Bonds, notes and other evidences of indebtedness, forms--rate--salesprice--exceptions--agreements for purchase of commodities.
108.170. 1. Notwithstanding any other provisions of any law orcharter to the contrary, any issue of bonds, notes, or other evidences ofindebtedness, including bonds, notes, or other evidences of indebtednesspayable solely from revenues derived from any revenue-producing facility,hereafter issued under any law of this state by any county, city, town,village, school district, educational institution, drainage district, leveedistrict, nursing home district, hospital district, library district, roaddistrict, fire protection district, water supply district, sewer district,housing authority, land clearance for redevelopment authority, specialauthority created under section 64.920, RSMo, authority created pursuant tothe provisions of chapter 238, RSMo, or other municipality, politicalsubdivision or district of this state shall be negotiable, may be issued inbearer form or registered form with or without coupons to evidence interestpayable thereon, may be issued in any denomination, and may bear interestat a rate not exceeding ten percent per annum, and may be sold, at anysale, at the best price obtainable, not less than ninety-five percent ofthe par value thereof, anything in any proceedings heretofore hadauthorizing such bonds, notes, or other evidence of indebtedness, or in anylaw of this state or charter provision to the contrary notwithstanding.Such issue of bonds, notes, or other evidence of indebtedness may bearinterest at a rate not exceeding fourteen percent per annum if sold atpublic sale after giving reasonable notice of such sale, at the best priceobtainable, not less than ninety-five percent of the par value thereof;provided, that such bonds, notes, or other evidence of indebtedness may besold to any agency or corporate or other instrumentality of the state ofMissouri or of the federal government at private sale at a rate notexceeding fourteen percent per annum.
2. Notwithstanding the provisions of subsection 1 of this section tothe contrary, the sale of bonds, notes, or other evidence of indebtednessissued by the state board of public buildings created under section 8.010,RSMo, the state board of fund commissioners created under section 33.300,RSMo, any port authority created under section 68.010, RSMo, the bi-statemetropolitan development district authorized under section 70.370, RSMo,any special business district created under section 71.790, RSMo, anycounty, as defined in section 108.465, exercising the powers granted bysections 108.450 to 108.470, the industrial development board created undersection 100.265, RSMo, any planned industrial expansion authority createdunder section 100.320, RSMo, the higher education loan authority createdunder section 173.360, RSMo, the Missouri housing development commissioncreated under section 215.020, RSMo, the state environmental improvementand energy resources authority created under section 260.010, RSMo, theagricultural and small business development authority created under section348.020, RSMo, any industrial development corporation created under section349.035, RSMo, or the health and educational facilities authority createdunder section 360.020, RSMo, shall, with respect to the sales price, mannerof sale and interest rate, be governed by the specific sections applicableto each of these entities.
3. Notwithstanding other provisions of this section or other law, thesale of bonds, notes or other evidence of indebtedness issued by anyhousing authority created under section 99.040, RSMo, may be sold at anysale, at the best price obtainable, not less than ninety-five percent ofthe par value thereof, and may bear interest at a rate not exceedingfourteen percent per annum. The sale shall be a public sale unless theissuing jurisdiction adopts a resolution setting forth clear justificationwhy the sale should be a private sale except that private activity bondsmay be sold either at public or private sale.
4. Notwithstanding other provisions of this section or law,industrial development revenue bonds may be sold at private sale and bearinterest at a rate not exceeding fourteen percent per annum at the bestprice obtainable, not less than ninety-five percent of the par valuethereof.
5. Notwithstanding other provisions in subsection 1 of this sectionto the contrary, revenue bonds issued for airport purposes by anyconstitutional charter city in this state which now has or may hereafteracquire a population of more than three hundred thousand but less than sixhundred thousand inhabitants, according to the last federal decennialcensus, may bear interest at a rate not exceeding fourteen percent perannum if sold at public sale after giving reasonable notice, at the bestprice obtainable, not less than ninety-five percent of the par valuethereof.
6. For purposes of the interest rate limitations set forth in thissection, the interest rate on bonds, notes or other evidence ofindebtedness described in this section means the rate at which the presentvalue of the debt service payments on an issue of bonds, notes or otherevidence of indebtedness, discounted to the date of issuance, equals theoriginal price at which such bonds, notes or other evidence of indebtednessare sold by the issuer. Interest on bonds, notes or other evidence ofindebtedness may be paid periodically at such times as shall be determinedby the governing body of the issuer and may be compounded in accordancewith section 408.080, RSMo.
