“Pledged revenues” means
the moneys pledged wholly or in part for the payment of bonds or other
state securities issued in accordance with the provisions of the State
Securities Law, and, subject to any existing pledges or other contractual
limitations:
1. May include at the Commission’s discretion moneys derived from
one, all or any combination of revenue sources appertaining to any
facilities, including without limitation use and service charges, rents,
fees and any other income derived from the operation or ownership of,
from the use or services of, or from the availability of or services
appertaining to, the lease of, any sale or other disposal of, any
contract or other arrangement, or otherwise derived in connection with
any facilities or all or any part of any property appertaining to any
facilities;
2. May so include all loans, grants or contributions to the State,
if any, conditional or unconditional, from the Federal Government for the
payment of the principal of, the interest on, and any prior redemption
premiums due in connection with any state securities issued hereunder, or
any combination thereof; and
3. May so include the proceeds of any excise taxes levied and
collected by the State and authorized by law (other than the State
Securities Law) to be pledged for the payment of state securities issued
in accordance with the provisions of the State Securities Law, but
excluding the proceeds of any taxes as defined in NRS 349.204 .
(Added to NRS by 1967, 775; A 1971, 2110)
“Project” means any undertaking or
undertakings which the Commission is authorized by law (other than the
State Securities Law) to complete in its name or in the name of the
State, the cost of which the Commission is authorized by law (other than
the State Securities Law) to defray by the issuance of bonds or other
securities of the Commission or the State as provided hereunder.
(Added to NRS by 1967, 775)
“Secretary” means the de facto
or de jure Secretary of State of the State of Nevada, or his successor in
functions, if any.
(Added to NRS by 1967, 775)
“State
securities” or “securities” means notes, warrants, bonds, temporary bonds
and interim debentures authorized to be issued hereunder in the name and
on the behalf of the State acting by and through the Commission.
(Added to NRS by 1967, 775)
“State” means the State of Nevada,
or any board, department or other agency or instrumentality thereof.
Where the context so indicates, “State” means the geographical area
comprising the State of Nevada. “State” does not include the Nevada rural
housing authority.
(Added to NRS by 1967, 775; A 1971, 2110; 1995, 815)
“Taxation” means the levy and
collection of taxes as defined in NRS 349.204 , but in NRS 349.354 “taxation” pertains to any type of tax,
including, without limitation, any business, occupation or privilege tax,
any other excise tax, and any property tax, except for the tax on estates
imposed pursuant to the provisions of chapter 375A of NRS and the tax on generation-skipping
transfers imposed pursuant to the provisions of chapter 375B of NRS.
(Added to NRS by 1967, 775; A 1969, 1586; 1989, 2107; 1991, 1710)
“Taxes” means general (ad valorem)
property taxes.
(Added to NRS by 1967, 775)
“Treasurer” means the de facto
or de jure State Treasurer of the State of Nevada, or his successor in
functions, if any.
(Added to NRS by 1967, 775)
“Trust bank” means:
1. A commercial bank as defined in NRS 349.160 that is authorized to exercise and is
exercising trust powers.
2. A branch of the Federal Reserve Bank.
3. A credit union whose deposits are insured by the National
Credit Union Share Insurance Fund or by a private insurer approved
pursuant to NRS 678.755 that is
authorized to exercise and is exercising trust powers.
(Added to NRS by 1967, 775; A 1999, 1470 )
“United States” means the
United States of America; and where the context so indicates, “United
States” means the geographical area comprising the United States of
America.
(Added to NRS by 1967, 775; A 1971, 2110)
In
connection with any project, the State, acting by and through the
Commission, except as herein otherwise provided, may:
1. Sue and be sued;
2. Acquire and hold real or personal property, or rights or
interests therein, and water rights;
3. Dispose of unnecessary or obsolete property, or property
obtained for persons or political subdivisions within the State,
including without limitation water or water rights, or rights or
interests in any such property;
4. Make contracts and execute all instruments necessary or
convenient, as determined by the Commission;
5. Acquire by contract or contracts or by its own agents and
employees or otherwise acquire any properties for any project or
projects, and operate and maintain such properties; and
6. Accept grants of money or materials or property of any kind
from the Federal Government, the State, any agency or political
subdivision thereof, or any person, upon such terms and conditions as the
Federal Government, the State or such agency or political subdivision or
person may impose.
(Added to NRS by 1967, 775)
1. The Commission may:
(a) Exercise on behalf of the State the power of eminent domain in
the manner provided in chapter 37 of NRS,
except as herein otherwise provided;
(b) Take any property necessary to carry out any of the objects or
purposes concerning such a project, whether the property is already
devoted to the same use by any person (but not the Federal Government,
the State or any other body corporate and politic); and
(c) Condemn any existing works or improvements of any such person
now or hereafter used.
2. The power of eminent domain vested in the Commission includes
the power to condemn, in the name of the State, either the fee simple or
any lesser estate or interest in any real property which the Commission
by resolution determines is necessary for carrying out the purposes
hereof. The resolution is prima facie evidence that the taking of the fee
simple, easement or other interest, as the case may be, is necessary. The
Commission shall not abandon any condemnation proceedings after the date
upon which it has taken possession of the property being acquired.
3. If the construction or other acquisition of any project, or any
part thereof, makes necessary the removal and relocation of any public
utilities, whether on private or public right-of-way, or otherwise, the
Commission shall reimburse the owner of the public utility facility for
the expense of removal and relocation, including the cost of any
necessary land or rights in land, except where the cost of removal and
relocation is or has been considered a proper element of just
compensation in any settlement by negotiation or in any eminent domain
proceeding.
(Added to NRS by 1985, 275)
For the purpose of paying the cost of any
project authorized by law (other than the State Securities Law), at any
time or from time to time the State may borrow money or otherwise become
obligated for the project and may evidence any such obligation by the
issuance of state securities in accordance with the provisions of the
State Securities Law, to the extent otherwise authorized by law.
(Added to NRS by 1967, 776)
The
State may issue, in one series or more, without the state securities
being authorized at any election in the absence of an expressed provision
to the contrary in the act authorizing the project and the issuance of
state securities therefor or in any act supplemental thereto, in
anticipation of taxes or pledged revenues, or both, and constituting
either general obligations or special obligations of the State, any one
or more or all of the following types of state securities:
1. Notes, evidencing any amount borrowed by the State;
2. Warrants, evidencing the amount due to any person for any
services or supplies, equipment or other materials furnished to or for
the benefit of the State and appertaining to a project;
3. Bonds, evidencing any amount borrowed by the State and
constituting long-term financing;
4. Temporary bonds, pending the preparation of and exchangeable
for definitive bonds of like character and in like principal amount when
prepared and issued in compliance with the conditions and limitations
herein provided; and
5. Interim debentures, evidencing any short-term financing,
construction loans, and other temporary loans of not exceeding 5 years,
in supplementation of long-term financing and the issuance of bonds, as
provided in NRS 349.318 to 349.328
, inclusive.
(Added to NRS by 1967, 776; A 1975, 858)
Notes and warrants may mature at such time or times not exceeding 1 year
from the date or the respective dates of their issuance as the Commission
may determine. They shall not be extended or funded except by the
issuance of bonds or interim debentures in compliance with NRS 349.318
to 349.326 , inclusive, and other provisions supplemental
thereto.
(Added to NRS by 1967, 776)
Each temporary bond shall set forth
substantially the same conditions, terms and provisions as the definitive
bond for which it is exchanged. Each holder of a temporary bond shall
have all the rights and remedies which he would have as a holder of the
definitive bond for which the temporary bond is to be exchanged.
(Added to NRS by 1967, 776)
The resolution authorizing the issuance of any
state securities hereunder shall describe the purpose or purposes for
which they are issued at least in general terms and may describe any
purpose in detail.
(Added to NRS by 1967, 777)
1. A particular issue of state securities may be sold as an
investment for the purpose of accumulating money for the future generally
or to defray prospectively the anticipated costs of college if:
(a) The resolution authorizing its issuance states that purpose and
the State Board of Finance approves the sale for that purpose; and
(b) The resolution for issuance provides for the payment of
compound interest on the securities.
2. The resolution authorizing the issuance of securities for the
purposes described in subsection 1:
(a) May describe the securities by a designation including the word
“saving” or the phrase “saving for college”;
(b) Must include a disclaimer that the State does not guarantee
that the amount received at maturity will be adequate to meet the costs
of college or other intended purpose; and
(c) Must include a disclaimer that the State does not guarantee the
price for which a security may be sold before it matures.
(Added to NRS by 1993, 2279; A 1995, 2237)
The State
may issue as general obligations any of the following types of state
securities:
1. Notes;
2. Warrants;
3. Interim debentures;
4. Bonds; and
5. Temporary bonds,
Ê payable from taxes, or payable from taxes and additionally securing
such payment by a pledge of net revenues or gross revenues, as the
Commission may determine, except as may be otherwise provided in any act
supplemental hereto.
(Added to NRS by 1967, 777)
Except for bonds issued
by the Colorado River Commission of Nevada which are additionally
supported by pledged revenues of a project, any general obligation bond
authorized on the behalf and in the name of the State is subject to the
review and approval of the State Board of Finance, unless otherwise
provided by statute.
(Added to NRS by 1995, 2236; A 2001, 2443 )
The State
may issue as special obligations any of the following types of state
securities:
1. Notes;
2. Warrants;
3. Interim debentures;
4. Bonds; and
5. Temporary bonds,
Ê in anticipation of net pledged revenues but not under any circumstances
under their terms and the proceedings authorizing their issuance in
anticipation of taxes nor in anticipation of gross pledged revenues. Such
special obligation state securities may be payable from, secured by a
pledge of, and constitute a lien on net pledged revenues.
(Added to NRS by 1967, 777)
1. The act or resolution authorizing the issuance of any state
securities or any trust indenture or other instrument appertaining
thereto may fix a rate or rates of interest or provide for the
determination of the rate or rates from time to time by a designated
agent according to the procedure specified in that resolution or other
instrument. The rate so determined must approximate the rates then being
paid for other securities which contain similar provisions and have an
equivalent rating. The Commission may contract with or select any person
to make that determination.
2. The Commission may enter into an agreement with a third party
for an assurance of payment of the principal of, the interest on, or
premiums, if any, due in connection with any state securities issued by
the Commission. The obligation of the Commission to reimburse that third
party for any advances made pursuant to that agreement may be provided in
that agreement, recited in those securities or evidenced by another
instrument as designated in the act or resolution authorizing the
issuance of those securities or any other instrument appertaining
thereto. The Commission may assign its rights under that agreement.
(Added to NRS by 1985, 2088)
In fixing the rate or rates of
interest for state securities pursuant to subsection 1 of NRS 349.227
or the rate or rates of interest
imposed on the Commission for reimbursement of any advances made under an
agreement pursuant to subsection 2 of NRS 349.227 , the Commission is not subject to any
limitations on rates of interest provided by statute, including NRS
349.076 , or provided in the bond
question authorizing the issuance of those securities. The act or
resolution fixing that rate or rates of interest must contain the
findings of the Commission that the procedure specified in the act or
resolution for determining that rate or rates is reasonable under
existing or anticipated conditions in the market and is necessary and
advisable for marketing the securities. These findings are conclusive.
This section does not prohibit the Commission from fixing a maximum rate
of interest in that act or resolution.
(Added to NRS by 1985, 2088)
Any resolution authorizing the issuance of
general obligation state securities payable from gross revenues or any
indenture or other proceedings appertaining thereto may contain a
covenant of the State that to the extent required, as provided therein,
the State will pay operation and maintenance expenses by appropriation
from its General Fund and that to the extent the moneys accounted for
therein are insufficient for that purpose the State shall levy taxes
therefor.
(Added to NRS by 1967, 777)
Any outstanding general
obligation bonds, any temporary general obligation bonds to be exchanged
for such definitive bonds, and any general obligation interim debentures
constitute outstanding indebtedness of the State and exhaust the
debt-incurring power of the state unless issued:
1. For the purpose of defraying extraordinary expenses, as
mentioned in the last sentence of the first paragraph of Section 3 of
Article 9 of the Constitution; or
2. For one of the purposes mentioned in the second paragraph of
that section.
(Added to NRS by 1967, 777; A 1977, 795)
Any other state securities
(except general obligation notes and general obligation warrants)
constitute special obligations of the State, and all such other
securities (including all notes and warrants, general obligations or
special obligations, payable within 1 year from date) do not constitute
outstanding indebtedness of the State nor exhaust its debt-incurring
power under any such debt limitation.
(Added to NRS by 1967, 777)
1. State securities issued hereunder and constituting special
obligations shall recite in substance that the securities and the
interest thereon are payable solely from the net revenues pledged to the
payment thereof.
2. State securities issued hereunder and constituting general
obligations shall pledge the full faith and credit of the State for their
payment, shall so state, and shall state that they are payable from taxes.
3. General obligation state securities the payment of which is
additionally secured by a pledge of revenues shall recite in substance,
in addition to the statements required by subsection 2 of this section,
that the payment of the securities and the interest thereon is
additionally secured by a pledge of the net revenues or the gross
revenues, as the case may be, designated in the securities.
(Added to NRS by 1967, 777)
Payment of the principal of and the interest on general obligation bonds
shall be made from the Consolidated Bond Interest and Redemption Fund of
the State of Nevada, under the provisions of NRS 349.080 to 349.140 ,
inclusive, except as herein otherwise provided.
(Added to NRS by 1967, 778; A 1969, 1587)
1. There must be levied annually a special tax on all property,
both real and personal, subject to taxation within the boundaries of the
State of Nevada, fully sufficient together with the revenue which will
result from application of the rate to the net proceeds of minerals,
without regard to any statutory limitations now or hereafter existing, to
pay the interest on the general obligation state securities and to pay
and retire the securities as provided in the State Securities Law and in
any act supplemental hereto. The amount of money to be raised by the tax
must be included in the annual estimate or budget for each county in the
state for each year for which the tax is hereby required to be levied.
The tax must be levied and collected in the same manner and at the same
time as other taxes are levied and collected.
2. The proceeds thereof levied to pay interest on the securities
must be kept by the State Treasurer in a special fund, separate and apart
from all other funds, and the proceeds of the tax levied to pay the
principal of the securities must be kept by the Treasurer in a special
fund, separate and apart from all other funds. The two special funds must
be used for no other purpose than the payment of the interest on the
securities and the principal thereof, respectively, when due.
(Added to NRS by 1967, 778; A 1989, 44)
Such tax
shall be levied immediately after the issuance of any general obligation
securities issued in accordance with the provisions of the State
Securities Law, and annually thereafter, at the times and in the manner
provided by law, until all of the securities, and the interest thereon,
have been fully discharged. Such tax may be first levied after the state,
acting by and through the Commission, has contracted to sell any
securities but before their issuance.
(Added to NRS by 1967, 778; A 1975, 858)
Any sums coming due on
any general obligation state securities at any time when there are not on
hand from such tax levy or levies sufficient funds to pay the same shall
be promptly paid when due from the General Fund of the State,
reimbursement to be made to such General Fund in the sums thus advanced
when the taxes herein provided for have been collected.
(Added to NRS by 1967, 778)
Nothing contained in the State Securities Law shall be so construed as
to prevent the State from applying any funds (other than taxes) that may
be available for that purpose to the payment of the interest on or the
principal of any general obligation state securities as the same
respectively mature, including without limitation the payment of general
obligation bonds as provided in NRS 349.236 , and regardless of whether the payment of the
general obligation state securities is additionally secured by a pledge
of revenues, and upon such payments, the levy or levies of taxes provided
in the State Securities Law may thereupon to that extent be diminished.
(Added to NRS by 1967, 778)
There is by the State Securities Law, and there
shall be by resolution authorizing the issuance of any indebtedness
contracted in accordance with the provisions of the State Securities Law,
specially appropriated the proceeds of such taxes to the payment of such
principal and interest; and such appropriations shall not be repealed nor
the taxes postponed or diminished (except as herein otherwise expressly
provided) until the principal of and interest on the state securities
evidencing such debt have been wholly paid.
(Added to NRS by 1967, 779)
The
payment of state securities shall not be secured by an encumbrance,
mortgage or other pledge of property of the State, except for its pledged
revenues, proceeds of taxes and any other moneys pledged for the payment
of the securities. No property of the State, subject to such exception,
shall be liable to be forfeited or taken in payment of the securities.
(Added to NRS by 1967, 779)
1. A Commission that has issued or proposes to issue state
securities may enter into an agreement for an exchange of payments based
on interest rates as provided in this section if it finds that such an
agreement would be in the best interest of the State.
2. A Commission may enter into an agreement to exchange payments
based on interest rates only if:
(a) The long-term debt obligations of the person with whom the
Commission enters the agreement are rated “A” or better by a nationally
recognized rating agency; or
(b) The obligations pursuant to the agreement of the person with
whom the Commission enters the agreement are:
(1) Guaranteed by a person whose long-term debt obligations
are rated “A” or better by a nationally recognized rating agency; or
(2) Collateralized by obligations deposited with the
Commission or an agent of the Commission which would be legal investments
for the State pursuant to NRS 355.140
and which have a market value at the time agreement is made of not less
than the principal amount upon which the exchange of payments based on
interest rates is based.
3. A Commission may agree, with respect to securities that the
Commission has issued or proposes to issue bearing interest at a variable
rate, to pay sums equal to interest at a fixed rate or rates or at a
different variable rate determined pursuant to a formula set forth in the
agreement on an amount not to exceed the principal amount of the state
securities with respect to which the agreement is made, in exchange for
an agreement to pay sums equal to interest on the same principal amount
at a variable rate determined pursuant to a formula set forth in the
agreement.
4. A Commission may agree, with respect to securities that the
Commission has issued or proposes to issue bearing interest at a fixed
rate or rates, to pay sums equal to interest at a variable rate
determined pursuant to a formula set forth in the agreement on an amount
not to exceed the outstanding principal amount of the state securities
with respect to which the agreement is made, in exchange for an agreement
to pay sums equal to interest on the same principal amount at a fixed
rate or rates set forth in the agreement.
5. The term of an agreement entered into pursuant to this section
must not exceed the term of the state securities with respect to which
the agreement was made.
6. An agreement entered into pursuant to this section is not a
debt or indebtedness of the State for the purposes of any limitation upon
the indebtedness of the State or any requirement for an election with
regard to the issuance of securities that is applicable to the State.
7. Limitations upon the rate of interest on a state security do
not apply to interest paid pursuant to an agreement entered into pursuant
to this section.
8. A Commission which has entered into an agreement pursuant to
this section with respect to those securities may treat the amount or
rate of interest on the securities as the amount or rate of interest
payable after giving effect to the agreement for the purpose of
calculating:
(a) Rates and charges of a revenue-producing enterprise whose
revenues are pledged to or used to pay state securities;
(b) Statutory requirements concerning revenue coverage that are
applicable to state securities;
(c) Tax levies to pay debt service on state securities; and
(d) Any other amounts which are based upon the rate of interest of
state securities.
9. Subject to covenants applicable to the securities, any payments
required to be made by the Commission under the agreement may be made
from money pledged to pay debt service on the securities with respect to
which the agreement was made or from any other legally available source.
(Added to NRS by 1997, 1289)
No recourse shall be had for the payment of the principal of,
any interest on, and any prior redemption premiums due in connection with
any bonds or other state securities or for any claim based thereon or
otherwise upon the resolution authorizing their issuance or other
instrument appertaining thereto, against any individual member of the
Commission or any officer or other agent of the State, past, present or
future, either directly or indirectly through the Commission or the
State, or otherwise, whether by virtue of any constitution, statute or
rule of law, or by the enforcement of any penalty or otherwise, all such
liability, if any, being by the acceptance of the securities and as a
part of the consideration of their issuance specially waived and released.
(Added to NRS by 1967, 779; A 1975, 858)
None of the covenants, agreements, representations and
warranties contained in any resolution authorizing the issuance of bonds
or other state securities issued under the provisions of the State
Securities Law and constituting special obligations, or in any other
instrument appertaining thereto, in the absence of any breach thereof,
shall ever impose or shall be construed as imposing any liability,
obligation or charge against the State (except the special funds pledged
therefor) or against the general credit of the State, payable out of the
General Fund of the State, or out of any funds derived from taxation.
(Added to NRS by 1967, 779)
The faith of the State is hereby
pledged that the State Securities Law, any law supplemental or otherwise
appertaining thereto, and any other act concerning the bonds or other
state securities, taxes or the pledged revenues or any combination of
such securities, such taxes and such revenues, shall not be repealed nor
amended or otherwise directly or indirectly modified in such a manner as
to impair adversely any outstanding state securities, until all such
securities have been discharged in full or provision for their payment
and redemption has been fully made, including without limitation the
known minimum yield from the investment or reinvestment of moneys pledged
therefor in federal securities.
(Added to NRS by 1967, 779)
Except as otherwise provided in the Constitution of the State and as
otherwise provided in the State Securities Law and in any other act the
provisions of which are relevant by express reference herein thereto, any
state securities issued hereunder must be:
1. In such a form;
2. Issued in such a manner, at, above or below par at a discount
not exceeding 9 percent of the principal amount of the securities, and at
a price which will result in an effective interest rate which does not
exceed the limit provided in NRS 349.076 ;
3. Issued with such provisions:
(a) For the application of any accrued interest and any premium
from the sale of any bonds or other state securities hereunder as
provided in NRS 349.294 ;
(b) For the registration of the bonds or other securities for
payment as to principal only, or as to both principal and interest, at
the option of any holder of a bond or other security, or for registration
for payment only in either manner designated;
(c) For the endorsement of payments of interest on the bonds or
other securities or for reconverting the bonds or other securities into
coupon bonds or other coupon securities, or both for such endorsement and
such reconversion, where any bond or other security is registered for
payment as to interest; and where interest accruing on the securities is
not represented by interest coupons the securities may provide for the
endorsing of payments of interest thereon;
(d) For the endorsement of payments of principal on the bonds or
other securities, where any bond or other securities are registered for
payment as to principal;
(e) For the initial issuance of one or more bonds or other
securities aggregating the amount of the entire issue or any portion
thereof, and the endorsement of payments of interest or principal, or
both interest and principal, on the securities;
(f) For the manner and circumstances in and under which any such
bond or other securities may in the future, at the request of the holder
thereof, be converted into bonds or other securities of larger or smaller
denominations, which bonds or other securities of larger or smaller
denominations may in turn be either coupon bonds or other coupon
securities or bonds or other securities registered for payment, or coupon
bonds or other coupon securities with provisions for registration for
payment;
(g) For the reissuance of any outstanding bonds or other
securities, and the terms and conditions thereof, whether lost,
apparently destroyed, wrongfully taken, or for any other reason, as
provided in the Uniform Commercial Code—Investment Securities, or
otherwise;
(h) For the deposit of money, federal securities or other
securities of the Federal Government, or both money and such securities,
with and securing their repayment by a commercial bank or commercial
banks within or without or both within and without this state; and
(i) For the payment of costs or expenses incident to the
enforcement of the securities or of the provisions of the resolution or
of any covenant or contract with the holders of the securities; and
4. Issued otherwise with such recitals, terms, covenants,
conditions and other provisions,
Ê as may be provided by the Commission in a resolution authorizing their
issuance and in any indenture or other proceedings appertaining thereto.
