Section 35-A:4 New Hampshire Municipal Bond Bank Established.
I. There is hereby established a public body corporate and politic having a distinct legal existence separate from the state and not constituting a department or agency of the state government to be known as the New Hampshire municipal bond bank. The bank is hereby constituted as an instrumentality exercising public and essential governmental functions, and the exercise by the bank of the powers conferred by this chapter shall be deemed and held to be an essential governmental function of the state.
II. The bank shall consist of 5 directors. The state treasurer shall be an ex officio member without further appointment. Four directors shall be appointed by the governor and council for terms of 5 years each. Of these 4 directors, one shall be a designee of the New Hampshire Municipal Association. At least 2 of the appointed directors shall have backgrounds in public finance. Vacancies shall be filled for the unexpired term. Each director shall hold office until his successor has been appointed and qualified.
III. Each member of the board of directors of the bank, before entering upon his duties, shall take an oath to administer the duties of his office as such faithfully and impartially, and such oath shall be filed in the office of the secretary of state. Directors may be removed from office by the governor and council, for cause after a public hearing, and may be suspended by the governor and council pending the completion of such hearing.
IV. The board of directors shall annually elect one of its members as chairman and another as vice chairman. The directors shall elect a secretary and a treasurer who need not be directors, and the same person may be elected to serve both as secretary and as treasurer. The powers of the bank shall be vested in the directors thereof in office from time to time and 3 directors of the bank shall constitute a quorum at any meeting thereof. Action may be taken and motions and resolutions adopted by the bank at any meeting thereof by the affirmative vote of at least 3 directors of the bank. No vacancy in the directorship of the bank shall impair the right of a quorum of the directors to exercise all the powers and perform all the duties of the bank.
V. Before the issuance of any bonds or notes under the provisions of this chapter, each director of the bank, and the executive director, if one is employed, shall execute a surety bond in the penal sum of $50,000 and the treasurer of the bank shall execute a surety bond in the penal sum of $100,000, or in lieu thereof the chairman of the bank shall execute a blanket bond covering each member, the treasurer and other officers and employees of the bank, each such surety bond to be conditioned upon the faithful performance of the duties of the office covered, to be executed by a surety company authorized to transact business in the state of New Hampshire as surety and to be approved by the attorney general and filed in the office of the secretary of state. All costs of such surety bonds shall be borne by the bank.
VI. The directors of the bank shall serve without compensation, but the bank shall reimburse its directors for actual expenses necessarily incurred in the discharge of their duties. Notwithstanding the provisions of any other law, no officer or employee of the state shall be deemed to have forfeited or shall forfeit his office or employment or any benefits or emoluments thereof by reason of his acceptance of the office of director of the bank or his services therein.
VII. The bank may appoint and employ an executive director, a general counsel, accountants, attorneys, financial advisors or experts and all such other or different officers, agents and employees as it may require and determine their qualifications, terms of office, duties and compensation, all without regard to the provisions of RSA 98.
VIII. Notwithstanding any other provision of law to the contrary, it shall not be nor shall it constitute a conflict of interest for a director, officer or employee of any governmental unit, financial institution, investment banking firm, brokerage firm, commercial bank or trust company, insurance company or any other firm, person or corporation to serve as a member of the bank. If any member of the bank shall be interested either directly or indirectly or shall be a director, officer or employee of or have an ownership interest in any firm or corporation interested directly or indirectly in any contract with the bank, including any loan to any governmental unit, such interest shall be disclosed to the bank and shall be set forth in the minutes of the bank and the member having such interest therein shall not participate on behalf of the bank in any proceedings relating to the authorization of any such contract.
IX. The bank and its corporate existence shall continue until terminated by law, provided, however, that no such law shall take effect so long as the bank shall have bonds, notes and other obligations outstanding, unless adequate provision has been made for the payment thereof. Upon termination of the existence of the bank, all its rights and properties shall pass to and be vested in the state. No net earnings of the bank may inure to the benefit of any person, entity or body other than the state.
Source. 1977, 491:1. 1985, 55:23, eff. April 23, 1985; 116:3, eff. May 11, 1985.