11-27-3.5 - Tax levy to pay state refunding bonds -- Sinking fund -- Payments -- Abatement of tax -- Investment of fund -- Interest rates on bonds -- Security for bonds.
11-27-3.5. Tax levy to pay state refunding bonds -- Sinking fund -- Payments --Abatement of tax -- Investment of fund -- Interest rates on bonds -- Security for bonds.
(1) (a) Each year after issuance of refunding bonds by the State Bonding Commissionuntil all outstanding refunding bonds are retired, there is levied a direct annual tax on all real andpersonal property within the state subject to state taxation, sufficient to pay: (i) applicablerefunding bond redemption premiums, if any; (ii) interest on the refunding bonds as it becomesdue; and (iii) principal on the refunding bonds as it becomes due.
(b) The rate of the direct annual tax shall be fixed each year by the State Tax Commissionat the rate fixed for state taxes and the tax shall be collected and the proceeds applied as providedin this chapter.
(c) The proceeds of the taxes levied under this section may be appropriated to theapplicable sinking fund.
(2) A sinking fund may be created by resolution of the State Bonding Commission foradministration by the state treasurer. The resolution may provide that all money deposited in thesinking fund, from whatever source, shall be used to pay debt service on the refunding bonds.
(3) The Division of Finance, on or before any interest, principal, or redemption premiumsbecome due on the refunding bonds, shall draw warrants on the state treasury which the treasurershall promptly pay from funds within the applicable sinking fund. The amount paid shall betransmitted immediately to the paying or transfer agent for the refunding bonds.
(4) The direct annual tax imposed under this section is abated to the extent money isavailable from sources, other than ad valorem taxes in the applicable sinking fund, for thepayment of refunding bond interest, principal, and redemption premiums.
(5) The state treasurer may invest any money in sinking funds in accordance with Title51, Chapter 7, State Money Management Act of 1974, until the time it is needed for the purposesfor which each fund is created. All income from the investment of sinking fund money shall bedeposited to that sinking fund and used for the payment of debt service on the refunding bonds.
(6) The proceedings of the State Bonding Commission may specify the rates of intereston the refunding bonds or the method, formula, or indexes by which a variable interest rate on thebonds may be determined while the bonds are outstanding.
(7) In connection with any refunding bond issued by the State Bonding Commission thestate treasurer may enter into arrangements on behalf of the state with financial, and otherinstitutions for letters of credit, standby letters of credit, reimbursement agreements, andremarketing, indexing, and tender agent agreements to secure the refunding bonds and for thepayment of fees, charges, and other amounts coming due under those agreements for the purposeof enhancing the credit worthiness of the refunding bonds.
Enacted by Chapter 6, 1984 General Session