(Added to NRS by 1967, 780; A 1969, 1289; 1971, 2111; 1975, 859;
1981, 1399; 1983, 570)
1. Notwithstanding the provisions of any other law, notes or bonds
may be issued at public or private sale.
2. Warrants may be issued to evidence the amount due to any person
furnishing services or materials as provided in the State Securities Law.
3. Temporary bonds must be issued to a purchaser of the definitive
bonds in anticipation of the exchange of the former for the latter.
4. Interim debentures may be issued at public or private sale.
(Added to NRS by 1967, 781; A 1971, 2112; 1973, 559; 1989, 2182)
1. If securities are sold publicly and subject to the right of the
Commission to reject any and all bids, the securities must be sold to the
responsible bidder making the best bid.
2. If there are two or more equal bids for the securities and such
equal bids are the best bids received and not less than the principal
amount of the securities and accrued interest, except for any permitted
discount, the Commission shall determine which bid must be accepted.
(Added to NRS by 1967, 782; A 1969, 1587; 1997, 3012)
A resolution providing for the issuance of
bonds or other state securities hereunder or an indenture or other
proceedings appertaining thereto may provide that the securities contain
a recital that they are issued pursuant to the State Securities Law,
which recital shall be conclusive evidence of their validity and the
regularity of their issuance.
(Added to NRS by 1967, 782)
1. As the Commission may determine, any bonds and other state
securities issued hereunder, except as otherwise provided in the
Constitution of the State, or in the State Securities Law, or in any act
supplemental thereto, must:
(a) Be of a convenient denomination or denominations;
(b) Be fully negotiable within the meaning of and for all the
purposes of the Uniform Commercial Code—Investment Securities;
(c) Mature at such a time or serially at such times in regular
numerical order at annual or other designated intervals in such amounts
as designated and fixed by the Commission;
(d) Be made payable in lawful money of the United States, at the
office of the treasurer or any commercial bank or commercial banks within
or without or both within and without the State as may be provided by the
Commission; and
(e) Be printed at such a place within or without this state, as the
Commission may determine.
2. Any such bonds or other state securities must bear interest at
a rate or rates which do not exceed the limit provided in NRS 349.076
. The interest must be made payable:
(a) If the security constitutes a debt subject to the limitations
stated in the first paragraph of Section 3 of Article 9 of the
Constitution of this state, not less often than semiannually.
(b) If the security does not constitute a debt or is issued for the
protection and preservation of the State’s property or natural resources
or for the purpose of obtaining the benefits thereof, at intervals which
the Commission shall designate, and the first interest payment may be for
another period.
3. General obligation bonds must mature within 20 years from their
date or within 20 years from the date of passage of the act authorizing
their issuance or the issuance of any securities funded or refunded
thereby, whichever limitation is shorter; but any bonds constituting a
debt which is not subject to the limitations stated in the first
paragraph of Section 3 of Article 9 of the Constitution of this state
must mature within 50 years from their date.
4. Special obligation bonds must mature within 50 years from their
date.
(Added to NRS by 1967, 782; A 1969, 1290; 1971, 2113; 1975, 860;
1977, 34, 252; 1981, 1400; 1983, 571; 1985, 276; 2001, 2481 )
The principal of, the interest on and any prior
redemption premium due in connection with any state securities shall be
paid as the same become due in accordance with the terms of the
securities and any resolutions and other proceedings appertaining to
their issuance, without any warrant or further order or other
preliminaries.
(Added to NRS by 1967, 783)
Any bonds issued hereunder (except
temporary bonds) shall have one or two sets of interest coupons, bearing
the number of the bond to which they are respectively attached, numbered
consecutively in regular numerical order, and attached in such manner
that they can be removed upon the payment of the installments of interest
without injury to the bonds, except as herein otherwise provided.
(Added to NRS by 1967, 783)
Bonds and other state securities issued
hereunder shall be executed in the name of the State, shall be signed by
the Governor, shall be countersigned by the Chairman of the Commission
(unless he is also the Governor), by the Controller and by the Treasurer,
and shall be attested by the Secretary; and the bonds or other securities
shall be authenticated by the great seal of the State of Nevada affixed
thereto. Any coupons shall be signed by the Treasurer. Facsimile
signatures may be used on any coupons.
(Added to NRS by 1967, 783)
Any bonds or other
securities, including without limitation any certificates endorsed
thereon, may be executed with facsimile signatures and seals as provided
in chapter 351 of NRS. (A compliance
therewith is not a condition precedent to the execution of any coupon
with a facsimile signature.)
(Added to NRS by 1967, 783; A 1985, 277)
The bonds, any coupons appertaining thereto and other
securities, bearing the signatures of the officers in office at the time
of the signing thereof, shall be the valid and binding obligations of the
State, notwithstanding that before the delivery thereof and payment
therefor any or all of the persons whose signatures appear thereon have
ceased to fill their respective offices.
(Added to NRS by 1967, 783)
Any officer authorized or permitted to sign any bonds, any
coupons or any other securities, at the time of their execution and of a
signature certificate appertaining thereto, may adopt as and for his own
facsimile signature the facsimile signature of his predecessor in office
in the event that such facsimile signature appears upon the bonds,
coupons and other securities appertaining thereto, or any combination
thereof.
(Added to NRS by 1967, 784)
The Commission may
provide for the redemption of any or all of the bonds or other state
securities before maturity, in such order, by lot or otherwise, at such
time or times, without or with the payment of such premium or premiums
not exceeding 9 percent of the principal amount of each bond or other
security so redeemed, and otherwise upon such terms as may be provided by
the Commission in the resolution authorizing the issuance of the
securities or other instrument appertaining thereto.
(Added to NRS by 1967, 784; A 1971, 2113; 1975, 860; 1981, 1401)
Any bonds or other
state securities may be repurchased by the Commission out of any funds
available for such purpose at a price of not more than the principal
amount thereof and accrued interest, plus the amount of the premium, if
any, which might on the next prior redemption date of such securities be
paid to the holders thereof if such securities should be called for
redemption on such date pursuant to their terms, and all securities so
repurchased shall be cancelled; but if the securities may not be called
for prior redemption at the State’s option within 1 year from the date of
their purchase, they may be repurchased without limitation as to price.
(Added to NRS by 1967, 784)
All moneys received from the issuance of any securities
herein authorized shall be used solely for the purpose or purposes for
which issued and to defray wholly or in part the cost of the project
thereby delineated. Any accrued interest and any premium shall be applied
to the cost of the project or to the payment of the interest on or the
principal of the securities, or both interest and principal, or shall be
deposited in a reserve therefor, or any combination thereof, as the
Commission may determine.
(Added to NRS by 1967, 784)
Any unexpended balance of the proceeds of such
securities remaining after the completion of the acquisition or
improvement of properties pertaining to the project or otherwise the
completion of the purpose or purposes for which such securities were
issued shall be credited immediately to the fund or account created for
the payment of the interest on or the principal of the securities, or
both principal and interest, and shall be used therefor, subject to the
provisions as to the times and methods for their payment as stated in the
securities and the proceedings authorizing or otherwise appertaining to
their issuance, or so paid into a reserve therefor, or any combination
thereof, as the commission may determine.
(Added to NRS by 1967, 784)
1. The validity of any securities shall not be dependent on nor
affected by the validity or regularity of any proceedings relating to a
project or the proper completion of any purpose for which the securities
are issued.
2. The purchaser or purchasers of the securities shall in no
manner be responsible for the application of the proceeds of the
securities by the State or any of its officers, agents and employees.
(Added to NRS by 1967, 784)
The
Commission in any resolution authorizing the issuance of bonds or other
securities hereunder or in any instrument or other proceedings
appertaining thereto may create special funds and accounts for the
payment of the cost of a project, of operation and maintenance expenses,
of the securities, including the accumulation and maintenance of reserves
therefor, of improvements, including the accumulation and maintenance of
reserves therefor, and of other obligations appertaining to the
securities, any project or any facilities.
(Added to NRS by 1967, 785)
1. The Commission on the behalf of the State may employ legal,
fiscal, engineering and other expert services in connection with any
project or any facilities, or both such project and facilities, and the
authorization, sale and issuance of bonds and other securities hereunder.
2. The Commission on the behalf of the State is authorized to
enter into any contracts or arrangements, not inconsistent with the
provisions hereof, with respect to the sale of bonds or other securities
hereunder, the employment of engineers, architects, financial consultants
and bond counsel, and other matters as the Commission may determine to be
necessary or desirable in accomplishing the purposes hereof.
(Added to NRS by 1967, 785)
1. The Commission may, before any sale of bonds, delegate to the
treasurer or his designee the authority to sign a contract for the
purchase of the bonds or to accept a binding bid for the bonds subject to
the requirements specified by the Commission concerning:
(a) The rate of interest on the bonds;
(b) The dates on which and the prices at which the bonds may be
called for redemption before maturity;
(c) The price at which the bonds will be sold; and
(d) The principal amount of the bonds and the amount of principal
maturing in any particular year.
2. All terms of the bonds other than:
(a) The rate of interest;
(b) The dates and prices for the redemption of the bonds;
(c) The price for the sale of the bonds;
(d) The principal amount of the bonds; and
(e) The requirements for the principal maturing in particular years,
Ê must be approved by the Commission before the bonds are delivered.
3. The final rate of interest, dates and prices of redemption,
price for the sale of the bonds, principal amount and the requirements
for the principal amount maturing in particular years are not required to
be approved by the Commission if each of those terms complies with the
requirements specified by the Commission before the contract for the
purchase of the bonds is signed or the bid for the bonds is accepted.
(Added to NRS by 1997, 3011; A 1999, 71 )
1. The Commission, subject to any contractual limitations from
time to time imposed upon the State by any act or resolution authorizing
the issuance of the State’s outstanding securities or by any trust
indenture or other proceedings appertaining thereto, may cause to be
invested and reinvested any proceeds of taxes, any pledged revenues and
any proceeds of bonds or other state securities issued hereunder in:
(a) Federal securities and other securities of the Federal
Government.
(b) Money market mutual funds that:
(1) Are registered with the Securities and Exchange
Commission;
(2) Are rated by a nationally recognized rating service as
“AAA” or its equivalent; and
(3) Invest only in securities issued or guaranteed as to
payment of principal and interest by the Federal Government, or its
agencies or instrumentalities, or in repurchase agreements that are fully
collateralized by such securities.
Ê The Commission may cause such proceeds of taxes, revenues, state
securities, federal securities, other securities of the Federal
Government and money market mutual funds to be deposited in any trust
bank or trust banks within or without or both within and without this
state and secured in such manner and subject to such terms and conditions
as the Commission may determine, with or without the payment of any
interest on such deposit, including, without limitation, time deposits
evidenced by certificates of deposit.
2. Any federal securities, other securities of the Federal
Government, shares in money market mutual funds and any such certificates
of deposit thus held may, from time to time, be sold, and the proceeds
may be so reinvested or redeposited as provided in this section.
3. Sales and redemptions of any federal securities, other
securities of the Federal Government, shares in money market mutual funds
and such certificates of deposit thus held must, from time to time, be
made in season so that the proceeds may be applied to the purposes for
which the money with which such securities, shares in money market mutual
funds and certificates of deposit were originally acquired was placed in
the State Treasury.
4. Any gain from any such investments or reinvestments may be
credited to any fund or account pledged for the payment of any state
securities issued hereunder, including any reserve therefor, or any other
fund or account appertaining to a project or any facilities or the
State’s General Fund, subject to any contractual limitations in any
proceedings appertaining to outstanding state securities.
5. It is lawful for any commercial bank incorporated under the
laws of this state which may act as depository of the proceeds of any
securities issued hereunder, any federal securities, other securities of
the Federal Government and shares in money market mutual funds owned by
the State, any proceeds of taxes, any pledged revenues and any money
otherwise appertaining to a project or any facilities, or any combination
thereof, to furnish such indemnifying bonds or to pledge such federal
securities, such other securities issued by the Federal Government, such
shares in money market mutual funds and such other securities as may be
required by the Commission.
(Added to NRS by 1967, 785; A 1997, 2865)
Any resolution providing for the issuance of any bonds or other state
securities hereunder payable from pledged revenues and any indenture or
other instrument or proceedings appertaining thereto may at the
discretion of the Commission contain covenants or other provisions,
notwithstanding such covenants and provisions may limit the exercise of
powers conferred hereby, in order to secure the payment of such
securities, in agreement with the holders of such securities, including
without limitation covenants or other provisions as to any one or more of
the following:
1. The pledged revenues and, in the case of general obligations,
the taxes to be fixed, charged or levied and the collection, use and
disposition thereof, including but not limited to the foreclosure of
liens for delinquencies, the discontinuance of services, facilities or
use of any properties or facilities, prohibition against free service,
the collection of penalties and collection costs, and the use and
disposition of any moneys of the State, derived or to be derived, from
any source herein designated;
2. The acquisition, improvement or equipment of all or any part of
properties pertaining to any project or any facilities;
3. The creation and maintenance of reserves or sinking funds to
secure the payment of the principal of and interest on any securities or
of operation and maintenance expenses of any facilities, or part thereof,
and the source, custody, security, regulation, use and disposition of any
such reserves or funds, including but not limited to the powers and
duties of any trustee with regard thereto;
4. A fair and reasonable payment by the State from its General
Fund or other available moneys to the account of any designated
facilities for services rendered thereby to the State;
5. The payment of the cost of any project by delineating the
purpose or purposes to which the proceeds of the sale of securities may
be applied, and the custody, security, use, expenditure, application and
disposition thereof;
6. The temporary investment and any reinvestment of proceeds of
bonds, other securities, any taxes or pledged revenues, or any
combination thereof, in federal securities and other securities issued by
the Federal Government;
7. The pledge of and the creation of a lien upon pledged revenues
or the proceeds of bonds or other state securities pending their
application to defray the cost of any project, or both such revenues and
proceeds of such securities, to secure the payment of bonds or other
securities issued hereunder;
8. The payment of the principal of and interest on any securities,
and any prior redemption premiums due in connection therewith, and the
sources and methods thereof, the rank or priority of any securities as to
any lien or security for payment, or the acceleration of any maturity of
any securities, or the issuance of other or additional securities payable
from or constituting a charge against or lien upon any pledged revenues
or other moneys pledged for the payment of securities and the creation of
future liens and encumbrances thereagainst;
9. The use, regulation, inspection, management, operation,
maintenance or disposition, or any limitation or regulation of the use,
of all or any part of the facilities or any property of the State
appertaining thereto;
10. The determination or definition of pledged revenues from any
facilities or of operation and maintenance expenses of facilities, the
use and disposition of such revenues and the manner of and limitations
upon paying such expenses;
11. The creation of special funds and accounts appertaining to any
pledged revenues or to the bonds or other securities issued hereunder;
12. The insurance to be carried by the State or any other person
in interest and use and disposition of insurance moneys, the acquisition
of completion, performance, surety and fidelity bonds appertaining to any
project or funds, or both, and the use and disposition of any proceeds of
such bonds;
13. Books of account, the inspection and audit thereof, and other
records appertaining to any project, facilities or pledged revenues;
14. The assumption or payment or discharge of any obligation, lien
or other claim relating to any part of any project, any facilities or any
securities having or which may have a lien on any part of any pledged
revenues or other moneys of the state;
15. Limitations on the powers of the State to acquire or operate,
or permit the acquisition or operation of, any structures, facilities or
properties which may compete or tend to compete with any facilities;
16. The vesting in a corporate or other trustee or trustees of
such property, rights, powers and duties in trust as the Commission may
determine, which may include any or all of the rights, powers and duties
of the trustee appointed by the holders of securities, and limiting or
abrogating the right of such holders to appoint a trustee, or limiting
the rights, duties and powers of such trustee;
17. Events of default, rights and liabilities arising therefrom,
and the rights, liabilities, powers and duties arising upon the breach by
the State of any covenants, conditions or obligations;
18. The terms and conditions upon which the holders of the
securities or any portion, percentage or amount of them may enforce any
covenants or provisions made hereunder or duties imposed thereby;
19. The terms and conditions upon which the holders of the
securities or of a specified portion, percentage or amount thereof, or
any trustee therefor, shall be entitled to the appointment of a receiver,
which receiver may enter and take possession of any facilities or
service, operate and maintain the same, prescribe fees, rates and
charges, and collect, receive and apply all revenues thereafter arising
therefrom in the same manner as the State itself might do;
20. A procedure by which the terms of any resolution authorizing
securities, or any other contract with any holders of securities,
including but not limited to an indenture of trust or similar instrument,
may be amended or abrogated, and as to the proportion, percentage or
amount of securities the holders of which must consent thereto, and the
manner in which such consent may be given;
21. The terms and conditions upon which any or all of the
securities shall become or may be declared due before maturity, and as to
the terms and conditions upon which such declaration and its consequences
may be waived; and
22. All such acts and things as may be necessary or convenient or
desirable in order to secure the securities, or in the discretion of the
Commission tend to make the securities more marketable, notwithstanding
that such covenant, act or thing may not be enumerated herein, it being
the intention hereof to give the Commission power to do in the name and
on behalf of the State all things in the issuance of state securities and
for their security except as herein expressly limited.
(Added to NRS by 1967, 786)
1. Revenues pledged for the payment of any securities, as received
by or otherwise credited to the State, shall immediately be subject to
the lien of each such pledge without any physical delivery thereof, any
filing or further act.
2. The lien of each such pledge and the obligation to perform the
contractual provisions made in the authorizing resolution or other
instrument appertaining thereto shall have priority over any or all other
obligations and liabilities of the State, except as may be otherwise
provided herein or in the resolution or other instrument, and subject to
any prior pledges and liens theretofore created.
3. The lien of each such pledge shall be valid and binding as
against all persons having claims of any kind in tort, contract or
otherwise against the State irrespective of whether such persons have
notice thereof.
(Added to NRS by 1967, 788)
Subject to any contractual limitations binding upon the
holders of any issue or series of state securities, or trustee therefor,
including but not limited to the restriction of the exercise of any
remedy to a specified proportion, percentage or number of such holders,
and subject to any prior or superior rights of others, any holder of
securities, or trustee therefor, shall have the right and power, for the
equal benefit and protection of all holders of securities similarly
situated:
1. By mandamus or other suit, action or proceeding at law or in
equity to enforce his rights against the State, the Commission, and any
other of the officers, agents and employees of the State, to require and
compel the State, the Commission, or any such officers, agents or
employees to perform and carry out their respective duties, obligations
or other commitments hereunder and their respective covenants and
agreements with the holder of any security;
2. By action or suit in equity to require the State to account as
if it is the trustee of an express trust;
3. By action or suit in equity to have appointed a receiver, which
receiver may enter and take possession of any facilities and any pledged
revenues for the payment of the securities, prescribe sufficient fees
derived from the facilities, and collect, receive and apply all pledged
revenues or other moneys pledged for the payment of the securities in the
same manner as the State itself might do in accordance with the
obligations of the State; and
4. By action or suit in equity to enjoin any acts or things which
may be unlawful or in violation of the rights of the holder of any
securities and to bring suit thereupon.
(Added to NRS by 1967, 788)
1. If a resolution of the Commission authorizing or providing for
the issuance of any securities of any series or any other proceedings
appertaining thereto contains a provision authorized by subsection 19 of
NRS 349.306 and further provides in
substance that any trustee appointed pursuant to subsection 16 of NRS
349.306 shall have the powers provided
by that subsection, then such trustee, whether or not all of the bonds or
other securities of such series have been declared due and payable, shall
be entitled as of right to the appointment of a receiver of the
facilities appertaining thereto.
2. Any receiver appointed as permitted by subsection 19 of NRS
349.306 may enter upon and take
possession of the facilities and property appertaining thereto, and,
subject to any pledge or contract with the holders of such securities,
shall take possession of all moneys and other property derived from or
applicable to the acquisition, operation, maintenance or improvement of
the facilities and proceed with such acquisition, operation, maintenance
or improvement which the Commission on the behalf of the State is under
any obligation to do, and operate, maintain, equip and improve the
facilities, and fix, charge, collect, enforce and receive the service
charges and all revenues thereafter arising subject to any pledge thereof
or contract with the holders of such securities relating thereto and
perform the public duties and carry out the contracts and obligations of
the State in the same manner as the Commission itself might do and under
the direction of the court.
(Added to NRS by 1967, 789)
No right or remedy
conferred upon any holder of any securities or any coupon appertaining
thereto or any trustee for such holder hereby or by any proceedings
appertaining to the issuance of such securities or coupon is exclusive of
any right or remedy, but each such right or remedy is cumulative and in
addition to every other right or remedy and may be exercised without
exhausting and without regard to any other remedy conferred hereby or by
any other law.
(Added to NRS by 1967, 789)
The failure of any holder of any state
securities or any coupons appertaining thereto so to proceed as herein
provided or in such proceedings shall not relieve the State, the
Commission or any of the officers, agents and employees of the State of
any liability for failure to perform or carry out any duty, obligation or
other commitment.
