State Codes and Statutes

Statutes > Wyoming > Title16 > Chapter5

CHAPTER 5 - PUBLIC SECURITIES

 

ARTICLE 1 - REFUNDING

 

16-5-101. Short title.

 

Thisact shall be known and may be cited as the "General Obligation PublicSecurities Refunding Law".

 

16-5-102. Definitions.

 

 

(a) As used in this act:

 

(i) "Clerk" means the clerk, secretary or otherprincipal clerical officer of the issuer;

 

(ii) "Federal securities" means the bills,certificates of indebtedness, notes, bonds, or similar obligations which aredirect obligations of, or the principal and interest of which obligations areunconditionally guaranteed by, the United States of America;

 

(iii) "Governing body" means the city council, towncouncil, commission, board of commissioners, board of trustees, board ofdirectors or other body in which the legislative powers of the issuer arevested;

 

(iv) "Issuer" means the public body issuing anyrefunding public security pursuant to this act;

 

(v) "Ordinance" means an ordinance, resolution orother proceeding by which a governing body takes formal action and adoptslegislative provisions and matters of some permanency;

 

(vi) "Public body" means any county, city, town,school district or special district created under the laws of this state or anyother local government entity;

 

(vii) "Public security" means a bond, note, certificateof indebtedness, warrant or other obligation for the payment of money, issuedby any public body of this state, or any predecessor of any public body, whichis payable, or which may be paid, from ad valorem taxes, or which constitutes adebt or an indebtedness within the meaning of any constitutional or statutorylimitation and bonds issued to pay for improvements in a local improvementdistrict and payable from special assessments under W.S. 15-6-431 through15-6-447, but excluding any warrant or similar obligation payable within one(1) year from the date of its issuance or any obligation solely payable from apledge of designated revenues other than ad valorem taxes;

 

(viii) "Refunding public security" means a public securitywhich is authorized to be issued pursuant to this act;

 

(ix) "This act" means W.S. 16-5-101 through 16-5-119.

 

16-5-103. Authority to refund; purposes therefor.

 

 

(a) Any public security or securities issued by any public bodyof the state may be refunded, without an election, by the public body whichissued them, or any successor thereof, in the name of the public body whichissued the public securities being refunded, but subject to provisionsconcerning their payment and to any other contractual limitations in theproceedings authorizing their issuance or otherwise appertaining thereto, forany one (1) or more of the following purposes:

 

(i) For extending the maturities of all or any part ofoutstanding public securities for which payment is in arrears, or for whichthere is not, or it is certain there will not be, sufficient money to pay theprincipal or interest on outstanding public securities as the same respectivelybecome due;

 

(ii) For reducing interest costs or effecting other economies;

 

(iii) For reorganizing all or any part of the outstanding publicsecurities of a public body in order to equalize tax levies.

 

16-5-104. Interest; terms and conditions; negotiability.

 

Refundingpublic securities shall bear interest, payable semiannually or annually, andevidenced by one (1) or two (2) sets of coupons, if any, except that the firstcoupon or coupons appertaining to a refunding public security may evidenceinterest for a period not in excess of one (1) year, and refunding public securitiesmay be in one (1) or more series, may bear a date or dates, may mature in anamount or amounts, serially or otherwise, at a time or times not exceedingthirty (30) years from their respective dates, may be in a denomination ordenominations, may be payable in a medium of payment, in a place or placeswithin or without the state, including but not limited to the office of thecounty treasurer of a county in which the issuer is located wholly or in part,may carry registration privileges, may be subject to terms of prior redemptionin advance of maturity in order, or by lot, or otherwise, at a time or timeswith or without premium, may bear privileges for reissuance in the same orother denominations, may be so reissued (without modification of maturities andinterest rates) and may be in a form, either coupon or registered, as may beprovided by ordinance of the governing body. Except as the governing body mayotherwise provide, the refunding public securities and attached interestcoupons shall be fully negotiable within the meaning of and for all purposes ofthe Uniform Commercial Code - Investment Securities. Except as otherwiseprovided each holder of a refunding public security, by accepting the security,shall be conclusively deemed to have agreed that the refunding public securityis and shall be fully negotiable within the meaning and for all purposes of theUniform Commercial Code - Investment Securities.

 

16-5-105. General prerequisites and limitations.

 

Nopublic securities may be refunded hereunder unless the holders voluntarilysurrender them for exchange or payment, or unless they either mature or arecallable for prior redemption under their terms within twenty-five (25) yearsfrom the date of issuance of the refunding public securities. Provision shallbe made for paying the public securities being refunded within the statedperiod of time. No maturity of public security being refunded may be extendedover twenty-five (25) years. No public security may be refunded hereunderunless the public security has been outstanding for at least one (1) year sincethe date of its delivery. The principal amount of the refunding publicsecurities may not exceed the original authorized principal amount of thepublic securities being refunded. The principal amount of the refunding publicsecurities may be less than or the same as the principal amount of the publicsecurities being refunded so long as provision is duly and sufficiently madefor the payment of the public securities being refunded.

 

16-5-106. Limitations on number of issues.

 

Apublic body may issue refunding public securities to refund one (1) or more orany part of one (1) or more or all issues of its public securities which areoutstanding, and refunding public securities and public securities authorizedfor any other purposes may be issued separately or issued in combination in one(1) series or more by any issuer except as hereafter provided. No two (2) ormore issues or parts of issues of outstanding public securities shall be refundedby a single issue of refunding public securities unless the taxable propertyupon which tax levies are being made for payment of the outstanding publicsecurities is identical to the taxable property on which the levies are beingmade for the payment of all other outstanding public securities proposed to berefunded by the single issue of refunding public securities. No two (2) or moreissues or parts of issues of outstanding public securities or refunding publicsecurities and public securities authorized for any other purposes shall becombined in one (1) issue where more than one (1) constitutional or statutorydebt limitation is applicable to the combination.

 

16-5-107. Maximum allowable indebtedness.

 

Inno event shall the aggregate amount of indebtedness of any issuer exceed themaximum allowable amount as determined pursuant to the constitutional andstatutory provisions, if any, applicable to the issuer. In determining andcomputing the aggregate amount of indebtedness of any issuer, public securitieswhich have been refunded, as provided in this act, by immediate payment orprior redemption and retirement or by the placement of the proceeds ofrefunding public securities or investments thereof in escrow, shall not bedeemed outstanding indebtedness from and after the date on which sufficientmonies are placed with the paying agent of the outstanding public securitiesfor the purpose of immediately paying, or redeeming and retiring the bonds, orfrom and after the date on which the proceeds of the refunding publicsecurities or investments thereof are placed in escrow.

 

16-5-108. Sale or exchange; price.

 

Anyrefunding public securities may be delivered in exchange for the outstandingpublic securities being refunded or may be publicly or privately sold in themanner determined by the governing body. Refunding public securities may bepublicly or privately sold at, above, or below the par value thereof.

 

16-5-109. Costs of refunding.

 

Theincidental costs of the refunding of public securities may be paid by thepurchaser of the refunding public securities or defrayed from the general fundof the public body or from the proceeds of the refunding public securities orfrom the interest or other yield derived from the investment of the proceeds orfrom other sources legally available therefor.

 

16-5-110. Disposition of proceeds; escrowed proceeds.

 

Theproceeds of refunding public securities shall either be immediately applied tothe retirement of the public securities to be refunded or be placed in escrowin any state or national bank within the state which is a member of the federaldeposit insurance corporation and which has trust powers, to be applied to thepayment of the public securities being refunded upon their presentation. Anyaccrued interest and any premium appertaining to a sale of refunding publicsecurities may be applied to the payment of the principal and interest, or bothmay be deposited in a reserve account, or may be used to defray incidentalcosts, as the governing body may determine. Any escrow shall not be limited toproceeds of refunding public securities, but may include other monies availablefor its purpose. Any escrowed proceeds, may be invested or reinvested infederal securities. Escrowed proceeds and investments, together with anyinterest or other yield to be derived from any investment, shall be in anamount at all times sufficient to cover principal, interest, any priorredemption premium due, and any charges of the escrow agent, to pay the publicsecurities being refunded as they become due at their respective maturities ordue at designated prior redemption dates in connection with which the governingbody of the issuer shall exercise a prior redemption option. The computationsmade in determining sufficiency shall be verified by a certified publicaccountant certificated to practice in this state or in any other state. Anypurchaser of any refunding public security is not responsible for theapplication of the proceeds thereof by the issuer or any of its officers, agentsor employees.

 

16-5-111. Signing, countersigning, execution or attestation ofsecurities or interest coupons; facsimile seals and signatures.

 

Anyrefunding public security or interest coupon may be signed, countersigned,executed or attested by the public officials who are authorized by law at thetime of the issuance of the refunding public securities to sign, countersign,execute or attest public securities of the issuer of the same general characteras those public securities and coupons which are being refunded. In thealternative, the governing body may, in its discretion, designate appropriatepublic officials to sign, countersign, execute or attest any refunding publicsecurity or appurtenant coupon. Any officer so authorized may utilize a facsimilesignature in lieu of his manual signature in the manner provided by law,provided that compliance with any law other than this act is not a condition ofexecution with a facsimile signature of any interest coupon. The clerk maycause the seal or a facsimile of the seal of the issuer to be printed, stampedor otherwise placed on any refunding public security. The facsimile seal shallhave the same legal effect as the impression of the seal. Refunding publicsecurities and any coupons bearing the signatures of officers in office on thedate of the signing shall be valid and binding obligations of the issuer,notwithstanding that before the delivery and payment any or all persons whosesignatures appear have ceased to fill their respective offices. Any officerauthorized to sign, countersign, execute or attest any refunding publicsecurity or interest coupon, at the time of its execution or of the executionof a signature certificate, may adopt for his facsimile signature the facsimilesignature of his predecessor in office in the event the facsimile signatureappears upon the refunding public security or coupons, or upon both the publicsecurity and coupons.

 

16-5-112. Recitals in securities imparting legality.

 

Anyordinance authorizing, or any other instrument appertaining to, any refundingpublic securities may provide that each refunding public security authorizedshall recite that it is issued under the authority of this act. The recitalshall conclusively impart full compliance with all of the provisions and allpublic securities issued containing the recital are incontestable for any causewhatsoever after their delivery for value.

 

16-5-113. Endorsement.

 

Theclerk shall endorse a certificate upon every refunding public security that itis issued pursuant to law and is within the debt limit of the issuer.

 

16-5-114. Governing body's determination of legality.

 

Thedetermination of a governing body that all the limitations hereunder imposedupon the issuance of refunding public securities have been met is conclusive inthe absence of fraud or arbitrary and gross abuse of discretion.

 

16-5-115. Refunding by divided governing bodies.

