SEC. 51-8-37. Procedures for issuance of bonds; form, content, and terms of bonds.
(1) The board of commissioners of any district created pursuant to this chapter may issue revenue or special improvement bonds of such district by resolution spread upon the minutes of such board. Bonds may be issued from time to time without an election being held upon the question of their issuance unless the board of commissioners of the district is presented with a petition for an election upon the question of issuance signed by twenty percent (20%) or fifteen hundred (1500), whichever is lesser, of the qualified electors residing within the district. The resolution authorizing any issue of bonds other than the initial issue shall be published in a manner similar to the publication of the resolution, as outlined in Section 51-8-11. If an election is required, it shall be held in substantial accord with the election outlined in Section 51-8-11. The cost of this election shall be borne by the district.
(2) All bonds shall be lithographed or engraved and printed in two (2) or more colors to prevent counterfeiting. They shall be in denominations of not less than One Thousand Dollars ($1,000.00) nor more than Five Thousand Dollars ($5,000.00), and may be registered as issued, and shall be numbered in a regular series from one (1) upward. Each such bond shall specify on its face the purpose for which it was issued, the total amount authorized to be issued, the interest on the bond, and that such bonds shall never constitute nor give rise to a pecuniary liability of the district or local governmental unit or a charge against the general credit or taxing powers of the local governmental unit.
(3) Such bonds shall contain such covenants and provisions; shall be executed; shall be in such form, format, type, denomination or denominations; shall be payable as to principal and interest, at such place or places; and shall mature at such time or times, all as shall be determined by such board of commissioners and set forth in the resolution pursuant to which such bonds shall be issued. The date of maturity of such bonds shall not exceed forty (40) years from the date of the bonds, except that on special improvement pollution abatement bonds, special improvement water bonds, or special improvement water and sewer bonds, the date of maturity shall not exceed twenty-five (25) years from their date.
(4) No bonds shall bear a greater overall maximum interest rate to maturity than that allowed in Section 75-17-103; no bond shall bear more than one (1) rate of interest; each bond shall bear interest from its date to its stated maturity date at the interest rate specified on the bonds; all bonds of the same maturity shall bear the same rate of interest from date to maturity. All interest accruing on such bonds so issued shall be payable semiannually, or annually, except that the first interest payment may be for any period not exceeding one (1) year. No interest payment on bearer bonds shall be evidenced by more than one (1) coupon and neither cancelled nor supplemental coupons shall be permitted. The lowest interest rate specified for any bonds issued shall not be less than sixty percent (60%) of the highest interest rate specified for the same bond issue.
(5) Such bonds shall be signed by the chairman and secretary-treasurer of the commission with the seal of the commission affixed thereto; however, the coupons may bear only the facsimile signatures of such chairman and secretary-treasurer.
(6) Any provisions of the general laws to the contrary notwithstanding, any bonds and interest coupons issued pursuant to the authority of this chapter shall be securities within the meaning of Article 8 of the Uniform Commercial Code, being Section 75-8-101 et seq.
(7) Notwithstanding the foregoing provisions of this section, bonds referred to hereinabove may be issued pursuant to the supplemental powers and authorizations conferred by the provisions of the Registered Bond Act, being Sections 31-21-1 through 31-21-7.
SOURCES: Laws, 1985, ch. 481, Sec. 19, eff from and after July 1, 1985.