§ 1759 - Denominations; payments; interest
§ 1759. Denominations; payments; interest
(a) Any bond issued under this subchapter shall draw interest at a rate not to exceed the rate approved by the voters of the municipal corporation in accordance with section 1758 of this title, or if no rate is specified in the vote under that section, at a rate approved by the legislative branch of the municipal corporation, such interest to be payable semiannually. Such bonds or bond shall be payable serially, the first payment to be deferred not later than from one to five years after the issuance of the bonds and subsequent payments to be continued annually in equal or diminishing amounts so that the entire debt will be paid in not more than 20 years from the date of issue. In the case of bonds issued for the purchase or development of a municipal forest, the first payment may be deferred not more than 30 years from the date of issuance thereof. Thereafter such bonds or bond shall be payable annually in equal or diminishing amounts so that the entire debt will be paid in not more than 60 years from the date of issue. In the case of bonds issued for improvements on public highways that have a useful life of at least 30 years and that involve bridge construction or roadway reconstruction, including a bridge component, the entire debt will be paid in not more than 30 years from the date of issue.
(b) General obligation bonds authorized under this subchapter for the purpose of financing the improvement, construction, acquisition, repair, renovation and replacement of a municipal plant as defined in section 2901 of Title 30 shall be paid serially, the first payment to be deferred not later than from one to five years after the issuance of the bonds, and subsequent payments to be continued annually so that the entire debt will be paid over a term equal to the useful life of the financed improvements, but not more than 40 years from the date of issue, and may be so arranged that beginning with the first year in which principal is payable, the amount of principal and interest in any year shall be as nearly equal as is practicable according to the denomination in which such bonds are issued, notwithstanding other permissible payment schedules authorized by this section. (Amended 1963, No. 136; 1969, No. 58, § 1, eff. April 14, 1969; 1969, No. 177 (Adj. Sess.), § 1, eff. March 5, 1970; 1979, No. 138 (Adj. Sess.); 1985, No. 123 (Adj. Sess.), eff. April 18, 1986; 2007, No. 75, § 41.)