 

Whena public body having outstanding indebtedness has been divided and partsthereof included within two (2) or more other public bodies, by any lawfulmeans, the refunding of the securities requires affirmative action by amajority of the members of the governing bodies of each of the public bodieswithin which any part of the area of the public body which is being lawfullytaxed to pay the outstanding indebtedness is then included except ashereinafter provided. The indebtedness of any public body outstanding at thetime a part or parts of the public body are detached therefrom by any lawfulmeans, and which public body has retained its lawful corporate existencesubsequent to the detachment of the land from the public body may be refundedby action of the governing body of the public body from which land has beendetached with or without concurrence or action by the governing board of thepublic body, if any, within which the detached land is included.

 

16-5-116. Financing; annual property tax; other funds.

 

Thegoverning body shall cause to be levied annually, without limitation of rate oramount, upon all taxable property of the issuer, in addition to otherauthorized taxes, a sufficient sum to pay the principal of and interest on therefunding public securities until the refunding public securities issuedpursuant to this act are fully paid. The governing body may apply any otherfunds that are in the treasury of the issuer and available for payment of theinterest or principal as it respectively matures, and the levy or leviesprovided for may be diminished. Should the tax for the payment of the principaland interest on any refunding public security at any time not be levied orcollected in time to meet the payment, or if the refunding public securitiesare issued at a time which makes it impossible to levy a tax for the initialinstallments of principal or interest, the principal or interest so maturingshall be paid out of the general fund of the issuer, or from any other fundsavailable for that purpose. For the purpose of reimbursing the fund or fundsthe money so used may be repaid from the first monies collected from taxesthereafter levied. The full faith and credit of the issuer shall be pledged forthe punctual payment of the principal and interest on the refunding publicsecurities. If the public securities to be refunded and the interest accruingwould have been paid from taxes levied upon only part of the taxable propertywithin the boundaries of the issuer, the taxes levied for payment or redemptionof the refunding public securities, and the interest accruing shall be leviedin the same manner and upon only the same taxable property as would have beenlevied for the payment of the public securities to be refunded if no refundingof the public securities had been accomplished. Any tax levied to retire anyrefunding public security issued by a hospital district is subject to thelimitations set forth in W.S. 35-2-414, provided any refunding securitiesissued under this act to refund local improvement bonds shall be payable solelyfrom and secured by the pledge of special assessments under W.S. 15-6-401 through15-6-448.

 

16-5-117. Exemption from taxation; exception.

 

Therefunding public securities issued by any issuer pursuant to this act, theirtransfer, and the income therefrom, shall at all times be free from taxationwithin the state of Wyoming, except for estate taxes.

 

16-5-118. Other outstanding securities.

 

Thisact shall have no effect on the legality of any outstanding public securityissued for refunding or other purposes pursuant to any other law.

 

16-5-119. Scope, authority and effect of provisions.

 

Thisact, without reference to other statutes of the state, except as hereinotherwise specifically provided, is full authority for the authorization andissuance of refunding public securities. No other act or law with regard to theauthorization or issuance of securities that in any way impedes or restrictsthe carrying out of the acts herein authorized shall be construed as applyingto any proceedings taken or acts pursuant hereto except as otherwise provided.The powers conferred and the limitations imposed by this act are in additionand supplemental to, and not in substitution for, and shall not affect thepowers conferred by any other law except as otherwise provided herein.

 

ARTICLE 2 - VALIDATION

 

16-5-201. Short title.

 

Thisact shall be known as the "1965 Public Securities Validation Act".

 

16-5-202. Definitions.

 

 

(a) As used in this act:

 

(i) "Public body" of the state means any stateeducational institution or other state institution, its board of trustees orother governing body constituting a body corporate, any county, city or town,whether incorporated or governed under a general act, special charter, orotherwise, any school district, high school district, community collegedistrict, sanitary and improvement district, hospital district, power district,irrigation district, drainage district, water conservancy district, waterdistrict, sewer district, water and sewer district, cemetery district, fireprotection district, any other corporate district, any corporate commission orany other political subdivision of the state constituting a body corporate;

 

(ii) "Public security" means a bond, note, certificateof indebtedness, coupon or other similar obligation for the payment of money,issued by this state or by any public body thereof;

 

(iii) "State" means the state of Wyoming and any board,commission, department, corporation, instrumentality or agency thereof;

 

(iv) "This act" means W.S. 16-5-201 through 16-5-204.

 

16-5-203. Outstanding securities.

 

Allpublic securities of the state and of all public bodies outstanding on February17, 1965, the right to the payment of which has not been barred by anypertinent statute of limitations, and all acts and proceedings taken, orpurportedly taken by or on behalf of the state or any public body under law orunder color of law preliminary to and in the authorization, execution, sale,issuance and payment (or any combination thereof) of all such publicsecurities, are hereby validated, ratified, approved and confirmed, includingbut not necessarily limited to the terms, provisions, conditions and covenantsof any resolution or ordinance appertaining thereto, the redemption of publicsecurities before maturity and provisions therefor, the levy and collection ofrates, tolls and charges, special assessments, and general and other taxes, andthe acquisition and application of other revenues, the pledge and use of theproceeds thereof, and the establishment of liens thereon and funds therefor,appertaining to such public securities, except as hereinafter provided,notwithstanding any lack of power, authority, or otherwise, and notwithstandingany defects and irregularities in such public securities, acts and proceedings,and in such authorization, execution, sale, issuance and payment. Outstandingpublic securities are and shall be binding, legal, valid and enforceableobligations of the state or the public body issuing them in accordance withtheir terms and their authorizing proceedings.

 

16-5-204. Prior securities; limitations; exceptions.

 

Thisact validates any public securities heretofore issued and any acts andproceedings heretofore taken which the legislature could have supplied orprovided for in the law under which the public securities were issued and theacts or proceedings were taken. This act is limited to the validation of publicsecurities, acts and proceedings to the extent they can be effectuated underthe state and federal constitutions. This act does not validate, ratify,approve, confirm or legalize any public security, act, proceeding or othermatter the legality of which is being contested in any legal proceeding nowpending and undetermined, and does not confirm, validate or legalize any publicsecurity, act, proceedings, or other matter which has heretofore beendetermined in any legal proceeding to be illegal, void or ineffective.

 

ARTICLE 3 - DEBT LIMITATION AND BOND REDEMPTION

 

16-5-301. Voidness of excessive indebtedness; liability of officer andsureties.

 

Anyindebtedness created by any county, city, town or other subdivision of thestate in any current year in excess of that authorized by the constitution ofthe state and for which there are no revenues available for payment during thecurrent year, shall as against the county, city, town or other subdivision ofthe state, be void and of no effect. Any officer who participates in creatingthe indebtedness, and the sureties on his official bond, is personally liableto the holder, or holders, of the indebtedness as fully as if the indebtednesshad been contracted for his individual benefit. As used in this section,"current year" means from the first Monday in January of a year tothe first Monday in January of the next year.

 

16-5-302. Issuance of bonds in series; discharge.

 

 

(a) Whenever the issuance of bonds by the state, or any county,city, town, school district or high school district, is lawful, the board orother public body having authority to issue the bonds may divide the issuesinto series so that:

 

(i) Substantially equal amounts of the indebtedness matureannually;

 

(ii) Substantially equal annual tax levies are required for thepayment of principal and interest of the bonds; or

 

(iii) Substantially equal annual tax levies are required for thepayment of principal and interest of all outstanding bonds of the state orsubdivision thereof issuing the bonds.

 

(b) The bonds of each series shall be due and payable at adefinite date within the period permitted by law for the discharge of theindebtedness.

 

16-5-303. Redemption of bonds owned by state.

 

Anybond issued by any county, municipality, school district or other politicalsubdivision of the state and which bond the state owns on any interest paymentdate, upon thirty (30) days written notice to the state treasurer of the stateis subject to redemption on the date by the payment of the principal andinterest then due on the bond to the treasurer. Redemption shall be made onlyfrom sinking funds of the political subdivisions and not from funds obtained byits refunding of the bonds.

 

ARTICLE 4 - BOND ANTICIPATION NOTES

 

16-5-401. Short title.

 

Thisact shall be known and may be cited as the "Bond Anticipation Note Act of1981".

 

16-5-402. Definitions.

 

 

(a) As used in this act:

 

(i) "Anticipation note" means notes of the issuer,evidencing short-term borrowings, issued in anticipation of the issuance ofbonds which a governing body is authorized to issue;

 

(ii) "Authorizing instrument" means an ordinance,resolution, instrument or other written evidence of a proceeding by which agoverning body takes formal action and adopts legislative provisions on mattersof some permanency;

 

(iii) "Bonds" means general obligation bonds or revenuebonds of an issuer;

 

(iv) "General obligation bonds" means bonds authorizedto be issued by a governing body or any successor thereto which are payable orwhich may be paid from ad valorem taxes or which constitute a debt or anindebtedness of the issuer within the meaning of any constitutional orstatutory limitation, which mature one (1) or more years after the date oftheir issuance and delivery;

 

(v) "Governing body" means the city council, towncouncil, commission, board of commissioners, board of trustees, board ofdirectors or other legislative body of an issuer in which the legislative powersof the issuer are vested;

 

(vi) "Issuer" means any Wyoming county, schooldistrict, municipal corporation, community college, hospital district, sanitaryand improvement district, water district, sewer district, water and sewerdistrict, county improvement and service district or other politicalsubdivision of the state specifically authorized by law to issue any generalobligation bond or revenue bond;

 

(vii) "Revenue bond" means bonds authorized to beissued by a governing body or any successor thereto which are payable from apledge of designated revenues other than ad valorem taxes or specialassessments which mature one (1) or more years after the date of theirissuance.

 

16-5-403. Authority to issue notes; election thereon.

 

 

(a) If the qualified electors of an issuer authorize theissuance of bonds or the issuance of anticipation notes at an election heldpursuant to W.S. 22-21-101 through 22-21-112 and the governing body of theissuer considers it advisable and in the interests of the issuer, to anticipatethe issuance of the bonds, the governing body may from time to time andpursuant to an appropriate authorizing instrument issue its bond anticipationnotes.

 

(b) At the election to authorize the issuance of bondanticipation notes, the question shall state the maximum principal amount forwhich the notes may be issued, which may not exceed the principal amount of thebonds authorized, and the maximum rate of interest that may be paid on thenotes.

 

16-5-404. Authorizing instrument.

 

 

(a) Anticipation notes issued pursuant to this act shall beauthorized by instrument of the issuer which shall:

 

(i) Describe the bonds in anticipation of which the notes areto be issued;

 

(ii) Declare the results of the election authorizing the issuanceof the bonds wherein the qualified electors of the issuer have approved theirissuance in the manner required by law;

 

(iii) Specify the principal amount of the anticipation notes, therate of interest and maturity date or dates of the anticipation notes, whichmaturity date or dates shall not exceed three (3) years from the date of issueof the anticipation notes.

