[Rev. 2/10/2015 5:04:36
PM--2014R2]
CHAPTER 350 - MUNICIPAL OBLIGATIONS
GENERAL PROVISIONS
NRS 350.0015 Definitions.
NRS 350.0045 “General
obligation debt” defined.
NRS 350.0055 “Installment-purchase
agreement” defined.
NRS 350.0065 “Local
government” defined.
NRS 350.007 “Medium-term
obligation” defined.
NRS 350.0075 “Special
obligation” defined.
NRS 350.008 Term
of installment-purchase agreement.
NRS 350.009 Regulations.
DEBT MANAGEMENT COMMISSION
NRS 350.011 Definitions.
NRS 350.0115 Creation;
composition; selection and terms of members; interest in securities issued by
State or political subdivision prohibited; vacancies.
NRS 350.012 Meetings;
officers; removal of member; quorum; compensation.
NRS 350.0125 Technical
assistance provided by Department of Taxation or board of county commissioners
to carry out duties of commission.
NRS 350.013 Municipalities
to submit annually statement of current and contemplated general obligation
debt and special elective taxes, statement of debt management policy, plan for
capital improvement or alternate statement and certain information regarding
chief financial officer; update of information; exceptions.
NRS 350.0135 Proposal
resulting in increase of rate of property taxes: Determination and notification
of affected governmental entities by municipality; approval or objection by
affected governmental entity; notification of commission of objection;
resolution of conflict by commission; establishment of related methods and
procedures by commission; exception.
NRS 350.014 Approval
or notification of commission required for certain proposals.
NRS 350.0145 Notice
and submission of statement of certain proposals to commission; procedure for
approval or disapproval.
NRS 350.015 Criteria
for approval or disapproval of certain proposals; requests for information; use
of money received from sale of general obligation debt or from special elective
tax.
NRS 350.0155 Commission
to specify percentage of limitation on total ad valorem tax levy and establish
priorities among essential and nonessential facilities and services for
purposes of NRS 350.015.
NRS 350.016 Evaluation
of proposal: Power of commission to employ consultants; costs.
NRS 350.0165 Applicability
of NRS 350.011 to 350.0165,
inclusive.
PROPOSALS TO ISSUE OBLIGATIONS
NRS 350.020 Submission
to electors of proposal to issue general obligations; restrictions on special
elections; issuance of general obligations secured by pledge of revenues and
issuance of special or medium-term obligations without election; issuance of
certain general obligation bonds by board of trustees of school district.
NRS 350.0205 Committee
on Local Government Finance to provide forms for submitting ballot question and
examples of past ballot questions for issuance or incurrence of general
obligations.
NRS 350.021 Proposal
may be combined on ballot with proposal to levy tax ad valorem for related
purpose.
NRS 350.022 Notice
of election on proposal to issue general obligations: Publication.
NRS 350.024 Sample
ballot and notice of election on proposal to issue general obligations:
Contents; consolidation of election with general, primary or municipal
election; publication of notice of close of registration for special election.
NRS 350.027 Sample
ballot to contain estimate of annual cost to operate, maintain and repair
improvements.
NRS 350.030 Election
on proposal to issue general obligations: Expenses; ballots; validity of
proposal; applicability of general election laws.
NRS 350.070 Approval
or disapproval by electors of proposal to issue general obligations: Procedure;
validity of result.
MEDIUM-TERM OBLIGATIONS
NRS 350.087 Resolution
authorizing medium-term obligation or installment-purchase agreement: Adoption;
contents; notice.
NRS 350.089 Approval
of resolution for medium-term obligation or installment-purchase agreement by
Executive Director of Department of Taxation; appeal to Nevada Tax Commission.
NRS 350.091 Governing
body to update plan for capital improvement under certain circumstances;
issuance and terms of evidence of medium-term obligation or
installment-purchase agreement; regulations; applicability of prevailing wage
requirements to certain lease-purchase or installment-purchase agreements.
NRS 350.093 Limitations
on transfer of money for medium-term obligation; refund of transfer.
NRS 350.095 Levy
of special tax; transfer of money remaining in fund.
SALE OF BONDS BY COMPETITIVE BID OR NEGOTIATED SALE
NRS 350.105 Definitions.
NRS 350.115 “Bond”
defined.
NRS 350.125 “Competitive
bid” defined.
NRS 350.135 “Financial
adviser” defined.
NRS 350.145 “Negotiated
sale” defined.
NRS 350.155 Sale
by competitive bid: Requirements; exceptions; contents of certificate required
for certain bonds; filing and approval of certificate; publication of
invitation for competitive bids.
NRS 350.165 Delegation
of authority to sign contract to purchase or accept binding bid for bonds;
approval of certain terms by governing body required.
NRS 350.175 Negotiated
sale: Notice of request for proposals; description of procedure for request for
proposals in debt management policy; time limitation on sale of bonds after
selection of underwriter.
NRS 350.185 Negotiated
sale: Procedure for selection of proposal for sale of bonds; certification of
procedure.
NRS 350.195 Financial
adviser: Prohibited acts.
INTEREST RATES; DISCOUNTS; LIMITATION ON ISSUANCE OR SALE
NRS 350.201 Definitions.
NRS 350.2011 Maximum
rate of interest on securities of political subdivisions.
NRS 350.2012 Discounts.
NRS 350.2013 Issuance
or sale more than 6 years after date of election prohibited; exception.
COUNTY DEBT SERVICE FUND
NRS 350.202 County
ordinance may provide for service of bonded indebtedness for general
obligations through single debt service fund; consolidated levy of taxes.
NRS 350.204 Merger
of sinking and other debt service funds into single fund.
NRS 350.206 Sufficiency
of levy of taxes.
NRS 350.208 Obligation
of bond not impaired.
WATER AND SEWER REVENUE BOND LAW
NRS 350.350 Short
title.
NRS 350.360 Definitions.
NRS 350.370 Additional
powers of municipality under NRS 350.350 to 350.490, inclusive.
NRS 350.373 Supplemental
powers of municipality to prescribe, revise and collect charges; expenses of
collection.
NRS 350.375 Use
of revenues derived from undertaking of municipality.
NRS 350.380 Undertaking
and issuance of bonds: Procedure.
NRS 350.400 Sale
of bonds.
