Section 16-5-9 - Authority of commission to incur indebtedness. - New Mexico Statutes

16-5-9. Authority of commission to incur indebtedness.

A.     The commission has authority to incur indebtedness for the following purposes:   

(1)     expenditures to make emergency repairs, replacements or additions to the railroad's equipment or facilities; and   

(2)     capital expenditures for development, improvement and acquisition of facilities and equipment for the railroad.   

B.     Before the authority to incur indebtedness may be exercised, a majority of the commission members shall vote in favor of a resolution that:   

(1)     specifies the amount of indebtedness to be incurred;   

(2)     specifies in detail the purposes for the loan; and   

(3)     authorizes the chairman of the commission to execute all documents on behalf of the commission to incur the indebtedness by negotiating a loan from a financial institution.   

C.     The total indebtedness existing at any time under the authority granted in this section shall not exceed two hundred fifty thousand dollars ($250,000).   

D.     Any indebtedness incurred under the authority of this section shall not create a debt of the state or pledge the general credit of the state or commission.  It shall not constitute personal indebtedness of any member of the commission.  Except as provided in Subsection E of this section, the indebtedness shall not be secured by any type of security interest in the real or personal property of the railroad, nor shall that property be subject to any legal process to satisfy a judgment for the indebtedness in the event of nonpayment of the indebtedness.   

E.     The commission may pledge as security for the repayment of indebtedness incurred and outstanding under the authority of this section all of the railroad user fees authorized to be charged under Section 5 [16-5-11 NMSA 1978] of the Cumbres and Toltec Scenic Railroad Act.