7. Notwithstanding any provision of law or charter to the contrary:
(1) Any entity referenced in subsection 1 or 2 of this section andany other political corporation of the state which entity or politicalcorporation has an annual operating budget for the current year exceedingtwenty-five million dollars may, in connection with managing the cost tosuch entity or political corporation of purchasing fuel, electricity,natural gas, and other commodities used in the ordinary course of itslawful operations, enter into agreements providing for fixing the cost ofsuch commodity, including without limitation agreements commonly referredto as hedges, futures, and options; provided that as of the date of suchagreement, such entity or political corporation shall have complied withsubdivision (3) of this subsection; and further provided that no eligibleschool, as defined in section 393.310, RSMo, shall be authorized by thissubsection to enter into such agreements in connection with the purchase ofnatural gas while the tariffs required under section 393.310, RSMo, are ineffect;
(2) Any entity referenced in subsection 1 or 2 of this section andany other political corporation of the state may, in connection with itsbonds, notes, or other obligations then outstanding or to be issued andbearing interest at a fixed or variable rate, enter into agreementsproviding for payments based on levels of or changes in interest rates,including without limitation certain derivative agreements commonlyreferred to as interest rate swaps, hedges, caps, floors, and collars,provided that:
(a) As of the date of issuance of the bonds, notes, or otherobligations to which such agreement relates, such entity or politicalcorporation will have bonds, notes, or other obligations outstanding in anaggregate principal amount of at least fifty million dollars; and
(b) As of the date of such agreement, such entity's or politicalcorporation's bonds, notes, or other obligations then outstanding or to beissued have received a stand-alone credit rating in one of the two highestcategories, without regard to any gradation within such categories, from atleast one nationally recognized credit rating agency, or such entity orpolitical corporation has an issuer or general credit rating, in one of thetwo highest categories, without regard to any gradation within suchcategories, from at least one nationally recognized credit rating agency;and
(c) As of the date of such agreement, such entity or politicalcorporation shall have complied with subdivision (3) of this subsection;
(3) Prior to entering into any agreements pursuant to subdivision (1)or (2) of this subsection, the governing body of the entity or politicalcorporations entering into such agreements shall have adopted a writtenpolicy governing such agreements. Such policy shall be prepared byintegrating the recommended practices published by the Government FinanceOfficers Association or comparable nationally recognized professionalorganization and shall provide guidance with respect to the permittedpurposes, authorization process, mitigation of risk factors, ongoingoversight responsibilities, market disclosure, financial strategy, and anyother factors in connection with such agreements determined to be relevantby the governing body of such entity or political corporation. Such entityor political corporation may enter into such agreements at such times andsuch agreements may contain such payment, security, default, remedy, andother terms and conditions as shall be consistent with the written policyadopted under this subdivision and as may be approved by the governing bodyof such entity or other obligated party, including any rating by anynationally recognized rating agency and any other criteria as may beappropriate;
(4) Nothing in this subsection shall be applied or interpreted toauthorize any such entity or political corporation to enter into any suchagreement for investment purposes or to diminish or alter the special orgeneral power any such entity or political corporation may otherwise haveunder any other provisions of law including the special or general power ofany interstate transportation authority.
Bonds, notes and other evidences of indebtedness, forms--rate--salesprice--exceptions--agreements for purchase of commodities.
108.170. 1. Notwithstanding any other provisions of any law orcharter to the contrary, any issue of bonds, notes, or other evidences ofindebtedness, including bonds, notes, or other evidences of indebtednesspayable solely from revenues derived from any revenue-producing facility,hereafter issued under any law of this state by any county, city, town,village, school district, educational institution, drainage district, leveedistrict, nursing home district, hospital district, library district, roaddistrict, fire protection district, water supply district, sewer district,housing authority, land clearance for redevelopment authority, specialauthority created under section 64.920, RSMo, authority created pursuant tothe provisions of chapter 238, RSMo, or other municipality, politicalsubdivision or district of this state shall be negotiable, may be issued inbearer form or registered form with or without coupons to evidence interestpayable thereon, may be issued in any denomination, and may bear interestat a rate not exceeding ten percent per annum, and may be sold, at anysale, at the best price obtainable, not less than ninety-five percent ofthe par value thereof, anything in any proceedings heretofore hadauthorizing such bonds, notes, or other evidence of indebtedness, or in anylaw of this state or charter provision to the contrary notwithstanding.Such issue of bonds, notes, or other evidence of indebtedness may bearinterest at a rate not exceeding fourteen percent per annum if sold atpublic sale after giving reasonable notice of such sale, at the best priceobtainable, not less than ninety-five percent of the par value thereof;provided, that such bonds, notes, or other evidence of indebtedness may besold to any agency or corporate or other instrumentality of the state ofMissouri or of the federal government at private sale at a rate notexceeding fourteen percent per annum.
