11-14-313 - Issuance of negotiable notes or bonds authorized -- Limitation on amount of tax anticipation notes or bonds -- Procedure.
11-14-313. Issuance of negotiable notes or bonds authorized -- Limitation onamount of tax anticipation notes or bonds -- Procedure.
(1) (a) For the purpose of meeting the current expenses of the local political subdivisionand for any other purpose for which funds of the local political subdivision may be expended, alocal political subdivision may, if authorized by a resolution of its governing body, borrowmoney by issuing its negotiable notes or bonds in an initial principal amount:
(i) not in excess of 90% of the taxes and other revenues of the local political subdivisionfor the current fiscal year, if the notes or bonds are issued after the annual tax levy for taxesfalling due during the fiscal year in which the notes or bonds are issued;
(ii) not in excess of 75% of the taxes and other revenues of the local political subdivisionfor the preceding fiscal year, if the notes or bonds are issued prior to the annual tax levy for taxesfalling due during the fiscal year in which the bonds or notes are issued; or
(iii) not in excess of 75% of the taxes and other revenues that the governing body of thelocal political subdivision estimates that the local political subdivision will receive for the currentfiscal year, if the notes or bonds are issued within 24 months following the creation of the localpolitical subdivision.
(b) The proceeds of the notes or bonds shall be applied only in payment of current andnecessary expenses and other purposes for which funds of the local political subdivision may beexpended.
(c) There shall be included in the annual levy a tax and there shall be provision made forthe imposition and collection of sufficient revenues other than taxes sufficient to pay the notes orbonds at maturity.
(d) If the taxes and other revenues in any one year are insufficient through delinquency oruncollectibility of taxes or other cause to pay when due all the lawful debts of the local politicalsubdivision which have been or may hereafter be contracted, the governing body of the localpolitical subdivision is authorized and directed to levy and collect in the next succeeding year asufficient tax and to provide for the imposition and collection of sufficient revenues other thantaxes to pay all of such lawfully contracted indebtedness, and may borrow as provided in thissection in anticipation of such tax and other revenues to pay any such lawfully contractedindebtedness.
(e) Each resolution authorizing the issuance of tax anticipation notes or bonds shall:
(i) describe the taxes or revenues in anticipation of which the notes or bonds are to beissued; and
(ii) specify the principal amount of the notes or bonds, any interest rates, including avariable interest rate, the notes or bonds shall bear, and the maturity dates of the notes or bonds,which dates may not extend beyond the last day of the issuing local political subdivision's fiscalyear.
(2) Tax anticipation notes or bonds shall be issued and sold in such manner and at suchprices, whether at, below, or above face value, as the governing body shall by resolutiondetermine. Tax anticipation notes or bonds shall be in bearer form, except that the governingbody may provide for the registration of the notes or bonds in the name of the owner, either as toprincipal alone, or as to principal and interest. Tax anticipation notes or bonds may be maderedeemable prior to maturity at the option of the governing body in the manner and upon theterms fixed by the resolution authorizing their issuance. Tax anticipation notes or bonds shall beexecuted and shall be in such form and have such details and terms as shall be provided in the
authorizing resolution.
(3) The provisions of Sections 11-14-303, 11-14-304, 11-14-305, 11-14-313, 11-14-315,11-14-316, 11-14-401, 11-14-403, and 11-14-404 shall apply to all tax anticipation notes orbonds issued under this section. In applying these sections to tax anticipation notes, "bond" or"bonds" as used in these sections shall be deemed to include tax anticipation notes.
Amended by Chapter 378, 2010 General Session