35-422. Denominations and terms of
bonds
A. The bonds provided for in section 35-421 shall be issued as nearly as
practicable in denominations of one thousand dollars, but bonds of a lower denomination
not less than one hundred dollars may be issued when necessary. The bonds shall bear
interest at a rate fixed by the commissioners, not exceeding nine per cent per annum,
payable semiannually at the office of the state treasurer or at some bank or trust
company in New York City, New York, at the option of the purchaser of the bonds. The
principal shall be payable within twenty-five years after the date of issuance of the
bonds, and the state shall reserve the right to redeem at par any bonds in their
numerical order at any time after fifteen years from the date thereof. The bonds shall
bear the date of their issue, state where and to whom payable, the rate of interest,
shall be signed by the loan commissioners with the seal of the state affixed, shall be
countersigned by the state treasurer and bear his official seal, and shall be registered
by the department of administration in a book kept for that purpose which shall disclose
the amount the bonds sold for, or if exchanged, for what exchanged.
B. The faith and credit of the state shall be pledged for the payment of the bonds
and the interest accruing thereon.
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