(a) Capital Appreciation Bond Defined. For purposes of thisArticle, the term "capital appreciation bond" means a bond that meetsall of the following conditions:
(1) It is sold, at public or private sale, at a pricesubstantially less, as conclusively determined by the issuer of the bond, thanthe principal amount of the bond.
(2) Compounded interest on the bond is payable at maturity.
(3) The bond is designated as a capital appreciation bond withinthe meaning of this Article by the proceedings of the issuer of the bondproviding for its issuance.
(b) Calculating Principal Amount. For purposes of calculatingthe aggregate principal amount of bonds within the meaning of anyconstitutional or statutory limitation on the incurrence of debt, the aggregateprincipal amount of any capital appreciation bonds is the aggregate of theinitial offering prices at which the bonds are offered for sale to the public,including private or negotiated sales, or sold to the initial purchaser of thebonds in a private placement, in either case without reduction to reflectunderwriters' discount or placement agents' or other intermediaries' fees.
(c) Terms and Conditions. The proceedings providing for theissuance of any capital appreciation bonds may provide for the issuance ofterms bonds or serial bonds, or both, the establishment of sinking funds for orthe redemption of term bonds, the issuance of capital appreciation bonds at thesame time and as part of the same issue of any other type of bonds, the methodof calculating the principal amount of any such capital appreciation bondsoutstanding for the purpose of determining, within the meaning of theproceedings and otherwise, application of debt service provisions, funds intowhich debt service payments are to be deposited, application of redemptionprovisions, bondowners' voting rights and consents, pro rata application ofavailable funds, and any other matters the issuer considers appropriate. (1987, c. 650; 2004‑170, ss. 40(a), 40(c).)
(a) Capital Appreciation Bond Defined. For purposes of thisArticle, the term "capital appreciation bond" means a bond that meetsall of the following conditions:
(1) It is sold, at public or private sale, at a pricesubstantially less, as conclusively determined by the issuer of the bond, thanthe principal amount of the bond.
(2) Compounded interest on the bond is payable at maturity.
(3) The bond is designated as a capital appreciation bond withinthe meaning of this Article by the proceedings of the issuer of the bondproviding for its issuance.
(b) Calculating Principal Amount. For purposes of calculatingthe aggregate principal amount of bonds within the meaning of anyconstitutional or statutory limitation on the incurrence of debt, the aggregateprincipal amount of any capital appreciation bonds is the aggregate of theinitial offering prices at which the bonds are offered for sale to the public,including private or negotiated sales, or sold to the initial purchaser of thebonds in a private placement, in either case without reduction to reflectunderwriters' discount or placement agents' or other intermediaries' fees.
(c) Terms and Conditions. The proceedings providing for theissuance of any capital appreciation bonds may provide for the issuance ofterms bonds or serial bonds, or both, the establishment of sinking funds for orthe redemption of term bonds, the issuance of capital appreciation bonds at thesame time and as part of the same issue of any other type of bonds, the methodof calculating the principal amount of any such capital appreciation bondsoutstanding for the purpose of determining, within the meaning of theproceedings and otherwise, application of debt service provisions, funds intowhich debt service payments are to be deposited, application of redemptionprovisions, bondowners' voting rights and consents, pro rata application ofavailable funds, and any other matters the issuer considers appropriate. (1987, c. 650; 2004‑170, ss. 40(a), 40(c).)
(a) Capital Appreciation Bond Defined. For purposes of thisArticle, the term "capital appreciation bond" means a bond that meetsall of the following conditions:
(1) It is sold, at public or private sale, at a pricesubstantially less, as conclusively determined by the issuer of the bond, thanthe principal amount of the bond.
(2) Compounded interest on the bond is payable at maturity.
(3) The bond is designated as a capital appreciation bond withinthe meaning of this Article by the proceedings of the issuer of the bondproviding for its issuance.
(b) Calculating Principal Amount. For purposes of calculatingthe aggregate principal amount of bonds within the meaning of anyconstitutional or statutory limitation on the incurrence of debt, the aggregateprincipal amount of any capital appreciation bonds is the aggregate of theinitial offering prices at which the bonds are offered for sale to the public,including private or negotiated sales, or sold to the initial purchaser of thebonds in a private placement, in either case without reduction to reflectunderwriters' discount or placement agents' or other intermediaries' fees.
(c) Terms and Conditions. The proceedings providing for theissuance of any capital appreciation bonds may provide for the issuance ofterms bonds or serial bonds, or both, the establishment of sinking funds for orthe redemption of term bonds, the issuance of capital appreciation bonds at thesame time and as part of the same issue of any other type of bonds, the methodof calculating the principal amount of any such capital appreciation bondsoutstanding for the purpose of determining, within the meaning of theproceedings and otherwise, application of debt service provisions, funds intowhich debt service payments are to be deposited, application of redemptionprovisions, bondowners' voting rights and consents, pro rata application ofavailable funds, and any other matters the issuer considers appropriate. (1987, c. 650; 2004‑170, ss. 40(a), 40(c).)
