176.050. May issue serial bonds or term bonds--rate of interest--sale of bonds. - Missouri Statutes

May issue serial bonds or term bonds--rate of interest--sale of bonds.

176.050. 1. Bonds issued under and pursuant to theprovisions of sections 176.010 to 176.080 shall be of suchdenomination or denominations, shall bear such rate or rates ofinterest, and shall mature at such time or times within fortyyears from the date thereof, as the governing body of sucheducational institution may determine. Such bonds may be eitherserial bonds or term bonds.

2. Serial bonds may be issued with or without thereservation of the right to call them for payment and redemptionin advance of their maturity, upon the giving of such notice, andwith or without a covenant requiring the payment of a premium inthe event of such payment and redemption prior to maturity, asthe governing body may determine.

3. Term bonds shall contain a reservation of the right tocall them for payment and redemption prior to maturity at suchtime or times and upon the giving of such notice, and upon thepayment of such premium, if any, as the governing body maydetermine.

4. Such bonds, when issued, shall be sold at public sale forthe best price obtainable after giving such reasonable notice ofsuch sale as may be determined by the governing body of theeducational institution issuing such bonds, but in no event shallsuch bonds be sold for less than ninety-eight percent of the parvalue thereof, and accrued interest. Any such bonds may be soldto the United States of America or to any agency orinstrumentality thereof, at a price not less than par and accruedinterest, without public sale and without the giving of notice asherein provided.

5. Such bonds, when issued and sold, shall be negotiableinstruments within the meaning of the law merchant and thenegotiable instruments law, and the interest thereon shall beexempt from income taxes under the laws of the state of Missouri.

(L. 1945 p. 1715 § 5, A.L. 1955 p. 540, A.L. 1965 2d Ex. Sess. p. 896)