NRS 350.490 Powers
conferred in NRS 350.350 to 350.490,
inclusive, additional and supplemental; controlling provisions.
VIOLATION OF BOND COVENANTS
NRS 350.495 Willful
violation of covenant in securities by member of governing body, officer or
agent of municipality unlawful; penalty.
LOCAL GOVERNMENT SECURITIES LAW
NRS 350.500 Short
title.
NRS 350.502 Purpose;
supplemental nature.
NRS 350.504 Definitions.
NRS 350.506 “Acquisition”
and “acquire” defined.
NRS 350.508 “Chair”
and “chair of the municipality” defined.
NRS 350.510 “Clerk”
defined.
NRS 350.512 “Commercial
bank” defined.
NRS 350.514 “Condemnation”
and “condemn” defined.
NRS 350.516 “Cost
of any project” defined.
NRS 350.517 “Disposal”
and “dispose” defined.
NRS 350.5175 “Equip”
and “equipment” defined.
NRS 350.518 “Facilities”
defined.
NRS 350.520 “Federal
Government” defined.
NRS 350.522 “Federal
securities” defined.
NRS 350.524 “Governing
body” defined.
NRS 350.526 “Gross
revenues” and “gross pledged revenues” defined.
NRS 350.528 “Hereby,”
“herein,” “hereinabove,” “hereinafter,” “hereinbefore,” “hereof,” “hereto,”
“hereunder,” “heretofore” and “hereafter” defined.
NRS 350.530 “Holder”
defined.
NRS 350.532 “Improvement”
and “improve” defined.
NRS 350.534 “Municipal”
defined.
NRS 350.536 “Municipal
securities” and “securities” defined.
NRS 350.538 “Municipality”
defined.
NRS 350.540 “Net
revenues” and “net pledged revenues” defined.
NRS 350.542 “Operation
and maintenance expenses” defined.
NRS 350.544 “Operation
and maintenance expenses” limited.
NRS 350.546 “Ordinance”
defined.
NRS 350.550 “Pledged
revenues” defined.
NRS 350.552 “Project”
defined.
NRS 350.554 “Public
body” defined.
NRS 350.556 “State”
defined.
NRS 350.558 “Taxation”
defined.
NRS 350.560 “Taxes”
defined.
NRS 350.562 “Treasurer”
defined.
NRS 350.564 “Trust
bank” defined.
NRS 350.566 “United
States” defined.
NRS 350.568 Powers
of municipality in connection with projects.
NRS 350.569 Power
of eminent domain; reimbursement of public utility for removal and relocation.
NRS 350.570 Power
of municipality to become obligated and issue securities for project.
NRS 350.572 Types
of securities which may be issued; series.
NRS 350.573 Sale
of right to call for purchase of securities.
NRS 350.574 Notes
and warrants: Maturity; extension or funding.
NRS 350.575 Resolution
to finance preservation or restoration of historic structure; approval of
Executive Director of Department of Taxation; appeal to Nevada Tax Commission.
NRS 350.5755 Issuance
of negotiable notes or bonds to finance restoration of historic structure;
maturity; interest.
NRS 350.576 Temporary
bonds: Conditions, terms and provisions; holder’s rights and remedies.
NRS 350.578 Ordinance
authorizing issuance of securities: Description of purposes.
NRS 350.579 Emergency
ordinances: Adoption; effective date.
NRS 350.580 General
obligations: Types of securities.
NRS 350.582 Special
obligations: Types of securities.
NRS 350.583 Variable
rates of interest for securities; agreement with third party for assurance of
payment for securities; reimbursement for advances made pursuant to agreement;
issuance of securities as commercial paper.
NRS 350.5835 Variable
rates of interest: Exemption from limitations; conclusive findings of governing
body that procedure for determination of rates is reasonable.
NRS 350.584 Municipal
securities payable from gross revenues: Covenant requiring appropriations to
pay operation and maintenance expenses.
NRS 350.586 Securities
issued as general obligations constitute outstanding indebtedness.
NRS 350.588 Securities
issued as special obligations do not constitute outstanding indebtedness.
NRS 350.590 Recitals
required in municipal securities.
NRS 350.592 Annual
levy of special tax to pay interest on and retire securities issued as general
obligations; proceeds of tax kept in two special funds; consolidated debt
service fund.
NRS 350.594 Time
and duration of levy of special tax.
NRS 350.596 Payment
from general fund when taxes insufficient to pay amount due on securities
issued as general obligations; reimbursement of general fund.
NRS 350.598 Application
of other available money to payment of interest on and principal of securities
issued as general obligations.
NRS 350.602 Proceeds
of taxes specially appropriated to payment of principal and interest.
NRS 350.604 Payment
of municipal securities not to be secured by encumbrance, mortgage or pledge of
municipality’s property; exception.
NRS 350.606 Recourse
against officers and agents of municipality: Acceptance of securities
constitutes waiver and release.
NRS 350.608 Covenants
in ordinance authorizing issuance of special obligations impose no liability
against municipality or its general credit.
NRS 350.610 Faith
of State pledged against repeal, amendment or modification of Local Government
Securities Law.
NRS 350.614 Details
of municipal securities provided by ordinance.
NRS 350.616 Sale
or issuance of municipal securities.
NRS 350.628 Recital
in securities conclusive evidence of validity and regularity of issuance.
NRS 350.630 Denomination,
negotiability and maturity of municipal securities; rate of interest.
NRS 350.632 Payment
of principal, interest and premium when due without further order.
NRS 350.634 Interest
coupons.
NRS 350.636 Execution,
signing and authentication of municipal securities and coupons.
NRS 350.638 Facsimile
signatures and seals.
NRS 350.640 Securities
not invalid because signatories cease to fill offices.
NRS 350.642 Adoption
of facsimile signature of predecessor in office.
NRS 350.644 Redemption
before maturity.
NRS 350.646 Repurchase
of municipal securities.
NRS 350.648 Use
of money received from issuance of municipal securities.
NRS 350.650 Disposition
of unexpended balance of proceeds after completion of project.
NRS 350.652 Validity
of securities not dependent on proceedings relating to project or completion of
purpose; purchasers not responsible for application of proceeds.
NRS 350.654 Special
funds and accounts: Creation; purposes.
NRS 350.656 Employment
of legal and other expert services; contracts for sale and other purposes.