(Added to NRS by 1967, 789)
1. Notwithstanding any limitation or other provision herein,
whenever the State is authorized to issue general obligation bonds,
regardless of whether majorities of the qualified electors of the State
voting on a proposal to issue the general obligation bonds have
authorized their issuance by the State for any project, the State is
authorized to borrow money without any other election in anticipation of
the proceeds of taxes, the proceeds of the bonds, the proceeds of pledged
revenues, or any other moneys of the State, or any combination thereof,
and to issue general obligation interim debentures to evidence the amount
so borrowed.
2. The State also is authorized to borrow money without any
election in anticipation of the proceeds of revenue bonds or any other
special obligations of the State and of its pledged revenues, or any
combination thereof, but excluding the proceeds of any taxes, and to
issue special obligation interim debentures to evidence the amount so
borrowed.
(Added to NRS by 1967, 789)
1. Except as otherwise provided in subsections 2 to 5, inclusive,
this section does not authorize the State to issue any state securities
constituting a debt for the purpose of funding or refunding state
securities constituting special obligations which do not constitute an
indebtedness.
2. Any special obligation securities of the State pertaining to
any project may be funded or refunded by general obligation securities
pertaining to the project only if the State is authorized by law to issue
those funding or refunding securities at the time of their issuance, even
though the State was not so authorized to issue them at the time of the
issuance of any such funded or refunded securities.
3. If the issuance of general obligation bonds to defray the cost
of the project is conditioned upon their approval by the qualified
electors of the State at a special, primary or general election, any
general obligation securities pertaining to the project and creating an
indebtedness, by funding or refunding special obligation securities or
otherwise, may be issued only if the bonds have been so approved at a
special, primary or general election in the manner provided by law.
4. If a debt limitation pertains to any general obligation bonds
or other securities of the State constituting an indebtedness and
relating to any project, no general obligation securities pertaining to
the project and creating an indebtedness, by funding or refunding special
obligation securities or otherwise (in contradistinction to funding or
refunding bonds merely reevidencing an indebtedness formerly evidenced by
the securities funded or refunded), may be issued in a principal amount
exceeding that debt limitation.
5. No bonds of the State may be refunded by the issuance of its
interim debentures, its notes or its warrants. No interim debentures of
the State may be funded by the issuance of its notes or its warrants.
(Added to NRS by 1967, 790; A 1969, 1587; 1993, 1066)
1. Any interim debentures may mature at such time or times not
exceeding a period of time equal to the estimated time needed to effect
the purpose or purposes for which they are issued or for which the bonds
are authorized to be issued, but not exceeding 5 years from the date of
the interim debentures, as the Commission may determine.
2. The proceeds of interim debentures shall be used to defray the
cost of a project.
3. Any notes or warrants or both notes and warrants may be funded
with the proceeds of interim debentures, as well as bonds authorized by
the Commission authorizing the issuance of the funded securities.
4. Except as otherwise provided in NRS 349.318 to 349.328 ,
inclusive, interim debentures shall be issued as provided herein for
state securities in NRS 349.230 to
349.316 , and 349.352 to 349.364,
inclusive.
(Added to NRS by 1967, 790; A 1969, 1587; 1975, 861)
1. Except as otherwise provided in NRS 349.320 , the proceeds of taxes, pledged revenues and
other money, including without limitation proceeds of bonds to be issued
or reissued after the issuance of interim debentures, and bonds issued to
secure the payment of interim debentures, or any combination thereof, may
be pledged to secure the payment of interim debentures; but the proceeds
of taxes and the proceeds of bonds payable from taxes, or any combination
thereof, must not be used to pay any special obligation interim
debentures nor may their payment be secured by a pledge of any such
general obligation bonds.
2. Any bonds pledged as collateral security for the payment of any
interim debentures must mature at such time or times as the Commission
may determine, except as otherwise provided in subsections 3 and 4 of NRS
349.276 .
3. Any bonds pledged as collateral security must not be issued in
an aggregate principal amount exceeding the aggregate principal amount of
the interim debenture or interim debentures secured by a pledge of such
bonds, nor shall they bear interest at any time which, with any interest
accruing at the same time on the interim debenture or interim debentures
so secured, exceeds the rate permitted on the debenture or debentures
secured, computed from the appropriate index which was most recently
published before the bids are received or a negotiated offer is accepted.
(Added to NRS by 1967, 790; A 1969, 1290; 1971, 2113; 1975, 861;
1977, 35; 1981, 1401; 1983, 572)
No interim
debentures issued pursuant to the provisions of NRS 349.318 to 349.324 ,
inclusive, shall be extended or funded except by the issuance or
reissuance of a bond or bonds authorized by the Commission authorizing
the issuance of the funded interim debentures in compliance with NRS
349.328 .
(Added to NRS by 1967, 790)
1. For the purpose of funding any interim debentures, any bonds
pledged as collateral security to secure the payment of such interim
debentures, upon their surrender as pledged property, may be reissued
without an election, and any bonds not previously issued but authorized
to be issued, at an election in the case of general obligation bonds
required by law so to be authorized, and otherwise merely by the
Commission, for a purpose or purposes the same as or encompassing the
purpose or purposes for which the interim debentures were issued, may be
issued for such a funding.
2. Any such bonds shall mature at such time or times as the
Commission may determine, except as otherwise provided in subsections 3
and 4 of NRS 349.276 .
3. Bonds for funding (including but not necessarily limited to any
such reissued bonds) and bonds for any other purpose or purposes may be
issued separately or issued in combination in one series or more.
4. Except as otherwise provided in NRS 349.322 to 349.328 ,
inclusive, any such funding bonds shall be issued as is provided herein
for other bonds.
(Added to NRS by 1967, 790; A 1977, 36)
Subject to the provisions of NRS 349.320
, any general obligation bonds or
special obligation bonds of the State issued in accordance with the
provisions of the State Securities Law or any other act and payable from
any pledged revenues and any general obligation bonds of the State so
issued but not payable from pledged revenues may be refunded on behalf of
the State by the Commission authorizing the issuance of the refunded
bonds, without the necessity of the refunding bonds being authorized at
an election except as otherwise provided in NRS 349.320 , by the adoption of a resolution or
resolutions by the Commission and by any trust indenture or other
proceedings appertaining thereto, authorizing the issuance of refunding
bonds to refund, pay and discharge all or any part of such outstanding
bonds of any one or more or all outstanding issues:
1. For the acceleration, deceleration or other modification of the
payment of such obligations, including any interest thereon in arrears,
or about to become due for any period not exceeding 3 years from the date
of the refunding bonds, unless the capitalization of interest on bonds
constituting an indebtedness increases the state debt in excess of the
State’s debt limitation in the State Constitution;
2. For the purpose of reducing interest costs or effecting other
economies;
3. For the purpose of modifying or eliminating restrictive
contractual limitations appertaining to the issuance of additional bonds,
otherwise concerning the outstanding bonds, or otherwise relating to any
facilities appertaining thereto;
4. For any combination of the purposes stated in subsections 1, 2
and 3.
(Added to NRS by 1967, 791; A 1969, 1588)
Nothing
contained in the State Securities Law or in any other law of this state
shall be construed to permit the Commission to call on behalf of the
State bonds or other securities outstanding now or any time after April
5, 1967, for prior redemption in order to fund or refund such securities
or in order to pay them prior to their stated maturities, unless the
right to call such securities for prior redemption was specifically
reserved and stated in such securities at the time of their issuance, and
all conditions with respect to the manner, price and time applicable to
such prior redemption as set forth in the proceedings authorizing the
outstanding securities are strictly observed. It is the intention of the
Legislature in this section to make it certain that the holder of no
outstanding bond or other security may be compelled to surrender such
security for funding or refunding prior to its stated maturity or
optional date of prior redemption expressly reserved therein, even though
such funding or refunding might result in financial benefit to the State.
(Added to NRS by 1967, 791; A 1969, 1588)
Notwithstanding the provisions of
NRS 349.332 or of any other law, this
state, acting by and through the State Board of Finance, may agree with
the Commission to exchange any outstanding bonds or other securities of
the State and held by the State, or any agency, corporation, department
or other instrumentality of the State, for funding or refunding bonds or
other funding securities of the State authorized on its behalf by the
Commission or otherwise to surrender at such price and time and otherwise
upon such conditions and other terms and in such manner as may be
mutually agreeable such outstanding bonds or other securities to the
Commission for funding or refunding at any time prior to their respective
maturities or to any date as of which the State has the right and option
to call on its behalf such outstanding securities for prior redemption as
expressly provided in the outstanding securities and any resolution,
trust indenture or other proceedings authorizing their issuance.
(Added to NRS by 1967, 791; A 1969, 1589)
Any provision herein concerning the refunding of
outstanding bonds includes any outstanding securities evidencing
long-term loans to the State regardless of whether such securities are
designated as bonds, certificates, single certificates or otherwise.
(Added to NRS by 1967, 792)
1. Any bonds issued for refunding purposes may either be delivered
in exchange for the outstanding bonds being refunded or may be publicly
or privately sold.
2. The refunding bonds, or any part thereof, except as limited by
subsection 2 of NRS 349.344 , may be
exchanged by the State for federal securities and other securities of the
Federal Government which have been made available for escrow investment
by any purchaser of refunding bonds, upon terms of exchange mutually
agreed upon, and any such securities so received by the State shall be
placed in escrow as provided in NRS 349.342 and 349.344 .
(Added to NRS by 1967, 792)
1. No bonds may be refunded hereunder unless the holders thereof
voluntarily surrender them for exchange or payment, or unless they either
mature or are callable for prior redemption under their terms within 25
years from the date of issuance of the refunding bonds. Provision must be
made for paying the securities within that period.
2. The maturity of any bond refunded may not be extended beyond 25
years, or beyond 1 year next following the date of the last outstanding
maturity, whichever limitation is later, nor in any event in the case of
any bonds constituting a debt in contravention of any state
constitutional debt limitation, nor may any interest on any bond refunded
be increased to any rate exceeding the limit provided in NRS 349.076
; but any general obligation bonds
funding or refunding any securities which constitute a debt and are
subject to the limitations stated in the first paragraph of Section 3 of
Article 9 of the Constitution of this state, must mature within 20 years
from the effective date of the act authorizing the issuance of the
securities so funded or refunded thereby, or within 20 years from the
date or earliest date of such securities, as the case may be, whichever
limitation is shorter.
3. The principal amount of the refunding bonds may exceed the
principal amount of the refunded bonds, but in the case of any bonds
constituting a debt the principal of the bonds may not be increased to
any amount in excess of any state debt limitation in the State
Constitution pertaining thereto.
4. The principal amount of the refunding bonds may also be less
than or the same as the principal amount of the bonds being refunded so
long as provision is duly and sufficiently made for their payment.
(Added to NRS by 1967, 792; A 1969, 1291; 1971, 2114; 1975, 861;
1981, 1402; 1983, 573, 1033, 1594)
1. Except as herein otherwise provided, the proceeds of refunding
bonds shall either be immediately applied to the retirement of the bonds
to be refunded or be placed in escrow or trust in any trust bank or trust
banks within or without or both within and without this state to be
applied to the payment of the refunded bonds or the refunding bonds, or
both the refunded bonds and the refunding bonds, upon their presentation
therefor to the extent, in such priority and otherwise in the manner
which the Commission may determine.
2. The incidental costs of refunding bonds may be paid by the
purchaser of the refunding bonds or be defrayed from any general fund
(subject to appropriations therefor as otherwise provided by law) or
other available revenues of the State under the control of the Commission
or from the proceeds of the refunding bonds, or from the interest or
other yield derived from the investment of any refunding bond proceeds or
other moneys in escrow or trust, or from any other sources legally
available therefor, or any combination thereof, as the Commission may
determine.
3. Any accrued interest and any premium appertaining to a sale of
refunding bonds may be applied to the payment of the interest thereon or
the principal thereof, or to both interest and principal, or may be
deposited in a reserve therefor, or may be used to refund bonds by
deposit in escrow, trust or otherwise, or may be used to defray any
incidental costs appertaining to the refunding, or any combination
thereof, as the Commission may determine, but in no event by the
incurrence of additional debt in excess of any state debt limitation in
the State Constitution.
(Added to NRS by 1967, 793)
1. Any such escrow or trust shall not necessarily be limited to
proceeds of refunding bonds but may include other moneys available for
its purpose.
2. Any proceeds in escrow or trust, pending such use, may be
invested or reinvested in federal securities, and in the case of an
escrow or trust for the refunding of outstanding state special obligation
(but not general obligation) securities, in other securities issued by
the Federal Government if the resolution authorizing the issuance of such
outstanding state securities or any trust indenture or other proceedings
appertaining thereto expressly permits any such investment or
reinvestment in such securities issued by the Federal Government other
than federal securities.
3. Any trust bank accounting for federal securities and other
securities issued by the Federal Government in such escrow or trust may
place them for safekeeping wholly or in part in any trust bank or trust
banks within or without or both within and without this state.
4. Any trust bank shall continuously secure any moneys placed in
escrow or trust and not so invested or reinvested in federal securities
and other securities issued by the Federal Government by a pledge in any
trust bank or trust banks within or without or both within and without
the State of federal securities in an amount at all times at least equal
to the total uninvested amount of such moneys accounted for in such
escrow or trust.
5. Such proceeds and investments in escrow or trust, together with
any interest or other gain to be derived from any such investment, shall
be in an amount at all times at least sufficient to pay principal,
interest, any prior redemption premiums due, and any charges of the
escrow agent or trustee and any other incidental expenses payable
therefrom, except to the extent provision may have been previously
otherwise made therefor, as such obligations become due at their
respective maturities or due at designated prior redemption date or dates
in connection with which the Commission has exercised or is obligated to
exercise a prior redemption option on behalf of the State.
6. The computations made in determining such sufficiency shall be
verified by a certified public accountant licensed to practice in this
state or in any other state.
7. Any purchaser of any refunding bond issued hereunder shall in
no manner be responsible for the application of the proceeds thereof by
the State, the Commission or any of the officers, agents or employees of
the State.
(Added to NRS by 1967, 793)
Refunding bonds may be made payable from any taxes or pledged
revenues, or both taxes and such revenues, which might be legally pledged
for the payment of the bonds being refunded at the time of the refunding
or at the time of the issuance of the bonds being refunded, as the
Commission may determine, notwithstanding the taxes, or the revenue
sources, or the pledge of such revenues, or any combination thereof, for
the payment of the outstanding bonds being refunded is thereby modified,
subject to the provisions of NRS 349.320 .
(Added to NRS by 1967, 794)
Bonds
for refunding and bonds for any other purpose or purposes authorized
hereby or by any other law may be issued separately or issued in
combination in one series or more by the State in accordance with the
provisions of the State Securities Law.
(Added to NRS by 1967, 794)
Except as in NRS 349.330 to
349.348 , inclusive, expressly provided
or necessarily implied, the relevant provisions elsewhere herein
appertaining generally to the issuance of bonds to defray the cost of any
project shall be equally applicable in the authorization and issuance of
refunding bonds, including their terms and security, the covenants and
other provisions of the resolution authorizing the issuance of the bonds,
or other instrument or proceedings appertaining thereto, and other
aspects of the bonds.
(Added to NRS by 1967, 794)
The determination of the Commission that the
limitations in the State Securities Law imposed upon the issuance of
bonds or upon the issuance of other securities hereunder, including
without limitation any securities for funding or refunding securities,
have been met shall be conclusive in the absence of fraud or arbitrary
and gross abuse of discretion regardless of whether the authorizing
resolution or the securities thereby authorized contain a recital as
authorized by NRS 349.274 .
(Added to NRS by 1967, 794; A 1969, 1589)
1. Except as otherwise provided in subsection 2, bonds and other
securities issued pursuant to the provisions of the State Securities Law,
their transfer and the income therefrom must forever be and remain free
and exempt from taxation by this state or any subdivision thereof.
2. The provisions of subsection 1 do not apply to the tax on
estates imposed pursuant to the provisions of chapter 375A of NRS or the tax on generation-skipping transfers
imposed pursuant to the provisions of chapter 375B of NRS.
(Added to NRS by 1967, 794; A 1989, 2107; 1991, 1710)
It is legal for the State Board of Finance
to invest any permanent state funds or other state funds available for
investment in any of the bonds or other securities authorized to be
issued pursuant to the provisions hereof if the securities constitute
general obligations payable from taxes.
(Added to NRS by 1967, 794)
1. It is legal for any bank, trust company, banker, savings bank
or institution, savings and loan association, investment company and any
other person carrying on a banking or investment business, any insurance
company, insurance association, or any other person carrying on an
insurance business, and any executor, administrator, curator, trustee or
any other fiduciary, to invest funds or money in his custody in any of
the bonds or other securities issued in accordance with the provisions of
the State Securities Law.
2. Nothing contained in this section with regard to legal
investments relieves any representative of any corporation or other
person of any duty of exercising reasonable care in selecting securities.
(Added to NRS by 1967, 794; A 1983, 131)
1. The State Securities Law, without reference to other statutes
of this state, except as herein otherwise expressly provided, shall
constitute full authority for the exercise of the incidental powers
herein granted concerning the borrowing of money and any other incurrence
of obligations to defray wholly or in part the cost of any project
appertaining to the State and otherwise authorized by law, or to
refinance outstanding loans, or both, and the issuance of bonds or other
securities to evidence such loans or other obligations or to fund or
refund outstanding securities, or any combination thereof, as the
Commission may determine.
2. No other act or law with regard to the authorization or
issuance of securities or the exercise of any other power herein granted
that requires an election or another approval or in any way impedes or
restricts the carrying out of the acts herein authorized to be done shall
be construed as applying to any proceedings taken hereunder or acts done
pursuant hereto, except as otherwise provided in the State Securities Law
or in any act supplemental hereto.
3. The powers conferred by the State Securities Law shall be in
addition and supplemental to, and not in substitution for, and the
limitations imposed by the State Securities Law shall not affect the
powers conferred by, any other law.
4. Nothing contained in the State Securities Law shall be
construed as preventing the exercise of any power granted to the State,
acting by and through the Commission, or any officer, agent or employee
of the State, or otherwise, by any other law.
5. No part of the State Securities Law shall repeal or affect any
other law or part thereof, it being intended that the State Securities
Law shall provide a separate method of accomplishing its objectives and
not an exclusive one; and the State Securities Law shall not be construed
as repealing, amending or changing any such other law.
(Added to NRS by 1967, 796)
The State Securities Law being
necessary to secure the public health, safety, convenience and welfare,
shall be liberally construed to effect its purposes.
(Added to NRS by 1967, 796)
REVENUE BONDS FOR INDUSTRIAL DEVELOPMENT
As used in NRS 349.400 to 349.670 ,
inclusive, unless the context otherwise requires, the words and terms
defined in NRS 349.405 to 349.540
, inclusive, have the meanings ascribed
to them in those sections.
(Added to NRS by 1981, 1624; A 1985, 2175; 1997, 497; 1999, 3357
; 2001, 3256 )
“Biomass” means any organic matter
that is available on a renewable basis, including, without limitation:
1. Agricultural crops and agricultural wastes and residues;
2. Wood and wood wastes and residues;
3. Animal wastes;
4. Municipal wastes; and
5. Aquatic plants.
(Added to NRS by 2001, 3255 )
“Board” means the State Board of
Finance.
(Added to NRS by 1981, 1624)
“Bonds” or
“revenue bonds” means bonds, notes or other securities evidencing an
obligation and issued under NRS 349.400
to 349.670 , inclusive.
(Added to NRS by 1981, 1624)
“Corporation for public benefit” means a corporation that is:
1. Recognized as exempt pursuant to section 501(c)(3) of the
Internal Revenue Code of 1986, 26 U.S.C. § 501(c)(3), future amendments
to that section and the corresponding provisions of future internal
revenue laws; or
2. Organized for a public or charitable purpose and which, upon
dissolution, must distribute its assets to the United States, a state, or
a person which is recognized as exempt pursuant to section 501(c)(3) of
the Internal Revenue Code of 1986, 26 U.S.C. § 501(c)(3), future
amendments to that section and the corresponding provisions of future
internal revenue laws.
(Added to NRS by 1997, 497; A 1999, 3357 )
“Cost of a project”
means all or a designated part of the cost of any project, including any
incidental cost pertaining to the project. The cost of a project may
include, among other costs, the costs of:
1. Surveys, audits, preliminary plans, other plans,
specifications, estimates and other costs of preparations;
2. Appraising, printing, estimating, advice, services of
engineers, architects, financial consultants, attorneys, clerical
personnel and other agents and employees;
3. Publishing, posting, mailing and otherwise giving notice,
filing or recording instruments, taking options and fees to banks;
4. Establishment of a reserve for contingencies;
5. Interest on bonds for any time which does not exceed the
estimated period of construction plus 1 year, discounts on bonds,
reserves for the payment of the principal of and interest on bonds,
replacement expenses and other costs of issuing bonds;
6. Amending any resolution or other instrument authorizing the
issuance of, or otherwise relating to, bonds for the project; and
7. Short-term financing,
Ê and the expense of operation and maintenance of the project.
(Added to NRS by 1981, 1624; A 2001, 3256 )
“Director” means the Director of
the Department of Business and Industry or any person within the
Department of Business and Industry designated by him to perform duties
in connection with a project or the issuance of bonds.
(Added to NRS by 1981, 1625; A 1993, 1569)
“Expense of operation and maintenance” means any reasonable and
necessary current expense of the State for the operation, maintenance or
administration of a project or of the collection and administration of
revenues from a project. The term includes, among other expenses:
1. Expenses for engineering, auditing, reporting, legal services
and other expenses of the Director which are directly related to the
administration of projects.
2. Premiums for fidelity bonds and policies of property and
liability insurance pertaining to projects, and shares of the premiums of
blanket bonds and policies which may be reasonably allocated to the State.
3. Payments to pension, retirement, health insurance and other
insurance funds.
4. Reasonable charges made by any paying agent, commercial bank,
credit union, trust company or other depository bank pertaining to any
bonds.
5. Services rendered under the terms of contracts, services of
professionally qualified persons, salaries, administrative expenses and
the cost of materials, supplies and labor pertaining to the issuance of
any bonds, including the expenses of any trustee, receiver or other
fiduciary.
6. Costs incurred in the collection and any refund of revenues
from the project, including the amount of the refund.
