11-379. Expansion of pledge; effect on prior
elections; refunding bonds; conflict of interest
A. All bonds issued pursuant to this article, whether before or after October 24,
1981, shall be paid from, and may hereafter be secured by a pledge of, all revenues
received by the county issuing the bonds, from taxes, fees, charges and other monies
collected by the state and returned to such county for street and highway purposes
pursuant to title 28, chapter 18, article 2 and section 42-6107.
B. Whenever the board of supervisors of any county determines that the best
interests of such county will be served by the issuance of refunding bonds in order to
refund bonds secured by the pledge of revenues received pursuant to title 28, chapter 18,
article 2 and section 42-6107, the board of supervisors may issue refunding bonds on
behalf of the county to refund the bonds theretofore issued pursuant to this
article. Such refunding bonds shall be payable at such dates and in such amounts as the
board of supervisors by resolution may decide, shall be secured by a pledge of all monies
received pursuant to title 28, chapter 18, article 2 and section 42-107, shall bear
interest at a rate of not to exceed nine per cent, and in all other respects the form and
character of the refunding bonds shall conform with the provisions of section
11-377. The refunding bonds may be sold at public or private sale at the price the board
of supervisors deems to be the best price available therefor, which price may be below,
at or above par, or the refunding bonds may be exchanged for a like amount of bonds being
refunded, with all unmatured coupons attached thereto, or the refunding bonds or proceeds
from the sale of the refunded bonds may be exchanged for a sufficient amount of cash to
pay all legal, financial and all other expenses incurred by the county in the issuance of
the bonds plus obligations issued by or guaranteed by the United States of America, which
obligations with interest thereon will provide sufficient monies to pay, when due or
called for prior redemption at the option of the county, all refunded bonds and the
coupons appertaining thereto and any redemption premiums, if applicable. The board of
supervisors may provide that any securities acquired from refunded bond proceeds or from
exchange of the refunding bonds for the United States government securities be delivered
to a bank or trust company doing business in this state to act as trustee or escrow agent
to protect the rights of the holders of the refunded bonds. The board of supervisors may
execute such trust or escrow agreements as it sees fit to protect the rights of the
holders of the refunded bonds and may also pay the fees, costs and expenses of such
trustee or escrow agent and also all legal, financial paying agent's fees or charges and
all other costs incidental to the issuance of the refunding bonds, either from refunding
bond proceeds or from monies received pursuant to title 28, chapter 18, article 2
and section 42-6107.
C. Notwithstanding title 38, chapter 3, article 8 or any other law, it shall not be
a conflict of interest for the holder of any bond authorized by this article, or for a
person contracting with the issuing county to purchase any such bond, to offer to sell or
exchange, to contract to sell or exchange, or to sell or exchange any federal government
securities or obligations to the county to be used for the purposes set forth in
subsection B of this section, nor shall it be a conflict of interest for any trustee,
escrow agent or paying agent to purchase for the trustee, escrow agent or paying agent
account or for the account of another any bond issued under authority of this article.
|