2. Notwithstanding the provisions of subsection 1 of this section tothe contrary, the sale of bonds, notes, or other evidence of indebtednessissued by the state board of public buildings created under section 8.010,RSMo, the state board of fund commissioners created under section 33.300,RSMo, any port authority created under section 68.010, RSMo, the bi-statemetropolitan development district authorized under section 70.370, RSMo,any special business district created under section 71.790, RSMo, anycounty, as defined in section 108.465, exercising the powers granted bysections 108.450 to 108.470, the industrial development board created undersection 100.265, RSMo, any planned industrial expansion authority createdunder section 100.320, RSMo, the higher education loan authority createdunder section 173.360, RSMo, the Missouri housing development commissioncreated under section 215.020, RSMo, the state environmental improvementand energy resources authority created under section 260.010, RSMo, theagricultural and small business development authority created under section348.020, RSMo, any industrial development corporation created under section349.035, RSMo, or the health and educational facilities authority createdunder section 360.020, RSMo, shall, with respect to the sales price, mannerof sale and interest rate, be governed by the specific sections applicableto each of these entities.
3. Notwithstanding other provisions of this section or other law, thesale of bonds, notes or other evidence of indebtedness issued by anyhousing authority created under section 99.040, RSMo, may be sold at anysale, at the best price obtainable, not less than ninety-five percent ofthe par value thereof, and may bear interest at a rate not exceedingfourteen percent per annum. The sale shall be a public sale unless theissuing jurisdiction adopts a resolution setting forth clear justificationwhy the sale should be a private sale except that private activity bondsmay be sold either at public or private sale.
4. Notwithstanding other provisions of this section or law,industrial development revenue bonds may be sold at private sale and bearinterest at a rate not exceeding fourteen percent per annum at the bestprice obtainable, not less than ninety-five percent of the par valuethereof.
5. Notwithstanding other provisions in subsection 1 of this sectionto the contrary, revenue bonds issued for airport purposes by anyconstitutional charter city in this state which now has or may hereafteracquire a population of more than three hundred thousand but less than sixhundred thousand inhabitants, according to the last federal decennialcensus, may bear interest at a rate not exceeding fourteen percent perannum if sold at public sale after giving reasonable notice, at the bestprice obtainable, not less than ninety-five percent of the par valuethereof.
6. For purposes of the interest rate limitations set forth in thissection, the interest rate on bonds, notes or other evidence ofindebtedness described in this section means the rate at which the presentvalue of the debt service payments on an issue of bonds, notes or otherevidence of indebtedness, discounted to the date of issuance, equals theoriginal price at which such bonds, notes or other evidence of indebtednessare sold by the issuer. Interest on bonds, notes or other evidence ofindebtedness may be paid periodically at such times as shall be determinedby the governing body of the issuer and may be compounded in accordancewith section 408.080, RSMo.
7. Notwithstanding any provision of law or charter to the contrary:
(1) Any entity referenced in subsection 1 or 2 of this section andany other political corporation of the state which entity or politicalcorporation has an annual operating budget for the current year exceedingtwenty-five million dollars may, in connection with managing the cost tosuch entity or political corporation of purchasing fuel, electricity,natural gas, and other commodities used in the ordinary course of itslawful operations, enter into agreements providing for fixing the cost ofsuch commodity, including without limitation agreements commonly referredto as hedges, futures, and options; provided that as of the date of suchagreement, such entity or political corporation shall have complied withsubdivision (3) of this subsection; and further provided that no eligibleschool, as defined in section 393.310, RSMo, shall be authorized by thissubsection to enter into such agreements in connection with the purchase ofnatural gas while the tariffs required under section 393.310, RSMo, are ineffect;
(2) Any entity referenced in subsection 1 or 2 of this section andany other political corporation of the state may, in connection with itsbonds, notes, or other obligations then outstanding or to be issued andbearing interest at a fixed or variable rate, enter into agreementsproviding for payments based on levels of or changes in interest rates,including without limitation certain derivative agreements commonlyreferred to as interest rate swaps, hedges, caps, floors, and collars,provided that:
(a) As of the date of issuance of the bonds, notes, or otherobligations to which such agreement relates, such entity or politicalcorporation will have bonds, notes, or other obligations outstanding in anaggregate principal amount of at least fifty million dollars; and
(b) As of the date of such agreement, such entity's or politicalcorporation's bonds, notes, or other obligations then outstanding or to beissued have received a stand-alone credit rating in one of the two highestcategories, without regard to any gradation within such categories, from atleast one nationally recognized credit rating agency, or such entity orpolitical corporation has an issuer or general credit rating, in one of thetwo highest categories, without regard to any gradation within suchcategories, from at least one nationally recognized credit rating agency;and
