no bond shall mature more than 40 years from the date of its issue. Bonds may be made redeemable before maturity either at the option of the state or at the option of the holder, or on the occurrence of specified events, at such price or prices and under such terms and conditions as may be fixed by the treasurer prior to the issue of bonds. The treasurer shall determine the form and details of bonds. Subject to RSA 93-A, the bonds shall be signed by the treasurer and countersigned by the governor. The bonds may be sold in such manner, either at public or private sale, for such price, at such rate or rates of interest, or at such discount in lieu of interest, as the treasurer may determine.

Source. 1986, 203:14. 1991, 301:10. 1998, 306:4, eff. Aug. 25, 1998. 2009, 144:77, eff. July 1, 2009.

Section 237-A:3

    237-A:3 Trust or Security Agreement or Resolution. – Any bonds issued under this chapter may be secured by a resolution or by a trust or security agreement between the state and a corporate trustee, which may be any trust company or bank having the powers of a trust company within or without the state, or by a trust or security agreement directly between the state and the purchasers of the bonds, and such resolution or trust or security agreement shall be in such form and executed in such manner as may be determined by the treasurer, with the approval of the governor and council. Such trust or security agreement or resolution may pledge or assign, in whole or in part, the revenues held or to be received by the state from or on account of the turnpike system and any contract or other rights to receive the same, whether then existing or thereafter coming into existence and whether then held or thereafter acquired by the state, and any proceeds thereof. Such trust or security agreement or resolution may contain such provisions for protecting and enforcing the rights, security and remedies of the bondholders as may, in the discretion of the treasurer, be reasonable and proper and not in violation of law. Without limiting the generality of the foregoing, such agreement or resolution may include provisions defining defaults and providing for remedies in the event thereof (which may include the acceleration of maturities), and covenants setting forth the duties of, and limitations on, the state in relation to the custody, safeguarding, investment and application of moneys, the issue of additional or refunding bonds, the fixing, revision and collection of tolls, charges and other revenues, the use of any surplus bond proceeds, the establishment of reserves, the construction and operation of any turnpike, any contracts relating thereto and subsequent amendments of such provisions and contracts. In accordance with such trust or security agreement or resolution, the commissioner of transportation, with the approval of the governor and council, shall establish toll rates and other charges for use of the turnpike system or any part of the right-of-way and any other property acquired in connection therewith. It shall be lawful for any bank or trust company to act as a depository or trustee of the proceeds of bonds, revenues or other moneys under a trust or security agreement or resolution and to furnish such indemnification or to pledge such securities and issue such letters or lines of credit or other credit facilities as may be required by the state acting under this chapter. Any such trust or security agreement or resolution may set forth the rights and remedies of bondholders and of the trustee and may restrict the individual right of action by bondholders.

Source. 1986, 203:14. 1987, 403:9, eff. Jan. 1, 1988.

Section 237-A:4

    237-A:4 Credit Facilities and Insurance. – Any bonds issued under authority of this chapter may be issued pursuant to lines of credit or other banking arrangements under such terms and conditions not inconsistent with this chapter, and under such agreements with the purchasers or makers thereof, as the treasurer may determine to be in the best interests of the state. In addition to other security provided herein or otherwise by law, bonds issued by the state under this chapter may be secured, in whole or in part, by insurance or by letters or lines of credit or other credit facilities issued to the state by any bank, trust company or other financial institution, within or without the state, and the state may pledge or assign any of the revenues from the turnpike system as security for the reimbursement by the state to the issuers of such letters or lines of credit, insurance or credit facilities of any payments made thereunder.

Source. 1986, 203:14, eff. June 3, 1986.

Section 237-A:5

    237-A:5 Pledge of Revenues or Other Property. – Any pledge of revenues or other property made by the state under this chapter shall be valid and binding and shall be deemed continuously perfected for the purposes of RSA 382-A and other laws from the time when the pledge is made; the revenues, moneys, rights and proceeds so pledged and then held or thereafter acquired or received by the state shall immediately be subject to the lien of such pledge without any physical delivery or segregation thereof or further act; and the lien of such pledge shall be valid and binding against all parties having claims of any kind in tort, contract or otherwise against the state, irrespective of whether such parties have notice thereof. No such revenues may be used in a manner inconsistent with the pledge. Neither the resolution, any trust or security agreement nor any other agreement by which a pledge is created need be filed or recorded except in the records of the secretary of state and no filing need be made under RSA 382-A.

