§ 142-29.6. Sale of refunding obligations and provisions thereof.
§142‑29.6. Sale of refunding obligations and provisions thereof.
(a) The bonds shallbear such date or dates, shall be serial or term bonds, shall mature in suchamounts and at such times, not exceeding 40 years from their date or dates, andshall bear interest at such rate or rates, which may vary from time to time ashereinafter authorized, and which may be represented, in part, by evidences ofadditional interest, and the bonds may be made redeemable before maturity, atthe option of the State or otherwise as may be provided by the State, at suchprice or prices and under such terms and conditions, all as may be fixed by theState Treasurer with the consent of the Council of State.
(b) The bonds shall besigned on behalf of the State by the Governor or shall bear his facsimilesignature; shall be signed by the State Treasurer or shall bear his facsimilesignature; and shall bear the Great Seal of the State or a facsimile thereofimpressed or imprinted thereon; and interest coupons, if any, shall bear a facsimileof the signature of the State Treasurer. If the bonds shall bear the facsimilesignatures of the Governor and the State Treasurer, the bonds shall also bear amanual signature which may be that of a bond registrar, trustee, paying agentor designated assistant of the State Treasurer. Should any officer whosesignature or facsimile signature appears on any bonds or coupons (if any) ceaseto be such officer before the delivery of the bonds, such signature orfacsimile signature shall nevertheless have the same validity for all purposesas if the officer had remained in office until delivery and any bond or couponmay bear the facsimile signatures of such persons who at the actual time of theexecution of such bond or coupon shall be the proper officers to sign any bondor coupon although at the date of such bond or coupon such persons may not havebeen such officers. The form and denomination of the bonds and any coupons,including the provisions with respect to registration of the bonds, shall be asthe State Treasurer may determine in conformity with this Article; provided,however, that nothing in this Article shall prohibit the State Treasurer fromproceeding, with respect to the issuance and form of the bonds, under theprovisions of the Registered Public Obligations Act as well as this Article.
(c) Subject todetermination by the Council of State as to the manner in which the bonds shallbe offered for sale, whether at public or private sale and whether bypublishing notices in certain newspapers and financial journals, mailingnotices, inviting bids by correspondence, negotiating contracts of purchase orotherwise, the State Treasurer is authorized to sell the bonds, at one time orfrom time to time, at a price equal to, greater than or less than the faceamount of the bonds as the State Treasurer may determine to be in the bestinterests of the State.
All expenses incurred in thepreparation, sale and issuance of the refunding obligations shall be paid bythe State Treasurer from the proceeds of any such refunding obligations or anyother available moneys.
(d) (1) Byand with the consent of the Council of State, the State Treasurer is herebyauthorized to borrow money at such rate or rates of interest as the StateTreasurer may determine to be in the best interests of the State, which mayvary from time to time as hereinafter authorized, and to execute and issue bondanticipation notes or notes of the State for the same, but only in thefollowing circumstances and under the following conditions:
a. For anticipating thesale of any bonds to the issuance of which the Council of State shall havegiven consent, if the State Treasurer shall deem it advisable to postpone theissuance of such bonds;
b. For the payment ofinterest upon or any installment of principal of any of the bonds thenoutstanding, if there shall not be sufficient funds in the State Treasury withwhich to pay the interest or installment of principal as they respectivelybecome due; or
c. For the renewal ofany loan evidenced by bond anticipation notes or notes herein authorized.
(2) Funds derived fromthe sale of bonds may be used in the payment of any bond anticipation notesissued under this Article. Funds provided by the General Assembly for thepayment of interest on or principal of bonds shall be used in paying theinterest on or principal of any notes and any renewals thereof, the proceeds ofwhich shall have been used in paying interest on or principal of such bonds.
Nothing in this Article shallbe construed as a limitation on the duration of any deposit in trust for theretirement of outstanding obligations which shall not have matured and whichshall not be then redeemable or, if then redeemable, shall not have been calledfor redemption.
(e) Coupons (if any)and any evidences of additional interest appertaining to bonds and notes shall,after the maturity of such coupons or evidences of additional indebtedness, bereceivable in payment of all taxes, debts, dues, licenses, fines and demands ofany kind whatever due the State.
(f) All refundingobligations shall be exempt from all State, county and municipal taxation orassessment, direct or indirect, general or special, whether imposed for thepurpose of general revenue or otherwise, except for inheritance and gift taxes,income taxes on the gain from the transfer of the obligations, and franchisetaxes. The interest on the refunding obligations is not subject to taxation asincome.
(g) Refundingobligations, coupons (if any) and any evidences of additional indebtedness arehereby made securities in which all public officers, agencies and public bodiesof the State and its political subdivisions, all insurance companies, trustcompanies, investment companies, banks, savings banks, building and loanassociations, credit unions, pension or retirement funds, other financialinstitutions engaged in business in the State, executors, administrators,trustees and other fiduciaries may properly and legally invest funds, includingcapital in their control or belonging to them. Such refunding obligations,coupons (if any) and any evidences of additional indebtedness are hereby madesecurities which may properly and legally be deposited with and received by anyofficer or agency of the State or political subdivision of the State for anypurpose for which the deposit of bonds, notes or obligations of the State orany political subdivision is now or may hereafter be authorized by law.
(h) The full faith,credit and taxing power of the State are hereby pledged for the payment of theprincipal of and the interest on refunding obligations, coupons (if any) andany evidences of additional indebtedness to the same extent as pledged to theoutstanding obligations being refunded. To the extent additional security hasbeen pledged to outstanding obligations, such additional security may, at thediscretion of the State, be continued and similarly pledged to the appropriaterefunding obligations, coupons (if any) and any evidences of additionalindebtedness. (1935, c. 445, s. 6; 1985 (Reg. Sess., 1986), c. 823, s.1; 1995, c. 46, s. 15.)