(Added to NRS by 1981, 1625; A 1999, 1470 )
“Finance” or
“financing” includes the issue of bonds by the Director for the purpose
of using substantially all of the proceeds to pay (or to reimburse the
obligor or its designee) for the costs of acquiring, improving and
equipping a project, whether these costs are incurred by the Director,
the obligor or a designee of the obligor.
(Added to NRS by 1981, 1625)
“Financing agreement”
means an agreement by which the Director agrees to issue bonds pursuant
to NRS 349.400 to 349.670 , inclusive, to finance one or more projects
and the obligor agrees to:
1. Make payments (directly or through notes, debentures, bonds or
other secured or unsecured debt obligations of the obligor executed and
delivered by the obligor to the Director or his designee or assignee,
including a trustee, pursuant to the financing agreement) sufficient to
pay the principal of, premium if any, and interest on the bonds;
2. Pay other amounts required by NRS 349.400 to 349.670 ,
inclusive; or
3. Comply with all other applicable provisions of NRS 349.400
to 349.670 , inclusive.
(Added to NRS by 1981, 1625)
“Fuel cell” means a device or
contrivance that, through the chemical process of combining ions of
hydrogen and oxygen, produces electricity and water.
(Added to NRS by 2001, 3255 )
“Health and care
facility” means a hospital, facility for intermediate care or facility
for skilled nursing as those terms are defined in chapter 449 of NRS.
(Added to NRS by 1981, 1626; A 1985, 1758)
“Historic structure”
means a building, facility or other structure which is eligible for
listing in the State Register of Historic Places under NRS 383.085 .
(Added to NRS by 1985, 2174)
“Mortgage” includes a deed of
trust and any other security agreement covering real or personal property
or both.
(Added to NRS by 1981, 1626)
“Obligor” means the natural
person, partnership, firm, company, corporation (including a public
utility), association, trust, estate, political subdivision, state agency
or any other legal entity, or its legal representative, agent or assigns,
who agrees to make the payments required by the financing agreement.
(Added to NRS by 1981, 1626)
“Project” means:
1. Any land, building or other improvement and all real and
personal properties necessary in connection therewith, excluding
inventories, raw materials and working capital, whether or not in
existence, suitable for new construction, improvement, rehabilitation or
redevelopment for:
(a) Industrial uses, including assembling, fabricating,
manufacturing, processing or warehousing;
(b) Research and development relating to commerce or industry,
including professional, administrative and scientific offices and
laboratories;
(c) Commercial enterprises;
(d) Civic and cultural enterprises open to the general public,
including theaters, museums and exhibitions, together with buildings and
other structures, machinery, equipment, facilities and appurtenances
thereto which the Director deems useful or desirable in connection with
the conduct of any such enterprise;
(e) An educational institution operated by a nonprofit organization
not otherwise directly funded by the State which is accredited by a
nationally recognized educational accrediting association;
(f) Health and care facilities and supplemental facilities for
health and care;
(g) The purposes of a corporation for public benefit; or
(h) A renewable energy generation project.
2. Any real or personal property appropriate for addition to a
hotel, motel, apartment building, casino or office building to protect it
or its occupants from fire.
3. The preservation of a historic structure or its restoration for
its original or another use, if the plan has been approved by the Office
of Historic Preservation of the Department of Cultural Affairs.
(Added to NRS by 1981, 1626; A 1985, 2175; 1993, 1569; 1997, 497;
2001, 939 , 3256 )
1. “Renewable energy” means a source of energy that occurs
naturally or is regenerated naturally, including, without limitation:
(a) Biomass;
(b) Fuel cells;
(c) Geothermal energy;
(d) Solar energy;
(e) Waterpower; and
(f) Wind.
2. The term does not include coal, natural gas, oil, propane or
any other fossil fuel, or nuclear energy.
(Added to NRS by 2001, 3255 )
1. “Renewable energy generation project” means a project involving
an electric generating facility or system that uses renewable energy as
its primary source of energy to generate electricity.
2. The term does not include a project involving an electric
generating facility or system that uses nuclear energy, in whole or in
part, to generate electricity.
(Added to NRS by 2001, 3256 )
“Revenues” of a project, or
derived from a project, include payments under a lease, agreement of sale
or financing agreement, or under notes, debentures, bonds and other
secured or unsecured debt obligations of an obligor executed and
delivered by the obligor to the Director or his designee or assignee
(including a trustee) pursuant to such lease, agreement of sale or
financing agreement, or under any guarantee of or insurance with respect
to any of these.
(Added to NRS by 1981, 1626)
“Supplemental facility for a health and care facility” includes
a clinic, facility for outpatients, and any other structure or facility
directly related to the operation of a health and care facility.
(Added to NRS by 1981, 1626)
“Warehousing” means the
consignment of personal property from outside this state to a private
warehouse within this state for temporary storage during the transit of
the property to a final destination outside the State.
(Added to NRS by 1981, 1626)
As used in NRS 349.400
to 349.670 , inclusive, unless the context otherwise
requires, the words and terms defined in:
1. NRS 244A.673 to 244A.693
, inclusive, have the meanings
ascribed to them in those sections for the purpose of issuing bonds to
obtain money for the support of an industrial development project within
a county, except that if a board makes a request to the Director to issue
bonds, all references to the issuance of bonds by a county or the
entering into of financial agreements with the county shall be deemed to
refer to the bonds issued by the Director and agreements to be executed
by the Director; and
2. NRS 268.515 to 268.523 , inclusive, have the meanings ascribed to them
in those sections for the purpose of issuing bonds to obtain money for
the support of an industrial development project within a city, except
that if a city makes a request to the Director to issue bonds, all
references to the issuance of bonds by a city or the entering into of
financing agreements with the city shall be deemed to refer to the bonds
issued by the Director and agreements to be executed by the Director.
(Added to NRS by 1981, 1626)
1. The director has all the powers necessary to accomplish the
purposes set forth in NRS 349.560 , but
these powers must be exercised for the health, safety, convenience,
prosperity and welfare of the inhabitants of this state.
2. NRS 349.400 to 349.670 , inclusive, must be liberally construed in
conformity with the purposes set forth in NRS 349.560 .
(Added to NRS by 1985, 2174)
It is the intent of the
Legislature to authorize the Director to finance, acquire, own, lease,
improve and dispose of properties to:
1. Promote industry and employment and develop trade by inducing
manufacturing, industrial, warehousing and commercial enterprises and
organizations for research and development to locate, remain or expand in
this state to further prosperity throughout the State and to further the
use of the agricultural products and the natural resources of this state.
2. Enhance public safety by protecting hotels, motels, apartment
buildings, casinos, office buildings and their occupants from fire.
3. Promote the public health by enabling the acquisition,
development, expansion and maintenance of health and care facilities and
supplemental facilities for health and care facilities which will provide
services of high quality at reasonable rates to the residents of the
community in which the facilities are situated.
4. Promote the educational, cultural, economic and general welfare
of the public by financing civic and cultural enterprises, certain
educational institutions and the preservation or restoration of historic
structures.
5. Promote the social welfare of the residents of this state by
enabling a corporation for public benefit to acquire, develop, expand and
maintain facilities that provide services for those residents.
6. Promote the generation of electricity in this state.
(Added to NRS by 1981, 1627; A 1985, 2176; 1997, 498; 2001, 3257
)
1. The Director may not, under NRS 349.400 to 349.670 ,
inclusive:
(a) Operate any manufacturing, industrial, warehousing or
commercial enterprise or an organization for research and development or
any health and care facility to which he provided assistance; or
(b) Except as otherwise provided in subsection 2, assist any
manufacturing, industrial, warehousing or commercial enterprise or an
organization for research and development to locate in a county or city
which would result in the abandonment or closure of an existing facility
of a like nature located within that county or city, unless the existing
facility is operated by the contemplated lessee, purchaser or other
obligor or an affiliate of such a person and the facility is to be
abandoned or closed because of obsolescence, lack of available labor or
limitations at the site of the facility.
2. The provisions of paragraph (b) of subsection 1 do not apply to:
(a) Health and care facilities and supplemental facilities for a
health and care facility;
(b) Civic and cultural enterprises open to the general public;
(c) Enterprises located in a redevelopment area created pursuant to
NRS 279.382 to 279.685 , inclusive;
(d) Enterprises located in an area designated as an empowerment
zone pursuant to sections 1391 to 1397, inclusive, of the Internal
Revenue Code of 1986, 26 U.S.C. §§ 1391-97, future amendments to those
sections and the corresponding provisions of future internal revenue laws;
(e) Facilities established by a corporation for public benefit;
(f) Enterprises whose products are substantially sold, used or
distributed outside this state; and
(g) Renewable energy generation projects.
(Added to NRS by 1985, 2175; A 1999, 3358 ; 2001, 3257 )
When the
Director has received requests from one or more cities, counties,
lessees, purchasers, other obligors or other enterprises, he may issue
industrial development revenue bonds to obtain money to fulfill the
requests. Title to or in a project may at all times remain in the obligor
or the obligor’s designee or assignee and, in that case, the bonds must
be secured by a pledge of one or more notes, debentures, bonds or other
secured or unsecured debt obligations of the obligor.
(Added to NRS by 1981, 1627)
Except as
otherwise provided in NRS 349.595 and
349.640 , the Director shall not finance
a project unless, before financing:
1. The Director finds that:
(a) The project to be financed has been approved for financing
pursuant to the requirements of NRS 244A.669 to 244A.763 , inclusive, or 268.512 to 268.568 ,
inclusive; and
(b) There has been a request by a city or county to have the
Director issue bonds to finance the project; or
2. The Director finds and both the Board and the governing body of
the city or county where the project is to be located approve the
findings of the Director that:
(a) The project consists of any land, building or other improvement
and all real and personal properties necessary in connection therewith,
excluding inventories, raw materials and working capital, whether or not
in existence, which is suitable for new construction, improvement,
preservation, restoration, rehabilitation or redevelopment:
(1) For manufacturing, industrial, warehousing, civic,
cultural or other commercial enterprises, educational institutions,
corporations for public benefit or organizations for research and
development;
(2) For a health and care facility or a supplemental
facility for a health and care facility;
(3) Of real or personal property appropriate for addition to
a hotel, motel, apartment building, casino or office building to protect
it or its occupants from fire;
(4) Of a historic structure; or
(5) For a renewable energy generation project;
(b) The project will provide a public benefit;
(c) The contemplated lessee, purchaser or other obligor has
sufficient financial resources to place the project in operation and to
continue its operation, meeting the obligations of the lease, purchase
contract or financing agreement;
(d) There are sufficient safeguards to assure that all money
provided by the Department will be expended solely for the purposes of
the project;
(e) The project would be compatible with existing facilities in the
area adjacent to the location of the project;
(f) The project:
(1) Is compatible with the plan of the State for economic
diversification and development or for the marketing and development of
tourism in this state; or
(2) Promotes the generation of electricity in this state;
(g) Through the advice of counsel or other reliable source, the
project has received all approvals by the local, state and federal
governments which may be necessary to proceed with construction,
improvement, rehabilitation or redevelopment of the project; and
(h) There has been a request by a city, county, lessee, purchaser,
other obligor or other enterprise to have the Director issue revenue
bonds for industrial development to finance the project.
(Added to NRS by 1981, 1628; A 1985, 2085, 2177; 1999, 3358 ; 2001, 3258 )
Except
as otherwise provided in NRS 349.640 ,
before financing a project pursuant to subsection 2 of NRS 349.580 , the Director and the Board must also:
1. Determine the total amount of money necessary to be provided by
the Director for financing the project.
2. Except as otherwise provided in this subsection, receive a
5-year operating history from the contemplated lessee, purchaser or other
obligor or from any other enterprise that will make or guarantee the
payment of the principal, premium, if any, and interest on any bonds
issued. An operating history is not required if the bonds:
(a) Are to be sold only to qualified institutional buyers, as
defined in Rule 144A of the Securities and Exchange Commission, 17 C.F.R.
§ 230.144A, in minimum denominations of at least $100,000; or
(b) Will receive a rating within one of the top four rating
categories of Moody’s Investors Service, Inc., Standard and Poor’s Rating
Services or Fitch IBCA, Inc.
3. Consider whether the contemplated lessee, purchaser, other
obligor or other enterprise that will make or guarantee the payment of
the principal, premium, if any, and interest on any bonds issued has
received within the 12 months preceding the date of the findings of the
Director, or then has or has not in effect, a rating within one of the
top four rating categories of Moody’s Investors Service, Inc., Standard
and Poor’s Ratings Services or Fitch IBCA, Inc.
4. Identify any existing facilities of a like nature within the
county or city in which the project will be located and consider the
applicability of paragraph (b) of subsection 1 of NRS 349.565 .
5. Consider the extent to which the project is affected by any
federal, state or local governmental action, activity, program or
development.
6. Consider whether the lessee, purchaser, other obligor or other
enterprise of the project has maintained facilities appropriate to the
community in this state for 10 years or longer.
(Added to NRS by 1981, 1628; A 1997, 1610; 1999, 3359 )
1. The Director may provide financing for a project pursuant to
this section if:
(a) The financing is limited in amount and purpose to the payment
of the costs associated with:
(1) The acquisition, refurbishing, replacement and
installation of equipment for the project; and
(2) The issuance of bonds pursuant to this section;
(b) The total amount of the bonds issued pursuant to this section
for a particular project does not exceed $2,500,000;
(c) The Director determines that the bonds will:
(1) Be sold only to qualified institutional buyers, as
defined in Rule 144A of the Securities and Exchange Commission, 17 C.F.R.
§ 230.144A, in minimum denominations of at least $100,000; or
(2) Receive a rating within one of the top four rating
categories of Moody’s Investors Service, Inc., Standard and Poor’s Rating
Services or Fitch IBCA, Inc.;
(d) The Director makes the findings set forth in paragraphs (a) to
(e), inclusive, (g) and (h) of subsection 2 of NRS 349.580 , and the governing body of the city or county
where the project is to be located approves the findings of the Director;
and
(e) The Director complies with the guidelines established pursuant
to subsection 2.
2. The Board shall establish guidelines for the provision of
financing for a project pursuant to this section.
(Added to NRS by 1999, 3356 )
1. Except as otherwise provided in subsection 2, the Director, the
Board and the governing body of the county or city where a project is
located shall make available for public inspection, upon request,
information furnished by an obligor to obtain the Director’s assistance
in financing a project pursuant to NRS 349.400 to 349.670 ,
inclusive.
2. Except as ordered by a court of competent jurisdiction or as
required by federal law, the Director, the Board and the governing body
of the county or city where the project is located shall not, without the
prior consent of the obligor, disclose proprietary information or
financial statements or records of the obligor or guarantor that are not
otherwise available to the public unless the obligor has:
(a) Requested in writing that the information, statements or
records be made public; or
(b) Furnished the information, statements or records for a purpose
other than obtaining the Director’s assistance in financing a project
pursuant to NRS 349.400 to 349.670
, inclusive.
3. As used in this section:
(a) “Proprietary information” means any trade secret or other
information which, if disclosed to members of the general public, may
result in a competitive disadvantage to the obligor, including, without
limitation:
(1) Documents concerning the marketing or strategic planning
of the obligor;
(2) Data, studies and reports concerning the development of
new products or services; and
(3) Data that identify the share of the market of the
obligor.
(b) “Trade secret” has the meaning ascribed to it in NRS 600A.030
.
(Added to NRS by 1999, 3357 )
1. All bonds issued by the Director pursuant to NRS 349.400 to 349.670 ,
inclusive, are special, limited obligations of the State. The principal
of and interest on such bonds are payable, subject to the security
provisions of NRS 349.400 to 349.670
, inclusive, solely out of the revenues
derived from the financing, leasing or sale of the project or projects to
be financed by the bonds.
2. The bonds and interest coupons, if any, which are a part of
those bonds do not constitute the debt or indebtedness of the State or
any city or county within the meaning of any provision or limitation of
the Constitution of the State of Nevada or statutes, and do not
constitute or give rise to a pecuniary liability of the State or a charge
against its general credit or taxing powers. This limitation must be
plainly stated on the face of each bond.
(Added to NRS by 1981, 1629)
1. The bonds must be authorized by an order of the Director, and
must:
(a) Be in the denominations;
(b) Bear the date or dates;
(c) Mature at the time or times, not exceeding 40 years after their
respective dates;
(d) Bear interest at a rate or rates specified in the order;
(e) Be in the form;
(f) Carry the registration privileges;
(g) Be executed in the manner;
(h) Be payable at the place or places within or without the State;
and
(i) Be subject to the terms of redemption,
Ê which the order authorizing their issue provides.
2. The bonds may be sold in one or more series at par, or below or
above par, in the manner and for the price or prices which the Director
determines in his discretion. As an incidental expense to any project to
be financed by the bonds, the Director may employ financial and legal
consultants in regard to the financing of the project.
3. The bonds are fully negotiable under the terms of the Uniform
Commercial Code—Investment Securities.
(Added to NRS by 1981, 1629)
1. The principal of, the interest on and any prior redemption
premiums due in connection with the bonds issued pursuant to NRS 349.400
to 349.670 , inclusive, are payable from, secured by a
pledge of, and constitute a lien on the revenues out of which the bonds
have been made payable. In addition, they may, in the discretion of the
Director, be secured by:
(a) A mortgage or mortgages covering all or part of any project
financed with the proceeds of the bonds, or upon any other property of
the lessees, purchasers or obligors of those projects, or by a pledge of
the lease, the agreement of sale or the financing agreement with respect
to one or more of the projects, or both.
(b) A pledge of one or more notes, debentures, bonds or other
secured or unsecured debt obligations of the obligor of one or more of
the projects.
(c) The proceeds of the bonds and income from investment of the
proceeds and of revenues.
2. The State, a city or a county may pledge only the property of
the project or the revenues therefrom.
(Added to NRS by 1981, 1629)
The Director shall adopt regulations to
carry out the provisions of NRS 349.400
to 349.670 , inclusive, including,
without limitation, regulations for:
1. Investment and reinvestment of the proceeds from the sale of
bonds, including, but not limited to:
(a) Bonds or other obligations of the United States of America.
(b) Bonds or other obligations, the payment of the principal and
interest of which is unconditionally guaranteed by the United States of
America.
(c) Obligations issued or guaranteed as to principal and interest
by any agency or person controlled or supervised by and acting as an
instrumentality of the United States of America pursuant to authority
granted by the Congress of the United States of America.
(d) Obligations issued or guaranteed by any state of the United
States of America, or any political subdivision of any state.
(e) Prime commercial paper.
(f) Prime finance company paper.
(g) Bankers’ acceptances drawn on and accepted by commercial banks.
(h) Repurchase agreements fully secured by obligations issued or
guaranteed as to principal and interest by the United States of America
or by any person controlled or supervised by and acting as an
instrumentality of the United States of America pursuant to authority
granted by the Congress of the United States of America.
(i) Certificates of deposit issued by credit unions or commercial
banks, including banks domiciled outside of the United States of America.
(j) Money market mutual funds that:
(1) Are registered with the Securities and Exchange
Commission;
(2) Are rated by a nationally recognized rating service as
“AAA” or its equivalent; and
(3) Invest only in securities issued or guaranteed as to
payment of principal and interest by the Federal Government, or its
agencies or instrumentalities, or in repurchase agreements that are fully
collateralized by such securities.
2. Receiving, holding and disbursing of proceeds of the sale of
bonds by one or more banks, credit unions or trust companies located
within or out of this state.
(Added to NRS by 1981, 1630; A 1997, 2866; 1999, 1470 , 3360 , 3361 )
1. Any bonds issued under the provisions of NRS 244A.669 to 244A.763 , inclusive, 268.512 to 268.568 ,
inclusive, or 349.400 to 349.670 , inclusive, may be refunded by the Director by
the issuance of refunding bonds in an amount which he deems necessary to
refund the principal of the bonds to be so refunded, any unpaid interest
thereon and any premiums and incidental expenses necessary to be paid in
connection with refunding.
2. Refunding may be carried out whether the bonds to be refunded
have matured or thereafter mature, either by sale of the refunding bonds
and the application of the proceeds to the payment of the bonds to be
refunded, or by exchange of the refunding bonds for the bonds to be
refunded. The holders of the bonds to be refunded must not be compelled,
without their consent, to surrender their bonds for payment or exchange
before the date on which they are payable by maturity, option to redeem
or otherwise, or if they are called for redemption before the date on
which they are by their terms subject to redemption by option or
otherwise.
3. All refunding bonds issued pursuant to this section must be
payable solely from revenues and other money out of which the bonds to be
refunded thereby are payable or from revenues out of which bonds of the
same character may be made payable under this or any other law then in
effect at the time of the refunding.
4. The Director shall not issue refunding bonds unless before the
refinancing he finds that issuance of refunding bonds will provide a
lower cost of financing for the obligor or provide some other public
benefit, but the findings and determinations required by NRS 349.580
. 349.590 and 349.595 are not required
with respect to refunding bonds issued pursuant to this section.
(Added to NRS by 1981, 1630; A 1999, 3361 )
No action may be brought
questioning the legality of any contract, lease, agreement, indenture,
mortgage, order or bonds executed, adopted or taken in connection with
any project or improvements authorized by NRS 349.400 to 349.670 ,
inclusive, after 30 days from the effective date of the order of the
Director authorizing the issuance of those bonds.
(Added to NRS by 1981, 1631)
400 to 349.670
, inclusive. The faith of the State is
hereby pledged that NRS 349.400 to
349.670 , inclusive, will not be
repealed, amended or modified to impair any outstanding bonds or any
revenues pledged to their payment, or to impair, limit or alter the
rights or powers vested in a city or county to acquire, finance, improve
and equip a project in any way that would jeopardize the interest of any
lessee, purchaser or other obligor, or to limit or alter the rights or
powers vested in the Director to perform any agreement made with any
lessee, purchaser or other obligor, until all bonds have been discharged
in full or provisions for their payment and redemption have been fully
made.
(Added to NRS by 1981, 1631)
400 to 349.670 ,
inclusive.
1. NRS 349.400 to 349.670 , inclusive, without reference to other
statutes of the State, constitute full authority for the exercise of
powers granted in those sections, including but not limited to the
authorization and issuance of bonds.
