35-491. Registration of bonds; payment of
principal and interest; paying agent; security for deposits; record
date; definition
A. Bonds of this state, any department, agency or instrumentality of this state or
any political subdivision, municipal corporation or other entity authorized by statute to
issue bonds may be issued in a form which is registrable as to the principal or as to
both principal and interest by a registrar designated by the issuer for such purpose or
may be in book entry form on the books of the registrar. In the case of entities for
which bonds are issued by other bodies, the issuing body shall employ registrars,
transfer agents or paying agents if requested to do so by the governing body of the
entity or entities obligated to repay the bonds. All costs incurred by virtue of the
employment of registrars or paying agents are the liability of the entity or entities
obligated to repay the bonds. The costs may be paid from bond proceeds.
B. Evidence of registration shall be entered in a bond register, disclosing the
name of the holder, the number and amount of the bond, the date of registry and other
information deemed necessary. If required by the proceedings authorizing the issuance of
the bonds the registrar shall endorse upon the bond a certificate, signed by him, that
the bond is registered and that the principal or principal and interest are payable to
the registered holder only, naming him or his legal representative.
C. Notwithstanding any provision of law pertaining to the authorization and
issuance of any bond, in addition and supplemental to the form of bond prescribed in such
law, the issuer may prescribe a form of bond which meets the provisions of this section.
D. Notwithstanding any provision of law pertaining to the authorization and
issuance of any bond, the governing body which authorizes the issuance of any bond may
prescribe that the bond be executed by one or more facsimile signatures of designated
officials. The governing body of the issuer may, but is not required to, provide that a
bond be authenticated by the registrar or by an authorized officer of the registrar.
E. The issuer may provide for the payment of principal or principal and interest on
any bond by check or warrant drawn on either the treasurer of the issuer or on a paying
agent and may provide for mailing of the check to the registered owner or may provide for
wire or other electronic means of transfer of monies to the registered owner. An issuer
may contract with one or more banks or trust companies as paying agents and a registrar
for any issue or series of bonds and may pay the costs either from bond proceeds or
current revenues collected by the issuer. All banks and trust companies shall pledge
assets to secure the deposits made for the purpose of paying either principal or interest
or both principal and interest on any series of bonds.
F. The proceedings for the issuance of any bond may provide for the setting of a
record date before each date set for payment of principal or interest. The record date
is then the date the registrar shall use to determine the ownership of the bonds for the
next payment of principal or interest.
G. For the purposes of this article, "registrar" includes the recorder, secretary
or clerk of the issuer or any other entity designated by the issuer to act as the
registrar.
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