Section 73-25-8 - Bonds. - New Mexico Statutes

73-25-8. Bonds.

A.     A district may issue bonds solely for the purpose of financing the purchase, construction, renovation, equipping or furnishing of a regional transit system project. The district shall issue the bonds pursuant to resolution of the board, and the bonds shall be payable solely out of all or a specified portion of the revenues as designated by the board. Proceeds of the bonds may be used to pay expenses incurred in the preparation, issuance and sale of the bonds.   

B.     As provided in the resolution of the board under which the bonds are authorized to be issued, the bonds shall:   

(1)     be executed and delivered by the district;   

(2)     be in a form and denomination and include terms and maturities;   

(3)     be subject to optional or mandatory redemption prior to maturity with or without a premium;   

(4)     be in fully registered form or bearer form registrable as to principal or interest or both;   

(5)     bear conversion privileges;   

(6)     be payable in installments and at a time not exceeding forty years from the date of issuance;   

(7)     be payable within or outside the state;   

(8)     have the principal paid in yearly amounts beginning not later than two years from the date of issuance of the bonds;   

(9)     be subject to purchase at the option of the holder or the district;   

(10)     be executed by the officers of the district, including the use of one or more facsimile signatures so long as at least one manual signature appears on the bonds, which signatures may be either of an officer of the district or of an agent authenticating the same;   

(11)     be in the form of coupon bonds that have attached interest coupons bearing a manual or facsimile signature of an officer of the district; and   

(12)     be sold at a net effective interest rate not exceeding the maximum net effective interest rate permitted by the Public Securities Act [6-14-1 NMSA 1978].   

C.     Bonds may be sold at public or private sale at a price, in a manner and at a time determined by the board, and the board may pay all fees, expenses and commissions that it deems necessary or advantageous in connection with the sale of the bonds. The power to fix the date of sale of the bonds, receive bids or proposals, award and sell bonds, fix interest rates and take all other action necessary to sell and deliver the bonds may be delegated to an officer or agent of the district. Outstanding bonds may be refunded by the district as provided in the Public Securities Act.   

D.     A resolution authorizing the issuance of bonds may pledge all or a portion of the revenues of the district, may contain a provision for protecting and enforcing the rights and remedies of holders of the bonds as the district deems appropriate, may set forth the rights and remedies of the holders of the bonds and may contain provisions that the district deems appropriate for the security of the holders of the bonds.   

E.     A pledge of revenues or property made by a district or by a person or governmental unit with which a district contracts shall be valid and binding from the time the pledge is made. The revenues or property so pledged shall immediately be subject to the lien of the pledge without a physical delivery or further act, and the lien of the pledge shall be valid and binding against all parties having claims in tort or contract or otherwise against the pledging party, irrespective of whether the claiming party has notice of the lien.   

F.     Neither the directors of the board, employees of the district or a person executing the bonds shall be liable personally on the bonds or subject to personal liability or accountability by reason of the issuance of the bonds.   

G.     A district may purchase its bonds out of available funds and may hold, pledge, cancel or resell the bonds subject to and in accordance with agreements with the holders.   

H.     Bonds shall be payable solely from pledgeable revenue and shall not constitute an indebtedness or general obligation of the district, the state or other political subdivisions of the state.   

I.     The form and terms of bonds shall be approved by the state board of finance before issuance of the bonds.