§ 15-9-211 — Bond provisions; lost or destroyed securities; facsimile signatures; limited obligations

(a) Bonds issued pursuant to this article shall bear
interest at a rate such that the net effective interest rate of
the issue does not exceed the maximum net effective interest
rate authorized, payable semiannually or annually, and evidenced
by one (1) or two (2) sets of coupons, if any, executed with the
facsimile or manually executed signature of any official of the
municipality; except that the first coupon appertaining to any
bond may evidence interest not in excess of one (1) year. The
ordinance authorizing the issuance of the bonds shall specify
the maximum net effective interest rate. The bonds may be issued
as term or serial bonds, in one (1) or more series, may bear
such date, may mature at such time not exceeding twenty (20)
years duration, may be in such denomination or denominations,
may be payable in such medium of payment at such place or places
within or without the state (including but not limited to the
office of any county treasurer in which the municipality is
located wholly or in part), may carry such registration
privileges, may be subject to such terms of prior redemption in
advance of maturity in such order or by lot or otherwise at such
time with or without a premium, may be executed in such manner,
may bear such privileges for reissuance in the same or other
denomination, may be so reissued, without modification of
maturities and interest rates, and may be in such form, either
bearer, coupon or registered, with such recitals, terms,
covenants, conditions and other details as may be provided by
the governing body, subject to the provisions of this article.
(b) The governing body may provide for preferential
security for any bonds, both principal and interest, to be
issued pursuant to this article to the extent deemed feasible
and desirable by the governing body over any bonds that may be
issued thereafter. The bonds may be sold at, above or below the
principal amounts thereof, but they may not be sold at a price
such that the net effective interest rate of the issue of bonds
exceeds the maximum net effective interest rate authorized. The
bonds may be sold at public or private sale as determined by the
governing body to be in the best interest of the issuer. Bonds
may be issued with privileges for conversion or registration, or
both, for payment as to principal or interest, or both; and,
where interest accruing on the bonds is not represented by
interest coupons, the bonds may provide for the endorsing of
payments of interest thereon.
(c) Subject to the payment provisions of this article, the
bonds, any interest coupons attached thereto, and any temporary
bonds shall be fully negotiable within the meaning of and for
all the purposes of this article, except as the governing body
may otherwise provide; and each holder of each security, by
accepting the security, shall be conclusively deemed to have
agreed that the security, except as otherwise provided, is and
shall be fully negotiable within the meaning and for all
purposes of this article.
(d) Notwithstanding any other provision of law, the
governing body in any proceedings authorizing bonds pursuant to
this article:
(i) May provide for the initial issuance of one (1)
or more bonds, referred to in this subsection as "bond",
aggregating the amount of the entire issue;
(ii) May make such provision for installment payments
of the principal amount of any such bond as it may consider
desirable;
(iii) May provide for the making of any such bond,
payable to bearer or otherwise, registrable as to principal or
as to both principal and interest and, where interest accruing
thereon is not represented by interest coupons, for the
endorsing of payments of interest on such bonds;
(iv) May further make provision in any such
proceedings for the manner and circumstances in and under which
any such bond may in the future, at the request of the holder
thereof, be converted into bonds of smaller denominations, which
bonds of smaller denominations may in turn be either coupon
bonds or bonds registrable as to principal, or principal and
interest, or both.
(e) If lost or completely destroyed, any security
authorized by this article may be reissued in the form and tenor
of the lost or destroyed security upon the owner furnishing, to
the satisfaction of the governing body, proof of ownership;
proof of loss or destruction; a surety bond in twice the face
amount of the security, including any unmatured coupons
appertaining thereto; and payment of the cost of preparing and
issuing the new security.
(f) Any officer authorized to execute any bond, after
filing with the secretary of state his manual signature
certified by him under oath, may execute or cause to be
executed, with a facsimile signature in lieu of his manual
signature, any bond authorized in this article, if such a filing
is not a condition of execution with a facsimile signature of
any interest coupon, and if at least one (1) signature required
or permitted to be placed on each such bond, excluding any
interest coupon, is manually subscribed. An officer's facsimile
signature shall have the same legal effect as his manual
signature.
(g) Bonds issued pursuant to this section shall constitute
an indebtedness of the municipality within the meaning of
constitutional and statutory limitations. However, each bond
issued pursuant to this section shall recite in substance that
the bond, including interest payable thereon, is payable solely
from the revenues or special funds pledged to the payment
thereof and the bond constitutes a limited obligation of the
municipality.