NRS 350.658 Investment
and reinvestment of revenues and proceeds of taxes and securities in federal
securities and certain money market mutual funds.
NRS 350.659 Investment
and reinvestment of revenues and proceeds of taxes and certain securities in
investment contract collateralized with federal securities by governing body in
county whose population is 20,000 or more.
NRS 350.660 Covenants
and other provisions in municipal securities.
NRS 350.662 Pledged
revenues received or credited subject to immediate lien; priority and validity
of lien.
NRS 350.664 Rights
and powers of holders of municipal securities and trustees.
NRS 350.666 Receivers:
Appointment; powers and duties.
NRS 350.668 Rights
and remedies cumulative.
NRS 350.670 Failure
of holder to proceed does not relieve municipality, governing body and
officers, agents and employees of municipality of liability for nonperformance
of duties.
NRS 350.672 Interim
debentures: Issuance for general or special obligations.
NRS 350.674 Issuance
of municipal securities constituting debt to fund or refund special obligations
not constituting indebtedness: Conditions; restrictions.
NRS 350.676 Interim
debentures: Maturity; use of proceeds; issuance.
NRS 350.678 Interim
debentures: Security for payment.
NRS 350.680 Interim
debentures: Extension and funding.
NRS 350.682 Interim
debentures: Funding by reissuance of bonds pledged as collateral security;
issuance of other bonds.
NRS 350.684 Refunding
of general and special obligation bonds: Ordinance; trust indenture.
NRS 350.686 Calls
for prior redemption: Limitations.
NRS 350.688 Exchange
of outstanding securities held by State or its agencies for funding or
refunding.
NRS 350.690 Refunding
of outstanding securities evidencing long-term loans.
NRS 350.692 Refunding
bonds: Sale or exchange for outstanding bonds; exchange for federal securities.
NRS 350.694 Conditions
for refunding bonds.
NRS 350.696 Refunding
bonds: Disposition of proceeds, accrued interest and premium; costs; escrow;
trusts.
NRS 350.698 Proceeds
of refunding bonds in escrow or trust: Investment; security; sufficient amount;
purchaser not responsible for application of proceeds.
NRS 350.700 Refunding
bonds payable from taxes or pledged revenues.
NRS 350.702 Issuance
of bonds separately or in combination.
NRS 350.704 Bonds
of abolished municipalities may be refunded.
NRS 350.706 Other
statutory provisions applicable to refunding bonds.
NRS 350.708 Conclusive
determination of governing body that statutory limitations have been met.
NRS 350.710 Bonds
and other securities exempt from taxation; exception.
NRS 350.712 Securities
issued as general obligations are legal investments for state money.
NRS 350.714 Legal
investments for other persons.
NRS 350.718 Sufficiency
of Local Government Securities Law.
NRS 350.720 Liberal
construction.
MISCELLANEOUS PROVISIONS
NRS 350.800 Transactions
whereby municipality acquires property and another person acquires or retains
security interest in that or other property.
NRS 350.810 Purchase
of municipal obligations by financial adviser of municipality limited.
NRS 350.820 Agreements
for exchange of interest rates.
_________
GENERAL PROVISIONS
NRS 350.0015 Definitions. As
used in this chapter, unless the context otherwise requires, the words and
terms defined in NRS 350.0045 to 350.0075, inclusive, have the meanings ascribed to
them in those sections.
(Added to NRS by 2001, 2303)
NRS 350.0045 “General obligation debt” defined. “General
obligation debt” means debt that is legally payable from general revenues, as a
primary or secondary source of repayment, and is backed by the full faith and
credit of a governmental entity, and if the governmental entity is authorized
to levy taxes, by those taxes. The term includes, without limitation, debt
represented by local government securities issued pursuant to this chapter and
installment-purchase agreements described in subsection 1 of NRS 350.0055. The term does not include, without
limitation:
1. Installment-purchase agreements
described in subsection 2 of NRS 350.0055;
2. Special obligations; and
3. Obligations with a term of less than 1
year that are payable in full from money appropriated for the same fiscal year
in which the obligations are incurred.
(Added to NRS by 2001, 2303)
NRS 350.0055 “Installment-purchase agreement” defined. “Installment-purchase agreement” means an
agreement for the purchase of real or personal property by installment or lease
or another transaction that is described in NRS 350.800
which:
1. Is required to be counted against any
limit upon the debt of a local government pursuant to subsection 1 of NRS 350.800; or
2. Is not required to be counted against
any limit upon the debt of a local government and:
(a) Exceeds $100,000 for a local government in a
county whose population is 100,000 or more; or
(b) Exceeds $50,000 for a local government in a
county whose population is less than 100,000.
Ê The term
“installment-purchase agreement” does not include an obligation to pay rent
pursuant to a lease which contains no option or right to purchase or which
contains only an option or right to purchase the property without any credit
towards the purchase price for lease or rental payments.
(Added to NRS by 2001, 2303)
NRS 350.0065 “Local government” defined. “Local
government” has the meaning ascribed to it in NRS 354.474.
(Added to NRS by 2001, 2304)
NRS 350.007 “Medium-term obligation” defined. “Medium-term
obligation” means an obligation to repay borrowed money evidenced by a note or
bond which is authorized to be issued pursuant to NRS
350.087 to 350.095, inclusive, and which has a
term of 10 years or less. The term does not include an obligation which has a
term of less than 1 year and which is payable in full from money appropriated
for the same fiscal year that the obligation is incurred.
(Added to NRS by 2001, 2304)
NRS 350.0075 “Special obligation” defined. “Special
obligation” means a municipal security issued pursuant to NRS 350.582.
(Added to NRS by 2001, 2304)
NRS 350.008 Term of installment-purchase agreement. For
the purposes of this chapter, the term of an installment-purchase agreement
must be determined as the period from the date the agreement is entered into by
a local government to the date that the purchase price will be paid in full and
must include the term of the original agreement and the term of any renewal,
including, without limitation, an optional renewal, of the agreement.
(Added to NRS by 2001, 2304)
NRS 350.009 Regulations.
1. The Committee on Local Government
Finance may adopt such regulations as are necessary for the administration of
this chapter.
2. Any regulations adopted by the
Committee on Local Government Finance must be adopted in the manner prescribed
for state agencies in chapter 233B of NRS.
