11-14-305 - Registration, denominations, and exchange of obligations.
11-14-305. Registration, denominations, and exchange of obligations.
(1) As used in this section, "obligations" means bonds, bond anticipation notes, and taxanticipation notes.
(2) Unless otherwise provided by the local political subdivision, Title 15, Chapter 7,Registered Public Obligations Act, governs and applies to all obligations issued in registeredform. If Title 15, Chapter 7, Registered Public Obligations Act, is inapplicable to an issue ofobligations, Subsection (3) governs and applies with respect to such issue.
(3) Any obligations issued under this chapter may be issued in denominations asdetermined by the governing body. The governing body may provide for the exchange of any ofthese obligations after issuance for obligations of larger or smaller denominations in such manneras may be provided in the authorizing resolution, provided the obligations in changeddenominations shall be exchanged for the original obligations in like aggregate principal amountsand in such manner that no overlapping interest is paid; and such obligations in changeddenominations shall bear interest at the same rate or rates, if any, shall mature on the same dateor dates, shall be as nearly as practicable in the same form except for an appropriate recital as tothe exchange, and shall in all other respects, except as to denominations and numbers, beidentical with the original obligations surrendered for exchange. Where any exchange is madeunder this section, the obligations surrendered by the holders at the time of exchange shall becancelled; any such exchange shall be made only at the request of the holders of the obligationsto be surrendered; and the governing body may require all expenses incurred in connection withsuch exchange, including the authorization and issuance of the new obligations, to be paid bysuch holders.
Amended by Chapter 83, 2006 General Session