Sec. 05.09.01.13. Issuance of Indentures and Notes

A. Timing. The Administration may obtain funds for loans to finance projects from any source authorized by law, and in particular may issue bonds, notes, or other obligations pursuant to an indenture payable from payments on the loans. The timing of any bond or note sale and the acceptability of the interest rate to be paid by the Administration are solely within the discretion of the Secretary.

B. Rights of Bond and Note Holders. In the event of any conflict, whether or not expressly so stated, the rights of local governments under any loan, corresponding local obligation or accompanying agreement with the Administration, which loan is financed by bonds, notes, or other obligations issued pursuant to an indenture, are subject to the rights of the holders of the Administration's bonds, notes, or other obligations issued under that indenture.