Section 4-54-3 - Procedure for issuing negotiable securities.
4-54-3. Procedure for issuing negotiable securities.
A. Any community service district issuing negotiable securities for the construction or acquisition of any facilities necessary to carry on the purpose of the district shall issue the negotiable securities in the manner provided in this section.
B. Prior to the issuing of any negotiable securities, the governing authority of the district shall hold a public hearing on the question of issuing the negotiable securities. Notice of the public hearing shall be published once each week for three successive weeks in a newspaper of general circulation within the community service district and the last publication shall not be less than three nor more than ten days before the date of the public hearing. The notice shall state the purpose of the hearing and the date, time and place where it will be conducted by the governing authority.
C. At the date, time and place specified in the notice, the governing authority shall hold the hearing, at which time it shall determine if the negotiable securities shall be issued. If the governing authority determines that the negotiable securities should be issued, it may issue and sell the negotiable securities in conformity with the provisions of the law authorizing the community service district; provided that:
(1) the negotiable securities of the community service district:
(a) shall bear an interest rate of not more than six percent a year;
(b) are sold at par value; and
(c) are sold at public sale after notice of the proposed sale is published in a newspaper of general circulation within the community service district; and
(2) the total value of the outstanding negotiable securities of the community service district do [does] not exceed in the aggregate, at any one time, more than five percent of the assessed valuation of the community service district.