 

16-5-405. Manner of issuance; form, terms and conditions.

 

Anticipationnotes shall be issued and sold in such manner and at such price as thegoverning body determines by the instrument authorizing their issuance.Anticipation notes shall be in bearer form, except that the governing body mayprovide for the registration of the anticipation notes in the name of the ownereither as to principal alone, or as to both principal and interest, and on suchother terms and conditions as the governing body determines in the authorizinginstrument. Interest on anticipation notes, not to exceed the rate authorizedby the electors, may be payable semiannually, annually or at maturity.Anticipation notes may be made redeemable prior to maturity at the option ofthe governing body in the manner and upon the terms fixed by the instrumentauthorizing their issuance. Anticipation notes shall be executed and shall bein such form and have such details and terms as provided in the authorizinginstrument.

 

16-5-406. Payment, surrender and cancellation.

 

Contemporaneouslywith the issuance of the bonds in anticipation of which anticipation notes havebeen issued, all anticipation notes issued, even though they may not then havematured, shall be paid, both as to principal and interest to date of payment,and all such notes shall be surrendered and cancelled by the issuer.

 

16-5-407. Security; sources of payment.

 

 

(a) Whenever the bonds in anticipation of which notes areissued are to be payable from ad valorem taxes and constitute full generalobligations of the municipality, the bond anticipation notes and the intereston them shall be secured by a pledge of the full faith and credit of themunicipality in the manner provided in the statutes of the state authorizingtheir issuance and shall also be made payable from funds derived from the saleof the bonds in anticipation of which the notes are issued.

 

(b) Whenever the bonds in anticipation of which theanticipation notes are to be issued are to be payable solely from revenuespledged for payment of revenue bonds, as provided in the statutes authorizingtheir issuance, such anticipation notes and the interest on them shall besecured by a pledge of the income and revenues pledged for payment of therevenue bonds and shall also be made payable from funds derived from the saleof the revenue bonds in anticipation of which the notes are issued.

 

16-5-408. Signing, countersigning, execution or attestation of notes;facsimile seals and signatures.

 

Anyanticipation notes or interest coupon may be signed, countersigned, executed orattested by the public official or officials who are authorized by law at thetime of the issuance of the anticipation notes to sign, countersign, execute orattest bonds or interest coupons of the issuer of the same general character asthose bonds in anticipation of which the notes are being issued. In thealternative, the governing body may designate appropriate public officials tosign, countersign, execute or attest any anticipation note or appurtenantcoupon, if any. Any officer so authorized or designated may utilize a facsimilesignature in lieu of his manual signature in the manner provided by law,provided that compliance with any law other than this act is not a condition ofexecution with a facsimile signature of any interest coupon. The facsimile sealshall have the same legal effect as the impression of the seal. Anticipationnotes and any coupons bearing the signatures of officers in office on the dateof the signing thereof shall be valid and binding obligations of the issuer,notwithstanding that before the delivery thereof and payment therefor any orall persons whose signatures appear thereon have ceased to fill theirrespective offices. Any officer of the issuer authorized or designated to sign,countersign, execute or attest any anticipation note or interest coupon, at thetime of its execution or of the execution of a signature certificate, may adoptas and for his or her facsimile signature the facsimile signature of his or herpredecessor in office in the event that such facsimile signature appears uponthe anticipation note or coupons appertaining thereto, or upon both theanticipation notes and such coupons, after their delivery for value.

 

16-5-409. Recital in notes imparting legality.

 

Anyinstrument of an issuer authorizing, or any other instrument appertaining to,any anticipation note may provide that each anticipation note thereinauthorized shall recite that it is issued under the authority of this act. Suchrecital shall conclusively impart full compliance with all of the provisionshereof, and all anticipation notes issued containing such recital shall be incontestablefor any cause whatsoever after their delivery for value.

 

16-5-410. Endorsement.

 

Theclerk of the issuer shall endorse a certificate upon every anticipation notethat the same is issued pursuant to law and is within the debt limit of the issuerif the notes are issued in anticipation of the issuance of general obligationbonds, or, as to notes issued in anticipation of revenue bonds, that they donot constitute a debt of the issuer within the meaning of any constitutional orstatutory provision or limitation.

 

16-5-411. Governing body's determination of legality.

 

Thedetermination of a governing body that all the limitations imposed upon theissuance of anticipation notes have been met shall be conclusive in the absenceof fraud or arbitrary and gross abuse of discretion.

 

16-5-412. Scope, authority and effect of provisions.

 

 

(a) This act, without reference to other statutes of the stateexcept as herein otherwise specifically provided, constitutes full authorityfor the authorization and issuance of anticipation notes hereunder. No otheract or law with regard to the authorization or issuance of securities by anyissuer that in any way impedes or restricts the carrying out of the acts hereinauthorized to be done shall be construed as applying to any proceedings takenhereunder or acts done pursuant hereto, except as otherwise expressly providedherein. The powers conferred by this act shall be in addition to andsupplemental to, and not in substitution for, and the limitations imposed by thisact shall not affect the powers conferred by any other law applicable to anyissuer except as otherwise provided herein.

 

(b) Anticipation notes issued by the University of Wyomingshall be governed by W.S. 21-17-402 through 21-17-450, the UniversitySecurities Law.

 

ARTICLE 5 - GENERAL PROVISIONS AS TO FORM AND MANNER OFISSUANCE, PAYMENT AND TRANSFER OF PUBLIC SECURITIES

 

16-5-501. Applicability.

 

Thisarticle applies to bonds, notes, warrants, certificates or other securitiesevidencing loans or the advancement of monies, heretofore or hereafterauthorized to be issued by or on behalf of the state or any politicalsubdivision, district, public board, agency, commission, authority or otherpublic body corporate in the state pursuant to any general or special act orpursuant to any lawful legislative or home rule provision.

 

16-5-502. Form, payment and transfer of securities.

 

Thesecurities described in W.S. 16-5-501 shall be in registered or bearer form,with or without interest coupons, be subject to such conditions for transfer,be subject to such provisions for conversion as to denomination or to bearer orregistered form, be made registrable or payable, or both, by the treasurer orother officer of the issuing entity, or by trustee, registrar, paying agent ortransfer agent within or without the state of Wyoming, be issued, transferredand registered by book entry, be in a denomination, bear such dates, signaturesand authentications, and be held in custody by a depository within or without thestate of Wyoming, all as may be determined by the entity or the governing bodyof the entity authorized or empowered to issue the securities. Payment atdesignated due dates or in installments may be required by the authorizingproceedings to be by check, draft or other medium of payment and need not beconditioned upon presentation of any security or coupon.

 

16-5-503. Determination by resolution or ordinance.

 

Thedetermination of the body authorized or empowered to issue securities requiredby W.S. 16-5-502 shall be made in the resolution or ordinance authorizing theissuance of the securities or in any supplemental ordinance, resolution orother instrument.

 

16-5-504. No restriction on other acts.

 

Thisarticle as to the matters contained herein shall constitute an additional andseparate grant of powers and these powers may be exercised without regard toprovisions concerning matters in any other act but this article is not arestriction or limitation on the exercise of powers by an issuing entity underany other act.

 

State Codes and Statutes

Statutes > Wyoming > Title16 > Chapter5

CHAPTER 5 - PUBLIC SECURITIES

 

ARTICLE 1 - REFUNDING

 

16-5-101. Short title.

 

Thisact shall be known and may be cited as the "General Obligation PublicSecurities Refunding Law".

 

16-5-102. Definitions.

 

 

(a) As used in this act:

 

(i) "Clerk" means the clerk, secretary or otherprincipal clerical officer of the issuer;

 

(ii) "Federal securities" means the bills,certificates of indebtedness, notes, bonds, or similar obligations which aredirect obligations of, or the principal and interest of which obligations areunconditionally guaranteed by, the United States of America;

 

(iii) "Governing body" means the city council, towncouncil, commission, board of commissioners, board of trustees, board ofdirectors or other body in which the legislative powers of the issuer arevested;

 

(iv) "Issuer" means the public body issuing anyrefunding public security pursuant to this act;

 

(v) "Ordinance" means an ordinance, resolution orother proceeding by which a governing body takes formal action and adoptslegislative provisions and matters of some permanency;

 

(vi) "Public body" means any county, city, town,school district or special district created under the laws of this state or anyother local government entity;

 

(vii) "Public security" means a bond, note, certificateof indebtedness, warrant or other obligation for the payment of money, issuedby any public body of this state, or any predecessor of any public body, whichis payable, or which may be paid, from ad valorem taxes, or which constitutes adebt or an indebtedness within the meaning of any constitutional or statutorylimitation and bonds issued to pay for improvements in a local improvementdistrict and payable from special assessments under W.S. 15-6-431 through15-6-447, but excluding any warrant or similar obligation payable within one(1) year from the date of its issuance or any obligation solely payable from apledge of designated revenues other than ad valorem taxes;

 

(viii) "Refunding public security" means a public securitywhich is authorized to be issued pursuant to this act;

 

(ix) "This act" means W.S. 16-5-101 through 16-5-119.

 

16-5-103. Authority to refund; purposes therefor.

 

 

(a) Any public security or securities issued by any public bodyof the state may be refunded, without an election, by the public body whichissued them, or any successor thereof, in the name of the public body whichissued the public securities being refunded, but subject to provisionsconcerning their payment and to any other contractual limitations in theproceedings authorizing their issuance or otherwise appertaining thereto, forany one (1) or more of the following purposes:

 

(i) For extending the maturities of all or any part ofoutstanding public securities for which payment is in arrears, or for whichthere is not, or it is certain there will not be, sufficient money to pay theprincipal or interest on outstanding public securities as the same respectivelybecome due;

 

(ii) For reducing interest costs or effecting other economies;

 

(iii) For reorganizing all or any part of the outstanding publicsecurities of a public body in order to equalize tax levies.

 

16-5-104. Interest; terms and conditions; negotiability.

 

Refundingpublic securities shall bear interest, payable semiannually or annually, andevidenced by one (1) or two (2) sets of coupons, if any, except that the firstcoupon or coupons appertaining to a refunding public security may evidenceinterest for a period not in excess of one (1) year, and refunding public securitiesmay be in one (1) or more series, may bear a date or dates, may mature in anamount or amounts, serially or otherwise, at a time or times not exceedingthirty (30) years from their respective dates, may be in a denomination ordenominations, may be payable in a medium of payment, in a place or placeswithin or without the state, including but not limited to the office of thecounty treasurer of a county in which the issuer is located wholly or in part,may carry registration privileges, may be subject to terms of prior redemptionin advance of maturity in order, or by lot, or otherwise, at a time or timeswith or without premium, may bear privileges for reissuance in the same orother denominations, may be so reissued (without modification of maturities andinterest rates) and may be in a form, either coupon or registered, as may beprovided by ordinance of the governing body. Except as the governing body mayotherwise provide, the refunding public securities and attached interestcoupons shall be fully negotiable within the meaning of and for all purposes ofthe Uniform Commercial Code - Investment Securities. Except as otherwiseprovided each holder of a refunding public security, by accepting the security,shall be conclusively deemed to have agreed that the refunding public securityis and shall be fully negotiable within the meaning and for all purposes of theUniform Commercial Code - Investment Securities.

