§ 15-4-521 - Sale of obligations.
15-4-521. Sale of obligations.
(a) Obligations of the corporation may be sold at public or private sale as the corporation shall determine.
(b) (1) No first lien obligations may be sold for less than par on the basis of interest thereon at the rate of ten percent (10%) per annum.
(2) However, any obligation of the corporation may be sold with the privilege of conversion into obligations bearing a lower rate or rates of interest on such terms that the corporation shall receive no less and pay no more than substantially the same that it would have received and paid had no conversion been effected.
(c) Any conversion of obligations must be approved by the trustee provided in the deed of trust given to secure the payment of the obligations.
(d) No brokerage, agent's fees, or commissions of any kind for securing a purchaser of the bonds shall be allowed.
(e) Obligations may be sold and delivered at one (1) time or in parcels as funds are needed.
(f) The proceeds derived from the sale of obligations of the corporation shall be used exclusively for the purpose for which issued.