USA Statutes : nevada
Title : Title 30 - PUBLIC BORROWING AND OBLIGATIONS
Chapter : CHAPTER 350A - PURCHASE OF MUNICIPAL AND REVENUE SECURITIES BY STATE
The Legislature finds that:
1. It is in the public interest to foster and promote the
protection and preservation of the property and natural resources of the
State of Nevada, and to obtain the benefits thereof, and that the State
should encourage and assist municipalities in undertaking local projects
for such purposes by making loans to municipalities which might not be
otherwise available or which might be available only at prohibitive
interest rates;
2. The making of such loans and the issuing of state securities
therefor as general obligations are necessary, expedient and advisable
for the protection and preservation of the property and natural resources
of the State of Nevada and for obtaining the benefits thereof; and
3. Because of market conditions relating to credit and public
finance, it is in the public interest to assist municipalities in the
acquisition, construction or equipping of public improvements by
providing money to municipalities at reasonable rates of interest through
the issuance of state securities to finance the acquisition of revenue
securities.
(Added to NRS by 1981, 767; A 1993, 2318)
As used in this chapter, unless the
context otherwise requires, the words and terms defined in NRS 350A.025
to 350A.125 , inclusive, have the meanings ascribed to
them in those sections.
(Added to NRS by 1981, 767; A 1993, 2318; 2005, 184 )
“Allocable local
revenues” means amounts received by the State which are payable to a
municipality and which are designated as allocable by the municipality in
the instrument authorizing the revenue security with respect to a
particular lending project.
(Added to NRS by 1993, 2316; A 1995, 389)
“Board” means the State Board of
Finance.
(Added to NRS by 1981, 767; A 1997, 3012)
“Cost of a
lending project” means all or any designated part of the cost of any
lending project, including any incidental cost pertaining to such a
project. The cost of a lending project may include, without limitation,
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 and
credit unions.
4. Establishment of a reserve for contingencies.
5. Interest on state securities for any time which does not exceed
3 years, discounts on such state securities, reserves for the payment of
the principal of and interest on such securities, replacement expenses
and other costs of issuing such securities.
6. Amending any resolution or other instrument authorizing the
issuance of, or otherwise relating to, state securities for any lending
project.
7. Funding medium-term obligations.
8. Financing the issuance of state securities and any other
expenses necessary in connection with a lending project, as determined by
the Board.
(Added to NRS by 1981, 767; A 1993, 2318; 1997, 554; 1999, 1473
)
“Expense of operation and maintenance” means any reasonable and
necessary current expense of the State for the operation, maintenance or
administration of a lending project or of the collection and
administration of revenues therefrom. The term includes, without
limitation:
1. Expenses for engineering, auditing, reporting, legal services
and other expenses of the State Treasurer which are directly related to
the administration of lending projects.
2. Premiums for fidelity bonds and policies of property and
liability insurance pertaining to lending projects, and shares of the
premiums of blanket bonds and policies which may be reasonably allocated
to lending projects.
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
state securities.
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 state securities, including the expenses of any trustee, receiver or
other fiduciary.
6. Costs incurred in the collection and any refund of revenues
from a lending project, including the amount of the refund.
(Added to NRS by 1981, 767; A 1999, 1473 )
“Lending project” means
any undertaking which the State is authorized to complete in connection
with loans to municipalities made by the purchase of:
1. Municipal securities validly issued for a purpose related to
natural resources; or
2. Revenue securities validly issued for a purpose related to any
undertaking which a municipality is authorized to complete.
(Added to NRS by 1981, 768; A 1993, 2319)
“Municipal
securities” means notes, warrants, interim debentures, bonds and
temporary bonds validly issued as obligations for a purpose related to
natural resources which are payable:
1. From taxes whether or not additionally secured by any municipal
revenues available therefor;
2. For bonds issued by an irrigation district, from assessments
against real property;
3. For bonds issued by a water authority organized as a political
subdivision created by cooperative agreement, from revenues of the water
system of the water authority or one or more of the water purveyors who
are members of the water authority or any combination thereof; or
4. For bonds issued by a wastewater authority, from revenues of
the water reclamation system of the wastewater authority or one or more
of the municipalities that are members of the wastewater authority, or
any combination thereof.
(Added to NRS by 1981, 768; A 1985, 1901; 1997, 164; 2005, 184
)
“Municipality” means any
county, city, town, wastewater authority, water authority organized as a
political subdivision created by cooperative agreement, school district,
general improvement district or other district, including an irrigation
district.