 

16-5-105. General prerequisites and limitations.

 

Nopublic securities may be refunded hereunder unless the holders voluntarilysurrender them for exchange or payment, or unless they either mature or arecallable for prior redemption under their terms within twenty-five (25) yearsfrom the date of issuance of the refunding public securities. Provision shallbe made for paying the public securities being refunded within the statedperiod of time. No maturity of public security being refunded may be extendedover twenty-five (25) years. No public security may be refunded hereunderunless the public security has been outstanding for at least one (1) year sincethe date of its delivery. The principal amount of the refunding publicsecurities may not exceed the original authorized principal amount of thepublic securities being refunded. The principal amount of the refunding publicsecurities may be less than or the same as the principal amount of the publicsecurities being refunded so long as provision is duly and sufficiently madefor the payment of the public securities being refunded.

 

16-5-106. Limitations on number of issues.

 

Apublic body may issue refunding public securities to refund one (1) or more orany part of one (1) or more or all issues of its public securities which areoutstanding, and refunding public securities and public securities authorizedfor any other purposes may be issued separately or issued in combination in one(1) series or more by any issuer except as hereafter provided. No two (2) ormore issues or parts of issues of outstanding public securities shall be refundedby a single issue of refunding public securities unless the taxable propertyupon which tax levies are being made for payment of the outstanding publicsecurities is identical to the taxable property on which the levies are beingmade for the payment of all other outstanding public securities proposed to berefunded by the single issue of refunding public securities. No two (2) or moreissues or parts of issues of outstanding public securities or refunding publicsecurities and public securities authorized for any other purposes shall becombined in one (1) issue where more than one (1) constitutional or statutorydebt limitation is applicable to the combination.

 

16-5-107. Maximum allowable indebtedness.

 

Inno event shall the aggregate amount of indebtedness of any issuer exceed themaximum allowable amount as determined pursuant to the constitutional andstatutory provisions, if any, applicable to the issuer. In determining andcomputing the aggregate amount of indebtedness of any issuer, public securitieswhich have been refunded, as provided in this act, by immediate payment orprior redemption and retirement or by the placement of the proceeds ofrefunding public securities or investments thereof in escrow, shall not bedeemed outstanding indebtedness from and after the date on which sufficientmonies are placed with the paying agent of the outstanding public securitiesfor the purpose of immediately paying, or redeeming and retiring the bonds, orfrom and after the date on which the proceeds of the refunding publicsecurities or investments thereof are placed in escrow.

 

16-5-108. Sale or exchange; price.

 

Anyrefunding public securities may be delivered in exchange for the outstandingpublic securities being refunded or may be publicly or privately sold in themanner determined by the governing body. Refunding public securities may bepublicly or privately sold at, above, or below the par value thereof.

 

16-5-109. Costs of refunding.

 

Theincidental costs of the refunding of public securities may be paid by thepurchaser of the refunding public securities or defrayed from the general fundof the public body or from the proceeds of the refunding public securities orfrom the interest or other yield derived from the investment of the proceeds orfrom other sources legally available therefor.

 

16-5-110. Disposition of proceeds; escrowed proceeds.

 

Theproceeds of refunding public securities shall either be immediately applied tothe retirement of the public securities to be refunded or be placed in escrowin any state or national bank within the state which is a member of the federaldeposit insurance corporation and which has trust powers, to be applied to thepayment of the public securities being refunded upon their presentation. Anyaccrued interest and any premium appertaining to a sale of refunding publicsecurities may be applied to the payment of the principal and interest, or bothmay be deposited in a reserve account, or may be used to defray incidentalcosts, as the governing body may determine. Any escrow shall not be limited toproceeds of refunding public securities, but may include other monies availablefor its purpose. Any escrowed proceeds, may be invested or reinvested infederal securities. Escrowed proceeds and investments, together with anyinterest or other yield to be derived from any investment, shall be in anamount at all times sufficient to cover principal, interest, any priorredemption premium due, and any charges of the escrow agent, to pay the publicsecurities being refunded as they become due at their respective maturities ordue at designated prior redemption dates in connection with which the governingbody of the issuer shall exercise a prior redemption option. The computationsmade in determining sufficiency shall be verified by a certified publicaccountant certificated to practice in this state or in any other state. Anypurchaser of any refunding public security is not responsible for theapplication of the proceeds thereof by the issuer or any of its officers, agentsor employees.

 

16-5-111. Signing, countersigning, execution or attestation ofsecurities or interest coupons; facsimile seals and signatures.

 

Anyrefunding public security or interest coupon may be signed, countersigned,executed or attested by the public officials who are authorized by law at thetime of the issuance of the refunding public securities to sign, countersign,execute or attest public securities of the issuer of the same general characteras those public securities and coupons which are being refunded. In thealternative, the governing body may, in its discretion, designate appropriatepublic officials to sign, countersign, execute or attest any refunding publicsecurity or appurtenant coupon. Any officer so authorized may utilize a facsimilesignature in lieu of his manual signature in the manner provided by law,provided that compliance with any law other than this act is not a condition ofexecution with a facsimile signature of any interest coupon. The clerk maycause the seal or a facsimile of the seal of the issuer to be printed, stampedor otherwise placed on any refunding public security. The facsimile seal shallhave the same legal effect as the impression of the seal. Refunding publicsecurities and any coupons bearing the signatures of officers in office on thedate of the signing shall be valid and binding obligations of the issuer,notwithstanding that before the delivery and payment any or all persons whosesignatures appear have ceased to fill their respective offices. Any officerauthorized to sign, countersign, execute or attest any refunding publicsecurity or interest coupon, at the time of its execution or of the executionof a signature certificate, may adopt for his facsimile signature the facsimilesignature of his predecessor in office in the event the facsimile signatureappears upon the refunding public security or coupons, or upon both the publicsecurity and coupons.

 

16-5-112. Recitals in securities imparting legality.

 

Anyordinance authorizing, or any other instrument appertaining to, any refundingpublic securities may provide that each refunding public security authorizedshall recite that it is issued under the authority of this act. The recitalshall conclusively impart full compliance with all of the provisions and allpublic securities issued containing the recital are incontestable for any causewhatsoever after their delivery for value.

 

16-5-113. Endorsement.

 

Theclerk shall endorse a certificate upon every refunding public security that itis issued pursuant to law and is within the debt limit of the issuer.

 

16-5-114. Governing body's determination of legality.

 

Thedetermination of a governing body that all the limitations hereunder imposedupon the issuance of refunding public securities have been met is conclusive inthe absence of fraud or arbitrary and gross abuse of discretion.

 

16-5-115. Refunding by divided governing bodies.

 

Whena public body having outstanding indebtedness has been divided and partsthereof included within two (2) or more other public bodies, by any lawfulmeans, the refunding of the securities requires affirmative action by amajority of the members of the governing bodies of each of the public bodieswithin which any part of the area of the public body which is being lawfullytaxed to pay the outstanding indebtedness is then included except ashereinafter provided. The indebtedness of any public body outstanding at thetime a part or parts of the public body are detached therefrom by any lawfulmeans, and which public body has retained its lawful corporate existencesubsequent to the detachment of the land from the public body may be refundedby action of the governing body of the public body from which land has beendetached with or without concurrence or action by the governing board of thepublic body, if any, within which the detached land is included.

 

16-5-116. Financing; annual property tax; other funds.

 

Thegoverning body shall cause to be levied annually, without limitation of rate oramount, upon all taxable property of the issuer, in addition to otherauthorized taxes, a sufficient sum to pay the principal of and interest on therefunding public securities until the refunding public securities issuedpursuant to this act are fully paid. The governing body may apply any otherfunds that are in the treasury of the issuer and available for payment of theinterest or principal as it respectively matures, and the levy or leviesprovided for may be diminished. Should the tax for the payment of the principaland interest on any refunding public security at any time not be levied orcollected in time to meet the payment, or if the refunding public securitiesare issued at a time which makes it impossible to levy a tax for the initialinstallments of principal or interest, the principal or interest so maturingshall be paid out of the general fund of the issuer, or from any other fundsavailable for that purpose. For the purpose of reimbursing the fund or fundsthe money so used may be repaid from the first monies collected from taxesthereafter levied. The full faith and credit of the issuer shall be pledged forthe punctual payment of the principal and interest on the refunding publicsecurities. If the public securities to be refunded and the interest accruingwould have been paid from taxes levied upon only part of the taxable propertywithin the boundaries of the issuer, the taxes levied for payment or redemptionof the refunding public securities, and the interest accruing shall be leviedin the same manner and upon only the same taxable property as would have beenlevied for the payment of the public securities to be refunded if no refundingof the public securities had been accomplished. Any tax levied to retire anyrefunding public security issued by a hospital district is subject to thelimitations set forth in W.S. 35-2-414, provided any refunding securitiesissued under this act to refund local improvement bonds shall be payable solelyfrom and secured by the pledge of special assessments under W.S. 15-6-401 through15-6-448.

 

16-5-117. Exemption from taxation; exception.

 

Therefunding public securities issued by any issuer pursuant to this act, theirtransfer, and the income therefrom, shall at all times be free from taxationwithin the state of Wyoming, except for estate taxes.

 

16-5-118. Other outstanding securities.

 

Thisact shall have no effect on the legality of any outstanding public securityissued for refunding or other purposes pursuant to any other law.

 

16-5-119. Scope, authority and effect of provisions.

 

Thisact, without reference to other statutes of the state, except as hereinotherwise specifically provided, is full authority for the authorization andissuance of refunding public securities. No other act or law with regard to theauthorization or issuance of securities that in any way impedes or restrictsthe carrying out of the acts herein authorized shall be construed as applyingto any proceedings taken or acts pursuant hereto except as otherwise provided.The powers conferred and the limitations imposed by this act are in additionand supplemental to, and not in substitution for, and shall not affect thepowers conferred by any other law except as otherwise provided herein.

 

ARTICLE 2 - VALIDATION

 

16-5-201. Short title.

 

Thisact shall be known as the "1965 Public Securities Validation Act".

 

16-5-202. Definitions.

