Senate Bill No. 470–Committee on Government Affairs

 

March 22, 2001

____________

 

Referred to Committee on Government Affairs

 

SUMMARY—Makes various changes relating to bonds issued by local government for local improvements. (BDR 21‑1155)

 

FISCAL NOTE:            Effect on Local Government: No.

                                    Effect on the State: No.

 

~

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to local governments; revising the time for payment of interest on assessment bonds issued by local governments for local improvements; removing certain obsolete references; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1    Section 1. NRS 271.475 is hereby amended to read as follows:

1-2    271.475  1.  The governing body shall likewise have power to issue

1-3  negotiable [coupon] bonds in an amount not exceeding the total unpaid

1-4  assessments levied to pay the cost of any project, howsoever acquired, as

1-5  hereinafter provided.

1-6    2.  Any ordinance pertaining to the sale, issuance or payment of bonds

1-7  or other securities of the municipality , [(]or any combination thereof , [)]

1-8  may:

1-9    (a) Be adopted as if an emergency existed. The declaration of the

1-10  governing body, if any, is conclusive in the absence of fraud or gross abuse

1-11  of discretion.

1-12    (b) Become effective at any time when an emergency ordinance of the

1-13  municipality may go into effect.

1-14    (c) Be adopted by not less than two-thirds of all of the voting members

1-15  of the governing body , [(]excluding from any such computation any

1-16  vacancy on the governing body and any member thereon who may vote

1-17  only to break a tie vote . [).]

1-18    Sec. 2.  NRS 271.515 is hereby amended to read as follows:

1-19    271.515  1.  Any assessment bonds:

1-20    (a) Must bear such date or dates;

1-21    (b) Must mature in such denomination or denominations at such time or

1-22  times, but in no event commencing later than 1 year nor exceeding 20 years

1-23  [from] after their date;

2-1    (c) Must bear interest [which may be evidenced by one or two sets of

2-2  coupons, payable annually or semiannually, except that the first coupon or

2-3  coupons on any bond may represent interest for any period not in excess of

2-4  1 year;] payable at such intervals as are determined by the governing

2-5  body;

2-6    (d) Must be payable in such medium of payment at such place or places

2-7  within and without the state, including, but not limited to, the office of the

2-8  county treasurer; and

2-9    (e) At the option of the governing body, may be made subject to prior

2-10  redemption in advance of maturity, in such order or by lot or otherwise,
at such time or times, without or with the payment of a premium or

2-11  premiums not exceeding 9 percent of the principal amount of each bond so

2-12  redeemed,

2-13  as provided by ordinance.

2-14    2.  Bonds may be issued with privileges for registration for payment as

2-15  to principal, or both principal and interest, and [where interest accruing on

2-16  the bonds is not represented by interest coupons,] the bonds may provide

2-17  for the endorsing of payments of interest thereon . [; and the] The bonds

2-18  generally must be issued in such manner, in such form, with such recitals,

2-19  terms, covenants and conditions, with such provisions for conversion into

2-20  bonds of other denominations, and with such other details, as may be

2-21  provided by the governing body in the ordinance or ordinances authorizing

2-22  the bonds, except as herein otherwise provided.

2-23    3.  Pending preparations of the definitive bonds, interim or temporary

2-24  bonds, in such form and with such provisions as the governing body may

2-25  determine, may be issued.

2-26    4.  Except for payment provisions herein expressly provided, the bonds

2-27  [, any interest coupons thereto attached,] and such interim or temporary

2-28  bonds must be fully negotiable within the meaning of and for all the

2-29  purposes of the Uniform Commercial Code-Negotiable Instruments and the

2-30  Uniform Commercial Code-Investment Securities.

2-31    5.  Notwithstanding any other provisions of law, the governing body, in

2-32  any proceedings authorizing bonds hereunder, may:

2-33    (a) Provide for the initial issuance of one or more bonds , [(]in this

2-34  subsection [5] called “bond ,” [”)] aggregating the amount of the entire

2-35  issue or any portion thereof.

2-36    (b) Make such provision for installment payments of the principal

2-37  amount of any such bond as it may consider desirable.

2-38    (c) Provide for the making of any such bond payable to bearer or

2-39  otherwise, registrable as to principal, or as to both principal and interest,

2-40  and [where interest accruing thereon is not represented by interest

2-41  coupons,] for the endorsing of payments of interest on such bond.

