§ 33:4252 — Requisites of bonds; authority to issue single bond to United States

§4252. Requisites of bonds; authority to issue single bond to United States
government agencies
Bonds issued under this Subpart shall be authorized by resolution of the
governing body and shall be payable solely from the income and revenues to
be derived from the operation of the utility. The bonds shall not constitute an
indebtedness or pledge of the general credit of the municipal corporation
within the meaning of any constitutional or statutory limitation of indebtedness
and shall contain a recital to that effect. They shall be in coupon form but may
be made registerable as to principal if so provided in the resolution authorizing
the issuance. The bonds shall be in the denomination of one hundred dollars
or a multiple thereof, shall mature serially or otherwise in the manner provided
by the governing body, but not later than forty years from their date and shall
be made payable at the place provided by the governing body. They may be
made redeemable at the option of the issuing municipality prior to maturity at
the premium (not greater than ten percent of the principal amount thereof)
which the governing body determines. The bonds shall be signed by the
presiding officer and attested by the secretary or clerk of the municipality
under the official seal of the municipality, in the manner provided in the
resolution authorizing their issuance. Interest coupons to be attached thereto
may be executed with the facsimile signature of the officers, and in the event
that any officer whose signature appears on the bonds or coupons ceases to
hold office before the delivery of the bonds to the purchaser, his signature shall
nevertheless be valid and sufficient for all purposes. The bonds shall be sold
in the manner and at the times which the governing body determines, except
that in no event shall the bonds be sold at a price of less than par or bear an
interest rate of greater than eight percentum per annum.
In the event bonds authorized under this Subpart are proposed to be sold
to any agency of the United States Government, pursuant to the terms of a
written agreement between the political subdivision and such agency said
bonds may be issued in the form of a single bond, may be fully registerable as
to principal and interest, and may provide for repayment of principal and/or
interest on amortized installments, in lieu of being issued as serial coupon
bonds.

Legislative History

Amended by Acts 1970, No. 641, §1; Acts 1972, No. 588, §1; Acts 1972, Ex.Sess., No. 12, §1, emerg. eff. Sept. 1, 1972, at 4:00 P.M.