 

 

(a) As used in this act:

 

(i) "Public body" of the state means any stateeducational institution or other state institution, its board of trustees orother governing body constituting a body corporate, any county, city or town,whether incorporated or governed under a general act, special charter, orotherwise, any school district, high school district, community collegedistrict, sanitary and improvement district, hospital district, power district,irrigation district, drainage district, water conservancy district, waterdistrict, sewer district, water and sewer district, cemetery district, fireprotection district, any other corporate district, any corporate commission orany other political subdivision of the state constituting a body corporate;

 

(ii) "Public security" means a bond, note, certificateof indebtedness, coupon or other similar obligation for the payment of money,issued by this state or by any public body thereof;

 

(iii) "State" means the state of Wyoming and any board,commission, department, corporation, instrumentality or agency thereof;

 

(iv) "This act" means W.S. 16-5-201 through 16-5-204.

 

16-5-203. Outstanding securities.

 

Allpublic securities of the state and of all public bodies outstanding on February17, 1965, the right to the payment of which has not been barred by anypertinent statute of limitations, and all acts and proceedings taken, orpurportedly taken by or on behalf of the state or any public body under law orunder color of law preliminary to and in the authorization, execution, sale,issuance and payment (or any combination thereof) of all such publicsecurities, are hereby validated, ratified, approved and confirmed, includingbut not necessarily limited to the terms, provisions, conditions and covenantsof any resolution or ordinance appertaining thereto, the redemption of publicsecurities before maturity and provisions therefor, the levy and collection ofrates, tolls and charges, special assessments, and general and other taxes, andthe acquisition and application of other revenues, the pledge and use of theproceeds thereof, and the establishment of liens thereon and funds therefor,appertaining to such public securities, except as hereinafter provided,notwithstanding any lack of power, authority, or otherwise, and notwithstandingany defects and irregularities in such public securities, acts and proceedings,and in such authorization, execution, sale, issuance and payment. Outstandingpublic securities are and shall be binding, legal, valid and enforceableobligations of the state or the public body issuing them in accordance withtheir terms and their authorizing proceedings.

 

16-5-204. Prior securities; limitations; exceptions.

 

Thisact validates any public securities heretofore issued and any acts andproceedings heretofore taken which the legislature could have supplied orprovided for in the law under which the public securities were issued and theacts or proceedings were taken. This act is limited to the validation of publicsecurities, acts and proceedings to the extent they can be effectuated underthe state and federal constitutions. This act does not validate, ratify,approve, confirm or legalize any public security, act, proceeding or othermatter the legality of which is being contested in any legal proceeding nowpending and undetermined, and does not confirm, validate or legalize any publicsecurity, act, proceedings, or other matter which has heretofore beendetermined in any legal proceeding to be illegal, void or ineffective.

 

ARTICLE 3 - DEBT LIMITATION AND BOND REDEMPTION

 

16-5-301. Voidness of excessive indebtedness; liability of officer andsureties.

 

Anyindebtedness created by any county, city, town or other subdivision of thestate in any current year in excess of that authorized by the constitution ofthe state and for which there are no revenues available for payment during thecurrent year, shall as against the county, city, town or other subdivision ofthe state, be void and of no effect. Any officer who participates in creatingthe indebtedness, and the sureties on his official bond, is personally liableto the holder, or holders, of the indebtedness as fully as if the indebtednesshad been contracted for his individual benefit. As used in this section,"current year" means from the first Monday in January of a year tothe first Monday in January of the next year.

 

16-5-302. Issuance of bonds in series; discharge.

 

 

(a) Whenever the issuance of bonds by the state, or any county,city, town, school district or high school district, is lawful, the board orother public body having authority to issue the bonds may divide the issuesinto series so that:

 

(i) Substantially equal amounts of the indebtedness matureannually;

 

(ii) Substantially equal annual tax levies are required for thepayment of principal and interest of the bonds; or

 

(iii) Substantially equal annual tax levies are required for thepayment of principal and interest of all outstanding bonds of the state orsubdivision thereof issuing the bonds.

 

(b) The bonds of each series shall be due and payable at adefinite date within the period permitted by law for the discharge of theindebtedness.

 

16-5-303. Redemption of bonds owned by state.

 

Anybond issued by any county, municipality, school district or other politicalsubdivision of the state and which bond the state owns on any interest paymentdate, upon thirty (30) days written notice to the state treasurer of the stateis subject to redemption on the date by the payment of the principal andinterest then due on the bond to the treasurer. Redemption shall be made onlyfrom sinking funds of the political subdivisions and not from funds obtained byits refunding of the bonds.

 

ARTICLE 4 - BOND ANTICIPATION NOTES

 

16-5-401. Short title.

 

Thisact shall be known and may be cited as the "Bond Anticipation Note Act of1981".

 

16-5-402. Definitions.

 

 

(a) As used in this act:

 

(i) "Anticipation note" means notes of the issuer,evidencing short-term borrowings, issued in anticipation of the issuance ofbonds which a governing body is authorized to issue;

 

(ii) "Authorizing instrument" means an ordinance,resolution, instrument or other written evidence of a proceeding by which agoverning body takes formal action and adopts legislative provisions on mattersof some permanency;

 

(iii) "Bonds" means general obligation bonds or revenuebonds of an issuer;

 

(iv) "General obligation bonds" means bonds authorizedto be issued by a governing body or any successor thereto which are payable orwhich may be paid from ad valorem taxes or which constitute a debt or anindebtedness of the issuer within the meaning of any constitutional orstatutory limitation, which mature one (1) or more years after the date oftheir issuance and delivery;

 

(v) "Governing body" means the city council, towncouncil, commission, board of commissioners, board of trustees, board ofdirectors or other legislative body of an issuer in which the legislative powersof the issuer are vested;

 

(vi) "Issuer" means any Wyoming county, schooldistrict, municipal corporation, community college, hospital district, sanitaryand improvement district, water district, sewer district, water and sewerdistrict, county improvement and service district or other politicalsubdivision of the state specifically authorized by law to issue any generalobligation bond or revenue bond;

 

(vii) "Revenue bond" means bonds authorized to beissued by a governing body or any successor thereto which are payable from apledge of designated revenues other than ad valorem taxes or specialassessments which mature one (1) or more years after the date of theirissuance.

 

16-5-403. Authority to issue notes; election thereon.

 

 

(a) If the qualified electors of an issuer authorize theissuance of bonds or the issuance of anticipation notes at an election heldpursuant to W.S. 22-21-101 through 22-21-112 and the governing body of theissuer considers it advisable and in the interests of the issuer, to anticipatethe issuance of the bonds, the governing body may from time to time andpursuant to an appropriate authorizing instrument issue its bond anticipationnotes.

 

(b) At the election to authorize the issuance of bondanticipation notes, the question shall state the maximum principal amount forwhich the notes may be issued, which may not exceed the principal amount of thebonds authorized, and the maximum rate of interest that may be paid on thenotes.

 

16-5-404. Authorizing instrument.

 

 

(a) Anticipation notes issued pursuant to this act shall beauthorized by instrument of the issuer which shall:

 

(i) Describe the bonds in anticipation of which the notes areto be issued;

 

(ii) Declare the results of the election authorizing the issuanceof the bonds wherein the qualified electors of the issuer have approved theirissuance in the manner required by law;

 

(iii) Specify the principal amount of the anticipation notes, therate of interest and maturity date or dates of the anticipation notes, whichmaturity date or dates shall not exceed three (3) years from the date of issueof the anticipation notes.

 

16-5-405. Manner of issuance; form, terms and conditions.

 

Anticipationnotes shall be issued and sold in such manner and at such price as thegoverning body determines by the instrument authorizing their issuance.Anticipation notes shall be in bearer form, except that the governing body mayprovide for the registration of the anticipation notes in the name of the ownereither as to principal alone, or as to both principal and interest, and on suchother terms and conditions as the governing body determines in the authorizinginstrument. Interest on anticipation notes, not to exceed the rate authorizedby the electors, may be payable semiannually, annually or at maturity.Anticipation notes may be made redeemable prior to maturity at the option ofthe governing body in the manner and upon the terms fixed by the instrumentauthorizing their issuance. Anticipation notes shall be executed and shall bein such form and have such details and terms as provided in the authorizinginstrument.

 

16-5-406. Payment, surrender and cancellation.

 

Contemporaneouslywith the issuance of the bonds in anticipation of which anticipation notes havebeen issued, all anticipation notes issued, even though they may not then havematured, shall be paid, both as to principal and interest to date of payment,and all such notes shall be surrendered and cancelled by the issuer.

 

16-5-407. Security; sources of payment.

 

 

(a) Whenever the bonds in anticipation of which notes areissued are to be payable from ad valorem taxes and constitute full generalobligations of the municipality, the bond anticipation notes and the intereston them shall be secured by a pledge of the full faith and credit of themunicipality in the manner provided in the statutes of the state authorizingtheir issuance and shall also be made payable from funds derived from the saleof the bonds in anticipation of which the notes are issued.

 

(b) Whenever the bonds in anticipation of which theanticipation notes are to be issued are to be payable solely from revenuespledged for payment of revenue bonds, as provided in the statutes authorizingtheir issuance, such anticipation notes and the interest on them shall besecured by a pledge of the income and revenues pledged for payment of therevenue bonds and shall also be made payable from funds derived from the saleof the revenue bonds in anticipation of which the notes are issued.

 

16-5-408. Signing, countersigning, execution or attestation of notes;facsimile seals and signatures.

 

Anyanticipation notes or interest coupon may be signed, countersigned, executed orattested by the public official or officials who are authorized by law at thetime of the issuance of the anticipation notes to sign, countersign, execute orattest bonds or interest coupons of the issuer of the same general character asthose bonds in anticipation of which the notes are being issued. In thealternative, the governing body may designate appropriate public officials tosign, countersign, execute or attest any anticipation note or appurtenantcoupon, if any. Any officer so authorized or designated may utilize a facsimilesignature in lieu of his manual signature in the manner provided by law,provided that compliance with any law other than this act is not a condition ofexecution with a facsimile signature of any interest coupon. The facsimile sealshall have the same legal effect as the impression of the seal. Anticipationnotes and any coupons bearing the signatures of officers in office on the dateof the signing thereof shall be valid and binding obligations of the issuer,notwithstanding that before the delivery thereof and payment therefor any orall persons whose signatures appear thereon have ceased to fill theirrespective offices. Any officer of the issuer authorized or designated to sign,countersign, execute or attest any anticipation note or interest coupon, at thetime of its execution or of the execution of a signature certificate, may adoptas and for his or her facsimile signature the facsimile signature of his or herpredecessor in office in the event that such facsimile signature appears uponthe anticipation note or coupons appertaining thereto, or upon both theanticipation notes and such coupons, after their delivery for value.

 

16-5-409. Recital in notes imparting legality.

