11-14-311 - Bond anticipation notes.
11-14-311. Bond anticipation notes.
(1) (a) If the governing body considers it advisable and in the interests of the localpolitical subdivision to anticipate the issuance of bonds to be issued under this chapter, thegoverning body may, pursuant to appropriate resolution, issue bond anticipation notes.
(b) Each resolution authorizing the issuance of bond anticipation notes shall:
(i) describe the bonds in anticipation of which the notes are to be issued;
(ii) specify the principal amount of the notes and the maturity dates of the notes; and
(iii) specify either the rates of interest, if any, on the notes or the method by whichinterest on the notes may be determined while the notes are outstanding.
(c) If the resolution specifies a method by which the interest rates on the notes may bedetermined, the resolution may specify the maximum rate of interest which the notes may bear.
(2) Bond anticipation notes shall be issued and sold in a manner and at a price, either at,below, or above face value, as the governing body determines by resolution. Interest on bondanticipation notes may be made payable semiannually, annually, or at maturity. Bondanticipation notes may be made redeemable prior to maturity at the option of the governing bodyin the manner and upon the terms fixed by the resolution authorizing their issuance. Bondanticipation notes shall be executed and shall be in a form and have details and terms as providedin the authorizing resolution.
(3) Contemporaneously with the issuance of the bonds in anticipation of which bondanticipation notes are issued, provision shall be made for the retirement of any outstanding bondanticipation notes.
(4) Whenever the bonds in anticipation of which notes are issued are to be payable fromad valorem taxes and constitute full general obligations of the local political subdivision, thebond anticipation notes and the interest on them shall be secured by a pledge of the full faith andcredit of the local political subdivision in the manner provided in Section 11-14-310 and shallalso be made payable from funds derived from the sale of the bonds in anticipation of which thenotes are issued. Whenever the bonds in anticipation of which the notes are to be issued are to bepayable solely from revenues derived from the operation of revenue-producing facilities, thesebond anticipation notes and the interest on them shall be secured by a pledge of the income andrevenues derived by the local political subdivision from the revenue-producing facilities andshall also be made payable from funds derived from the sale of the bonds in anticipation of whichthe notes are issued.
(5) Bond anticipation notes issued under this section may be refunded by the issuance ofother bond anticipation notes issued under this section.
(6) Sections 11-14-304, 11-14-305, 11-14-315, 11-14-316, and 11-14-401 apply to allbond anticipation notes issued under this section.
(7) Bonds are not considered to have been issued more than 10 years after the date of theelection authorizing the issuance of them, under Section 11-14-301, if the issuance of thesebonds has been anticipated under this section by bond anticipation notes issued prior to theexpiration of this ten-year period.
Amended by Chapter 83, 2006 General Session