2. No other act or law with regard to the authorization or
issuance of bonds that provides for an election, requires an approval, or
in any way impedes or restricts the carrying out of the acts authorized
in NRS 349.400 to 349.670 , inclusive, to be done, applies to any
proceedings taken or acts done pursuant to those sections, except for
laws to which reference is expressly made in those sections or by
necessary implication of those sections.
3. The provisions of no other law, either general or local, except
as provided in NRS 349.400 to 349.670
, inclusive, apply to the doing of the
things authorized in those sections to be done, and no board, agency,
bureau, commission or official not designated in those sections has any
authority or jurisdiction over the doing of any of the acts authorized in
those sections to be done, except as otherwise provided in those sections.
4. A project is not subject to any requirements relating to public
buildings, structures, ground works or improvements imposed by the
statutes of this state or any other similar requirements which may be
lawfully waived by this section, and any requirement of competitive
bidding or other restriction imposed on the procedure for award of
contracts for such purpose or the lease, sale or other disposition of
property is not applicable to any action taken pursuant to NRS 349.400
to 349.670 , inclusive, except that the provisions of NRS
338.010 to 338.090 , inclusive, apply to any contract for new
construction, repair or reconstruction for which tentative approval for
financing is granted on or after January 1, 1992, by the Director for
work to be done in a project.
5. Any bank or trust company located within or without this state
may be appointed and act as a trustee with respect to bonds issued and
projects financed pursuant to NRS 349.400 to 349.670 ,
inclusive, without the necessity of associating with any other person or
entity as cofiduciary, but such an association is not prohibited.
6. The powers conferred by NRS 349.400 to 349.670 ,
inclusive, are in addition and supplemental to, and not in substitution
for, and the limitations imposed by those sections do not affect the
powers conferred by any other law.
7. No part of NRS 349.400 to
349.670 , inclusive, repeals or affects
any other law or part thereof, except to the extent that those sections
are inconsistent with any other law, it being intended that those
sections provide a separate method of accomplishing its objectives, and
not an exclusive one.
8. The Director or a person designated by him may take any actions
and execute and deliver any instruments, contracts, certificates and
other documents, including the bonds, necessary or appropriate for the
sale and issuance of the bonds or accomplishing the purposes of NRS
349.400 to 349.670 , inclusive, without the assistance or
intervention of any other officer.
(Added to NRS by 1981, 1631; A 1991, 2348)
REVENUE BONDS FOR FINANCING EXPORTATION OF GOODS
It is the purpose of NRS
349.700 to 349.870 , inclusive, in the interest of promoting the
general welfare of the people of the State, to further prosperity and
employment throughout the State by encouraging the production of goods
for export, the expansion of exports of goods and the rendering of
services abroad by residents of Nevada through the establishment of a
program which provides a source of guarantees for credit not otherwise
available.
(Added to NRS by 1985, 2014)
As used in NRS 349.700 to 349.870 ,
inclusive, unless the context otherwise requires, the words and terms
defined in NRS 349.715 to 349.745
, inclusive, have the meanings ascribed
to them in those sections.
(Added to NRS by 1985, 2014)
“Bonds” means bonds, notes or other
securities evidencing an obligation and issued under NRS 349.700 to 349.870 ,
inclusive.
(Added to NRS by 1985, 2014)
“Director” means the Director of
the Department of Business and Industry.
(Added to NRS by 1985, 2014; A 1993, 1570)
“Exporter” means any person, the
State and its political subdivisions or any agency of either, a legal
representative of a trust or an estate, or their agents or assigns which
is eligible for guaranteed funding.
(Added to NRS by 1985, 2014)
“Guaranteed funding”
means a loan made to a participating financial institution which includes
an agreement to excuse its repayment, under specified conditions, made
for the purpose of financing an eligible transaction. A guarantee may
cover a pool of eligible transactions.
(Added to NRS by 1985, 2014)
“Loss” means a loss incurred by an
exporter on an eligible transaction because of:
1. The insolvency of the foreign customer or other failure of the
customer to pay to the exporter when due, all or part of the money due
from the transaction as denominated in United States currency; or
2. War, revolution, the diversion of goods, revocation of
licenses, embargoes and other similar political incidents occurring in
the customer’s country or any delay in obtaining payment in dollars.
(Added to NRS by 1985, 2014)
“Participating financial institution” means:
1. Any office or subsidiary of a foreign banking corporation
licensed or approved by the Commissioner of Financial Institutions; or
2. Any bank, trust company, savings and loan association, credit
union, thrift company or other financial institution organized under the
laws of this state or organized under the laws of the United States and
authorized to do business under the laws of this state,
Ê which has received the approval of the Director to participate in
guaranteed funding for any eligible transaction.
(Added to NRS by 1985, 2014; A 1987, 1876)
“Program” means the providing of
guaranteed funding pursuant to NRS 349.700 to 349.870 ,
inclusive.
(Added to NRS by 1985, 2014)
1. The Director shall administer the provisions of NRS 349.700
to 349.870 , inclusive. The Director may:
(a) Employ or contract for the services of attorneys, accountants,
financial experts, and other advisers, employees, consultants and agents
as the Director determines to be necessary.
(b) Enter into any agreement or other transaction with, or accept
any grant from and cooperate with any governmental entity or other source
in furtherance of the purposes of NRS 349.700 to 349.870 ,
inclusive.
(c) Within the financial resources made available to him in
administering the program:
(1) Create or cause to be created any nonprofit corporation,
pursuant to chapter 82 of NRS, which he
determines is necessary or convenient for the furtherance of the purposes
of NRS 349.700 to 349.870 , inclusive. The purposes, powers and operation
of the corporation must be consistent with the purposes of NRS 349.700
to 349.870 , inclusive.
(2) Promote and assist the creation of any corporate entity
formed under the general corporation laws of this or any other state or
nation for the purpose of qualifying as a shared foreign sales
corporation or other similar entity pursuant to 26 U.S.C. §§ 922 to 927,
inclusive. The State must not have any financial interest in such a
corporation.
2. If revenue bonds have been issued pursuant to NRS 349.825
, the Director shall, before September
of each even-numbered year, submit a report of the operations of the
Department of Business and Industry in connection with this program for
the biennium ending June 30 of that year to the State Board of Finance
and the Legislative Commission. This report must include a complete
statement of the income, expenses, assets and liabilities of the program.
(Added to NRS by 1985, 2014; A 1987, 1348; 1991, 1313; 1995, 644)
The Director may
delegate the performance of any of the duties required under this program
to any person within the Department of Business and Industry whom he
designates.
(Added to NRS by 1985, 2015; A 1993, 1570)
An exporting contract is a transaction eligible for guaranteed
funding if, in the judgment of the Director, it will create or maintain
employment in Nevada and it:
1. Promotes the sale abroad of goods whose final stage of
production occurs in Nevada and which constitutes at least 10 percent of
the contract price;
2. Provides for the rendering of services abroad by a business
located in Nevada if at least 10 percent of the contract price consists
of wages or other payments made to persons normally residing in this
state;
3. Promotes the sale abroad of goods distributed by a business
located in Nevada if:
(a) At least 10 percent of the contract price consists of wages or
other payments made to persons or businesses normally residing or located
in this state, a governmental organization of this state or a combination
thereof; or
(b) The business has a significant relationship with this state
based upon:
(1) The amount of capital investments it has which are
located in this state;
(2) The number of residents of this state who are employed
by the business;
(3) The amount of business transacted in this state; or
(4) Any combination thereof; or
4. Provides both for the sale abroad of goods whose final stage of
production occurs in Nevada and for the rendering of services abroad by
residents of Nevada, the aggregate value of which is at least 10 percent
of the contract price.
(Added to NRS by 1985, 2015)
1. The Director may provide guaranteed funding to a participating
financial institution that is providing the financing for an eligible
transaction, but the amount of this funding is limited to 90 percent of
the principal of the loan made to the exporter. The exporter must insure
or obtain a guarantee against nonpayment on the loan resulting from a
loss. The maximum amount payable under any guarantee must be specifically
set forth in a writing signed by the Director.
2. The Director shall not agree to provide guaranteed funding
unless he finds that the guaranteed funding is reasonably necessary to
stimulate or facilitate:
(a) The making of a loan for an eligible transaction; or
(b) The financing of an eligible transaction by a participating
financial institution or other private source that is not otherwise able
to finance it.
3. The money provided by the Director to the participating
financial institution to guarantee the financing of an eligible
transaction must be re-lent to the exporter by the participating
financial institution for a term no shorter than and at a rate of
interest no higher than that fixed by the Director, excluding any usual
and customary fees and charges for lending and the fee provided for in
subsection 3 of NRS 349.785 .
4. The Director may condition the allowance of guaranteed funding
upon such other terms and conditions as he determines to be desirable.
(Added to NRS by 1985, 2015)
Before any guaranteed funding is
provided, the participating financial institution shall investigate the
credit or sources of credit available to the exporter in order to
determine the economic benefits to be derived from the guarantee, the
prospects of repayment, and such other factors as are necessary to
determine that the guaranteed funding is consistent with the purposes of
the program.
(Added to NRS by 1985, 2016)
Any information submitted to or compiled by the Director regarding the
identity, background, finances, marketing plans, trade secrets or any
other commercially sensitive affairs of the exporter is confidential,
unless the exporter consents to its disclosure.
(Added to NRS by 1985, 2016)
The Director shall by regulation establish fees to be charged a
participating financial institution for providing guaranteed funding. The
fees must be sufficient to cover the costs of administering the program
and any premium the Director pays for insuring the program’s risk.
(Added to NRS by 1985, 2016)
1. The Director shall agree that the participating financial
institution is excused from the payment to the Director of the principal
of or interest on the guaranteed funding to the extent of the exporter’s
nonpayment resulting from a loss.
2. The institution shall, as a condition of its loan to the
exporter, agree that if the exporter incurs a loss, he is excused from
payment of the principal of or interest on the loan to the extent of the
loss suffered by him or of the amount which that institution is excused
from paying to the Director, whichever is less.
3. The institution may charge the exporter a fee for the
protection provided in subsection 2, but this fee must not exceed the fee
charged by the Director for providing guaranteed funding to that
institution.
(Added to NRS by 1985, 2016)
If an
exporter defaults on the participating financial institution’s loan
because of a loss and that institution is excused from repaying the
guaranteed funding, the Director is subrogated to the exporter’s rights
against the foreign customer for payment and to the participating
financial institution’s rights against the exporter to the extent of any
payment received by the exporter which reduces his loss for which his
payment to the participating financial institution has previously been
excused.
(Added to NRS by 1985, 2016)
Any
guarantee entered into by the Director does not constitute a general
obligation of the State of Nevada. A guarantee may not be terminated,
cancelled or otherwise revoked except in accordance with its terms. Any
guarantee held by a participating financial institution is presumed to be
valid.
(Added to NRS by 1985, 2017)
1. If the Director certifies to the Governor that there is a need
to issue revenue bonds to carry out the program and that it is feasible
to do so, the Governor may issue an executive order creating an Advisory
Committee on Financing Exports, consisting of three members appointed by
the Director.
2. The Director, in consultation with the Executive Director of
the Commission on Economic Development and with the approval of the
Governor, shall appoint to serve as members of the Committee three
persons who have proven experience in international trade and economic
development which they acquired while engaged in finance, manufacturing,
business administration, municipal finance, economics, law or general
business.
3. After the initial terms, the term of each member is 3 years.
(Added to NRS by 1985, 2017)
1. If the Advisory Committee on Financing Exports is created, it
shall meet when requested by the Director and at such other times as its
Chairman may designate.
2. A majority of the members of the Committee constitutes a quorum.
3. The members of the Committee shall elect a Chairman and a
Secretary.
4. The Committee shall adopt rules for its own management.
5. Each member of the Committee is entitled to receive a salary of
$60 for each day’s attendance at a meeting of the Committee.
(Added to NRS by 1985, 2017)
1. If the Advisory Committee on Financing Exports is created, it
has only the powers and duties authorized by law.
2. If created, the Committee shall review and make recommendations
to the Director concerning:
(a) Any regulations proposed by the Director to carry out the
program;
(b) The findings of the Director pursuant to NRS 349.825 ; and
(c) Those long-term financial commitments for more than 1 year,
limits on credit, and transactions, concerning any one exporter, which
involve $50,000 or more.
(Added to NRS by 1985, 2017)
The Director
shall, before the issuance of any bonds, adopt regulations for the
operation of the program, which must include provisions concerning the
following:
1. The maximum aggregate amount of guaranteed funding available to
any exporter and the maximum amount of guaranteed funding available for
any transaction eligible for guaranteed funding;
2. The limits on the interest which may be charged for guaranteed
funding or for loans to exporters;
3. The fees which a participating financial institution may charge
for making loans to exporters;
4. The nature and extent of any insurance which an exporter may be
required to procure;
5. The collateral required on loans to exporters;
6. The terms of and the procedures for repayment on the guaranteed
funding or on a loan;
7. The procedures for:
(a) Making an application for guaranteed funding;
(b) Disbursing the guaranteed funding to a participating financial
institution;
(c) Making a claim on the guarantee in the event of a default;
(d) Collecting a loan in the event of a default; and
(e) Qualifying as a participating financial institution; and
8. The specific standards to be used to determine whether a
business has a significant relationship with this state pursuant to
paragraph (b) of subsection 3 of NRS 349.760 .
(Added to NRS by 1985, 2017)
In the absence of fraud, malice or willful
misconduct, the Director or any person acting on his behalf is not
personally liable on any contracts or other agreements entered into by
him pursuant to the program or for any damage or injury resulting from
the performance of his duties.
(Added to NRS by 1985, 2018)
1. Subject to the limitations imposed by subsection 2, the
Director may, if he finds it feasible, issue revenue bonds to the extent
necessary to provide sufficient money for guaranteed funding, pay the
interest on the bonds until the proceeds are so used, procure insurance,
create reserves to cover guarantees he is obligated to honor, and pay all
other expenses incurred in providing guaranteed funding and administering
the program.
2. Before any bonds may be issued pursuant to this section, except
those issued for the purpose of refunding outstanding bonds, the Director
shall submit to the Advisory Committee on Financing Exports, if created,
his findings that:
(a) All of the conditions prerequisite to providing guaranteed
funding, as set forth in NRS 349.760
and 349.765 , are met;
(b) A satisfactory plan of repayment or an assurance of repayment
by a third party is available so as to make any bonds issued pursuant to
this section marketable; and
(c) The anticipated revenues from the program are sufficient to
repay the bonds issued pursuant to this section.
3. The Advisory Committee on Financing Exports, if created, shall
recommend approval, with or without conditions, or disapproval of the
findings of the Director made pursuant to subsection 2. The Director
shall submit to the State Board of Finance a copy of his findings and the
recommendations of the Advisory Committee on Financing Exports, if any.
If the Board approves, the Director may proceed to issue the bonds in the
amount approved, but the aggregate principal amount of the outstanding
bonds issued must not exceed $50,000,000, exclusive of any bonds or
obligations which have been refunded.
(Added to NRS by 1985, 2018)
1. All bonds issued by the Director are special, limited
obligations of the State. The principal of, the interest on, and
premiums, if any, due in connection with the bonds issued are payable
from, secured by a pledge of and constitute a lien, subject to the
provisions of NRS 349.700 to 349.870
, inclusive, for their security, solely
on the revenues derived from the payment of principal of and interest on
the guaranteed funding, the proceeds of the bonds, the income derived
from investment of the proceeds of the bonds and from investment of the
revenues and any guarantee or insurance therefor.
2. The bonds and interest coupons, if any, which are a part of
those bonds do not constitute the debt or indebtedness of the State
within the meaning of any provision or limitation of the Constitution or
statutes of the State of Nevada, and do not constitute or give rise to a
pecuniary liability of the State or a charge against its general credit
or taxing powers. This limitation must be plainly stated on the face of
each bond.
(Added to NRS by 1985, 2019)
1. The bonds must be authorized by an order of the Director, and
must:
(a) Be in the denominations;
(b) Bear the date or dates;
(c) Mature at the time or times;
(d) Bear interest at a specified rate or rates;
(e) Be in the form;
(f) Carry the registration privileges;
(g) Be executed in the manner;
(h) Be payable at the place or places within or without the State;
and
(i) Be subject to the terms of redemption,
Ê which the order authorizing their issue provides.
2. The bonds must be signed by the Director, who may use a
facsimile signature for this purpose. If the Director whose signature
appears on any bonds ceases to act in that capacity before the delivery
of the bonds, his signature is valid and sufficient for all purposes as
if he had remained in office until their delivery.
3. The bonds may be sold in one or more series above, at or below
par and at public or private sale at such prices, at such times and in
such manner as the Director determines.
4. The bonds are fully negotiable under the terms of the Uniform
Commercial Code—Investment Securities.
(Added to NRS by 1985, 2019)
The Director, subject to such
agreements with holders of bonds as may then exist, may, out of any money
available therefor, purchase the bonds at a price not exceeding:
1. The redemption price then applicable plus accrued interest to
the date of the next interest payment thereon if the bonds are then
redeemable; or
2. The redemption price applicable on the first date after the
purchase upon which the bonds become subject to redemption, plus accrued
interest to that date, if the bonds are not redeemable.
(Added to NRS by 1985, 2019)
1. Any bonds issued may be refunded by the Director by the
issuance of refunding bonds in an amount which he considers necessary to
refund the principal of the bonds to be refunded, any unpaid interest
thereon and any premiums and incidental expenses necessary to be paid in
connection with refunding.
2. Refunding may be carried out whether the bonds to be refunded
have matured or thereafter mature, either by sale of the refunding bonds
and the application of the proceeds to the payment of the bonds to be
refunded, or by exchange of the refunding bonds for the bonds to be
refunded. The holders of the bonds to be refunded must not be compelled,
without their consent, to surrender their bonds for payment or exchange
before the date on which they are payable by maturity, option to redeem
or otherwise, or if they are called for redemption before the date on
which they are by their terms subject to redemption by option or
otherwise.
3. All refunding bonds issued pursuant to this section must be
payable solely from revenues and other money out of which the bonds to be
refunded thereby are payable.
(Added to NRS by 1985, 2020)
The bonds are legal
investments in which all public officers and public bodies of the State,
its political subdivisions, all municipalities and municipal
subdivisions, all insurance companies and associations and other persons
carrying on an insurance business, all banks, savings and loan
associations and trust companies, all administrators, guardians,
executors, trustees and other fiduciaries, and all other persons who are
authorized on or after July 1, 1985, to invest in bonds or in other
obligations of this state, may properly and legally invest funds,
including capital, in their control or belonging to them. The bonds are
securities which may properly and legally be deposited with and received
by all public officers and public bodies of the State or any agency or
political subdivision of the State and all municipalities and public
corporations for any purpose for which the deposit of bonds or other
obligations of this state is authorized by law on and after July 1, 1985,
and may be used as collateral to secure any deposit of public money.
(Added to NRS by 1985, 2020)
The Director may:
1. Establish such funds or accounts as may be necessary or
desirable for carrying out the provisions of NRS 349.700 to 349.870 ,
inclusive.
2. Subject to any agreement with the holders of the bonds, invest
or deposit any money received or held by the Director pursuant to NRS
349.700 to 349.870 , inclusive. The Director is not required to
deposit this money in the State Treasury and the provisions of chapters
355 and 356 of
NRS do not apply to any investments or deposits made pursuant to this
subsection.
(Added to NRS by 1985, 2020)
1. The Director may lend any securities in which he invests
pursuant to NRS 349.855 if he receives
collateral from the borrower in the form of cash or marketable securities
that are:
(a) Acceptable to the Director; and
(b) At least 102 percent of the value of the securities borrowed.
2. The Director may enter into such contracts as are necessary to
extend and manage loans pursuant to this section.
(Added to NRS by 1999, 928 )
The Director may use money from the fund
for financing exports to:
1. Insure against the program’s risk of loss resulting from the
failure of the exporter to repay the loan provided by a participating
financial institution; and
2. Purchase insurance to secure the payment of the principal of,
interest on, and premium, if any, due in connection with any bonds issued.
(Added to NRS by 1985, 2020)
700 to 349.870
, inclusive. The faith of the State is
hereby pledged that NRS 349.700 to
349.870 , inclusive, will not be
repealed, amended or modified to impair any outstanding bonds or any
revenues pledged to their payment or to limit or alter the rights or
powers vested in the Director to fulfill the terms of any agreements made
with the holders of any bonds issued or in any way to impair the rights
or remedies of the holders until all bonds have been paid in full or
provisions for their payment and redemption have been fully made.
(Added to NRS by 1985, 2021)
700 to 349.870 ,
inclusive; construction.
1. The provisions of NRS 349.700
to 349.870 , inclusive, without
reference to other statutes of the State, constitute full authority for
the exercise of powers granted in those sections, including but not
limited to the authorization and issuance of bonds.
2. No other act or law with regard to the authorization or
issuance of bonds that provides for an election, requires an approval, or
in any way impedes or restricts the carrying out of the acts authorized
in NRS 349.700 to 349.870 , inclusive, to be done, apply to any
proceedings taken under those sections, or acts done pursuant to those
sections, except for laws to which reference is expressly made in those
sections or by necessary implication of those sections.
3. The provisions of no other law, either general or local, except
as provided in NRS 349.700 to 349.870
, inclusive, apply to the doing of the
things authorized in those sections to be done, and no board, agency,
bureau, commission or official not designated in those sections has any
authority or jurisdiction over the doing of any of the acts authorized in
those sections to be done, except as otherwise provided in those sections.
4. Any bank or trust company located within or without this state
may be appointed and act as a trustee with respect to bonds issued
pursuant to NRS 349.700 to 349.870
, inclusive, without the necessity of
associating with any other person or entity as cofiduciary, but such an
association is not prohibited.
5. The powers conferred by NRS 349.700 to 349.870 ,
inclusive, are in addition and supplemental to, and not in substitution
for, and the limitations imposed by those sections do not affect the
powers conferred by any other law.
6. No part of NRS 349.700 to
349.870 , inclusive, repeals or affects
any other law or part thereof, except to the extent that those sections
are inconsistent with any other law, it being intended that those
sections provide a separate method of accomplishing its objectives, and
not an exclusive one.
