63B-7-302 - Authorization, terms, and procedures.
63B-7-302. Authorization, terms, and procedures.
(1) The state treasurer may, by written order, issue bond anticipation notes and renewalsof bond anticipation notes, including, but not limited to, flexible notes and short-term seriesnotes, in the form and with the terms that he determines.
(2) The state treasurer may:
(a) enter into whatever agreements with other persons that he considers necessary orappropriate in connection with the issuance, sale, and resale of the notes; and
(b) resell or retire any notes purchased by the state before the stated maturity of thosenotes.
(3) (a) The notes and renewals of the notes shall:
(i) bear the interest rate or rates as determined by the state treasurer; and
(ii) mature within a period not to exceed three years.
(b) The notes and renewals of notes may:
(i) bear a variable interest rate; and
(ii) be redeemed prior to maturity by the state treasurer, but only in accordance with theprovisions of the notes relating to redemption prior to maturity.
(4) The proceeds from the sale of the notes may be used only for:
(a) the purposes established in Section 63B-7-202;
(b) the payment of principal of and, if not otherwise provided, interest on, bondanticipation notes;
(c) the payment of costs of issuance; or
(d) any combination of Subsections (4)(a), (b), and (c).
(5) (a) All of the notes and any renewals of the notes shall be payable from the proceedsof the sale of bonds.
(b) A renewal of any note may not be issued after the sale of bonds in anticipation ofwhich the original note was issued.
(6) If a sale of the bonds has not occurred before the maturity of the notes issued inanticipation of the sale, the state treasurer shall, in order to meet the notes then maturing:
(a) issue renewal notes for that purpose;
(b) pay the notes from state money legally available for paying those notes; or
(c) any combination of Subsections (6)(a) and (b).
(7) Each note and any renewal of any note, with the interest on the note or renewal,constitute general obligations of the state.
(8) Each note and any renewal of any note, with the interest on the note or renewal, shallbe:
(a) secured by the full faith, credit, and resources of the state in the manner provided inPart 2 of this chapter;
(b) payable from:
(i) the proceeds of the sale of the bonds and not from any other borrowing; and
(ii) money of the state on hand and legally available for that purpose; or
(iii) any combination of Subsections (8)(b)(i) and (ii); and
(c) payable within five years from the date of original issue.
(9) (a) As used in this Subsection (9), "total amount of bonds authorized to be issued butnot yet issued" includes bonds authorized to be issued only if one or more conditions are met.
(b) The total amount of notes or renewals of notes issued and outstanding at any one time
may not exceed the total amount of bonds authorized to be issued but not yet issued.
(10) The state treasurer shall, in his annual report to the governor, include a detailedstatement of all notes and bonds issued during the year and of his actions in relation to them.
Enacted by Chapter 316, 1998 General Session