§ 35-13-3 - Purpose.
SECTION 35-13-3
§ 35-13-3 Purpose. – (a) The code provides that interest with respect to certain obligations may notbe exempt from federal income taxation unless they are in registered form. Itis therefore a matter of state concern that public entities be authorized toprovide for the issuance of obligations in registered form. It is a purpose ofthis chapter to empower all public entities to establish and maintain a systempursuant to which obligations may be issued in registered form within themeaning of the applicable provisions of the code.
(b) Obligations have traditionally been issued in bearerrather than in registered form, and a change from bearer to registered form mayaffect the relationships, rights, and duties of issuers of and the persons thatdeal with obligations, and by this effect, the costs. These effects will impactthe various issuers and varieties of obligations differently depending on theirlegal and financial characteristics, their markets, and their adaptability torecent and prospective technological and organizational developments. It istherefore a matter of state concern that public entities be providedflexibility in the development of systems of registration and control oversystem incidents, so as to accommodate these differing impacts. It is a purposeof this chapter to empower the establishment and maintenance, and amendmentfrom time to time, of differing systems of registration of obligations,including system incidents, so as to accommodate the differing impacts uponissuers and varieties of obligations. It is further a purpose of this chapterto authorize systems that will facilitate the prompt and accurate transfer ofregistered public obligations and the developing of practices with regard tothe registration and transfer of registered public obligations.