7. The Director or a person designated by him may take any actions
and execute and deliver any instruments, contracts, certificates and
other documents, including the bonds, necessary or appropriate for the
sale and issuance of the bonds or accomplishing the purposes of NRS
349.700 to 349.870 , inclusive, without the assistance or
intervention of any other officer.
8. NRS 349.700 to 349.870 , inclusive, must be liberally construed to
effectuate the purposes of this act.
(Added to NRS by 1985, 2021)
REVENUE BONDS FOR VENTURE CAPITAL
It is the intent of the
Legislature to:
1. Promote in the broadest sense the economic diversification and
safe growth of the economy of the State;
2. Provide an attractive opportunity for the investment of venture
capital within the State;
3. Correct the serious shortage of venture capital available or
dedicated to development of new enterprises within the State;
4. Ensure that the investment strategies pursued pursuant to NRS
349.900 to 349.929 , inclusive, emphasize enterprises in the early
stages of development that exhibit the potential for high growth and the
capability to use equity capital efficiently so that the ratio of its
revenues will be relatively high in comparison to its capital; and
5. Ensure that the enterprises funded with the money developed for
venture capital pursuant to NRS 349.900
to 349.929 , inclusive, are compatible
with the plan of the State for economic diversification and development
or for the marketing and development of tourism and any modifications
thereto, and are of the type that will not cause significant injury to
the environment of the State.
(Added to NRS by 1987, 1404)
As used in NRS 349.900 to 349.929 ,
inclusive, unless the context otherwise requires, the words and terms
defined in NRS 349.902 to 349.909
, inclusive, have the meanings ascribed
to them in those sections.
(Added to NRS by 1987, 1405)
“Account for
Venture Capital” means the special fund which contains that portion of
the proceeds from the sale of the bonds allocated for venture capital by
the Director or his representative.
(Added to NRS by 1987, 1405)
“Agreement” means the contract
between the Director and the management company authorizing the
management company to manage the assets of the Account for Venture
Capital.
(Added to NRS by 1987, 1405)
“Board” means the State Board of
Finance.
(Added to NRS by 1987, 1405; A 1995, 2238)
“Bonds” or
“revenue bonds” means bonds, notes or other securities evidencing an
obligation and issued pursuant to NRS 349.900 to 349.929 ,
inclusive.
(Added to NRS by 1987, 1405)
“Director” means the Director of
the Department of Business and Industry or any person within the
Department of Business and Industry designated by him to perform duties
in connection with a financing or the issuance of bonds.
(Added to NRS by 1987, 1405; A 1993, 1570)
“Expense of operation and maintenance” means any reasonable and
necessary current expense of the State for the operation, maintenance or
administration of the financing or of the collection and administration
of revenues from the financing, and includes, but is not limited to:
1. Expenses for engineering, auditing, reporting or legal services
and any other expense incurred by the Director which are directly related
to the administration of the financing;
2. Premiums for fidelity bonds and policies of property and
liability insurance pertaining to the financing;
3. Premiums for blanket bonds and policies, or any portion
thereof, which may be reasonably allocated to the State;
4. Payments to pension, retirement and health insurance and other
insurance funds;
5. Reasonable charges by any paying agent, commercial bank, credit
union, trust company or other depository bank pertaining to any bonds;
6. Salaries or fees paid pursuant to any contract for professional
services;
7. Cost of materials, supplies and labor pertaining to the
issuance of any bonds, including the expenses of any trustee, receiver or
other fiduciary; and
8. Costs incurred in the collection and any refund of revenues
pursuant to the financing.
(Added to NRS by 1987, 1405; A 1999, 1471 )
“Fund for
the Retirement of Bonds” means the fund established pursuant to the
indenture and held by the trustee and which secures payment of the
principal amount of the bonds at maturity.
(Added to NRS by 1987, 1406)
“Management company”
means the company which manages and administers the Account for Venture
Capital pursuant to the agreement.
(Added to NRS by 1987, 1406)
1. The Director has all the powers necessary to accomplish the
purposes set forth in NRS 349.900 to
349.929 , inclusive, but these powers
must be exercised for the health, safety, convenience, prosperity and
welfare of the inhabitants of this state and for the economic
diversification and development of the State and the marketing and
development of tourism.
2. Within the limits of the financial resources available to him,
and without issuing bonds, the Director may promote the establishment of
any privately financed fund for venture capital designed to accomplish
the legislative goals set forth in NRS 349.900 or to assist the Director in achieving the
purposes of NRS 349.900 to 349.929
, inclusive. The State must not have a
financial interest in the fund and must not be obligated to pay any money
or assume any liability in connection with it.
3. The Legislature intends that NRS 349.900 to 349.929 ,
inclusive, be liberally construed in conformity with the purposes set
forth in NRS 349.900 .
(Added to NRS by 1987, 1406; A 1989, 1668)
In the absence of fraud, malice or willful
misconduct, the Director or any person acting on his behalf is not
personally liable on any contracts or other agreements entered into by
him pursuant to NRS 349.900 to 349.929
, inclusive, or for any damage or injury
resulting from the performance of those duties.
(Added to NRS by 1987, 1406)
The Director may, upon approval of the Board:
1. Select the management company;
2. Enter into an agreement;
3. Adopt regulations necessary to carry out the provisions of NRS
349.900 to 349.929 , inclusive;
4. Charge the Account for Venture Capital for the expenses of
operation and maintenance; and
5. Employ or contract for the services of attorneys, accountants,
financial experts and any other advisers, employees, consultants and
agents as the Director determines to be necessary to carry out the
provisions of NRS 349.900 to 349.929
, inclusive.
(Added to NRS by 1987, 1406)
The Director may not operate or manage any enterprise in
which an investment has been made by a management company for the Account
for Venture Capital.
(Added to NRS by 1987, 1406)
A portion
of the proceeds of the bonds, after the allocation to the Fund for
Retirement of the Bonds, must be placed by the Director in a special
Account for Venture Capital.
(Added to NRS by 1987, 1406)
In the agreement the
management company shall agree to invest the money and other assets in
the Account for Venture Capital consistent with the purposes of NRS
349.900 to 349.929 , inclusive. In addition, the agreement must:
1. Specify the length of the term of the agreement, the
compensation to be paid the management company and the method by which
the agreement may be terminated before the expiration of its term.
2. Impose a fiduciary duty on the management company in the
administration of the Account for Venture Capital, including the
preservation and protection of the money and other assets in the Account
for Venture Capital before their investment.
3. Prohibit the Director from participating in the decisions
regarding the investment of the money and other assets in the Account for
Venture Capital.
4. Specify the grounds for terminating the agreement for cause
other than the poor performance of certain enterprises in which the money
is invested.
5. Authorize the Director or the management company to terminate
the agreement without cause upon written notice to the other party. The
amount of time necessary for notice may be negotiated between the
Director and the management company.
6. Authorize the Director to require the management company to
adhere to certain objectives and policies for investment applicable to
the Account for Venture Capital to ensure the achievement of the goals
prescribed in NRS 349.900 , and to
terminate the contract if the management company fails to adhere to those
objectives and policies.
7. Prohibit the management company, upon termination of the
agreement for any reason, from making any additional investment for the
Account for Venture Capital after the date of notice of the termination,
unless the investment is authorized in writing by the Director.
(Added to NRS by 1987, 1406)
The objective of the investments for the Account for Venture
Capital is to seek the appreciation of long-term capital by investing
venture capital in new developing enterprises which the management
company believes offers the possibility of significant long-term growth
consistent with the protection of the environment of the State.
(Added to NRS by 1987, 1407)
1. The investments of the management company for the Account for
Venture Capital may take the form of an equity investment, a loan or a
purchase of warrants or options to purchase stock.
2. The management company must be managed by a person who is
experienced in various aspects of the development of new enterprises.
(Added to NRS by 1987, 1407)
The management
company must be:
1. Aware of and responsive to local issues;
2. Capable of supervising and financing an enterprise throughout
its development;
3. Familiar with and able to cooperate with any agency or program
of the United States for the development or promotion of small
enterprises; and
4. Willing to locate branch offices in Nevada restricted to Nevada
financing.
(Added to NRS by 1987, 1407)
1. The Director may, if he finds it feasible, issue revenue bonds
to the extent necessary to provide sufficient money for the Account for
Venture Capital and sufficient to pay the interest on the bonds until the
proceeds are so used and to pay all other expenses incurred in providing
the financing.
2. The Director shall submit to the Board a copy of his findings
relevant to the issuance of the bonds. If the Board approves, the
Director may proceed to issue the bonds in the amount approved, but the
aggregate principal amount of outstanding bonds issued, based upon the
face value of the initial issue, must not exceed $100,000,000. The
Director may issue bonds the interest on which is not exempt from federal
income tax or excluded from gross revenue for the purposes of federal
income tax.
(Added to NRS by 1987, 1407)
Before issuing bonds, the Director and the Board shall find that:
1. The financing will provide a public benefit.
2. There are sufficient safeguards to ensure that all money
provided pursuant to NRS 349.900 to
349.929 , inclusive, will be expended
solely for the purposes stated in NRS 349.900 to 349.929 ,
inclusive.
3. There are existing and projected needs for venture capital and
the money would alleviate an existing shortage of venture capital in the
State.
4. The financing is compatible with the investment objectives as
stated in the agreement.
5. The financing is compatible with the plan of the State for
economic diversification and development or for the marketing and
development of tourism in this state, and any modifications thereto.
6. The total amount of money to be provided by the Director is
adequate to create the Account for Venture Capital.
7. The agreement is consistent with the provisions of NRS 349.900
to 349.929 , inclusive, and adequately provides for
optimum investment of the money and other assets of the Account for
Venture Capital.
8. The management company has the experience, reputation, capital,
and personnel to be able to accomplish its obligations as specified in
the agreement.
(Added to NRS by 1987, 1408)
1. The bonds issued pursuant to NRS 349.900 to 349.929 ,
inclusive, must be structured to provide a significant degree of safety
as to repayment of principal and interest upon their maturity.
2. A portion of the proceeds of the bonds must be placed in a Fund
for the Retirement of the Bonds. The money in this Fund must be invested
in:
(a) Direct obligations of, or obligations the payment of the
principal of and the interest of which are unconditionally guaranteed by
the United States;
(b) Obligations issued or guaranteed as to principal and interest
by any agency or instrumentality of the United States; or
(c) Money market mutual funds that:
(1) Are registered with the Securities and Exchange
Commission;
(2) Are rated by a nationally recognized rating service as
“AAA” or its equivalent; and
(3) Invest only in securities issued or guaranteed as to
payment of principal and interest by the Federal Government, or its
agencies or instrumentalities, or in repurchase agreements that are fully
collateralized by such securities.
3. The amount of the deposit in the Fund for the Retirement of
Bonds must be determined on the basis of the yields available from the
securities in which that money may be invested on the date of the deposit
and calculated so as to produce, without reinvestment, a balance in the
Fund sufficient to pay the principal amount due on the bonds at maturity.
(Added to NRS by 1987, 1408; A 1997, 2867)
1. All bonds issued by the Director pursuant to NRS 349.900 to 349.929 ,
inclusive, are special, limited obligations of the State.
2. The bonds and interest coupons, if any, which are a part of
those bonds do not constitute the debt or indebtedness of the State or
any city or county within the meaning of any provision or limitation of
the Constitution of the State of Nevada or of a statute, and do not
constitute or give rise to a pecuniary liability of the State or a charge
against its general credit or taxing powers. This limitation must be
plainly stated on the face of each bond.
(Added to NRS by 1987, 1408)
1. The bonds must be authorized by an order of the Director, and
must:
(a) Be in the denominations;
(b) Bear the date or dates;
(c) Mature at the time or times, not exceeding 40 years after their
respective dates;
(d) Be in the form;
(e) Be executed in the manner;
(f) Carry the registration privileges;
(g) Be payable at the place or places within or without the State;
and
(h) Be subject to the terms of redemption,
Ê which the order authorizing their issue provides.
2. The bonds may be sold in one or more series at par, or below or
above par, in the manner and for the price or prices which the Director
determines in his discretion. As an incidental expense to any investment
to be financed by the bonds, the Director may employ financial and legal
consultants in regard to the financing.
3. The bonds are fully negotiable under the terms of the Uniform
Commercial Code—Investment Securities.
(Added to NRS by 1987, 1409)
The
Director shall adopt regulations for:
1. Investment and reinvestment of the proceeds designated for the
Account for Venture Capital from the sale of bonds, including, but not
limited to:
(a) Bonds or other obligations of the United States.
(b) Bonds or other obligations, the payment of the principal and
interest of which is unconditionally guaranteed by the United States.
(c) Obligations issued or guaranteed as to principal and interest
by any agency or person controlled or supervised by and acting as an
instrumentality of the United States pursuant to authority granted by the
Congress of the United States.
(d) Obligations issued or guaranteed by any state of the United
States, or any political subdivision of any state.
(e) Prime commercial paper.
(f) Prime finance company paper.
(g) Bankers’ acceptances drawn on and accepted by commercial banks.
(h) Repurchase agreements fully secured by obligations issued or
guaranteed as to principal and interest by the United States or by any
person controlled or supervised by and acting as an instrumentality of
the United States pursuant to authority granted by the Congress of the
United States.
(i) Certificates of deposit issued by credit unions or commercial
banks, including banks domiciled outside of the United States.
(j) Money market mutual funds that:
(1) Are registered with the Securities and Exchange
Commission;
(2) Are rated by a nationally recognized rating service as
“AAA” or its equivalent; and
(3) Invest only in securities issued or guaranteed as to
payment of principal and interest by the Federal Government, or its
agencies or instrumentalities, or in repurchase agreements that are fully
collateralized by such securities.
2. Receiving, holding and disbursing of proceeds of the sale of
bonds by one or more banks or trust companies located within or outside
of this state.
Ê This section does not expand the authority for investing the proceeds
of bonds placed in the Fund for the Retirement of Bonds.
(Added to NRS by 1987, 1409; A 1997, 2867; 1999, 1471 )
1. Any bonds issued under the provisions of NRS 349.900 to 349.929 ,
inclusive, may be refunded by the Director by the issuance of refunding
bonds in an amount which he deems necessary to refund the principal of
the bonds to be so refunded, any unpaid interest thereon and any premiums
and incidental expenses necessary to be paid in connection with refunding.
2. Refunding may be carried out whether the bonds to be refunded
have matured or thereafter mature, either by sale of the refunding bonds
and the application of the proceeds to the payment of the bonds to be
refunded, or by exchange of the refunding bonds for the bonds to be
refunded. The holders of the bonds to be refunded must not be compelled,
without their consent, to surrender their bonds for payment or exchange
before the date on which they are payable by maturity, option to redeem
or otherwise, or if they are called for redemption before the date on
which they are by their terms subject to redemption by option or
otherwise.
3. All refunding bonds issued pursuant to this section must be
payable solely from revenues and other money out of which the bonds to be
refunded thereby are payable or from revenues out of which bonds of the
same character may be made payable under this or any other law in effect
at the time of the refunding.
(Added to NRS by 1987, 1410)
No action may be brought
questioning the legality of any contract, lease, agreement, indenture,
mortgage, order or bonds executed, adopted or taken in connection with
any investment authorized by NRS 349.900 to 349.929 ,
inclusive, more than 30 days after the effective date of the order of the
Director authorizing the issuance of these bonds.
(Added to NRS by 1987, 1410)
900 to 349.929
, inclusive. The faith of the State is
hereby pledged that NRS 349.900 to
349.929 , inclusive, will not be
repealed, amended or modified to impair any outstanding bonds or any
revenues pledged to their payment or to limit or alter the rights of
powers vested in the Director to fulfill the terms of any agreement made
with any management company, until all bonds have been discharged in full
or provisions for their payment and redemption have been fully made.
(Added to NRS by 1987, 1410)
900 to 349.929 ,
inclusive; construction.
1. NRS 349.900 to 349.929 , inclusive, without reference to other
statutes of the State, constitute full authority for the exercise of
powers granted in those sections, including but not limited to the
authorization and issuance of bonds.
2. No other act or law with regard to the authorization or
issuance of bonds that provides for an election, requires an approval, or
in any way impedes or restricts the carrying out of the acts authorized
in NRS 349.900 to 349.929 , inclusive, to be done, apply to any
proceedings taken under those sections, or acts done pursuant to those
sections, except for laws to which reference is expressly made in those
sections or by necessary implication of those sections.
3. The provisions of no other law, either general or local, except
as otherwise provided in NRS 349.900 to
349.929 , inclusive, apply to the doing
of the things authorized in those sections to be done, and no board,
agency, bureau, commission or officer not designated in those sections
has any authority or jurisdiction over the doing of any of the acts
authorized in those sections to be done, except as otherwise provided in
those sections.
4. Any bank or trust company located within or without this state
may be appointed and act as a trustee or custodian with respect to bonds
issued pursuant to NRS 349.900 to
349.929 , inclusive, without the
necessity of associating with any other person or entity as cofiduciary,
but such an association is not prohibited.
5. The powers conferred by NRS 349.900 to 349.929 ,
inclusive, are in addition and supplemental to, and not in substitution
for, and the limitations imposed by those sections do not affect the
powers conferred by any other law.
6. No part of NRS 349.900 to
349.929 , inclusive, repeals or affects
any other law or part thereof, except to the extent that those sections
are inconsistent with any other law, it being intended that those
sections provide a separate method of accomplishing its objectives, and
not an exclusive one.
7. The Director or a person designated by him may take any actions
and execute and deliver any instrument, contract, certificate and other
document, including the bonds, necessary or appropriate for the sale and
issuance of the bonds or accomplishing the purposes of NRS 349.900 to 349.929 ,
inclusive, without the assistance or intervention of any other officer.
(Added to NRS by 1987, 1410)
The Account for Venture Capital is to be entrusted
to a management company with the qualifications specified in those
sections. Subject to the limitation on the maximum of the aggregate
principal amount of outstanding bonds that may be issued, proceeds from
bonds issued at a subsequent time may be entrusted to another management
company with the same qualifications.
(Added to NRS by 1987, 1411)
FINANCING OF WATER PROJECTS
As used in NRS 349.935 to 349.961 ,
inclusive, unless the context otherwise requires, the words and terms
defined in NRS 349.936 to 349.945
, inclusive, have the meanings ascribed
to them in those sections.
(Added to NRS by 1987, 2273)
“Board” means the Board for
Financing Water Projects.
(Added to NRS by 1987, 2273)
“Cost of a water
project” means all or a designated part of the cost of any water project,
including any incidental cost pertaining to the water project. The cost
of a water project may include, among other costs, the costs of:
1. Surveys, audits, preliminary plans, other plans,
specifications, estimates and other costs of preparations;
2. Appraising, printing, estimating, advice, services of
engineers, architects, financial consultants, attorneys, clerical
personnel and other agents and employees;
3. Publishing, posting, mailing and otherwise giving notice,
filing or recording instruments, taking options and fees to banks;
4. Establishment of a reserve for contingencies;
5. Interest on bonds for any time which does not exceed the
estimated period of construction plus 1 year, discounts on bonds,
reserves for the payment of the principal of and interest on bonds,
replacement expenses and other costs of issuing bonds;
6. Amending any resolution or other instrument authorizing the
issuance of, or otherwise relating to, bonds for the water project; and
7. Short-term financing,
Ê and the expense of operation and maintenance of the water project.
(Added to NRS by 1987, 2273)
“Director” means the Director of
the Department of Business and Industry or any person within the
Department of Business and Industry designated by him to perform duties
in connection with a water project or the issuance of bonds.
(Added to NRS by 1987, 2274; A 1993, 1570)
“Expense of operation and maintenance” means any reasonable and
necessary current expense of the State for the operation, maintenance or
administration of a water project or of the collection and administration
of revenues from a water project. The term includes, among other expenses:
1. Expenses for engineering, auditing, reporting, legal services
and other expenses of the Director which are directly related to the
administration of water projects.
2. Premiums for fidelity bonds and policies of property and
liability insurance pertaining to water projects, and shares of the
premiums of blanket bonds and policies which may be reasonably allocated
to the State.
3. Payments to pension, retirement, health insurance and other
insurance funds.
4. Reasonable charges made by any paying agent, commercial bank,
credit union, trust company or other depository bank pertaining to any
bonds.
5. Services rendered under the terms of contracts, services of
professionally qualified persons, salaries, administrative expenses and
the cost of materials, supplies and labor pertaining to the issuance of
any bonds, including the expenses of any trustee, receiver or other
fiduciary.
6. Costs incurred in the collection and any refund of revenues
from the water project, including the amount of the refund.
(Added to NRS by 1987, 2274; A 1999, 1472 )
“Mortgage” includes a deed of
trust and any other security agreement covering real or personal
property, or both.
(Added to NRS by 1987, 2274)
“Obligor” means the natural
person, partnership, firm, company, public utility, corporation,
association, trust, estate, political subdivision, state agency or any
other legal entity, or its legal representative, who agrees to make the
payments sufficient to pay the principal of, premium, if any, and
interest on the state securities or revenue bonds issued pursuant to NRS
349.935 to 349.961 , inclusive.
(Added to NRS by 1987, 2274)
“Revenue bonds” means bonds,
notes or other securities evidencing a special limited obligation of the
State, the principal and interest of which are payable solely out of
revenues derived from the financing, leasing or sale of the water project
to be financed.
(Added to NRS by 1987, 2274)
“State securities” means
notes, warrants, interim debentures, bonds and temporary bonds issued as
general obligations by the Director for any water project or for a
refunding which are payable from taxes, whether or not additionally
secured by a pledge of all or any designated revenues of one or more
water projects.
(Added to NRS by 1987, 2275)
“Tax” means a general tax upon
property.
(Added to NRS by 1987, 2275)
“Water project” means a
project for the management, control, delivery, use or distribution of
water.
(Added to NRS by 1987, 2275)
The Director has all the powers necessary to accomplish the purposes set
forth in NRS 349.935 to 349.961 , inclusive. These powers must be exercised for
the health, safety, convenience, prosperity and welfare of the
inhabitants of this state. He may adopt such regulations as are necessary
to carry out the provisions of NRS 349.935 to 349.961 ,
inclusive.
