§ 35-13-3. Purpose.
(a) The code provides that interest with respect to certain obligations may not be exempt
from federal income taxation unless they are in registered form. It is therefore a
matter of state concern that public entities be authorized to provide for the issuance
of obligations in registered form. It is a purpose of this chapter to empower all
public entities to establish and maintain a system pursuant to which obligations may
be issued in registered form within the meaning of the applicable provisions of the
code.
(b) Obligations have traditionally been issued in bearer rather t
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§ 35-13-3. Purpose.
(a) The code provides that interest with respect to certain obligations may not be exempt
from federal income taxation unless they are in registered form. It is therefore a
matter of state concern that public entities be authorized to provide for the issuance
of obligations in registered form. It is a purpose of this chapter to empower all
public entities to establish and maintain a system pursuant to which obligations may
be issued in registered form within the meaning of the applicable provisions of the
code.
(b) Obligations have traditionally been issued in bearer rather than in registered form,
and a change from bearer to registered form may affect the relationships, rights,
and duties of issuers of and the persons that deal with obligations, and by this effect,
the costs. These effects will impact the various issuers and varieties of obligations
differently depending on their legal and financial characteristics, their markets,
and their adaptability to recent and prospective technological and organizational
developments. It is therefore a matter of state concern that public entities be provided
flexibility in the development of systems of registration and control over system
incidents, so as to accommodate these differing impacts. It is a purpose of this chapter
to empower the establishment and maintenance, and amendment from time to time, of
differing systems of registration of obligations, including system incidents, so as
to accommodate the differing impacts upon issuers and varieties of obligations. It
is further a purpose of this chapter to authorize systems that will facilitate the
prompt and accurate transfer of registered public obligations and the developing of
practices with regard to the registration and transfer of registered public obligations.