(Added to NRS by 2001, 2304)
DEBT MANAGEMENT COMMISSION
NRS 350.011 Definitions. As
used in NRS 350.011 to 350.0165,
inclusive, unless the context otherwise requires:
1. “Commission” means a debt management
commission created pursuant to NRS 350.0115.
2. “Special elective tax” means a tax
imposed pursuant to NRS 354.59817, 354.5982, 387.197, 387.3285 or 387.3287.
(Added to NRS by 1965, 1433; A 1993, 2655; 1995, 369, 765, 774, 1811; 1997, 550; 1999, 275, 2541; 2001, 880, 2304)
NRS 350.0115 Creation; composition; selection and terms of members; interest
in securities issued by State or political subdivision prohibited; vacancies.
1. There is hereby created in each county
whose population is 700,000 or more a debt management commission, to be
composed of:
(a) Three representatives of the board of county
commissioners from its membership;
(b) One representative of each governing body of
the five largest incorporated cities in the county from its membership;
(c) One representative of the board of trustees
of the county school district from its membership; and
(d) Two representatives of the public at large.
2. There is hereby created in each county
whose population is less than 700,000 a debt management commission, to be
composed of one representative of the county, one representative of the school
district and the following additional representatives:
(a) In each such county which contains more than
one incorporated city:
(1) One representative of the city in
which the county seat is located;
(2) One representative of the other
incorporated cities jointly; and
(3) One representative of the public at
large.
(b) In each such county which contains one
incorporated city:
(1) One representative of the incorporated
city; and
(2) Two representatives of the public at
large.
(c) In each such county which contains no
incorporated city, one representative of the public at large.
(d) In each such county which contains one or
more general improvement districts, one representative of the district or
districts jointly and one additional representative of the public at large.
3. In Carson City, there is hereby created
a debt management commission, to be composed of one representative of the Board
of Supervisors, one representative of the school district and three
representatives of the public at large. The representative of the Board of
Supervisors and the representative of the school district shall select the
representatives of the public at large and, for that purpose only, constitute a
quorum of the debt management commission. Members of the commission serve for a
term of 2 years beginning on January 1, or until their successors are chosen.
4. Except as otherwise provided in
subsection 1, each representative of a single local government must be chosen
by its governing body. Each representative of two or more local governments
must be chosen by their governing bodies jointly, each governing body having
one vote. Each representative of the general improvement districts must be
chosen by their governing bodies jointly, each governing body having one vote.
Each representative of the public at large must be chosen by the other members
of the commission from residents of the county, or Carson City, as the case may
be, who have a knowledge of its financial structure. A tie vote must be
resolved by lot.
5. A person appointed as a member of the
commission in a county whose population is 100,000 or more who is not an
elected officer or a person appointed to an elective office for an unexpired
term must have at least 5 years of experience in the field of public
administration, public accounting or banking.
6. A person appointed as a member of the
commission shall not have a substantial financial interest in the ownership or
negotiation of securities issued by this State or any of its political
subdivisions.
7. Except as otherwise provided in this
subsection, members of the commission or their successors must be chosen in
January of each odd-numbered year and hold office for a term of 2 years
beginning January 1. The representatives of incorporated cities must be chosen
after elections are held in the cities, but before the annual meeting of the
commission in August. The term of a representative who serves pursuant to
paragraph (a), (b) or (c) of subsection 1 is coterminous with the term of his
or her elected office, unless the public entity that appointed the
representative revokes his or her appointment.
8. Any vacancy must be filled in the same
manner as the original choice was made for the remainder of the unexpired term.
(Added to NRS by 1965, 1433; A 1969, 332; 1971, 222,
943; 1977, 537;
1987, 1719;
1993, 2239;
1995, 765; 1999, 2528, 2541; 2001, 188, 1978; 2005, 123; 2011, 1215)
NRS 350.012 Meetings; officers; removal of member; quorum; compensation.
1. The commission shall meet during the
month of February of each year to organize by selecting a chair and vice chair.
In a county whose population is 700,000 or more, the chair must be one of the
representatives of the board of county commissioners. The county clerk is ex
officio the secretary of the commission.
2. In addition to the organizational
meeting, each commission shall meet annually in August of each year and at the
call of the chair whenever business is presented, as provided in NRS 350.014 and 350.0145.
3. In conjunction with the meetings
required by subsections 1 and 2, the commission in a county whose population:
(a) Is 100,000 or more but less than 700,000,
shall meet each calendar quarter.
(b) Is 700,000 or more, shall meet each month.
Ê The meetings
required by this subsection must be scheduled at each annual meeting in August.
4. The appointing authority may remove a
member of a commission in a county whose population:
(a) Is 700,000 or more if the member fails to
attend three consecutive meetings or five meetings during a calendar year.
(b) Is 100,000 or more but less than 700,000 if
the member fails to attend two consecutive meetings or three meetings during a
calendar year.
(c) Is less than 100,000 if the member fails to
attend at least one meeting during a calendar year.
5. Except as otherwise provided in
subsection 3 of NRS 350.0115, a majority of the
members constitutes a quorum for all purposes.
6. The governing body of the county may
provide for the payment to members of the commission who serve as
representatives of the public at large:
(a) Compensation of not more than $40, as fixed
by the governing body, for each day or portion of a day of attendance at a
meeting of the commission, not to exceed $400 paid to each such member per
month.
(b) While engaged in the business of the
commission, the per diem allowance and travel expenses generally provided for
officers and employees of the county, if any.
(Added to NRS by 1965, 1433; A 1971, 943; 1977, 537; 1995, 766; 1999, 2529, 2542; 2001, 187; 2005, 125; 2011, 1217)
NRS 350.0125 Technical assistance provided by Department of Taxation or board
of county commissioners to carry out duties of commission.
1. The commission in a county whose
population is less than 47,500 may request technical assistance from the
Department of Taxation to carry out the duties of the commission. Upon such a
request, the Department of Taxation shall provide to that commission such
technical assistance to the extent that resources are available.
2. The board of county commissioners of a
county whose population is 47,500 or more shall provide the commission in that
county with such staff as is necessary to carry out the duties of the
commission. The staff provided to the commission pursuant to this subsection
shall provide such technical assistance to the commission as the commission
requires, except the staff shall not render an opinion on the merits of any
proposal or other matter before the commission.