(Added to NRS by 1981, 768; A 1997, 165; 2005, 184 )
“Purpose related to natural resources” means a purpose necessary,
expedient or advisable for the protection and preservation of any
property or natural resources of the State, or for obtaining the benefits
thereof, including without limitation water projects, sewer projects and
park projects which preserve natural landscape or wildlife habitat or
both.
(Added to NRS by 1981, 768)
“Revenue securities”
means notes, warrants, interim debentures, bonds and temporary bonds
validly issued by a municipality as obligations for a purpose related to
any undertaking which the municipality is authorized to complete and
which are payable from:
1. The revenues of one or more such undertakings;
2. Taxes levied by or on behalf of the municipality for revenues
pledged by the municipality which are not derived from a project; or
3. Any combination of those revenues and taxes.
Ê The term does not include municipal securities or obligations issued
pursuant to the provisions of NRS 244A.669 to 244A.763 , inclusive, 268.512 to 268.568 ,
inclusive, or 315.140 to 315.780 , inclusive.
(Added to NRS by 1993, 2317)
“Revenues
of a lending project” means any money, except the proceeds of taxes
levied by the State, received by the State Treasurer from or in respect
to any lending project, including without limitation:
1. Money derived from any source of revenue connected with a
lending project, including without limitation payments by a municipality
of the principal, interest or redemption premium of any municipal or
revenue security, and any other income derived from the operation or
administration of a lending project or the sale or other disposal of
municipal or revenue securities or other assets acquired in connection
with a lending project;
2. Loans, grants or contributions to the State from the Federal
Government for the payment of the principal, interest and redemption
premiums of state securities;
3. Fees or charges paid by a municipality in connection with a
lending project; and
4. Money derived from the investment and reinvestment of any of
these.
(Added to NRS by 1981, 768; A 1993, 2319)
“State securities” means
notes, warrants, interim debentures, bonds and temporary bonds issued as:
1. General obligations by the State pursuant to this chapter for
any lending project which is for a purpose related to natural resources
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 lending projects; or
2. Limited obligations by the State pursuant to this chapter for
any lending project which is for a purpose related to any undertaking
which a municipality is authorized to complete or for a refunding which
are payable from the revenues of one or more lending projects.
(Added to NRS by 1981, 768; A 1983, 1034; 1993, 2319)
“Tax” means a general (ad valorem)
property tax.
(Added to NRS by 1981, 768)
“Wastewater
authority” means an entity that is created by cooperative agreement
pursuant to chapter 277 of NRS, the functions
of which include sanitation and sewerage, the treatment and disposal of
wastewater, or the development and reclamation of water resources.
(Added to NRS by 2005, 184 )
In order to:
1. Protect and preserve the property and natural resources of the
State, and to obtain the benefits thereof; and
2. Assist municipalities in the acquisition, construction and
equipping of public improvements,
Ê the State Treasurer may make loans to municipalities by purchasing
their municipal securities validly issued for a purpose related to
natural resources or their revenue securities validly issued for a
purpose related to any undertaking which the municipality is authorized
to complete.
(Added to NRS by 1981, 768; A 1993, 2319)
1. The State Treasurer is the Administrator of the Municipal Bond
Bank.
2. In his capacity as Administrator, the State Treasurer may:
(a) Sue and be sued to establish or enforce any right arising out
of a lending project or of any state securities issued pursuant to this
chapter;
(b) Acquire and hold municipal securities and revenue securities,
and exercise all of the rights of holders of those securities;
(c) Sell or otherwise dispose of municipal securities and revenue
securities and assets acquired in connection with those securities,
unless limited by any agreement which relates to those securities;
(d) Make contracts and execute all necessary or convenient
instruments;
(e) Accept grants of money from the Federal Government, the State,
any agency or political subdivision, or any other person;
(f) Adopt regulations relating to lending projects and the
administration of lending projects;
(g) Employ for himself or for any municipality, any necessary
legal, fiscal, engineering and other expert services in connection with
lending projects and with the authorization, sale and issuance of state
securities, municipal securities and revenue securities;
(h) Enter into agreements and arrangements consistent with the
provisions of this chapter with respect to the issuance of state
securities and the purchase of municipal and revenue securities;
(i) Make findings concerning the sufficiency of revenues and taxes
pledged for the payment of revenue securities to repay state securities
which were issued to acquire those revenue securities; and
(j) Undertake other matters which he determines to be necessary or
desirable in accomplishing the purposes of this chapter.