 

Anyinstrument of an issuer authorizing, or any other instrument appertaining to,any anticipation note may provide that each anticipation note thereinauthorized shall recite that it is issued under the authority of this act. Suchrecital shall conclusively impart full compliance with all of the provisionshereof, and all anticipation notes issued containing such recital shall be incontestablefor any cause whatsoever after their delivery for value.

 

16-5-410. Endorsement.

 

Theclerk of the issuer shall endorse a certificate upon every anticipation notethat the same is issued pursuant to law and is within the debt limit of the issuerif the notes are issued in anticipation of the issuance of general obligationbonds, or, as to notes issued in anticipation of revenue bonds, that they donot constitute a debt of the issuer within the meaning of any constitutional orstatutory provision or limitation.

 

16-5-411. Governing body's determination of legality.

 

Thedetermination of a governing body that all the limitations imposed upon theissuance of anticipation notes have been met shall be conclusive in the absenceof fraud or arbitrary and gross abuse of discretion.

 

16-5-412. Scope, authority and effect of provisions.

 

 

(a) This act, without reference to other statutes of the stateexcept as herein otherwise specifically provided, constitutes full authorityfor the authorization and issuance of anticipation notes hereunder. No otheract or law with regard to the authorization or issuance of securities by anyissuer that in any way impedes or restricts the carrying out of the acts hereinauthorized to be done shall be construed as applying to any proceedings takenhereunder or acts done pursuant hereto, except as otherwise expressly providedherein. The powers conferred by this act shall be in addition to andsupplemental to, and not in substitution for, and the limitations imposed by thisact shall not affect the powers conferred by any other law applicable to anyissuer except as otherwise provided herein.

 

(b) Anticipation notes issued by the University of Wyomingshall be governed by W.S. 21-17-402 through 21-17-450, the UniversitySecurities Law.

 

ARTICLE 5 - GENERAL PROVISIONS AS TO FORM AND MANNER OFISSUANCE, PAYMENT AND TRANSFER OF PUBLIC SECURITIES

 

16-5-501. Applicability.

 

Thisarticle applies to bonds, notes, warrants, certificates or other securitiesevidencing loans or the advancement of monies, heretofore or hereafterauthorized to be issued by or on behalf of the state or any politicalsubdivision, district, public board, agency, commission, authority or otherpublic body corporate in the state pursuant to any general or special act orpursuant to any lawful legislative or home rule provision.

 

16-5-502. Form, payment and transfer of securities.

 

Thesecurities described in W.S. 16-5-501 shall be in registered or bearer form,with or without interest coupons, be subject to such conditions for transfer,be subject to such provisions for conversion as to denomination or to bearer orregistered form, be made registrable or payable, or both, by the treasurer orother officer of the issuing entity, or by trustee, registrar, paying agent ortransfer agent within or without the state of Wyoming, be issued, transferredand registered by book entry, be in a denomination, bear such dates, signaturesand authentications, and be held in custody by a depository within or without thestate of Wyoming, all as may be determined by the entity or the governing bodyof the entity authorized or empowered to issue the securities. Payment atdesignated due dates or in installments may be required by the authorizingproceedings to be by check, draft or other medium of payment and need not beconditioned upon presentation of any security or coupon.

 

16-5-503. Determination by resolution or ordinance.

 

Thedetermination of the body authorized or empowered to issue securities requiredby W.S. 16-5-502 shall be made in the resolution or ordinance authorizing theissuance of the securities or in any supplemental ordinance, resolution orother instrument.

 

16-5-504. No restriction on other acts.

 

Thisarticle as to the matters contained herein shall constitute an additional andseparate grant of powers and these powers may be exercised without regard toprovisions concerning matters in any other act but this article is not arestriction or limitation on the exercise of powers by an issuing entity underany other act.

 


State Codes and Statutes

State Codes and Statutes

Statutes > Wyoming > Title16 > Chapter5

CHAPTER 5 - PUBLIC SECURITIES

 

ARTICLE 1 - REFUNDING

 

16-5-101. Short title.

 

Thisact shall be known and may be cited as the "General Obligation PublicSecurities Refunding Law".

 

16-5-102. Definitions.

 

 

(a) As used in this act:

 

(i) "Clerk" means the clerk, secretary or otherprincipal clerical officer of the issuer;

 

(ii) "Federal securities" means the bills,certificates of indebtedness, notes, bonds, or similar obligations which aredirect obligations of, or the principal and interest of which obligations areunconditionally guaranteed by, the United States of America;

 

(iii) "Governing body" means the city council, towncouncil, commission, board of commissioners, board of trustees, board ofdirectors or other body in which the legislative powers of the issuer arevested;

 

(iv) "Issuer" means the public body issuing anyrefunding public security pursuant to this act;

 

(v) "Ordinance" means an ordinance, resolution orother proceeding by which a governing body takes formal action and adoptslegislative provisions and matters of some permanency;

 

(vi) "Public body" means any county, city, town,school district or special district created under the laws of this state or anyother local government entity;

 

(vii) "Public security" means a bond, note, certificateof indebtedness, warrant or other obligation for the payment of money, issuedby any public body of this state, or any predecessor of any public body, whichis payable, or which may be paid, from ad valorem taxes, or which constitutes adebt or an indebtedness within the meaning of any constitutional or statutorylimitation and bonds issued to pay for improvements in a local improvementdistrict and payable from special assessments under W.S. 15-6-431 through15-6-447, but excluding any warrant or similar obligation payable within one(1) year from the date of its issuance or any obligation solely payable from apledge of designated revenues other than ad valorem taxes;

 

(viii) "Refunding public security" means a public securitywhich is authorized to be issued pursuant to this act;

 

(ix) "This act" means W.S. 16-5-101 through 16-5-119.

 

16-5-103. Authority to refund; purposes therefor.

 

 

(a) Any public security or securities issued by any public bodyof the state may be refunded, without an election, by the public body whichissued them, or any successor thereof, in the name of the public body whichissued the public securities being refunded, but subject to provisionsconcerning their payment and to any other contractual limitations in theproceedings authorizing their issuance or otherwise appertaining thereto, forany one (1) or more of the following purposes:

 

(i) For extending the maturities of all or any part ofoutstanding public securities for which payment is in arrears, or for whichthere is not, or it is certain there will not be, sufficient money to pay theprincipal or interest on outstanding public securities as the same respectivelybecome due;

 

(ii) For reducing interest costs or effecting other economies;

 

(iii) For reorganizing all or any part of the outstanding publicsecurities of a public body in order to equalize tax levies.

 

16-5-104. Interest; terms and conditions; negotiability.

 

Refundingpublic securities shall bear interest, payable semiannually or annually, andevidenced by one (1) or two (2) sets of coupons, if any, except that the firstcoupon or coupons appertaining to a refunding public security may evidenceinterest for a period not in excess of one (1) year, and refunding public securitiesmay be in one (1) or more series, may bear a date or dates, may mature in anamount or amounts, serially or otherwise, at a time or times not exceedingthirty (30) years from their respective dates, may be in a denomination ordenominations, may be payable in a medium of payment, in a place or placeswithin or without the state, including but not limited to the office of thecounty treasurer of a county in which the issuer is located wholly or in part,may carry registration privileges, may be subject to terms of prior redemptionin advance of maturity in order, or by lot, or otherwise, at a time or timeswith or without premium, may bear privileges for reissuance in the same orother denominations, may be so reissued (without modification of maturities andinterest rates) and may be in a form, either coupon or registered, as may beprovided by ordinance of the governing body. Except as the governing body mayotherwise provide, the refunding public securities and attached interestcoupons shall be fully negotiable within the meaning of and for all purposes ofthe Uniform Commercial Code - Investment Securities. Except as otherwiseprovided each holder of a refunding public security, by accepting the security,shall be conclusively deemed to have agreed that the refunding public securityis and shall be fully negotiable within the meaning and for all purposes of theUniform Commercial Code - Investment Securities.

 

16-5-105. General prerequisites and limitations.

 

Nopublic securities may be refunded hereunder unless the holders voluntarilysurrender them for exchange or payment, or unless they either mature or arecallable for prior redemption under their terms within twenty-five (25) yearsfrom the date of issuance of the refunding public securities. Provision shallbe made for paying the public securities being refunded within the statedperiod of time. No maturity of public security being refunded may be extendedover twenty-five (25) years. No public security may be refunded hereunderunless the public security has been outstanding for at least one (1) year sincethe date of its delivery. The principal amount of the refunding publicsecurities may not exceed the original authorized principal amount of thepublic securities being refunded. The principal amount of the refunding publicsecurities may be less than or the same as the principal amount of the publicsecurities being refunded so long as provision is duly and sufficiently madefor the payment of the public securities being refunded.

 

16-5-106. Limitations on number of issues.

 

Apublic body may issue refunding public securities to refund one (1) or more orany part of one (1) or more or all issues of its public securities which areoutstanding, and refunding public securities and public securities authorizedfor any other purposes may be issued separately or issued in combination in one(1) series or more by any issuer except as hereafter provided. No two (2) ormore issues or parts of issues of outstanding public securities shall be refundedby a single issue of refunding public securities unless the taxable propertyupon which tax levies are being made for payment of the outstanding publicsecurities is identical to the taxable property on which the levies are beingmade for the payment of all other outstanding public securities proposed to berefunded by the single issue of refunding public securities. No two (2) or moreissues or parts of issues of outstanding public securities or refunding publicsecurities and public securities authorized for any other purposes shall becombined in one (1) issue where more than one (1) constitutional or statutorydebt limitation is applicable to the combination.

 

16-5-107. Maximum allowable indebtedness.

 

Inno event shall the aggregate amount of indebtedness of any issuer exceed themaximum allowable amount as determined pursuant to the constitutional andstatutory provisions, if any, applicable to the issuer. In determining andcomputing the aggregate amount of indebtedness of any issuer, public securitieswhich have been refunded, as provided in this act, by immediate payment orprior redemption and retirement or by the placement of the proceeds ofrefunding public securities or investments thereof in escrow, shall not bedeemed outstanding indebtedness from and after the date on which sufficientmonies are placed with the paying agent of the outstanding public securitiesfor the purpose of immediately paying, or redeeming and retiring the bonds, orfrom and after the date on which the proceeds of the refunding publicsecurities or investments thereof are placed in escrow.

 

16-5-108. Sale or exchange; price.

 

Anyrefunding public securities may be delivered in exchange for the outstandingpublic securities being refunded or may be publicly or privately sold in themanner determined by the governing body. Refunding public securities may bepublicly or privately sold at, above, or below the par value thereof.

 

16-5-109. Costs of refunding.

 

Theincidental costs of the refunding of public securities may be paid by thepurchaser of the refunding public securities or defrayed from the general fundof the public body or from the proceeds of the refunding public securities orfrom the interest or other yield derived from the investment of the proceeds orfrom other sources legally available therefor.

 

16-5-110. Disposition of proceeds; escrowed proceeds.