(Added to NRS by 1999, 2541; A 2001, 1979; 2011, 1217)
NRS 350.013 Municipalities to submit annually statement of current and
contemplated general obligation debt and special elective taxes, statement of
debt management policy, plan for capital improvement or alternate statement and
certain information regarding chief financial officer; update of information;
exceptions.
1. Except as otherwise provided in this
section, on or before August 1 of each year, the governing body of a
municipality which proposes to issue or has outstanding any general obligation
debt, other general obligations or special obligations, or which levies or
proposes to levy any special elective tax, shall submit to the Department of
Taxation and the commission:
(a) A complete statement of current general
obligation debt and special elective taxes, and a report of current debt and
special assessments and retirement schedules, in the detail and form
established by the Committee on Local Government Finance.
(b) A complete statement, in the detail and form
established by the Committee on Local Government Finance, of general obligation
debt and special elective taxes contemplated to be submitted to the commission
during the fiscal year.
(c) A written statement of the debt management
policy of the municipality, which must include, without limitation:
(1) A discussion of its ability to afford
existing general obligation debt, authorized future general obligation debt and
proposed future general obligation debt;
(2) A discussion of its capacity to incur
authorized and proposed future general obligation debt without exceeding the
applicable debt limit;
(3) A discussion of its general obligation
debt that is payable from property taxes per capita as compared with such debt
of other municipalities in this State;
(4) A discussion of its general obligation
debt that is payable from property taxes as a percentage of assessed valuation
of all taxable property within the boundaries of the municipality;
(5) Policy regarding the manner in which
the municipality expects to sell its debt;
(6) A discussion of its sources of money
projected to be available to pay existing general obligation debt, authorized
future general obligation debt and proposed future general obligation debt; and
(7) A discussion of its operational costs
and revenue sources, for the ensuing 5 fiscal years, associated with each
project included in its plan for capital improvement submitted pursuant to
paragraph (d), if those costs and revenues are expected to affect the property
tax rate.
(d) Either:
(1) Its plan for capital improvement for
the ensuing 5 fiscal years, which must include any contemplated issuance of
general obligation debt during this period and the sources of money projected
to be available to pay the debt; or
(2) A statement indicating that no changes
are contemplated in its plan for capital improvement for the ensuing 5 fiscal
years.
(e) A statement containing the name, title,
mailing address and telephone number of the chief financial officer of the
municipality.
2. The governing body of a municipality may
combine a statement or plan required by subsection 1 with the corresponding
statement or plan of another municipality if both municipalities have the same
governing body or the governing bodies of both municipalities agree to such a
combination.
3. Except as otherwise provided in
subsection 4, the governing body of each municipality shall update all
statements and plans required by subsection 1 not less frequently than once
each fiscal year.
4. In a county whose population is 100,000
or more, the governing body of each municipality shall update all statements
and plans required by subsection 1 not less often than once each fiscal year
and not more often than twice each fiscal year, except that a municipality may
update a statement or plan required by subsection 1 more often than twice each
fiscal year:
(a) If the governing body determines, by a
two-thirds vote, that an emergency requires that a statement or plan be
updated;
(b) To include an item related to:
(1) An installment purchase that does not
count against a debt limit; or
(2) An obligation for which no additional
property tax is expected;
(c) To update the purpose of a special elective
tax without changing the rate of the special elective tax; or
(d) To comply with the requirements of subsection
5 of NRS 268.625 or subsection 1 of NRS 350.091.
5. The provisions of this section do not
apply to the Reno-Tahoe Airport Authority so long as the Authority does not
have any general obligation bonds outstanding and does not issue or propose to
issue any such bonds. At least 30 days before each annual meeting of the
commission, the Authority shall submit to the Department of Taxation a written
statement regarding whether the Authority is planning to propose to issue any
general obligation bonds before the next following annual meeting of the
commission.
(Added to NRS by 1971, 942; A 1977, 538; 1993, 2656; 1995, 147, 308, 766; 2001, 880, 2304; 2005, 125)
NRS 350.0135 Proposal resulting in increase of rate of property taxes:
Determination and notification of affected governmental entities by
municipality; approval or objection by affected governmental entity; notification
of commission of objection; resolution of conflict by commission; establishment
of related methods and procedures by commission; exception.
1. Before a municipality may submit to the
commission a proposal that will result in an increase in the rate of property
taxes, the municipality shall:
(a) Determine whether there is an affected
governmental entity; and
(b) If there is an affected governmental entity,
provide written notification to the affected governmental entity.
2. A notification sent pursuant to
subsection 1 must include, without limitation, a description of:
(a) The proposal and the estimated amount the
proposal would increase property taxes; and
(b) The potential effect of the increase on the
entity.
3. The governing body of an entity that
receives a notification pursuant to subsection 1 shall, by resolution, approve
or object to the proposal described in the notice. If the entity approves the
proposal, the entity must state in the resolution approving the proposal that
the entity has no intent to levy property taxes which, if combined with the
increase proposed in the proposal, would cause the combined property tax rate
for the area containing the municipality and the entity to exceed the
limitation on property taxes set forth in NRS
361.453.
4. If an entity objects to a proposal
pursuant to subsection 3, the municipality which provided notice pursuant to
subsection 1 shall provide the commission with notification in writing of the
objection and the entity’s reasons for objecting when submitting the proposal
to the commission pursuant to NRS 350.014.
5. If the commission receives a proposal
to which an objection has been raised pursuant to subsection 3, the commission
shall resolve any conflict between the municipality and the entity over the use
of the remaining allowable increase in property taxes and determine whether to
approve, in whole or in part, or reject the increase in property taxes set
forth in the proposal.
6. In resolving a conflict pursuant to
subsection 5, the commission may impose:
(a) A condition or provision described in
subsection 2 of NRS 350.0145; and
(b) A condition that:
(1) The amount of the general obligation
debt proposed to be imposed must be reduced;
(2) The rate of the special elective tax
must be reduced; or
(3) Both subparagraphs (1) and (2).