(c) As of the date of such agreement, such entity or politicalcorporation shall have complied with subdivision (3) of this subsection;
(3) Prior to entering into any agreements pursuant to subdivision (1)or (2) of this subsection, the governing body of the entity or politicalcorporations entering into such agreements shall have adopted a writtenpolicy governing such agreements. Such policy shall be prepared byintegrating the recommended practices published by the Government FinanceOfficers Association or comparable nationally recognized professionalorganization and shall provide guidance with respect to the permittedpurposes, authorization process, mitigation of risk factors, ongoingoversight responsibilities, market disclosure, financial strategy, and anyother factors in connection with such agreements determined to be relevantby the governing body of such entity or political corporation. Such entityor political corporation may enter into such agreements at such times andsuch agreements may contain such payment, security, default, remedy, andother terms and conditions as shall be consistent with the written policyadopted under this subdivision and as may be approved by the governing bodyof such entity or other obligated party, including any rating by anynationally recognized rating agency and any other criteria as may beappropriate;
(4) Nothing in this subsection shall be applied or interpreted toauthorize any such entity or political corporation to enter into any suchagreement for investment purposes or to diminish or alter the special orgeneral power any such entity or political corporation may otherwise haveunder any other provisions of law including the special or general power ofany interstate transportation authority.
Bonds, notes and other evidences of indebtedness, forms--rate--salesprice--exceptions--agreements for purchase of commodities.
108.170. 1. Notwithstanding any other provisions of any law orcharter to the contrary, any issue of bonds, notes, or other evidences ofindebtedness, including bonds, notes, or other evidences of indebtednesspayable solely from revenues derived from any revenue-producing facility,hereafter issued under any law of this state by any county, city, town,village, school district, educational institution, drainage district, leveedistrict, nursing home district, hospital district, library district, roaddistrict, fire protection district, water supply district, sewer district,housing authority, land clearance for redevelopment authority, specialauthority created under section 64.920, RSMo, authority created pursuant tothe provisions of chapter 238, RSMo, or other municipality, politicalsubdivision or district of this state shall be negotiable, may be issued inbearer form or registered form with or without coupons to evidence interestpayable thereon, may be issued in any denomination, and may bear interestat a rate not exceeding ten percent per annum, and may be sold, at anysale, at the best price obtainable, not less than ninety-five percent ofthe par value thereof, anything in any proceedings heretofore hadauthorizing such bonds, notes, or other evidence of indebtedness, or in anylaw of this state or charter provision to the contrary notwithstanding.Such issue of bonds, notes, or other evidence of indebtedness may bearinterest at a rate not exceeding fourteen percent per annum if sold atpublic sale after giving reasonable notice of such sale, at the best priceobtainable, not less than ninety-five percent of the par value thereof;provided, that such bonds, notes, or other evidence of indebtedness may besold to any agency or corporate or other instrumentality of the state ofMissouri or of the federal government at private sale at a rate notexceeding fourteen percent per annum.
2. Notwithstanding the provisions of subsection 1 of this section tothe contrary, the sale of bonds, notes, or other evidence of indebtednessissued by the state board of public buildings created under section 8.010,RSMo, the state board of fund commissioners created under section 33.300,RSMo, any port authority created under section 68.010, RSMo, the bi-statemetropolitan development district authorized under section 70.370, RSMo,any special business district created under section 71.790, RSMo, anycounty, as defined in section 108.465, exercising the powers granted bysections 108.450 to 108.470, the industrial development board created undersection 100.265, RSMo, any planned industrial expansion authority createdunder section 100.320, RSMo, the higher education loan authority createdunder section 173.360, RSMo, the Missouri housing development commissioncreated under section 215.020, RSMo, the state environmental improvementand energy resources authority created under section 260.010, RSMo, theagricultural and small business development authority created under section348.020, RSMo, any industrial development corporation created under section349.035, RSMo, or the health and educational facilities authority createdunder section 360.020, RSMo, shall, with respect to the sales price, mannerof sale and interest rate, be governed by the specific sections applicableto each of these entities.
3. Notwithstanding other provisions of this section or other law, thesale of bonds, notes or other evidence of indebtedness issued by anyhousing authority created under section 99.040, RSMo, may be sold at anysale, at the best price obtainable, not less than ninety-five percent ofthe par value thereof, and may bear interest at a rate not exceedingfourteen percent per annum. The sale shall be a public sale unless theissuing jurisdiction adopts a resolution setting forth clear justificationwhy the sale should be a private sale except that private activity bondsmay be sold either at public or private sale.