 

Theproceeds of refunding public securities shall either be immediately applied tothe retirement of the public securities to be refunded or be placed in escrowin any state or national bank within the state which is a member of the federaldeposit insurance corporation and which has trust powers, to be applied to thepayment of the public securities being refunded upon their presentation. Anyaccrued interest and any premium appertaining to a sale of refunding publicsecurities may be applied to the payment of the principal and interest, or bothmay be deposited in a reserve account, or may be used to defray incidentalcosts, as the governing body may determine. Any escrow shall not be limited toproceeds of refunding public securities, but may include other monies availablefor its purpose. Any escrowed proceeds, may be invested or reinvested infederal securities. Escrowed proceeds and investments, together with anyinterest or other yield to be derived from any investment, shall be in anamount at all times sufficient to cover principal, interest, any priorredemption premium due, and any charges of the escrow agent, to pay the publicsecurities being refunded as they become due at their respective maturities ordue at designated prior redemption dates in connection with which the governingbody of the issuer shall exercise a prior redemption option. The computationsmade in determining sufficiency shall be verified by a certified publicaccountant certificated to practice in this state or in any other state. Anypurchaser of any refunding public security is not responsible for theapplication of the proceeds thereof by the issuer or any of its officers, agentsor employees.

 

16-5-111. Signing, countersigning, execution or attestation ofsecurities or interest coupons; facsimile seals and signatures.

 

Anyrefunding public security or interest coupon may be signed, countersigned,executed or attested by the public officials who are authorized by law at thetime of the issuance of the refunding public securities to sign, countersign,execute or attest public securities of the issuer of the same general characteras those public securities and coupons which are being refunded. In thealternative, the governing body may, in its discretion, designate appropriatepublic officials to sign, countersign, execute or attest any refunding publicsecurity or appurtenant coupon. Any officer so authorized may utilize a facsimilesignature in lieu of his manual signature in the manner provided by law,provided that compliance with any law other than this act is not a condition ofexecution with a facsimile signature of any interest coupon. The clerk maycause the seal or a facsimile of the seal of the issuer to be printed, stampedor otherwise placed on any refunding public security. The facsimile seal shallhave the same legal effect as the impression of the seal. Refunding publicsecurities and any coupons bearing the signatures of officers in office on thedate of the signing shall be valid and binding obligations of the issuer,notwithstanding that before the delivery and payment any or all persons whosesignatures appear have ceased to fill their respective offices. Any officerauthorized to sign, countersign, execute or attest any refunding publicsecurity or interest coupon, at the time of its execution or of the executionof a signature certificate, may adopt for his facsimile signature the facsimilesignature of his predecessor in office in the event the facsimile signatureappears upon the refunding public security or coupons, or upon both the publicsecurity and coupons.

 

16-5-112. Recitals in securities imparting legality.

 

Anyordinance authorizing, or any other instrument appertaining to, any refundingpublic securities may provide that each refunding public security authorizedshall recite that it is issued under the authority of this act. The recitalshall conclusively impart full compliance with all of the provisions and allpublic securities issued containing the recital are incontestable for any causewhatsoever after their delivery for value.

 

16-5-113. Endorsement.

 

Theclerk shall endorse a certificate upon every refunding public security that itis issued pursuant to law and is within the debt limit of the issuer.

 

16-5-114. Governing body's determination of legality.

 

Thedetermination of a governing body that all the limitations hereunder imposedupon the issuance of refunding public securities have been met is conclusive inthe absence of fraud or arbitrary and gross abuse of discretion.

 

16-5-115. Refunding by divided governing bodies.

 

Whena public body having outstanding indebtedness has been divided and partsthereof included within two (2) or more other public bodies, by any lawfulmeans, the refunding of the securities requires affirmative action by amajority of the members of the governing bodies of each of the public bodieswithin which any part of the area of the public body which is being lawfullytaxed to pay the outstanding indebtedness is then included except ashereinafter provided. The indebtedness of any public body outstanding at thetime a part or parts of the public body are detached therefrom by any lawfulmeans, and which public body has retained its lawful corporate existencesubsequent to the detachment of the land from the public body may be refundedby action of the governing body of the public body from which land has beendetached with or without concurrence or action by the governing board of thepublic body, if any, within which the detached land is included.

 

16-5-116. Financing; annual property tax; other funds.

 

Thegoverning body shall cause to be levied annually, without limitation of rate oramount, upon all taxable property of the issuer, in addition to otherauthorized taxes, a sufficient sum to pay the principal of and interest on therefunding public securities until the refunding public securities issuedpursuant to this act are fully paid. The governing body may apply any otherfunds that are in the treasury of the issuer and available for payment of theinterest or principal as it respectively matures, and the levy or leviesprovided for may be diminished. Should the tax for the payment of the principaland interest on any refunding public security at any time not be levied orcollected in time to meet the payment, or if the refunding public securitiesare issued at a time which makes it impossible to levy a tax for the initialinstallments of principal or interest, the principal or interest so maturingshall be paid out of the general fund of the issuer, or from any other fundsavailable for that purpose. For the purpose of reimbursing the fund or fundsthe money so used may be repaid from the first monies collected from taxesthereafter levied. The full faith and credit of the issuer shall be pledged forthe punctual payment of the principal and interest on the refunding publicsecurities. If the public securities to be refunded and the interest accruingwould have been paid from taxes levied upon only part of the taxable propertywithin the boundaries of the issuer, the taxes levied for payment or redemptionof the refunding public securities, and the interest accruing shall be leviedin the same manner and upon only the same taxable property as would have beenlevied for the payment of the public securities to be refunded if no refundingof the public securities had been accomplished. Any tax levied to retire anyrefunding public security issued by a hospital district is subject to thelimitations set forth in W.S. 35-2-414, provided any refunding securitiesissued under this act to refund local improvement bonds shall be payable solelyfrom and secured by the pledge of special assessments under W.S. 15-6-401 through15-6-448.

 

16-5-117. Exemption from taxation; exception.

 

Therefunding public securities issued by any issuer pursuant to this act, theirtransfer, and the income therefrom, shall at all times be free from taxationwithin the state of Wyoming, except for estate taxes.

 

16-5-118. Other outstanding securities.

 

Thisact shall have no effect on the legality of any outstanding public securityissued for refunding or other purposes pursuant to any other law.

 

16-5-119. Scope, authority and effect of provisions.

 

Thisact, without reference to other statutes of the state, except as hereinotherwise specifically provided, is full authority for the authorization andissuance of refunding public securities. No other act or law with regard to theauthorization or issuance of securities that in any way impedes or restrictsthe carrying out of the acts herein authorized shall be construed as applyingto any proceedings taken or acts pursuant hereto except as otherwise provided.The powers conferred and the limitations imposed by this act are in additionand supplemental to, and not in substitution for, and shall not affect thepowers conferred by any other law except as otherwise provided herein.

 

ARTICLE 2 - VALIDATION

 

16-5-201. Short title.

 

Thisact shall be known as the "1965 Public Securities Validation Act".

 

16-5-202. Definitions.

 

 

(a) As used in this act:

 

(i) "Public body" of the state means any stateeducational institution or other state institution, its board of trustees orother governing body constituting a body corporate, any county, city or town,whether incorporated or governed under a general act, special charter, orotherwise, any school district, high school district, community collegedistrict, sanitary and improvement district, hospital district, power district,irrigation district, drainage district, water conservancy district, waterdistrict, sewer district, water and sewer district, cemetery district, fireprotection district, any other corporate district, any corporate commission orany other political subdivision of the state constituting a body corporate;

 

(ii) "Public security" means a bond, note, certificateof indebtedness, coupon or other similar obligation for the payment of money,issued by this state or by any public body thereof;

 

(iii) "State" means the state of Wyoming and any board,commission, department, corporation, instrumentality or agency thereof;

 

(iv) "This act" means W.S. 16-5-201 through 16-5-204.

 

16-5-203. Outstanding securities.

 

Allpublic securities of the state and of all public bodies outstanding on February17, 1965, the right to the payment of which has not been barred by anypertinent statute of limitations, and all acts and proceedings taken, orpurportedly taken by or on behalf of the state or any public body under law orunder color of law preliminary to and in the authorization, execution, sale,issuance and payment (or any combination thereof) of all such publicsecurities, are hereby validated, ratified, approved and confirmed, includingbut not necessarily limited to the terms, provisions, conditions and covenantsof any resolution or ordinance appertaining thereto, the redemption of publicsecurities before maturity and provisions therefor, the levy and collection ofrates, tolls and charges, special assessments, and general and other taxes, andthe acquisition and application of other revenues, the pledge and use of theproceeds thereof, and the establishment of liens thereon and funds therefor,appertaining to such public securities, except as hereinafter provided,notwithstanding any lack of power, authority, or otherwise, and notwithstandingany defects and irregularities in such public securities, acts and proceedings,and in such authorization, execution, sale, issuance and payment. Outstandingpublic securities are and shall be binding, legal, valid and enforceableobligations of the state or the public body issuing them in accordance withtheir terms and their authorizing proceedings.

 

16-5-204. Prior securities; limitations; exceptions.

 

Thisact validates any public securities heretofore issued and any acts andproceedings heretofore taken which the legislature could have supplied orprovided for in the law under which the public securities were issued and theacts or proceedings were taken. This act is limited to the validation of publicsecurities, acts and proceedings to the extent they can be effectuated underthe state and federal constitutions. This act does not validate, ratify,approve, confirm or legalize any public security, act, proceeding or othermatter the legality of which is being contested in any legal proceeding nowpending and undetermined, and does not confirm, validate or legalize any publicsecurity, act, proceedings, or other matter which has heretofore beendetermined in any legal proceeding to be illegal, void or ineffective.

 

ARTICLE 3 - DEBT LIMITATION AND BOND REDEMPTION

 

16-5-301. Voidness of excessive indebtedness; liability of officer andsureties.

 

Anyindebtedness created by any county, city, town or other subdivision of thestate in any current year in excess of that authorized by the constitution ofthe state and for which there are no revenues available for payment during thecurrent year, shall as against the county, city, town or other subdivision ofthe state, be void and of no effect. Any officer who participates in creatingthe indebtedness, and the sureties on his official bond, is personally liableto the holder, or holders, of the indebtedness as fully as if the indebtednesshad been contracted for his individual benefit. As used in this section,"current year" means from the first Monday in January of a year tothe first Monday in January of the next year.

 

16-5-302. Issuance of bonds in series; discharge.

 

 

(a) Whenever the issuance of bonds by the state, or any county,city, town, school district or high school district, is lawful, the board orother public body having authority to issue the bonds may divide the issuesinto series so that:

 

(i) Substantially equal amounts of the indebtedness matureannually;

 

(ii) Substantially equal annual tax levies are required for thepayment of principal and interest of the bonds; or

 

(iii) Substantially equal annual tax levies are required for thepayment of principal and interest of all outstanding bonds of the state orsubdivision thereof issuing the bonds.