7. The commission may establish:
(a) A method for resolving conflicts over the
unlevied amount of property taxes that may be levied pursuant to NRS 354.59811;
(b) A method for determining the highest and best
use of the unlevied amount of property taxes that may be levied pursuant to NRS 354.59811, which must be based upon
a comparison of the public needs to be served by the proceeds from the proposed
debt or tax levy in a proposal submitted pursuant to NRS
350.014 and the public needs to be served by other possible debts or tax
levies by other municipalities whose tax-levying powers overlap; and
(c) A procedure for allowing a municipality that
does not levy the maximum amount of property taxes which it may levy pursuant
to NRS 354.59811 to reserve a
percentage of the remaining allowable increase of property taxes for use in the
future and a procedure for determining whether to grant such a reservation. If
established, such procedures must:
(1) Allow all municipalities whose
tax-levying powers may be affected by such a reservation to enter objections to
such a reservation; and
(2) Provide a method for resolving
conflicts over the remaining allowable increase of property taxes between
municipalities whose tax-levying powers overlap, which must be based upon the
highest and best use for the remaining allowable increase of property taxes.
8. This section does not apply to any
proposal that is not expected to result in an increase in the rate of property
taxes in any jurisdiction.
9. As used in this section:
(a) “Affected governmental entity” means a
governmental entity:
(1) That has territory which overlaps the
territory of the municipality proposing the special elective tax or general
obligation debt;
(2) That is currently not levying the
maximum rate of property taxes which it may levy pursuant to NRS 354.59811; and
(3) For which the total combined tax rate
levied on the overlapping territory would exceed the limit set forth in NRS 361.453 if the current combined tax
rate levied on the overlapping territory is added to:
(I) The tax rate projected for the
special elective tax or general obligation debt being proposed by the
municipality; and
(II) The unlevied amount of property
taxes that currently may be levied by the governmental entity pursuant to NRS 354.59811.
(b) “Remaining allowable increase of property
taxes” means the difference between the tax rate allowed for a municipality in
the current fiscal year pursuant to NRS
354.59811 minus the tax rate levied by the municipality in the current
fiscal year.
(Added to NRS by 2001, 878)
NRS 350.014 Approval or notification of commission required for certain
proposals.
1. Before any proposal to incur a general
obligation debt or levy a special elective tax may be submitted to the electors
of a municipality, before any issuance of general obligation bonds pursuant to
subsection 4 of NRS 350.020, before entering into
an installment-purchase agreement with a term of more than 10 years or, before
any other formal action may be taken preliminary to the incurrence of any
general obligation debt, the proposed incurrence or levy must receive the
favorable vote of two-thirds of the members of the commission of each county in
which the municipality is situated.
2. Before the board of trustees of a
district organized or reorganized pursuant to chapter
318 of NRS whose population within its boundaries is less than 5,000 incurs
a medium-term obligation or otherwise borrows money or issues securities to
evidence such borrowing, other than securities representing a general
obligation debt or installment-purchase agreements with a term of 10 years or
less, the proposed borrowing or issuing of securities must receive the
favorable vote of a majority of the members of the commission of each county in
which the district is situated.
3. When any municipality other than a
general improvement district whose population within its boundaries is less
than 5,000 issues any special obligations, it shall so notify in its annual
report the commission of each county in which any of its territory is situated.
4. The commission shall not approve any
proposal submitted to it pursuant to this section by a municipality:
(a) Which, if the proposal is for the financing
of a capital improvement, is not included in its plan for capital improvement
submitted pursuant to NRS 350.013, if such a plan
is required to be submitted;
(b) If, based upon:
(1) Estimates of the amount of tax revenue
from property taxes needed for the special elective tax, or to repay the
general obligation debt, and the dates that revenue will be needed, as provided
by the municipality;
(2) Estimates of the assessed valuation of
the municipality for each of the years in which tax revenue is needed, as
provided by the municipality;
(3) The amount of any other required
levies of property taxes, as shown on the most recently filed final budgets of
each entity authorized to levy property taxes on any property within the
municipality submitting the proposal; and
(4) Any other factor the municipality
discloses to the commission,
Ê the proposal
would result in a combined property tax rate in any of the overlapping entities
within the county which exceeds the limit provided in NRS 361.453, unless the proposal also
includes an agreement which complies with NRS
361.457 and which is approved by the governing bodies of all affected
municipalities within the area as to how the combined property tax rates will
be brought into compliance with the statutory limitation or unless the
commission adopts a plan that is approved by the Executive Director of the
Department of Taxation pursuant to which the combined property tax rate will be
in compliance with the statutory limitation; or
(c) If, based upon the factors listed in
subparagraphs (1) to (4), inclusive, of paragraph (b), the proposal will affect
the ability of an affected governmental entity to levy the maximum amount of
property taxes that it may levy pursuant to NRS 354.59811, unless:
(1) The proposal includes a resolution
approving the proposal pursuant to subsection 3 of NRS
350.0135 from each affected governmental entity whose ability to levy
property taxes will be affected by the commission’s approval of the proposal;
or
(2) The commission has resolved all
conflicts between the municipality and all affected governmental entities and
has approved the increase in property taxes resulting from the proposal
pursuant to NRS 350.0135.
5. Except as otherwise provided in
subsection 6 or in paragraph (b) of subsection 3 of NRS
350.583, if general obligation debt is to be incurred more than 36 months
after the approval of that debt by the commission, the governing body of the
municipality shall obtain additional approval of the commission before
incurring the general obligation debt. The commission shall only approve a
proposal that is submitted pursuant to this subsection if, based on the
information set forth in paragraph (b) of subsection 4 that is accurate as of
the date on which the governing body submits, pursuant to this subsection, its
request for approval to the commission:
(a) Incurrence of the general obligation debt
will not result in a combined property tax rate in any of the overlapping
entities within the county which exceeds the limit provided in NRS 361.453;
(b) The proposal includes an agreement approved
by the governing bodies of all affected municipalities within the area as to
how the combined tax rates will be brought into compliance with the statutory
limitation; or
(c) The commission adopts a plan that is approved
by the Executive Director of the Department of Taxation pursuant to which the
combined property tax rate will be in compliance with the statutory limitation.
Ê The approval
of the commission pursuant to this subsection is effective for 18 months. The
governing body of the municipality may renew that approval for successive
periods of 18 months by filing an application for renewal with the commission.
Such an application must be accompanied by the information set forth in
paragraph (b) of subsection 4 that is accurate as of the date the governing
body files the application for renewal.