(Added to NRS by 1987, 2275)
NRS 349.935 to 349.961 ,
inclusive, must be liberally construed to effectuate the purposes of
those sections.
(Added to NRS by 1987, 2275)
The
Director shall not finance a water project unless, before financing:
1. The water project has been finally approved by the Board after
a public hearing on the matter.
2. The Director finds and the State Board of Finance approves the
findings of the Director that:
(a) The contemplated lessee, purchaser or other obligor has
sufficient financial resources to place the water project in operation
and to continue its operation, meeting the obligations of the lease,
purchase contract or financing agreement;
(b) There are sufficient safeguards to assure that all money
provided by the Director will be expended solely for the purposes of the
water project; and
(c) The total amount of money necessary to be provided by the
Director for financing the water project has been determined in writing
by the Board on a form acceptable to the Director.
3. For the issuance of state securities, the Director and the
State Board of Finance have received and approved the authorizing
documents showing the legal authority for the obligor to borrow and repay
the proceeds of the state securities.
4. For the issuance of revenue bonds, the Director and the State
Board of Finance have received and approved:
(a) The financial plan showing that the revenues to be derived from
the water project are adequate to pay the principal and interest on such
bonds;
(b) A 5-year operating history from the contemplated lessee,
purchaser or other obligor or from a parent or other guarantor, who
guarantees the payments of principal and interest on any bonds issued; and
(c) A written statement from the obligor affirming that the obligor
does not undertake to commit the State, and any political subdivision or
municipality thereof to incur any pecuniary liability in connection with
the issuance of the bonds.
(Added to NRS by 1987, 2275; A 1995, 2238)
1. The bonds must be authorized by an order of the Director, and
must:
(a) Be in the denominations;
(b) Bear the date or dates;
(c) Mature at the time or times, not exceeding 30 years after their
respective dates;
(d) Bear interest at a rate or rates specified in the order;
(e) Be in the form;
(f) Carry the registration privileges;
(g) Be executed in the manner;
(h) Be payable at the place or places within or without the State;
and
(i) Be subject to the terms of redemption,
Ê which the order authorizing their issue provides.
2. The bonds may be sold in one or more series at par, or below or
above par, in the manner and for the price or prices which the Director
determines in his discretion.
3. State securities must be authorized by resolution of the Board
of Finance at the request of the Director.
4. As an incidental expense to any water project to be financed by
the bonds, the Director may employ:
(a) Financial and legal consultants in regard to the financing of
the water project; and
(b) A person whose business is in Nevada or elsewhere to act as a
trustee for the water project.
5. The bonds are fully negotiable under the terms of the Uniform
Commercial Code—Investment Securities.
(Added to NRS by 1987, 2276; A 1995, 2238)
1. The Director may, to pay the cost of any water project, borrow
money or otherwise become obligated, and may provide evidence of those
obligations by issuing, except as otherwise provided in this subsection,
state securities or revenue bonds. If the obligor is not a governmental
entity, the Director shall issue only revenue bonds to fulfill the
obligation.
2. Except as otherwise provided in this subsection, state
obligations may be outstanding pursuant to this section in an aggregate
principal amount of not more than $200,000,000. No state obligations,
other than refunding obligations, may be issued pursuant to this section
after August 1, 2003.
3. State securities must be payable from taxes and may be
additionally secured by all or any designated revenues from one or more
water projects. Any governmental entity statutorily authorized to levy
taxes for the payment of bonded indebtedness may use the proceeds of
those taxes to pay the principal of, interest on and redemption premiums
due in connection with state securities issued pursuant to this section.
Any such state securities may be issued without an election or other
preliminaries. No state securities may be issued to refund any municipal
securities issued to finance a water project before July 1, 1987.
4. Provisions of NRS 349.150 to
349.364 , inclusive, which are not
inconsistent with the provisions of NRS 349.935 to 349.961 ,
inclusive, apply to the issuance of state securities under this section.
Provisions of NRS 349.400 to 349.670
, inclusive, which are not inconsistent
with the provisions of NRS 349.935 to
349.961 , inclusive, apply to the
issuance of revenue bonds under this section.
5. The Legislature finds and declares that the issuance of state
securities pursuant to NRS 349.935 to
349.961 , inclusive, is necessary for
the protection and preservation of the natural resources of this state
and for the purpose of obtaining the benefits thereof, and constitutes an
exercise of the authority conferred by the second paragraph of Section 3
of Article 9 of the Constitution of the State of Nevada.
(Added to NRS by 1987, 2276; A 2003, 20th Special Session, 289
)
1. The Director may charge the obligor a fee not to exceed 2
percent of the principal amount of the financing, including a
nonrefundable application fee not to exceed 0.25 percent of the principal
amount or $7,500, whichever is less, payable either in advance or at the
time the bonds are issued. The Director shall deposit all money received
pursuant to this section, except money received from application fees,
with the State Treasurer for credit to the Account for the Financing of
Water Projects.
2. Money received from application fees collected pursuant to this
section must be:
(a) Accounted for separately in the State General Fund.
(b) Used by the Director to support the operations of his office in
administering the provisions of NRS 349.935 to 349.961 ,
inclusive.
3. Whether or not bonds are issued, the Director shall use money
received pursuant to this section, except money received from application
fees, to reimburse his office for the expenses and costs incurred in
financing the water project and, within the limits of money available for
this purpose, to reimburse a municipality pursuant to the provisions of
NRS 349.961 . Any portion of the money
so received, except money received from application fees, which exceeds
the Director’s expenses and costs must be refunded to the obligor.
(Added to NRS by 1987, 2277; A 1991, 2251; 1993, 638)
1. Except as otherwise provided in subsection 3 and NRS 349.951
, all amounts received by the Director
from an obligor in connection with any financing undertaken pursuant to
NRS 349.935 to 349.961 , inclusive, must be deposited with the State
Treasurer for credit to the Account for the Financing of Water Projects
which is hereby created in the Fund for Natural Resources, which is
hereby created as a special revenue fund.
2. Any revenue from water projects financed with state securities
which is in the Account must be applied in the following order of
priority:
(a) Deposited into the Consolidated Bond Interest and Redemption
Fund in amounts necessary to pay the principal of, interest on and
redemption premiums due in connection with state securities issued for
water projects.
(b) Deposited into any reserve account created for the payment of
the principal of, interest on and redemption premiums due in connection
with state securities issued for water projects, in amounts and at times
determined to be necessary.
(c) Paid out for expenses of operation and maintenance.
3. Any revenue from water projects financed with revenue bonds may:
(a) Be deposited in the Account for the Financing of Water Projects
and subject to the provisions of subsection 2; or
(b) Subject to any agreement with the holders of the bonds, be
invested, deposited or held by the Director in such funds or accounts as
he deems necessary or desirable. If the Director is acting pursuant to
this subsection, he need not deposit the money in the State Treasury and
the provisions of chapters 355 and 356 of NRS do not apply to any investments or deposits
made pursuant to this subsection.
(Added to NRS by 1987, 2277; A 1991, 2251; 1993, 639; 2001, 2750
)
1. Any bonds issued under the provisions of NRS 349.935 to 349.961 ,
inclusive, may be refunded by the Director by the issuance of refunding
bonds in an amount which he deems necessary to refund the principal of
the bonds to be so refunded, any unpaid interest thereon and any premiums
and incidental expenses necessary to be paid in connection with refunding.
2. Refunding may be carried out whether the bonds to be refunded
have matured or thereafter mature, either by sale of the refunding bonds
and the application of the proceeds to the payment of the bonds to be
refunded, or by exchange of the refunding bonds for the bonds to be
refunded. The holders of the bonds to be refunded must not be compelled,
without their consent, to surrender their bonds for payment or exchange
before the date on which they are payable by maturity, option to redeem
or otherwise, or if they are called for redemption before the date on
which they are by their terms subject to redemption by option or
otherwise.
3. All refunding bonds issued pursuant to this section must be
payable solely from revenues and other money out of which the bonds to be
refunded thereby are payable or from revenues out of which bonds of the
same character may be made payable under this or any other law then in
effect at the time of the refunding.
(Added to NRS by 1987, 2277)
No action may be brought
questioning the legality of any contract, lease, agreement, indenture,
mortgage, order or bonds executed, adopted or taken in connection with
any water project or improvements authorized by NRS 349.935 to 349.961 ,
inclusive, after 30 days after the effective date of the order of the
director authorizing the issuance of those bonds.
(Added to NRS by 1987, 2278)
935 to 349.961
, inclusive. The faith of the State is
hereby pledged that NRS 349.935 to
349.961 , inclusive, will not be
repealed, amended or modified to impair any outstanding bonds or any
revenues pledged to their payment, or to impair, limit or alter the
rights or powers vested in a city or county to acquire, finance, improve
and equip a water project in any way that would jeopardize the interest
of any lessee, purchaser or other obligor, or to limit or alter the
rights or powers vested in the Director to perform any agreement made
with any lessee, purchaser or other obligor, until all bonds have been
discharged in full or provisions for their payment and redemption have
been fully made.
(Added to NRS by 1987, 2278)
A water project is not subject to any requirements relating to
public buildings, structures, ground works or improvements imposed by the
statutes of this state or any other similar requirements which may be
lawfully waived by this section, and any requirement of competitive
bidding or other restriction imposed on the procedure for award of
contracts for such purpose or the lease, sale or other disposition of
property is not applicable to any action taken pursuant to NRS 349.935
to 349.961 , inclusive, except that the provisions of NRS
338.010 to 338.090 , inclusive, apply to any contract for new
construction, repair or reconstruction for which tentative approval for
financing is granted on or after January 1, 1992, by the Director or a
municipality for work to be done in a water project.
(Added to NRS by 1987, 2278; A 1991, 2349)
1. The Board for Financing Water Projects is hereby created. The
Board consists of one ex officio member and five members appointed by the
Governor.
2. The Governor shall appoint to the Board:
(a) One member who is a representative of the county with the
largest population in the State;
(b) One member who is a representative of the county with the
second largest population in the State; and
(c) Three members who are representatives of counties in the State
whose populations are less than 100,000,
Ê of whom one member is knowledgeable in the field of municipal finance
and the remaining members are knowledgeable in the fields of planning and
the development and reclamation of water resources.
3. The Administrator of the Division of Environmental Protection
of the State Department of Conservation and Natural Resources, or a
person he designates, shall serve ex officio as a nonvoting member of the
Board.
4. Not more than three voting members of the Board may be members
of the same political party, and not more than two may be residents of
the same county.
(Added to NRS by 1987, 2278; A 1991, 532; 1995, 2502; 2005, 561
)
1. Each voting member of the Board is entitled to receive a salary
of not more than $80 per day, as fixed by the Board, for his services
while actually engaged in the performance of his duties as a member of
the Board.
2. While engaged in the business of the Board, each voting member
and employee of the Board is entitled to receive the per diem allowance
and travel expenses provided for state officers and employees generally.
(Added to NRS by 1987, 2279; A 1989, 1712; 1991, 533)
The Board shall:
1. At its first meeting and annually thereafter elect a Chairman
from among its voting members.
2. Meet regularly at least once in each calendar quarter and at
other times upon the call of the Chairman.
(Added to NRS by 1987, 2279; A 1991, 533)
1. The State Engineer shall advise the Board, upon its request, of
the existence and status of any water rights which affect a water project
under consideration by the Board.
2. Upon the Board’s request and within the limits of available
resources and staff, the State Engineer and the Director may on a case by
case basis assist persons in the preparation of a preliminary plan for a
water project.
(Added to NRS by 1987, 2279)
1. When any municipality or other obligor desires to undertake a
water project, it may present its preliminary plan to the Board for
approval. If the proposed water project affects drinking water, the Board
shall request that the Administrator of the Division of Environmental
Protection of the State Department of Conservation and Natural Resources
submit comments and recommendations regarding the project. The Board
shall analyze the potential yield of the water project, and may
tentatively approve it if it will preserve or increase the water
available for beneficial use in this State.
2. If the Board, after a public hearing on the issue, tentatively
approves the water project, the municipality or other obligor may proceed
to prepare a final plan and submit it for final approval. If the Board
finally approves the water project, the cost of the final plan may be
included in the cost of the water project. If the Board does not finally
approve the water project, the Director may, within the limits of money
available for this purpose in the Account for the Financing of Water
Projects, reimburse a municipality for the costs incurred after the
tentative approval.
(Added to NRS by 1987, 2279; A 1991, 533; 1993, 639; 2005, 561
)
GRANTS FOR CAPITAL IMPROVEMENTS TO PUBLICLY OWNED WATER SYSTEMS
As used in NRS 349.980 to 349.987 ,
inclusive, unless the context otherwise requires:
1. “Board” means the Board for Financing Water Projects created
pursuant to NRS 349.957 .
2. “Community sewage disposal system” means a public system of
sewage disposal which is operated for the benefit of a county, city,
district or other political subdivision of this state.
3. “Community water system” means a public water system which:
(a) Has 15 or more service connections; or
(b) Serves 25 or more persons,
Ê at places which are intended for year-round occupancy.
4. “Costs of capital improvements to community water systems and
nontransient water systems” means the costs traditionally associated with
capital improvements to such systems and includes costs associated with
the:
(a) Consolidation of existing systems; and
(b) Transfer and connection of a public water system to a system
owned by a purveyor of water or a public utility.
5. “Division of Environmental Protection” means the Division of
Environmental Protection of the State Department of Conservation and
Natural Resources.
6. “Fund” means the Fund for Grants for Water Conservation,
Capital Improvements to Certain Water Systems and Improvements to Certain
Sewage Disposal Systems.
7. “Individual sewage disposal system” means a single system of
sewage treatment tanks and effluent disposal facilities that serves:
(a) A single-family dwelling; or
(b) One or more buildings that are used exclusively for commercial
purposes and are not used as single-family dwellings.
8. “Nontransient water system” means a public water system that
regularly serves 25 or more of the same persons for more than 6 months
per year, but which is not a community water system.
9. “Public water system” has the meaning ascribed to it in NRS
445A.840 .
10. “Purveyor of water” means a political subdivision of this
state engaged in the business of furnishing water, for compensation, to
persons within the political subdivision.
(Added to NRS by 1991, 1833; A 1999, 2121 ; 2003, 2501 )
1. There is hereby established a program to provide grants of
money to:
(a) A purveyor of water to pay for costs of capital improvements to
publicly owned community water systems and publicly owned nontransient
water systems required or made necessary by the State Environmental
Commission pursuant to NRS 445A.800
to 445A.955 , inclusive, or made
necessary by the Safe Drinking Water Act, 42 U.S.C. §§ 300f et seq., and
the regulations adopted pursuant thereto.
(b) An eligible recipient to pay for the cost of improvements to
conserve water, including, without limitation:
(1) Piping or lining of an irrigation canal;
(2) Recovery or recycling of wastewater or tailwater;
(3) Scheduling of irrigation;
(4) Measurement or metering of the use of water;
(5) Improving the efficiency of irrigation operations; and
(6) Improving the efficiency of the operation of a facility
for the storage of water, including, without limitation, efficiency in
diverting water to such a facility.
(c) An eligible recipient to pay the following costs associated
with connecting a domestic well or well with a temporary permit to a
municipal water system, if the well was in existence on or before October
1, 1999, and the well is located in an area designated by the State
Engineer pursuant to NRS 534.120 as an
area where the groundwater basin is being depleted:
(1) Any local or regional fee for connection to the
municipal water system.
(2) The cost of any capital improvement that is required to
comply with a decision or regulation of the State Engineer.
(d) An eligible recipient to pay the following costs associated
with abandoning an individual sewage disposal system and connecting the
property formerly served by the abandoned individual sewage disposal
system to a community sewage disposal system, if the Division of
Environmental Protection requires the individual sewage disposal system
to be abandoned and the property upon which the individual sewage
disposal system was located to be connected to a community sewage
disposal system pursuant to the provisions of NRS 445A.300 to 445A.730 , inclusive, or any regulations adopted
pursuant thereto:
(1) Any local or regional fee for connection to the
community sewage disposal system.
(2) The cost of any capital improvement that is required to
comply with a statute of this State or a decision, directive, order or
regulation of the Division of Environmental Protection.
(e) An eligible recipient to pay the following costs associated
with connecting a well to a municipal water system, if the quality of the
water of the well fails to comply with the standards of the Safe Drinking
Water Act, 42 U.S.C. §§ 300f et seq., and the regulations adopted
pursuant thereto:
(1) Any local or regional fee for connection to the
municipal water system.
(2) The cost of any capital improvement that is required for
the water quality in the area where the well is located to comply with
the standards of the Safe Drinking Water Act, 42 U.S.C. §§ 300f et seq.,
and the regulations adopted pursuant thereto.
2. Except as otherwise provided in NRS 349.983 , the determination of who is to receive a
grant is solely within the discretion of the Board.
3. As used in this section, “eligible recipient” means a political
subdivision of this State, including, without limitation, a city, county,
unincorporated town, water authority, conservation district, irrigation
district, water district or water conservancy district.
(Added to NRS by 1991, 1833; A 1999, 2121 ; 2003, 2502 ; 2005, 561 , 969 )
1. The Board shall administer the program and shall adopt
regulations necessary for that purpose.
2. The regulations must provide such requirements for
participation in the program as the Board deems necessary.
3. The money in the Fund may be used to defray, in whole or in
part, the costs of administering the Fund and the expenses of the Board
in administering the program.
4. The Board may, by regulation, impose an administrative fee
which must be collected from each recipient of a grant from the Fund. If
such a fee is imposed, all revenue derived from the fee must be used to
defray, in whole or in part, the costs of administering the Fund and the
expenses of the Board in administering the program.
(Added to NRS by 1991, 1833; A 1999, 2122 )
1. Grants may be made pursuant to paragraph (a) of subsection 1 of
NRS 349.981 only for the Lincoln County
Water District and those community and nontransient water systems that:
(a) Were in existence on January 1, 1995; and
(b) Are currently publicly owned.
2. In making its determination of which purveyors of water are to
receive grants pursuant to paragraph (a) of subsection 1 of NRS 349.981
, the Board shall give preference to
those purveyors of water whose public water systems regularly serve fewer
than 6,000 persons.
3. Each recipient of a grant pursuant to paragraph (a) of
subsection 1 of NRS 349.981 shall
provide an amount of money for the same purpose. The Board shall develop
a scale to be used to determine that amount, but the recipient must not
be required to provide an amount less than 15 percent or more than 75
percent of the amount of the grant. The scale must be based upon the
average household income of the customers of the recipient, and provide
adjustments for the demonstrated economic hardship of those customers,
the existence of an imminent risk to public health and any other factor
that the Board determines to be relevant.
(Added to NRS by 1991, 1834; A 1993, 1236; 1995, 321; 1999, 2122
; 2003, 2984 )
1. The Fund for Grants for Water Conservation, Capital
Improvements to Certain Water Systems and Improvements to Certain Sewage
Disposal Systems is hereby created.
2. Except as otherwise provided by subsections 3 and 4 of NRS
349.982 , the money in the Fund must be
used only to make grants in furtherance of the program.
3. All claims against the Fund must be paid as other claims
against the State are paid.
(Added to NRS by 1991, 1834; A 1999, 2123 ; 2003, 2503 )
All money received for the Fund from:
1. The issuance of bonds pursuant to NRS 349.986 ; or
2. Any other source,
Ê must be deposited with the State Treasurer to the credit of the Fund.
The interest and income earned on the money in the Fund, after deducting
any applicable charges, must be credited to the Fund.
(Added to NRS by 1991, 1834)
1. The State Board of Finance shall issue general obligation bonds
of the State of Nevada to support the purposes of the program established
by NRS 349.981 . The aggregate principal
amount of such bonds outstanding at any one time may not exceed
$125,000,000.
2. The net proceeds from the sale of the bonds must be deposited
in the Fund.
3. The bonds must be redeemed through the Consolidated Bond
Interest and Redemption Fund.
(Added to NRS by 1991, 1834; A 1995, 2239; 1997, 1826; 1999, 2123
; 2001, 692 ; 2003, 2503 , 2649 ; 2003, 20th Special Session, 264 , 265 ; 2005, 201 )
1. The provisions of NRS 349.150
to 349.364 , inclusive, which are not
inconsistent with the provisions of NRS 349.980 to 349.987 ,
inclusive, apply to the bonds issued pursuant to NRS 349.986 .
2. The provisions of NRS 349.935
to 349.956 , inclusive, and 349.961
do not apply to the program or to any
grants made or bonds issued pursuant to NRS 349.986 .
(Added to NRS by 1991, 1834)
As used in NRS 349.005
to 349.070 , inclusive, “bond question” means any proposal
for the issuance of bonds or otherwise for the incurrence of a loan.
(Added to NRS by 1975, 856; A 1993, 1065)
1. Whenever the State of Nevada proposes to issue bonds or provide
for loans in any amount which does not contravene the limit of
indebtedness provided by the Constitution of the State of Nevada, the
proposal for the bond issue or loan may be submitted to the electors of
the State at a special, primary or general election.
2. A special election may be held only if the State Board of
Finance determines, by a unanimous vote, that an emergency exists. The
determination made by the Board is conclusive unless it is shown that the
Board acted with fraud or a gross abuse of discretion. An action to
challenge the determination made by the Board must be commenced within 15
days after the Board’s determination is final. As used in this
subsection, “emergency” means any unexpected occurrence or combination of
occurrences which requires immediate action by the State Board of Finance
to prevent or mitigate a substantial financial loss to the State or to
enable the State to provide an essential service to the residents of the
State.
[Part 2:70:1937; A 1956, 219]—(NRS A 1959, 240; 1969, 1584; 1975,
856; 1993, 1065; 1995, 2236)
1. Whenever the State has ordered a bond election, the clerk of
each county in the State shall cause notice of the election to be
published in some newspaper printed in and having a general circulation
in the county once in each calendar week for 2 successive calendar weeks
by two weekly insertions a week apart, the first publication to be not
more than 30 days nor less than 22 days next preceding the date of the
election.
2. If no newspaper is printed in the county, then publication of
the notice of election shall be made in some newspaper printed in the
State of Nevada and having a general circulation in the county.
