Senate Bill No. 470–Committee on Government Affairs

 

CHAPTER..........

 

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:

 

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

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

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

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

 hereinafter provided.

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

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

 may:

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

 governing body, if any, is conclusive in the absence of fraud or gross

 abuse of discretion.

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

 municipality may go into effect.

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

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

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

 only to break a tie vote . [).]

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

   271.515  1.  Any assessment bonds:

   (a) Must bear such date or dates;

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

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

 years [from] after their date;

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

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

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

 1 year;] payable at such intervals, but not less often than annually;

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

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

 county treasurer; and

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

 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

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

 redeemed,

as provided by ordinance.

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

 to principal, or both principal and interest, and [where interest accruing on

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

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

 generally must be issued in such manner, in such form, with such recitals,

 terms, covenants and conditions, with such provisions for conversion into

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

provided by the governing body in the ordinance or ordinances authorizing

 the bonds, except as herein otherwise provided.

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

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

 determine, may be issued.

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

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

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

 purposes of the Uniform Commercial Code-Negotiable Instruments and

 the Uniform Commercial Code-Investment Securities.

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

 any proceedings authorizing bonds hereunder, may:

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

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

 issue or any portion thereof.

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

 amount of any such bond as it may consider desirable.

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

 otherwise, registrable as to principal, or as to both principal and interest,

 and [where interest accruing thereon is not represented by interest

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

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

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

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

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

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

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

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

 reissuance, 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.

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

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

 officer of the governing body, countersigned by the treasurer of the

 municipality, with the seal of the municipality affixed thereto and attested

 by the clerk.

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

 interest, interest coupons payable to bearer must be attached to the bonds

 and bear the original or facsimile signature of the treasurer.

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

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

 condition precedent to the execution of any coupon with a facsimile

 signature.

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

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

 obligations of the municipality, 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.

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

at the time of its execution and of the execution of a signature certificate,

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

 such coupons.]

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

   271.620  Within 30 days after the maturity of the last installment of any

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

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

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

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

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

 notice , the treasurer shall offer such property for sale to the highest

 bidder. Upon the sale of any property and payment therefor, a deed shall

 be executed to the purchaser in substantially the same manner as herein

 provided for the execution of deeds.

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

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

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

 foreclosure action in the name of the municipality. Any bondholder may

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

 the bondholders under the Consolidated Local Improvements Law, or

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

 method of collecting assessments, or any ordinance required or permitted

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

 for the appointment of a receiver or for the specific performance of any

 provisions contained herein or in such ordinance or in an award of

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

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

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

 aforesaid.

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

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

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

 delinquent assessments, or so to proceed against the municipality, or both,

 shall not relieve the municipality or any of its officers, agents or

 employees of any liability for its failure so to foreclose such delinquent

 assessments.

   Sec. 5.  This act becomes effective upon passage and approval.

 

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