6. The commission may not approve a
proposal pursuant to subsection 5 which, based upon the factors listed in
subparagraphs (1) to (4), inclusive, of paragraph (b) of subsection 4, will
affect the ability of an affected governmental entity to levy the maximum
amount of property taxes that it may levy pursuant to NRS 354.59811, unless:
(a) The proposal includes a resolution approving
the proposal pursuant to subsection 3 of NRS 350.0135
from each affected governmental entity whose ability to levy property taxes
will be affected by the commission’s approval of the proposal; or
(b) The commission has resolved all conflicts
between the municipality and all affected governmental entities and has
approved the increase in property taxes resulting from the proposal pursuant to
NRS 350.0135.
7. As used in this section, “affected
governmental entity” has the meaning ascribed to it in subsection 9 of NRS 350.0135.
(Added to NRS by 1965, 1434; A 1971, 524; 1977, 538; 1981, 943; 1991, 973; 1993, 2656; 1995, 309, 768; 1997, 2463; 1999, 3222; 2001, 881, 2306; 2003, 162; 2007, 432)
NRS 350.0145 Notice and submission of statement of certain proposals to
commission; procedure for approval or disapproval.
1. The governing body of the municipality
proposing to incur general obligation debt, to enter an installment-purchase
agreement with a term of more than 10 years or to levy a special elective tax
and the board of trustees of a general improvement district whose population
within its boundaries is less than 5,000 who proposes to issue a medium-term
obligation or otherwise borrow money and issue any securities other than
securities representing a general obligation debt or installment-purchase
agreements with terms of 10 years or less shall notify the secretary of each
appropriate commission, and shall submit a statement of its proposal in
sufficient number of copies for each member of the commission. The secretary,
with the approval of the chair, shall, within 10 days, give notice of a
meeting, in the manner required by chapter 241
of NRS, to be held not more than 20 days thereafter. The secretary shall
provide a copy of the proposal to each member with the notice of the meeting
and mail notice of the meeting to the chief financial officer of each
municipality in the county which has complied with subsection 1 of NRS 350.013 within the past year.
2. The commission may grant a conditional
or provisional approval of such proposal. Such conditions or provisions are limited
to:
(a) The scheduling of:
(1) The issuance and retirement of
securities, if the proposal is to incur general obligation debt; or
(2) The imposition of the tax, if the
proposal is to levy a special elective tax; and
(b) If the proposal would result in a combined
property tax rate in any of the overlapping entities within the county which
exceeds 90 percent of the limit provided in NRS
361.453, a condition requiring a reduction in the amount of the proposed
debt, installment-purchase agreement or special elective tax.
3. If the proposal is from a municipality,
the commission may not approve any portion of the proposal that is not included
in the statement filed pursuant to paragraph (b) of subsection 1 of NRS 350.013, as updated pursuant to subsection 3 or 4
of NRS 350.013.
4. The commission may adjourn a meeting
called to consider a particular proposal no more than once, for no more than 60
days, except that the commission must approve or disapprove a proposal at least
30 days before the date on which the governing body that submitted the proposal
is required to provide the proposal to the county clerk or city clerk pursuant
to NRS 293.481. Notification of the
approval or disapproval of its proposal must be sent to the governing body
within 3 days after the meeting.
(Added to NRS by 1965, 1434; A 1971, 944; 1977, 538; 1981, 943; 1991, 973; 1993, 2657; 1995, 770; 2001, 883, 2308; 2005, 127)
NRS 350.015 Criteria for approval or disapproval of certain proposals;
requests for information; use of money received from sale of general obligation
debt or from special elective tax.
1. In determining whether to approve,
conditionally or provisionally approve, or disapprove a proposal to incur debt,
to enter an installment-purchase agreement with a term of more than 10 years or
to levy a special elective tax, the commission shall not, except as otherwise
provided in paragraph (d) and NRS 350.0135,
initiate a determination as to whether the proposed debt, installment-purchase
agreement or special elective tax is sought to accomplish a public purpose or
to satisfy a public need. The commission shall consider, but is not limited to,
the following criteria:
(a) If the proposal is to incur debt, the amount
of debt outstanding on the part of the municipality proposing to incur the
debt.
(b) The effect of the tax levy required for debt
service on the proposed debt or to repay an installment-purchase agreement with
a term of more than 10 years, or of the proposed levy of a special elective
tax, upon the ability of the municipality proposing to incur the general
obligation debt, enter the installment-purchase agreement or levy the special
elective tax and of other municipalities to raise revenue for operating
purposes.
(c) The anticipated need for other incurrences of
debt, installment-purchase agreements or levies of special elective taxes by
the municipality proposing to incur the debt, enter the installment-purchase
agreement or levy the special elective tax and other municipalities whose
tax-levying powers overlap, as shown by the county or regional master plan, if
any, and by other available information.
(d) If the information set forth in paragraph (b)
of subsection 4 of NRS 350.014 indicates that the
proposal would result in a combined property tax rate in any of the overlapping
entities within the county which exceeds the specified percentage, pursuant to
subsection 1 of NRS 350.0155, of the limit
provided in NRS 361.453:
(1) The public need to be served by the
proceeds from the proposed debt or tax levy in accordance with the priorities
established pursuant to subsection 2 of NRS 350.0155;
and
(2) A comparison of that public need and
other public needs that appear on the statements of current and contemplated
general obligation debt and special elective taxes submitted pursuant to
paragraphs (a) and (b) of subsection 1 of NRS 350.013
that may affect the combined property tax rate in any of the overlapping
entities within the county.
2. The commission may make reasonable
requests from a municipality for information relating to the criteria described
in paragraphs (a) to (d), inclusive, of subsection 1. A municipality shall use
its best efforts to comply with information requests from the commission in a
timely manner.
3. If the commission approves the
proposal, the amount received from the sale of the general obligation debt or
from the special elective tax may be expended only for the purposes described
in the proposal.