(Added to NRS by 1981, 769; A 1993, 2320)
1. The Board may, at the request of the State Treasurer, to pay
the cost of any lending project, borrow money or otherwise become
obligated, and may provide evidence of those obligations by issuing state
securities.
2. State securities issued to acquire municipal securities may be
outstanding pursuant to this chapter in an aggregate principal amount of
not more than $1.8 billion.
3. State securities issued to:
(a) Acquire municipal securities must be payable from taxes and may
be additionally secured by all or any designated revenues from one or
more lending projects.
(b) Acquire revenue securities must be payable from all or any
designated revenues from one or more lending projects and from allocable
local revenues payable to a municipality.
Ê 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 before May 29, 1981.
4. No state securities may be issued to acquire revenue securities
unless:
(a) The State Treasurer presents to the State Board of Finance
findings which indicate that the revenues and taxes pledged to the
payment of the revenue securities are sufficient to repay the state
securities; and
(b) The State Board of Finance approves the findings.
5. Provisions of the State Securities Law which are not
inconsistent with the provisions of this chapter apply to the issuance of
state securities pursuant to this chapter.
(Added to NRS by 1981, 769; A 1985, 1901; 1989, 180; 1991, 180;
1993, 2320; 1997, 165)
1. Before state securities may be issued pursuant to this chapter
for the purpose of acquiring bonds which are issued by a water authority
organized as a political subdivision created by cooperative agreement
that operates in all or a portion of a county whose population is 400,000
or more:
(a) The water authority must obtain approval for the bonds from the
debt management commission of each county in which any member of the
water authority that is obligated to make payments on the bonds of the
water authority is located; and
(b) The members of the water authority must contract with the water
authority to make payments from the revenues of the members’ water
systems that, in the aggregate, are fully sufficient to pay those bonds
as they become due. If the water revenues of any such member are
insufficient to pay that member’s share of the amount due on the bonds,
the member shall pay the deficiency out of money available for that
purpose in the general fund of the member. If the money in the general
fund of the member is insufficient to pay fully any such deficiency
promptly, the member shall levy a general ad valorem tax on all taxable
property within the member’s boundaries at a rate necessary to produce
revenue in an amount sufficient to pay that member’s share of the
payments due on the bonds.
2. Notwithstanding the provisions of paragraph (a) of subsection
1, the obligations of the members of the water authority to the water
authority and the State of Nevada as a result of the acquisition of bonds
of the water authority pursuant to this chapter do not constitute
indebtedness of the members within the meaning of any constitutional,
charter or statutory limitation or other provisions restricting the
incurrence of any debt.
3. A property tax levied pursuant to this section:
(a) Shall be considered to have been levied for the payment of
bonded indebtedness for the purposes of NRS 361.463 .
(b) Is exempt from the limitations on property taxes contained in
chapter 354 of NRS.
(Added to NRS by 1997, 164; A 2003, 822 )
1. This chapter does not confer upon a municipality authority to
pledge revenues for the payment of revenue securities. Any such authority
must be derived from other law.
2. No state securities may be issued pursuant to this chapter for
the purpose of acquiring revenue securities unless the governing body of
the municipality issuing the revenue securities includes within the
ordinance, resolution or other instrument authorizing the issuance of the
revenue securities a statement authorizing the State Treasurer and any
other appropriate state officer to withhold from any allocable local
revenues to which the municipality is otherwise entitled an amount
necessary and legally available to pay the principal and interest due on
the revenue securities if the municipality fails to pay timely such
principal and interest. The governing body of the municipality shall
provide to the State Treasurer:
(a) A copy of the ordinance, resolution or other instrument
authorizing the issuance of the revenue securities;
(b) A schedule of payments for the revenue securities; and
(c) The name and address of the person from whom payments of
principal and interest on the revenue securities will be received by the
State Treasurer.
3. Payments of principal and interest on revenue securities must
be due not later than 1 working day before the payments of principal and
interest are due on the state securities issued to acquire the revenue
securities. If a payment of the principal or interest on revenue
securities is not received by the State Treasurer by the date on which
the payment is due, the State Treasurer shall immediately notify the
municipality to determine if the payment will be immediately forthcoming.