4. Notwithstanding other provisions of this section or law,industrial development revenue bonds may be sold at private sale and bearinterest at a rate not exceeding fourteen percent per annum at the bestprice obtainable, not less than ninety-five percent of the par valuethereof.
5. Notwithstanding other provisions in subsection 1 of this sectionto the contrary, revenue bonds issued for airport purposes by anyconstitutional charter city in this state which now has or may hereafteracquire a population of more than three hundred thousand but less than sixhundred thousand inhabitants, according to the last federal decennialcensus, may bear interest at a rate not exceeding fourteen percent perannum if sold at public sale after giving reasonable notice, at the bestprice obtainable, not less than ninety-five percent of the par valuethereof.
6. For purposes of the interest rate limitations set forth in thissection, the interest rate on bonds, notes or other evidence ofindebtedness described in this section means the rate at which the presentvalue of the debt service payments on an issue of bonds, notes or otherevidence of indebtedness, discounted to the date of issuance, equals theoriginal price at which such bonds, notes or other evidence of indebtednessare sold by the issuer. Interest on bonds, notes or other evidence ofindebtedness may be paid periodically at such times as shall be determinedby the governing body of the issuer and may be compounded in accordancewith section 408.080, RSMo.
7. Notwithstanding any provision of law or charter to the contrary:
(1) Any entity referenced in subsection 1 or 2 of this section andany other political corporation of the state which entity or politicalcorporation has an annual operating budget for the current year exceedingtwenty-five million dollars may, in connection with managing the cost tosuch entity or political corporation of purchasing fuel, electricity,natural gas, and other commodities used in the ordinary course of itslawful operations, enter into agreements providing for fixing the cost ofsuch commodity, including without limitation agreements commonly referredto as hedges, futures, and options; provided that as of the date of suchagreement, such entity or political corporation shall have complied withsubdivision (3) of this subsection; and further provided that no eligibleschool, as defined in section 393.310, RSMo, shall be authorized by thissubsection to enter into such agreements in connection with the purchase ofnatural gas while the tariffs required under section 393.310, RSMo, are ineffect;
(2) Any entity referenced in subsection 1 or 2 of this section andany other political corporation of the state may, in connection with itsbonds, notes, or other obligations then outstanding or to be issued andbearing interest at a fixed or variable rate, enter into agreementsproviding for payments based on levels of or changes in interest rates,including without limitation certain derivative agreements commonlyreferred to as interest rate swaps, hedges, caps, floors, and collars,provided that:
(a) As of the date of issuance of the bonds, notes, or otherobligations to which such agreement relates, such entity or politicalcorporation will have bonds, notes, or other obligations outstanding in anaggregate principal amount of at least fifty million dollars; and
(b) As of the date of such agreement, such entity's or politicalcorporation's bonds, notes, or other obligations then outstanding or to beissued have received a stand-alone credit rating in one of the two highestcategories, without regard to any gradation within such categories, from atleast one nationally recognized credit rating agency, or such entity orpolitical corporation has an issuer or general credit rating, in one of thetwo highest categories, without regard to any gradation within suchcategories, from at least one nationally recognized credit rating agency;and
(c) As of the date of such agreement, such entity or politicalcorporation shall have complied with subdivision (3) of this subsection;
(3) Prior to entering into any agreements pursuant to subdivision (1)or (2) of this subsection, the governing body of the entity or politicalcorporations entering into such agreements shall have adopted a writtenpolicy governing such agreements. Such policy shall be prepared byintegrating the recommended practices published by the Government FinanceOfficers Association or comparable nationally recognized professionalorganization and shall provide guidance with respect to the permittedpurposes, authorization process, mitigation of risk factors, ongoingoversight responsibilities, market disclosure, financial strategy, and anyother factors in connection with such agreements determined to be relevantby the governing body of such entity or political corporation. Such entityor political corporation may enter into such agreements at such times andsuch agreements may contain such payment, security, default, remedy, andother terms and conditions as shall be consistent with the written policyadopted under this subdivision and as may be approved by the governing bodyof such entity or other obligated party, including any rating by anynationally recognized rating agency and any other criteria as may beappropriate;
(4) Nothing in this subsection shall be applied or interpreted toauthorize any such entity or political corporation to enter into any suchagreement for investment purposes or to diminish or alter the special orgeneral power any such entity or political corporation may otherwise haveunder any other provisions of law including the special or general power ofany interstate transportation authority.