Source. 1986, 203:14, eff. June 3, 1986.

Section 237-A:6

    237-A:6 Enforcement of Rights. – Any owner of a bond issued under the provisions of this chapter and any trustee under a trust or security agreement or resolution securing the same, except to the extent the rights given in this section may be restricted by such agreement or resolution, may bring suit upon the bonds and may, either at law or in equity, by suit, action, mandamus, or other proceeding for legal or equitable relief, protect and enforce any and all rights under the laws of the state or granted hereunder or under such trust or security agreement or resolution and may enforce and compel the performance of all duties required by this chapter or by such agreement or resolution to be performed by the state or by any officer thereof.

Source. 1986, 203:14, eff. June 3, 1986.

Section 237-A:7

    237-A:7 Refunding Bonds. – The treasurer, when authorized by the governor and council, may issue refunding bonds for the purpose of paying any bonds issued under the provisions of this chapter at or prior to maturity or upon acceleration or redemption. Refunding bonds may be issued at such times prior to the maturity or redemption of the bonds being refunded as the treasurer may determine. The refunding bonds may be issued in sufficient amounts to pay or provide the principal of the bonds being refunded, together with any redemption premium thereon, any interest accrued or to accrue to the date of payment of such bonds, the expenses of issue of the refunding bonds, the expenses of redeeming the bonds being refunded, and such reserves for debt service or other expenses from the proceeds of such refunding bonds as may be required by a trust or security agreement or resolution securing the bonds. The authorization and issue of refunding bonds, the maturities and other details thereof, the security therefor, the rights of the holders thereof, and the rights, duties and obligations of the state in respect to the same shall be governed by the provisions of this chapter relating to the issue of the bonds other than refunding bonds insofar as the same may be applicable.

Source. 1986, 203:14, eff. June 3, 1986.

Section 237-A:8

    237-A:8 Bonds Not General Obligations. – Bonds issued under the provisions of this chapter shall not be general obligations of the state for which its full faith and credit is pledged, nor shall they be payable out of any funds other than the funds provided therefor in this chapter nor shall they be deemed debt of the state in determining its borrowing capacity under any applicable law.

Source. 1986, 203:14, eff. June 3, 1986.

Section 237-A:9

    237-A:9 Separate Funds. – Any debt service fund, construction fund, debt service reserve fund, or other fund established in connection with the issuance of bonds under this chapter shall be kept separate from other moneys of the state. The moneys deposited in any such funds, together with income derived from any investments held as part of such funds, shall be expended without further authorization or appropriation as provided for in the trust or security agreement or resolution establishing such funds.

Source. 1986, 203:14, eff. June 3, 1986.

Section 237-A:10

    237-A:10 Trust Funds. – All moneys received pursuant to the provisions of this chapter, whether as proceeds from the issue of bonds, as revenues, or otherwise, shall be deemed to be trust funds to be held and applied solely as provided in this chapter.

Source. 1986, 203:14, eff. June 3, 1986.

Section 237-A:11

    237-A:11 Investment of Funds. – Moneys in any fund or account created under the provisions of this chapter, subject to the terms and provisions of any trust or security agreement or resolution applicable thereto, may be invested in accordance with RSA 6:7 and 8. Except as otherwise provided by any such trust or security agreement or resolution, obligations so purchased as an investment of moneys in said fund or account shall be deemed at all times to be a part of said fund or account, and the interest thereon and any profit arising on the sale thereof shall be credited to said fund or account, and any loss resulting on the sale thereof shall be charged to said fund or account, respectively.

Source. 1986, 203:14, eff. June 3, 1986.