 

(b) The bonds of each series shall be due and payable at adefinite date within the period permitted by law for the discharge of theindebtedness.

 

16-5-303. Redemption of bonds owned by state.

 

Anybond issued by any county, municipality, school district or other politicalsubdivision of the state and which bond the state owns on any interest paymentdate, upon thirty (30) days written notice to the state treasurer of the stateis subject to redemption on the date by the payment of the principal andinterest then due on the bond to the treasurer. Redemption shall be made onlyfrom sinking funds of the political subdivisions and not from funds obtained byits refunding of the bonds.

 

ARTICLE 4 - BOND ANTICIPATION NOTES

 

16-5-401. Short title.

 

Thisact shall be known and may be cited as the "Bond Anticipation Note Act of1981".

 

16-5-402. Definitions.

 

 

(a) As used in this act:

 

(i) "Anticipation note" means notes of the issuer,evidencing short-term borrowings, issued in anticipation of the issuance ofbonds which a governing body is authorized to issue;

 

(ii) "Authorizing instrument" means an ordinance,resolution, instrument or other written evidence of a proceeding by which agoverning body takes formal action and adopts legislative provisions on mattersof some permanency;

 

(iii) "Bonds" means general obligation bonds or revenuebonds of an issuer;

 

(iv) "General obligation bonds" means bonds authorizedto be issued by a governing body or any successor thereto which are payable orwhich may be paid from ad valorem taxes or which constitute a debt or anindebtedness of the issuer within the meaning of any constitutional orstatutory limitation, which mature one (1) or more years after the date oftheir issuance and delivery;

 

(v) "Governing body" means the city council, towncouncil, commission, board of commissioners, board of trustees, board ofdirectors or other legislative body of an issuer in which the legislative powersof the issuer are vested;

 

(vi) "Issuer" means any Wyoming county, schooldistrict, municipal corporation, community college, hospital district, sanitaryand improvement district, water district, sewer district, water and sewerdistrict, county improvement and service district or other politicalsubdivision of the state specifically authorized by law to issue any generalobligation bond or revenue bond;

 

(vii) "Revenue bond" means bonds authorized to beissued by a governing body or any successor thereto which are payable from apledge of designated revenues other than ad valorem taxes or specialassessments which mature one (1) or more years after the date of theirissuance.

 

16-5-403. Authority to issue notes; election thereon.

 

 

(a) If the qualified electors of an issuer authorize theissuance of bonds or the issuance of anticipation notes at an election heldpursuant to W.S. 22-21-101 through 22-21-112 and the governing body of theissuer considers it advisable and in the interests of the issuer, to anticipatethe issuance of the bonds, the governing body may from time to time andpursuant to an appropriate authorizing instrument issue its bond anticipationnotes.

 

(b) At the election to authorize the issuance of bondanticipation notes, the question shall state the maximum principal amount forwhich the notes may be issued, which may not exceed the principal amount of thebonds authorized, and the maximum rate of interest that may be paid on thenotes.

 

16-5-404. Authorizing instrument.

 

 

(a) Anticipation notes issued pursuant to this act shall beauthorized by instrument of the issuer which shall:

 

(i) Describe the bonds in anticipation of which the notes areto be issued;

 

(ii) Declare the results of the election authorizing the issuanceof the bonds wherein the qualified electors of the issuer have approved theirissuance in the manner required by law;

 

(iii) Specify the principal amount of the anticipation notes, therate of interest and maturity date or dates of the anticipation notes, whichmaturity date or dates shall not exceed three (3) years from the date of issueof the anticipation notes.

 

16-5-405. Manner of issuance; form, terms and conditions.

 

Anticipationnotes shall be issued and sold in such manner and at such price as thegoverning body determines by the instrument authorizing their issuance.Anticipation notes shall be in bearer form, except that the governing body mayprovide for the registration of the anticipation notes in the name of the ownereither as to principal alone, or as to both principal and interest, and on suchother terms and conditions as the governing body determines in the authorizinginstrument. Interest on anticipation notes, not to exceed the rate authorizedby the electors, may be payable semiannually, annually or at maturity.Anticipation notes may be made redeemable prior to maturity at the option ofthe governing body in the manner and upon the terms fixed by the instrumentauthorizing their issuance. Anticipation notes shall be executed and shall bein such form and have such details and terms as provided in the authorizinginstrument.

 

16-5-406. Payment, surrender and cancellation.

 

Contemporaneouslywith the issuance of the bonds in anticipation of which anticipation notes havebeen issued, all anticipation notes issued, even though they may not then havematured, shall be paid, both as to principal and interest to date of payment,and all such notes shall be surrendered and cancelled by the issuer.

 

16-5-407. Security; sources of payment.

 

 

(a) Whenever the bonds in anticipation of which notes areissued are to be payable from ad valorem taxes and constitute full generalobligations of the municipality, the bond anticipation notes and the intereston them shall be secured by a pledge of the full faith and credit of themunicipality in the manner provided in the statutes of the state authorizingtheir issuance and shall also be made payable from funds derived from the saleof the bonds in anticipation of which the notes are issued.

 

(b) Whenever the bonds in anticipation of which theanticipation notes are to be issued are to be payable solely from revenuespledged for payment of revenue bonds, as provided in the statutes authorizingtheir issuance, such anticipation notes and the interest on them shall besecured by a pledge of the income and revenues pledged for payment of therevenue bonds and shall also be made payable from funds derived from the saleof the revenue bonds in anticipation of which the notes are issued.

 

16-5-408. Signing, countersigning, execution or attestation of notes;facsimile seals and signatures.

 

Anyanticipation notes or interest coupon may be signed, countersigned, executed orattested by the public official or officials who are authorized by law at thetime of the issuance of the anticipation notes to sign, countersign, execute orattest bonds or interest coupons of the issuer of the same general character asthose bonds in anticipation of which the notes are being issued. In thealternative, the governing body may designate appropriate public officials tosign, countersign, execute or attest any anticipation note or appurtenantcoupon, if any. Any officer so authorized or designated may utilize a facsimilesignature in lieu of his manual signature in the manner provided by law,provided that compliance with any law other than this act is not a condition ofexecution with a facsimile signature of any interest coupon. The facsimile sealshall have the same legal effect as the impression of the seal. Anticipationnotes and any coupons bearing the signatures of officers in office on the dateof the signing thereof shall be valid and binding obligations of the issuer,notwithstanding that before the delivery thereof and payment therefor any orall persons whose signatures appear thereon have ceased to fill theirrespective offices. Any officer of the issuer authorized or designated to sign,countersign, execute or attest any anticipation note or interest coupon, at thetime of its execution or of the execution of a signature certificate, may adoptas and for his or her facsimile signature the facsimile signature of his or herpredecessor in office in the event that such facsimile signature appears uponthe anticipation note or coupons appertaining thereto, or upon both theanticipation notes and such coupons, after their delivery for value.

 

16-5-409. Recital in notes imparting legality.

 

Anyinstrument of an issuer authorizing, or any other instrument appertaining to,any anticipation note may provide that each anticipation note thereinauthorized shall recite that it is issued under the authority of this act. Suchrecital shall conclusively impart full compliance with all of the provisionshereof, and all anticipation notes issued containing such recital shall be incontestablefor any cause whatsoever after their delivery for value.

 

16-5-410. Endorsement.

 

Theclerk of the issuer shall endorse a certificate upon every anticipation notethat the same is issued pursuant to law and is within the debt limit of the issuerif the notes are issued in anticipation of the issuance of general obligationbonds, or, as to notes issued in anticipation of revenue bonds, that they donot constitute a debt of the issuer within the meaning of any constitutional orstatutory provision or limitation.

 

16-5-411. Governing body's determination of legality.

 

Thedetermination of a governing body that all the limitations imposed upon theissuance of anticipation notes have been met shall be conclusive in the absenceof fraud or arbitrary and gross abuse of discretion.

 

16-5-412. Scope, authority and effect of provisions.

 

 

(a) This act, without reference to other statutes of the stateexcept as herein otherwise specifically provided, constitutes full authorityfor the authorization and issuance of anticipation notes hereunder. No otheract or law with regard to the authorization or issuance of securities by anyissuer that in any way impedes or restricts the carrying out of the acts hereinauthorized to be done shall be construed as applying to any proceedings takenhereunder or acts done pursuant hereto, except as otherwise expressly providedherein. The powers conferred by this act shall be in addition to andsupplemental to, and not in substitution for, and the limitations imposed by thisact shall not affect the powers conferred by any other law applicable to anyissuer except as otherwise provided herein.

 

(b) Anticipation notes issued by the University of Wyomingshall be governed by W.S. 21-17-402 through 21-17-450, the UniversitySecurities Law.

 

ARTICLE 5 - GENERAL PROVISIONS AS TO FORM AND MANNER OFISSUANCE, PAYMENT AND TRANSFER OF PUBLIC SECURITIES

 

16-5-501. Applicability.

 

Thisarticle applies to bonds, notes, warrants, certificates or other securitiesevidencing loans or the advancement of monies, heretofore or hereafterauthorized to be issued by or on behalf of the state or any politicalsubdivision, district, public board, agency, commission, authority or otherpublic body corporate in the state pursuant to any general or special act orpursuant to any lawful legislative or home rule provision.

 

16-5-502. Form, payment and transfer of securities.

 

Thesecurities described in W.S. 16-5-501 shall be in registered or bearer form,with or without interest coupons, be subject to such conditions for transfer,be subject to such provisions for conversion as to denomination or to bearer orregistered form, be made registrable or payable, or both, by the treasurer orother officer of the issuing entity, or by trustee, registrar, paying agent ortransfer agent within or without the state of Wyoming, be issued, transferredand registered by book entry, be in a denomination, bear such dates, signaturesand authentications, and be held in custody by a depository within or without thestate of Wyoming, all as may be determined by the entity or the governing bodyof the entity authorized or empowered to issue the securities. Payment atdesignated due dates or in installments may be required by the authorizingproceedings to be by check, draft or other medium of payment and need not beconditioned upon presentation of any security or coupon.

 

16-5-503. Determination by resolution or ordinance.

 

Thedetermination of the body authorized or empowered to issue securities requiredby W.S. 16-5-502 shall be made in the resolution or ordinance authorizing theissuance of the securities or in any supplemental ordinance, resolution orother instrument.

 

16-5-504. No restriction on other acts.

 

Thisarticle as to the matters contained herein shall constitute an additional andseparate grant of powers and these powers may be exercised without regard toprovisions concerning matters in any other act but this article is not arestriction or limitation on the exercise of powers by an issuing entity underany other act.

 

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