§ 35-13-4 - Systems of registration.
SECTION 35-13-4
§ 35-13-4 Systems of registration. –(a) Each issuer is authorized to establish and maintain a system ofregistration with respect to each obligation which it issues. The system may bea system pursuant to which (1) only certificated registered public obligationsare issued; (2) only uncertificated registered public obligations are issued;or (3) both certificated and uncertificated registered public obligations areissued. The issuer may amend, discontinue, and reinstitute any system, fromtime to time, subject to covenants.
(b) The system shall be established, amended, discontinued,or reinstituted for the issuer and shall be maintained for the issuer asprovided by the official or official body.
(c) The system shall be described in the registered publicobligation or in the official actions which provide for original issuance ofthe registered public obligation, and in subsequent official actions providingfor amendments and other matters from time to time. The description may be byreference to a program of the issuer which is established by the official orofficial body.
(d) The system shall define the method or methods by whichtransfer of the registered public obligation shall be effective with respect tothe issuer, and by which payment of principal and any interest shall be made.The system may permit the issuance of registered public obligations in anydenomination to represent several registered public obligations of smallerdenominations. The system may also provide for the form of any certificatedregistered public obligation or of any writing relating to an uncertificatedregistered public obligation, for identifying numbers or other designations,for a sufficient supply of certificates for subsequent transfers, for recordand payment dates, for varying denominations, for communications to holders orowners of obligations, and for accounting, cancelled certificate destructionregistration, and releases of security interests and for other incidentalmatters. Unless the issuer otherwise provides, the record date for interestpayable on the first or fifteenth day of a month shall be the fifteenth day orthe last business day of the preceding month, respectively, and for interestpayable on other than the first or fifteenth day of a month shall be thefifteenth calendar day before the interest payment date.
(e) Under a system pursuant to which both certificated anduncertificated registered public obligations are issued, both types ofregistered public obligations may be regularly issued, or one type may beregularly issued and the other type issued only under described circumstancesor to particular described categories of owners, and provision may be made forregistration and release of security interests in registered public obligations.
(f) The system may include covenants of the issuer as toamendments, discontinuances, and reinstitutions of the system and the effect ofthese on the exemption of interest from the income tax provided for by the code.
(g) Whenever an issuer shall issue an uncertificatedregistered public obligation, the system of registration may provide that atrue copy of the official actions of the issuer relating to the uncertificatedregistered public obligation be maintained by the issuer or by the person, ifany, maintaining the system on behalf of the issuer, so long as theuncertificated registered public obligation remains outstanding and unpaid. Acopy of the official actions, verified to be a copy by an authorized officer,shall be admissible before any court of record, administrative body, orarbitration panel without further authentication.
(h) Nothing in this chapter shall preclude a conversion fromone of the forms of registered public obligations provided for by this chapterto a form of obligation not provided for by this chapter if interest on theobligation so converted will continue to be exempt from the income tax providedfor by the code.
(i) The rights provided by other laws with respect toobligations in forms not provided for by this chapter shall, to the extent notinconsistent with this chapter, apply with respect to registered publicobligations issued in forms authorized by this chapter.