§ 29-14-106 — Limitations on issuance

(1) If the bond anticipation notes are
being issued in anticipation of bonds which constitute an indebtedness, such bond
anticipation notes shall not be issued:

(a) Unless the bonds have been authorized at an election as required by
section 6 of article XI of the state constitution;

(b) In a principal amount in excess of the amount of bonds authorized to be
issued at such election;

(c) At a maximum net effective interest rate higher than the maximum net
effective interest rate at which such bonds may be issued;

(d) Unless the proceeds of such bond anticipation notes are to be used for
the same purpose for which the bonds may be issued; and

(e) Unless the principal amount of the bond anticipation note together with
the outstanding principal amount of other indebtedness of the public body is within
the applicable limitation on the issuance of such indebtedness by the public body, if
any.

(2) When bond anticipation notes are issued in anticipation of the issuance of
bonds which constitute an indebtedness and which have been authorized at an
election, a principal amount of the bonds so authorized equal to the original
principal amount of the bond anticipation notes issued shall be issued solely for the
purpose of retiring such bond anticipation notes. If such bond anticipation notes are
retired from other legally available revenues of the public bonds, said bonds in such
principal amount shall not be issued unless reauthorized at an election held in
accordance with the state constitution and other laws of this state.

Legislative History

Source: L. 81: Entire article added, p. 1421, � 1, effective July 1.