If the payment will not be immediately forthcoming, the State Treasurer
shall:
(a) Forward the amount necessary to make the payment from any
legally available money in the reserve fund created for that purpose in
the bond bank fund; and
(b) Withhold that amount from the next payment to the municipality
of allocable local revenues legally available therefor. If the amount so
withheld is insufficient to pay the amount due, the State Treasurer may
continue to withhold any amounts necessary from subsequent payments to
the municipality until the amount due is paid.
4. If, after being notified pursuant to this section, a
municipality fails to make a payment of principal or interest on any
revenue securities issued by it, the State Treasurer shall notify the
Department of Taxation and request that action be taken pursuant to the
provisions of NRS 354.685 .
5. The State Controller and the Director of the Department of
Administration shall approve requisitions or transfers required pursuant
to this section and take such other action as is necessary to carry out
the provisions of this section.
(Added to NRS by 1993, 2317; A 1995, 1897)
A pledge of allocable local revenues for the payment
of a revenue security pursuant to the provisions of this chapter does not
cause the revenue security to be a debt of the State.
(Added to NRS by 1995, 389)
1. The Board may, at the request of the State Treasurer, issue
state securities to refund any state securities issued pursuant to this
chapter in the manner prescribed by and subject to the limitations of the
State Securities Law for refunding.
2. No state securities may be issued pursuant to this section
without the concurrence of the municipality which issued the municipal or
revenue securities purchased with the proceeds of the state securities to
be refunded. At or before the time state securities are issued pursuant
to this section, the State Treasurer and the municipality must agree as
to the method of paying any costs incurred, making any cash deposits
required for the refunding escrow, and allocating any savings achieved in
connection with the refunding. Such a method may include an exchange of:
(a) Municipal securities acquired and held by the State Treasurer
pursuant to this chapter for new securities validly issued as general
obligations by the municipality or municipalities.
(b) Revenue securities acquired and held by the State Treasurer
pursuant to this chapter for new securities validly issued by the
municipality or municipalities.
Ê New securities received from a municipality by the State Treasurer must
be held and payments received thereon applied in the same manner as
required by this chapter for the original municipal or revenue securities.
3. The principal amount of state securities which have been
refunded pursuant to this section must not be considered in computing
compliance with the limitation of subsection 2 of NRS 350A.150 , but outstanding state securities issued
pursuant to this section are subject to that limitation.
4. NRS 350A.160 does not apply
to state securities issued pursuant to this section.
(Added to NRS by 1983, 1034; A 1991, 180; 1993, 2321)
The Board shall not become
obligated with respect to a particular lending project unless it has
obtained judicial confirmation, in a proceeding pursuant to chapter 43
of NRS or another proceeding, that the
obligation to be incurred for that project will be exempt from the
State’s debt limit. If an appeal is taken or the confirmation is
otherwise reviewed, the obligation must not be incurred unless the
exemption is affirmed by the court of last resort.
(Added to NRS by 1981, 769; A 1993, 2321)
The Board
shall determine the rate or rates of interest which state securities are
to bear. These securities may be sold at par, above par, or below par at
a discount determined by the Board.
(Added to NRS by 1981, 769)
A municipality may sell its municipal or
revenue securities to the State at a private sale and may pay or obligate
itself to pay to the State fees or charges in connection with any lending
project.
(Added to NRS by 1981, 770; A 1993, 2322)
1. All revenues from lending projects must be deposited in the
Fund for the Municipal Bond Bank in the State Treasury, which is hereby
created as an enterprise fund.
2. Any revenue from lending projects which is in the Fund must be
applied in the following order of priority:
(a) Deposited into the Consolidated Bond Interest and Redemption
Fund created pursuant to NRS 349.090 in amounts necessary to pay the principal of, interest on and
redemption premiums due in connection with state securities issued
pursuant to this chapter.
(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 pursuant to this chapter, in amounts and at
times determined to be necessary.
(c) Paid out for expenses of operation and maintenance.
(d) On July 1 of each odd-numbered year, to the extent of any
uncommitted balance in the Fund, deposited in the State General Fund.
(Added to NRS by 1981, 770; A 1985, 711; 2001, 2751 )
1. The powers conferred by this chapter are in addition to the
powers conferred by any other law.
2. Securities may be issued pursuant to this chapter without
regard to any procedure required by law, other than those set forth in
this chapter or in the State Securities Law.
3. This chapter does not authorize the issuance of securities by
any municipality.
(Added to NRS by 1981, 770)
As the provisions of this
chapter are necessary to secure the public health, safety, convenience
and welfare, the chapter must be construed liberally to put its
provisions into effect.
(Added to NRS by 1981, 770)