2-42    (d) Make provision in any such proceedings for the manner and

2-43  circumstances in and under which any such bond may in the future, at the

2-44  request of the holder thereof, be converted into bonds of larger or smaller

2-45  denominations . [, which bonds of larger or smaller denominations may in

2-46  turn be either coupon bonds or bonds registrable as to principal, or both

2-47  principal and interest, or either, at the option of the holder.]

3-1    6.  Any bonds may be issued hereunder with provisions for their

3-2  reissuance, and the terms and conditions thereof, whether lost, apparently

3-3  destroyed, wrongfully taken, or for any other reason, as provided in the

3-4  Uniform Commercial Code-Investment Securities, or otherwise.

3-5    7.  Any bond must be executed in the name of and on behalf of the

3-6  municipality and signed by the mayor, chairman[,] or other presiding

3-7  officer of the governing body, countersigned by the treasurer of the

3-8  municipality, with the seal of the municipality affixed thereto and attested

3-9  by the clerk.

3-10    8.  [Except for such bonds which are registrable for payment of

3-11  interest, interest coupons payable to bearer must be attached to the bonds

3-12  and bear the original or facsimile signature of the treasurer.

3-13    9.] Any bond may be executed as provided in the Uniform Facsimile

3-14  Signatures of Public Officials Act. [Compliance therewith is not a

3-15  condition precedent to the execution of any coupon with a facsimile

3-16  signature.

3-17    10.] 9. The bonds [and coupons,] bearing the signatures of the officers

3-18  in office at the time of the signing thereof[,] are the valid and binding

3-19  obligations of the municipality, notwithstanding that before the delivery

3-20  thereof and payment therefor, any or all of the persons whose signatures

3-21  appear thereon have ceased to fill their respective offices.

3-22    [11.] 10. Any officer herein authorized or permitted to sign any bond,

3-23  at the time of its execution and of the execution of a signature certificate,

3-24  may adopt as and for his own facsimile signature the facsimile signature of

3-25  his predecessor in office in the event that such facsimile signature appears

3-26  upon the bond . [or coupons pertaining thereto, or upon both the bond and

3-27  such coupons.]

3-28    Sec. 3.  NRS 271.620 is hereby amended to read as follows:

3-29    271.620  Within 30 days after the maturity of the last installment of any

3-30  issue of bonds for the local improvement district, if any such bonds [or

3-31  interest coupons] remain unpaid, any property remaining unsold, to which

3-32  the municipality has taken title or on which it holds a certificate of sale,

3-33  [shall] must be offered for sale by giving notice of the time and place of

3-34  sale by publication and by mail. At the time and place designated in the

3-35  notice , the treasurer shall offer such property for sale to the highest bidder.

3-36  Upon the sale of any property and payment therefor, a deed shall be

3-37  executed to the purchaser in substantially the same manner as herein

3-38  provided for the execution of deeds.

3-39    Sec. 4.  NRS 271.630 is hereby amended to read as follows:

3-40    271.630  1.  If any assessment or installment thereof is not promptly

3-41  collected or enforced, then any bondholder may file and prosecute a

3-42  foreclosure action in the name of the municipality. Any bondholder may

3-43  also proceed against such municipality to protect and enforce the rights of

3-44  the bondholders under the Consolidated Local Improvements Law, or

3-45  under any charter adopting the provisions hereof or referring hereto for a

3-46  method of collecting assessments, or any ordinance required or permitted

3-47  thereunder, by suit, action or special proceedings in equity or at law, either

3-48  for the appointment of a receiver or for the specific performance of any

3-49  provisions contained herein or in such ordinance or in an award of

4-1  execution of any power granted herein or in such ordinance for the

4-2  enforcement of any proper, legal or equitable remedy as such bondholder

4-3  or bondholders may deem most effectual to protect and enforce the rights

4-4  aforesaid.

4-5    2.  All such proceedings at law or in equity shall be instituted, had and

4-6  maintained for the equal benefit of all holders of the bonds [and coupons]

4-7  then outstanding. The failure of the bondholders so to foreclose such

4-8  delinquent assessments, or so to proceed against the municipality, or both,

4-9  shall not relieve the municipality or any of its officers, agents or employees

4-10  of any liability for its failure so to foreclose such delinquent assessments.

4-11    Sec. 5.  This act becomes effective upon passage and approval.

 

4-12  H