Section 237-A:12

    237-A:12 Agreement with Bondholders. – The state pledges to and agrees with the holders of bonds issued under this chapter that until such bonds, together with interest thereon, with interest on any unpaid installment of interest and all costs and expenses in connection with any action or proceedings by or on behalf of such holders, are fully met and discharged, or unless expressly permitted or otherwise authorized by the terms of each contract and agreement made or entered into by or on behalf of the state with or for the benefit of such holders, the state (a) shall carry out and perform, or cause to be carried out and performed, each and every promise, covenant, agreement or contract made or entered into by the state or on its behalf by or under the provisions of this chapter and on its behalf to be performed; and (b) shall not issue any bonds, notes or other evidences of indebtedness, other than turnpike system revenue bonds, having any rights secured by any pledge of or other lien or charge on the revenues or any moneys or securities paid or to be paid to or held or to be held by the state or the treasurer hereunder, and shall not create or cause to be created any lien or charge on the revenues, any such moneys or securities, other than a lien and pledge thereon created by or pursuant to the provisions of this chapter; provided that nothing in this section shall prevent the state from issuing evidences of indebtedness (1) which are secured by a pledge or lien which is and shall on the face of said evidences of indebtedness be expressed to be subordinate and junior in all respects to every lien and pledge created by or pursuant to the provisions of this chapter, or (2) for which the full faith and credit of the state is pledged and which are not expressly secured by any specific lien or charge on revenues or any such moneys or securities, or (3) which are secured by a pledge of or lien on moneys or funds to be derived on and after such date as every pledge or lien thereon created by or pursuant to the provisions of this chapter shall be discharged and satisfied.

Source. 1986, 203:14, eff. June 3, 1986.

Section 237-A:13

    237-A:13 Prior Covenants and Contracts Not Affected. – The provisions of this chapter shall not in any way limit, restrict or alter the obligation or powers of the state to carry out and perform in every detail each and every promise, covenant, agreement or contract made or entered into, prior to the enactment of this chapter, including without limitation obligations under turnpike bonds issued prior to July 1, 1971, or limit, restrict or alter the powers, rights, authority, duties or obligations of the treasurer or the commissioner of transportation or any other officer of the state to do and perform each and every act or thing required on the part of the state or any such officer to be done or performed by any such promise, covenant, agreement or contract.

Source. 1986, 203:14, eff. June 3, 1986.

Section 237-A:14

    237-A:14 Tax Exemption. – Bonds issued under this chapter, their transfer and income therefrom, including any profit made on the sale or transfer thereof, shall at all times be exempt from all taxation by or within the state.

Source. 1986, 203:14, eff. June 3, 1986.

Section 237-A:15

    237-A:15 Investment Securities. – Notwithstanding any of the provisions of this chapter or any recitals in any bonds issued under this chapter, all such bonds shall be deemed to be investment securities under RSA 382-A.

Source. 1986, 203:14, eff. June 3, 1986.

Section 237-A:16

    237-A:16 Eligible Investments. – Bonds issued under the provisions of this chapter are hereby made securities in which all public officers, agencies and authorities of the state and of its political subdivisions, insurance companies, investment companies, executors, administrators, trustees and other fiduciaries may properly and legally invest funds, including capital in their control or belonging to them. Such bonds are hereby made securities which may properly and legally be deposited with and received by any state or municipal officer or any agency, authority or political subdivision of the state for any purpose for which the deposit of bonds or obligations of the state or of any political subdivision is now or may hereafter be authorized by law.

Source. 1986, 203:14, eff. June 3, 1986.

Section 237-A:17

    237-A:17 Construction and Effect of Other Laws. –
I. The provisions of this chapter shall be deemed to provide an additional and alternative method for the effectuation of the purposes of this chapter and shall be construed to be supplemental to, and not in derogation of, powers otherwise conferred by law; provided, however, that insofar as the provisions of this chapter are inconsistent with the provisions of any general or special law, administrative order or rule or any limitation imposed by the state, the provisions of this chapter shall be controlling.
II. The provisions of this chapter are severable, and if any provision hereof shall be held invalid in any circumstances, such invalidity shall not affect or impair any other provisions or circumstances.
III. This chapter shall be construed in all respects so as to meet all constitutional requirements. In carrying out the purposes and provisions of this chapter, all steps shall be taken which are necessary to meet constitutional requirements.
IV. This chapter shall be liberally construed to effect the purposes thereof.

Source. 1986, 203:14, eff. June 3, 1986.