Title 39. Public Finance

Subtitle II. Local Finance

Chapter 4. Bonded Indebtedness and Special Taxes

Part II. Consolidated Local Government Public Finance Act

Subpart A. General Provisions

39:505      Authorization, sale, execution, and registration of bonds

A. Each governing authority shall have authority to adopt all proceedings necessary for the authorization, sale, and delivery of bonds, including the right to enter into all contractual arrangements as may be necessary to effectuate the purpose for which the bonds are being issued upon terms determined by the governing authority. Bonds issued under this Part may be issued by either resolution or ordinance, unless the use of a resolution or the use of an ordinance is specifically required by law or home rule charter. 

B. Bonds issued under this Part may be sold at a public or private sale upon such terms, in the manner and by following such procedures as may be determined by the governing authority of the governmental entity. No bond issued under this Part shall be required to be registered with the secretary of state or any other office or official. 

C. Bonds issued under this Part may be secured additionally by credit enhancement, or be entitled to the benefits of a financial products agreement, the cost of which, upon a finding of benefit therefrom by the governing authority, may be paid from the proceeds of the bonds or other lawfully available funds. Bonds may also be secured by a trust agreement or trust indenture by and between the governmental entity and one or more corporate trustees. 

D. In addition to the foregoing, the proceedings authorizing the issuance of bonds may provide that such bonds will be of such series, bear such date or dates, mature at such time or times, bear interest at such rate or rates payable at such times, be in such denominations, be in such form, carry such registration and exchangeability privileges, be payable in such medium and at such place or places within or without the state, be subject to such terms of prepayment or redemption, be entitled to such priorities on the pledged taxes, revenues, or other source of security, as such proceedings may provide. Bonds shall be executed in the name of the governmental entity by the manual or facsimile signatures of such official or officials of the governmental entity designated by the governing authority in said proceedings. At least one signature on each bond shall be a manual signature, which manual signature may be an authenticating signature by a designated bank or other financial institution or person, and facsimile signatures may be used in the manner provided by law. The seal, or a facsimile thereof, of the governmental entity may, but is not required to be affixed, imprinted, engraved, or otherwise reproduced upon each bond. The delivery of any bonds so executed at any time thereafter shall be valid, although before the date of delivery, any person or persons signing the bonds shall cease to hold office. 

Added by Acts 2018, No. 569, § 1, eff. July 1, 2018.