3. The Secretary of State shall certify to each county clerk the
proposal for the bond issue or loan at least 40 days prior to the
election.
(Added to NRS by 1969, 1584)
1. Except as otherwise provided in subsection 3, the sample ballot
required to be mailed pursuant to NRS 293.565 or 293C.530 , and the notice of election must contain:
(a) The time and places of holding the election.
(b) The hours during the day in which the polls will be open, which
must be the same as provided for general elections.
(c) The purposes for which the bonds are to be issued.
(d) A disclosure of any:
(1) Future increase or decrease in costs which can
reasonably be anticipated in relation to the purposes for which the
obligations are to be issued and its probable effect on the tax rate; and
(2) Requirement relating to the bond question which is
imposed pursuant to a court order or state or federal statute and the
probable consequences which will result if the bond question is not
approved by the voters.
(e) An estimate of the annual cost to operate, maintain and repair
any buildings, structures or other facilities or improvements to be
constructed or acquired with the proceeds of the bonds.
(f) The maximum amount of the bonds.
(g) The maximum rate of interest.
(h) The maximum number of years which the bonds are to run.
2. Any election called pursuant to NRS 349.010 to 349.070 ,
inclusive, may be consolidated with a primary or general election.
3. If the election is consolidated with a general election, the
notice of election need not set forth the places of holding the election,
but may instead state that the places of holding the election will be the
same as those provided for the general election.
(Added to NRS by 1969, 1584; A 1987, 1468; 1993, 1065, 1418; 1995,
554; 1997, 3476)
1. If the bond question is submitted at a general election, no
notice of registration of electors is required other than that required
by the laws for a general election.
2. If the bond question is submitted at a special election, the
clerk of each county shall cause to be published, at least once a week
for 2 consecutive weeks by two weekly insertions a week apart, the first
publication to be not more than 50 days nor less than 42 days next
preceding the election, in a newspaper published within the county, if
any is so published, and having a general circulation therein, a notice
signed by him to the effect that registration for the special election
will be closed on a date designated therein, as provided in this section.
3. Except as otherwise provided in subsection 4, the office of the
county clerk in each county of this State must be open for such a special
election, from 9 a.m. to 12 m. and 1 p.m. to 5 p.m. on Mondays through
Fridays, with Saturdays, Sundays and legal holidays excepted, for the
registration of any qualified elector.
4. The office of the county clerk must be open from 9 a.m. to 5
p.m. and from 7 p.m. to 9 p.m. on Monday through Saturday, with Sundays
and any legal holidays excepted, during the last days of registration as
provided in subsection 2 of NRS 293.560 .
5. The office of the county clerk must be open for registration of
voters for such a special election up to but excluding the 30th day next
preceding that election and during regular office hours.
(Added to NRS by 1969, 1584; A 1971, 91; 1973, 559; 1975, 856;
1997, 3476)
1. The election officers of the State who are charged with the
duty of providing for and conducting the election shall provide printed
ballots for the use of the voters entitled to vote at the election. Any
bond question may be submitted on the same ballot as otherwise used at
the election, if any, or may be submitted by separate ballot, as the
commission, board or other agency of the State ordering the submission of
the bond question, if any, or otherwise the Secretary of State, may
determine.
2. There shall be printed on all ballots:
(a) Instructions respecting the manner of marking the ballots.
(b) A statement of the proposal to be voted upon. No defect in the
statement other than in the statement of the maximum amount of the bonds
to be authorized shall invalidate the bonds.
[Part 3:70:1937; A 1953, 322]—(NRS A 1971, 92)
1. The election officers of the State who are charged with the
duty of providing for and conducting the election shall provide one
ballot box at each polling place for the purpose of the election. If a
bond election is held in conjunction with a general election or any other
election for other than the submission of the bond question, the same
single ballot box must be used at each polling place.
2. Notwithstanding any other provision of NRS 349.010 to 349.070 ,
inclusive, at any bond election thereunder, ballots or votes may be cast,
registered, recorded and counted by means of a mechanical recording
device, as provided in the election laws of this state.
[Part 3:70:1937; A 1953, 322]—(NRS A 1969, 1585; 1971, 92; 1987,
1378)
1. When a special election is called, on or before 15 days before
the date of the election the several boards of county commissioners of
this state shall, subject to the provisions of subsection 3, select and
appoint suitable persons, who shall be citizens and qualified voters in
the State, county and in the precinct where they are appointed, to act as
inspectors and clerks of the election.
2. The inspectors and clerks of the election shall:
(a) Be selected, appointed and paid, if payment is claimed, as
provided by law; and
(b) Perform such duties in holding the election and in making due
return thereof as are required by the general election laws of this
state, so far as the same are not inconsistent with or in conflict with
the provisions of NRS 349.010 to
349.070 , inclusive.
3. Only one election board shall be appointed for each voting
precinct in the State. For the purposes of the special election, the
several boards of county commissioners, in providing for and proclaiming
the election precincts, shall divide their respective counties into any
number of voting precincts as they may deem necessary without regard to
the number of qualified voters in any one precinct.
[4.5:70:1937; added 1956, 219]
1. Every citizen of the United States, 18 years of age or over,
who has resided in the State and in the county 30 days next preceding
such election, is entitled to vote at the election if he has complied
with the registration laws of this state.
2. The provisions of the election laws of this state relating to
absent voting shall apply to all bond elections under NRS 349.010 to 349.070 ,
inclusive.
3. Subsection 1 does not exclude the registration of eligible
persons whose 18th birthday or the date of whose completion of the
required residence occurs on or before the election at which is submitted
the proposal for a bond issue or otherwise for the incurrence of a loan
under NRS 349.010 to 349.070 , inclusive.
[Part 4:70:1937; A 1953, 322; 1955, 162]—(NRS A 1969, 1585; 1971,
92, 1267; 1975, 856)
1. Immediately after the closing of the polls, the election
officers shall proceed to canvass the ballots.
2. The results disclosed by the canvass shall be certified by the
election officers of each county to the county clerk.
3. The board of county commissioners of each county shall open the
returns of votes cast, make abstracts of the votes, and cause the county
clerk to make a copy of such abstract and to transmit the same to the
Secretary of State as provided by the election laws of the State.
[Part 4:70:1937; A 1953, 322; 1955, 162]—(NRS A 1969, 1586)
1. If a majority of the electors voting on the bond question is in
favor of the issuance of the bonds, the proposal to issue them shall have
been carried, and the proper officers of the State shall, in the manner
provided by law or in the manner expressed in the notice of the election,
proceed to complete the printing, execution, advertisement and sale of
the bonds.
2. If the majority of the electors voting on the bond question is
against the issuance of the bonds, the proposal to issue them shall have
failed, and the proper officers of the State shall proceed no further
with the printing, execution, advertisement or sale of the bonds, but
they shall certify the result of the election to the proper officers,
board or governing board of the State.
[Part 4:70:1937; A 1953, 322; 1955, 162]—(NRS A 1971, 94)
ISSUANCE AND REDEMPTION OF SECURITIES BY STATE BOARD OF FINANCE
1. The State Board of Finance may issue and redeem securities on
behalf of the State, when such issue is authorized by law, in the manner
provided by the State Securities Law.
2. The State Board of Finance constitutes the successor of the
State Board of Examiners, the State General Obligation Bond Commission
and any similar commission created before April 25, 1967.
3. In connection with any outstanding state securities issued on
behalf of the State of Nevada by the State Board of Examiners, the State
General Obligation Bond Commission or any such predecessor commission,
the State Board of Finance may fund, refund and reissue such securities
and may otherwise exercise on behalf of the State the supplemental powers
provided in the State Securities Law.
(Added to NRS by 1967, 1380; A 1973, 1471; 1995, 2237)
There is hereby created in the General Fund in the State Treasury the
State Bond Issuance Account to which moneys may be appropriated for the
payment of incidental expenses pertaining to state securities and
projects relating thereto.
(Added to NRS by 1967, 1380; A 1971, 373; 1973, 1472)
INTEREST RATES; DISCOUNTS; LIMITATION ON ISSUANCE
As used in NRS 349.075 to 349.078 ,
inclusive:
1. “Par” means the principal amount of a security plus the accrued
interest thereon from the date of the bonds to the date of delivery and
full payment.
2. “Security” means a bond or other evidence of indebtedness.
(Added to NRS by 1967, 218)
Except as otherwise provided by a specific statute, the rate or
rates of interest on securities issued by the State must not exceed by
more than 3 percent:
1. For general obligations, the Index of Twenty Bonds; and
2. For special obligations, the Index of Revenue Bonds,
Ê which was most recently published before the bids are received or a
negotiated offer is accepted.
(Added to NRS by 1967, 218; A 1969, 1288; 1971, 2110; 1975, 857;
1981, 1399; 1983, 570)
Except as otherwise provided by a specific
statute, securities issued by the State may be sold at par, above par or
below par at a discount of not more than 9 percent of the principal
amount, but the effective interest rate must not exceed the limit
provided in NRS 349.076 .
(Added to NRS by 1967, 218; A 1969, 1288; 1971, 2110; 1975, 857;
1981, 1399; 1983, 570)
No security may be issued or sold by the State after the expiration of 6
years from the date of the election authorizing such issue, if an
election is required by any law whenever enacted.
(Added to NRS by 1967, 219)
CONSOLIDATED BOND INTEREST AND REDEMPTION FUND
080 to 349.140 ,
inclusive. The purpose of NRS 349.080
to 349.140 , inclusive, is declared to
be for the aid of, and not in limitation of, any act existing on March
28, 1939, or which may be enacted after March 28, 1939, providing for the
payment of bonds and interest thereon which may have been or may be
issued pursuant to any act of the Legislature of the State of Nevada.
[4:197:1939; 1931 NCL § 7056.03]
There is hereby
created in the State Treasury a debt service fund to be known as the
Consolidated Bond Interest and Redemption Fund. The State Treasurer shall
maintain records of accounting reflecting the current condition of the
Fund.
[1:197:1939; 1931 NCL § 7056]—(NRS A 1985, 711)
All moneys in the State
Treasury on March 28, 1939, credited to the account of any bond issue
theretofore created by the State of Nevada, and all funds to be received
thereafter on account of and for the purpose of any bond issue the
redemption of which is pledged by the faith of the people of the State of
Nevada, shall be placed in the Consolidated Bond Interest and Redemption
Fund.
[2:197:1939; 1931 NCL § 7056.01]
After March 28, 1939, so long as there shall be any outstanding bonds in
the name of the State of Nevada, the State Treasurer shall make payment
for redemption of such bonds, the interest thereon and any bank service
charges from the Consolidated Bond Interest and Redemption fund.
[3:197:1939; 1931 NCL § 7056.02]—(NRS A 1965, 55; 1967, 158)
1. For each biennium, moneys must be provided by direct
legislative appropriation from the State General Fund sufficient in
amount to meet the bond interest and redemption requirements of the State
of Nevada, as designated by the various issues of bonds for which the
faith of the State of Nevada has been or may hereafter be pledged. The
amount must be determined by the Legislature from time to time so as to
effectuate the purposes of NRS 349.080
to 349.140 , inclusive.
2. All moneys so appropriated must be placed in the Consolidated
Bond Interest and Redemption Fund. All moneys so appropriated and placed
are hereby expressly set apart and appropriated to discharge the
obligations of the State of Nevada for bond interest and redemption of
bonds issued before, on or after March 28, 1939.
[5:197:1939; 1931 NCL § 7056.04]—(NRS A 1957, 232; 1997, 1610)
The moneys provided for by the terms of NRS 349.080 to 349.140 ,
inclusive, to be paid into the Consolidated Bond Interest and Redemption
Fund shall, on all occasions, be applied for the purposes of redemption
and interest payments on bonds. If any bonds become due for redemption or
any interest thereon becomes due when there is an insufficient sum of
money in the Consolidated Bond Interest and Redemption Fund, then any
such deficiency forthwith shall be appropriated and paid out of the
General Fund of the State.
[6:197:1939; 1931 NCL § 7056.05]—(NRS A 1957, 233)
080 to 349.140 ,
inclusive. The provisions of NRS 349.080 to 349.140 ,
inclusive, are not intended to repeal, modify or otherwise affect the
obligations of the State of Nevada or the faith thereof, nor the payment
of interest and the redemption of bonds which have been issued prior to
March 28, 1939, or which may be issued after March 28, 1939, pursuant to
any act of the Legislature.
[7:197:1939; 1931 NCL § 7056.06]
STATE SECURITIES LAW
NRS 349.150 to 349.364 ,
inclusive, may be cited as the State Securities Law.
(Added to NRS by 1967, 771; A 1985, 2088; 1993, 2279; 1995, 2237;
1997, 1291, 3012)
It is the purpose of
the State Securities Law to provide a procedure for financing any
projects otherwise authorized by law and for the issuance of securities
to evidence or reevidence obligations incurred in connection with any
projects. The State Securities Law is supplemental in nature, and nothing
herein contained shall be construed as authorizing any particular project
nor as authorizing the incurrence of any obligations to defray the cost
of any project.
(Added to NRS by 1967, 771)
The following terms, defined for all
purposes of the State Securities Law and of any act amendatory thereof,
supplemental thereto, or relating thereto, and of any instrument or
document appertaining thereto, unless the context otherwise requires,
have the meanings ascribed to them in NRS 349.156 to 349.210 ,
inclusive.
(Added to NRS by 1967, 771)
“Acquisition” or
“acquire” includes the opening, laying out, establishment, purchase,
construction, securing, installation, reconstruction, lease, gift, grant
from the Federal Government, this state, any body corporate and politic
therein, or any person, the endowment, bequest, devise, condemnation,
transfer, assignment, option to purchase, other contract, or other
acquirement, or any combination thereof, of any properties pertaining to
a project, or an interest therein.
(Added to NRS by 1967, 771)
“Chairman,” or “Chairman of the Commission,” or any phrase of similar
import, means the de facto or de jure presiding officer of the
Commission, or his successor in functions, if any.
(Added to NRS by 1967, 771)
“Commercial bank” means:
1. A state or national bank or trust company that is a member of
the Federal Deposit Insurance Corporation, including, without limitation,
a branch of the Federal Reserve Bank.
2. A credit union whose deposits are insured by the National
Credit Union Share Insurance Fund or by a private insurer approved
pursuant to NRS 678.755 .
(Added to NRS by 1967, 771; A 1999, 1469 )
“Commission” means the State
Board of Finance, any State General Obligation Bond Commission or any
other commission, board or other agency of the State which is authorized
by law to issue bonds or other securities in the name and on behalf of
the State in accordance with the provisions of the State Securities Law,
and means any such successor agency of this state.
(Added to NRS by 1967, 771; A 1973, 1472; 1995, 2237)
“Condemnation”
or “condemn” means the acquisition by the exercise of the power of
eminent domain of property for any project, or an interest therein,
herein designated.
(Added to NRS by 1967, 771; A 1985, 276)
“Controller” means the de facto
or de jure State Controller of the State of Nevada, or his successor in
functions, if any.
(Added to NRS by 1967, 772)
“Cost of any project,”
or any phrase of similar import, means all or any part designated by the
Commission of the cost of any project, or interest therein, which cost at
the option of the Commission may include all or any part of the
incidental costs pertaining to the project, including without limitation:
1. Preliminary expenses advanced by the State from funds available
for use therefor, or advanced by the Federal Government, or from any
other source, with the approval of the Commission or any board or other
agency of the State responsible for the project or defraying the cost
thereof, or any combination thereof;
2. The costs in the making of surveys, audits, preliminary plans,
other plans, specifications, estimates of costs and other preliminaries;
3. The costs of premiums on builders’ risk insurance and
performance bonds, or a reasonably allocable share thereof;
4. The costs of appraising, printing, estimates, advice, services
of engineers, architects, financial consultants, attorneys at law,
clerical help or other agents or employees;
5. The costs of making, publishing, posting, mailing and otherwise
giving any notice in connection with a project, the filing or recordation
of instruments, the taking of options, the issuance of bonds and other
securities, and bank fees and expenses;
6. The cost of contingencies;
7. The costs of the capitalization with proceeds of bonds or other
securities issued hereunder of any operation and maintenance expenses
appertaining to any facilities to be acquired as a project and of any
interest on bonds or other securities for any period not exceeding the
period estimated by the Commission to effect the project plus 1 year, of
any discount on bonds or other securities, and of any reserves for the
payment of the principal of and interest on the bonds or other
securities, or any replacement expenses, and of any other cost of
issuance of the bonds or other securities;
8. The costs of amending any resolution or other instrument
authorizing the issuance of or otherwise appertaining to outstanding
bonds or other securities of the State;
9. The costs of funding any short-term financing, construction
loans and other temporary loans of not exceeding 5 years appertaining to
a project and of the incidental expenses incurred in connection with such
loans;
10. The costs of any properties, rights, easements or other
interests in properties, or any licenses, privileges, agreements and
franchises;
11. The costs of demolishing, removing or relocating any
buildings, structures or other facilities on land acquired for any
project, and of acquiring lands to which such buildings, structures or
other facilities may be moved or relocated; and
12. All other expenses necessary or desirable and appertaining to
a project, as estimated or otherwise ascertained by the commission.
(Added to NRS by 1967, 772; A 1975, 857)
“Disposal” or
“dispose” means the sale, destruction, razing, loan, lease, grant,
transfer, assignment, option to sell, other contract, or other
disposition, or any combination thereof, of facilities, other property,
or any interest therein.
(Added to NRS by 1971, 2109)
“Equip” or
“equipment” means the furnishing of all related or appurtenant machinery,
furnishings, apparatus, paraphernalia, and other gear, or any combination
thereof, pertaining to any project or other property, or any interest
therein.
(Added to NRS by 1971, 2110)
“Facilities” means buildings,
structures, utilities or other income-producing facilities from the
operation of which or in connection with which pledged revenues for the
payment of any bonds or other securities issued hereunder are derived,
including without limitation any facilities to be acquired with the
proceeds of the bonds or securities issued hereunder.
(Added to NRS by 1967, 773)
“Federal Government”
means the United States, or any agency, instrumentality or corporation
thereof.
(Added to NRS by 1967, 773)
“Federal securities”
means bills, certificates of indebtedness, notes, bonds or similar
securities which are direct obligations of, or the principal and interest
of which securities are unconditionally guaranteed by, the United States.
(Added to NRS by 1967, 773)
“Governor” means the de facto or
de jure Governor of the State of Nevada, or his successor in functions,
if any.
(Added to NRS by 1967, 773)
“Gross revenues” or “gross pledged revenues” means all pledged revenues
received by the State and pledged wholly or in part for the payment of
any state securities issued hereunder.
(Added to NRS by 1967, 773)
“Hereby,” “herein,” “hereinabove,” “hereinafter,”
“hereinbefore,” “hereof,” “hereto,” “hereunder” and any similar term
refer to the State Securities Law and not solely to the particular
portion thereof in which such word is used; “heretofore” means before the
adoption of the State Securities Law; and “hereafter” means after the
adoption of the State Securities Law.
(Added to NRS by 1967, 773)
“Holder,” or any similar term, when
used in conjunction with any coupons, any bonds or any other securities,
means the person in possession and the apparent owner of the designated
item if such obligation is registered for payment to bearer or is not
registered, or the term means the registered owner of the designated item
if it is at the time registered for payment otherwise than to bearer.
(Added to NRS by 1967, 773)
“Improvement” or
“improve” includes the extension, widening, lengthening, betterment,
alteration, reconstruction or other major improvement, or any combination
thereof, of any properties pertaining to a project or an interest
therein, but does not mean renovation, reconditioning, patching, general
maintenance or other minor repair.
(Added to NRS by 1967, 774)
“Net revenues” or “net pledged revenues” means “gross revenues,” after
the deduction of operation and maintenance expenses.
(Added to NRS by 1967, 774)
1. “Operation and maintenance expenses,” or any phrase of similar
import, means all reasonable and necessary current expenses of the State,
paid or accrued, of operating, maintaining and repairing the facilities
or of levying, collecting and otherwise administrating any excise taxes
pertaining to the pledged revenues for the payment of the bonds or other
securities issued hereunder; and the term may include at the Commission’s
option (except as limited by contract or otherwise limited by law),
without limiting the generality of the foregoing:
(a) Engineering, auditing, reporting, legal and other overhead
expenses of the various state departments directly related and reasonably
allocable to the administration of the facilities;
(b) Fidelity bond and property and liability insurance premiums
appertaining to the facilities, or a reasonably allocable share of a
premium of any blanket bond or policy pertaining to the facilities;
(c) Payments to pension, retirement, health and hospitalization
funds and other insurance;
(d) Any taxes, assessments, excise taxes or other charges which may
be lawfully imposed on the State, any facilities, revenues therefrom, or
any privilege in connection with any facilities or their operation;
(e) The reasonable charges of any paying agent, or commercial bank,
trust bank or other depositary bank appertaining to any securities issued
by the State or appertaining to any facilities;
(f) Contractual services, professional services, salaries, other
administrative expenses, and costs of materials, supplies, repairs and
labor, appertaining to the issuance of any state securities and to any
facilities, including without limitation the expenses and compensation of
any trustee, receiver or other fiduciary under the State Securities Law;
(g) The costs incurred by the Commission in the collection and any
refunds of all or any part of the pledged revenues, including without
limitation revenues appertaining to any facilities;
(h) Any costs of utility services furnished to the facilities by
the State or otherwise;
(i) Any lawful refunds of any pledged revenues;
(j) Reasonable allowances for the depreciation of furniture and
equipment for the facilities; and
(k) All other administrative, general and commercial expenses.
2. The term “operation and maintenance expenses” does not include:
(a) Any allowance for depreciation, except as otherwise provided in
paragraph (j) of subsection 1 of this section;
(b) Any costs of reconstruction, improvements, extensions or
betterments;
(c) Any accumulation of reserves for capital replacements;
(d) Any reserves for operation, maintenance or repair of any
facilities;
(e) Any allowance for the redemption of any bond or other state
security evidencing a loan or other obligation or for the payment of any
interest thereon;
(f) Any liabilities incurred in the acquisition or improvement of
any properties comprising any project or any existing facilities, or any
combination thereof; and
(g) Any other ground of legal liability not based on contract.
(Added to NRS by 1967, 774)
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