(Added to NRS by 1967, 1386; A 1977, 539; 1993, 2658; 1995, 770, 1959; 2001, 884, 2309)
NRS 350.0155 Commission to specify percentage of limitation on total ad
valorem tax levy and establish priorities among essential and nonessential
facilities and services for purposes of NRS 350.015. At the annual meeting in August required by NRS 350.012, the commission shall:
1. Specify a percentage, which must not be
less than 75 percent, for the purposes of paragraph (d) of subsection 1 of NRS 350.015; and
2. Establish priorities among essential
and nonessential facilities and services for the purposes of paragraph (d) of
subsection 1 of NRS 350.015. Facilities and
services relating to public safety, education and health must be considered
essential facilities and services, and all other facilities and services must
be considered nonessential facilities and services.
(Added to NRS by 2001, 878; A 2005, 128)
NRS 350.016 Evaluation of proposal: Power of commission to employ
consultants; costs. The commission
has the power, with the consent of the municipality which proposes to incur a
debt or levy a special elective tax, to contract for or employ accountants and
financial consultants to evaluate any proposal which it must approve or
disapprove. The cost of such services must be paid by the consenting
municipality which proposes to incur the debt or levy the special elective tax.
(Added to NRS by 1971, 942; A 1977, 539; 1993, 2658; 1995, 771)
NRS 350.0165 Applicability of NRS 350.011 to 350.0165,
inclusive. The provisions of NRS 350.011 to 350.0165,
inclusive, do not apply to:
1. Any general obligation debt incurred or
special elective tax levied before July 1, 1995;
2. Any general obligation debt or special
elective tax approved at an election held before July 1, 1995, whether or not
the debt is incurred or tax is levied before that date;
3. Any general obligation debt authorized
to be incurred, or special elective tax authorized to be levied, by a special
act adopted and approved before July 1, 1995;
4. Any debt incurred for the purpose of
refunding any outstanding general obligation debt; and
5. Any medium-term obligation, except a
medium-term obligation issued after July 1, 2001, by a general improvement
district whose population within its boundaries is less than 5,000.
(Added to NRS by 1965, 1434; A 1995, 771; 2001, 2310)
PROPOSALS TO ISSUE OBLIGATIONS
NRS 350.020 Submission to electors of proposal to issue general obligations;
restrictions on special elections; issuance of general obligations secured by
pledge of revenues and issuance of special or medium-term obligations without
election; issuance of certain general obligation bonds by board of trustees of
school district.
1. Except as otherwise provided by
subsections 3 and 4, if a municipality proposes to issue or incur general
obligations, the proposal must be submitted to the electors of the municipality
at a special election called for that purpose or the next general municipal
election or general state election.
2. Such a special election may be held:
(a) At any time, including, without limitation,
on the date of a primary municipal election or a primary state election, if the
governing body of the municipality determines, by a unanimous vote, that an
emergency exists; or
(b) On the first Tuesday after the first Monday
in June of an odd-numbered year,
Ê except that
the governing body shall not determine that an emergency exists if the special
election is for the purpose of submitting to the electors a proposal to refund
bonds. The determination made by the governing body is conclusive unless it is
shown that the governing body acted with fraud, a gross abuse of discretion or
in violation of the provisions of this subsection. An action to challenge the
determination made by the governing body must be commenced within 15 days after
the governing body’s determination is final. As used in this subsection,
“emergency” means any occurrence or combination of occurrences which requires
immediate action by the governing body of the municipality to prevent or
mitigate a substantial financial loss to the municipality or to enable the
governing body to provide an essential service to the residents of the
municipality.
3. If payment of a general obligation of
the municipality is additionally secured by a pledge of gross or net revenue of
a project to be financed by its issue, and the governing body determines, by an
affirmative vote of two-thirds of the members elected to the governing body,
that the pledged revenue will at least equal the amount required in each year
for the payment of interest and principal, without regard to any option
reserved by the municipality for early redemption, the municipality may, after
a public hearing, incur this general obligation without an election unless,
within 90 days after publication of a resolution of intent to issue the bonds,
a petition is presented to the governing body signed by not less than 5 percent
of the registered voters of the municipality. Any member elected to the
governing body whose authority to vote is limited by charter, statute or
otherwise may vote on the determination required to be made by the governing
body pursuant to this subsection. The determination by the governing body
becomes conclusive on the last day for filing the petition. For the purpose of
this subsection, the number of registered voters must be determined as of the
close of registration for the last preceding general election. The resolution
of intent need not be published in full, but the publication must include the
amount of the obligation and the purpose for which it is to be incurred. Notice
of the public hearing must be published at least 10 days before the day of the
hearing. The publications must be made once in a newspaper of general
circulation in the municipality. When published, the notice of the public
hearing must be at least as large as 5 inches high by 4 inches wide.
4. The board of trustees of a school
district may issue general obligation bonds which are not expected to result in
an increase in the existing property tax levy for the payment of bonds of the
school district without holding an election for each issuance of the bonds if
the qualified electors approve a question submitted by the board of trustees
that authorizes issuance of bonds for a period of 10 years after the date of
approval by the voters. If the question is approved, the board of trustees of
the school district may issue the bonds for a period of 10 years after the date
of approval by the voters, after obtaining the approval of the debt management
commission in the county in which the school district is located and, in a
county whose population is 100,000 or more, the approval of the oversight panel
for school facilities established pursuant to NRS 393.092 in that county, if the board
of trustees of the school district finds that the existing tax for debt service
will at least equal the amount required to pay the principal and interest on
the outstanding general obligations of the school district and the general
obligations proposed to be issued. The finding made by the board of trustees is
conclusive in the absence of fraud or gross abuse of discretion. As used in
this subsection, “general obligations” does not include medium-term obligations
issued pursuant to NRS 350.087 to 350.095, inclusive.
5. At the time of issuance of bonds
authorized pursuant to subsection 4, the board of trustees shall establish a
reserve account in its debt service fund for payment of the outstanding bonds
of the school district. The reserve account must be established and maintained
in an amount at least equal to the lesser of:
(a) For a school district located in a county
whose population is 100,000 or more, 25 percent; and
(b) For a school district located in a county
whose population is less than 100,000, 50 percent,
Ê of the
amount of principal and interest payments due on all of the outstanding bonds
of the school district in the next fiscal year or 10 percent of the outstanding
principal amount of the outstanding bonds of the school district.
6. If the amount in the reserve account
falls below the amount required by subsection 5:
(a) The board of trustees shall not issue
additional bonds pursuant to subsection 4 until the reserve account is restored
to the level required by subsection 5; and
(b) The board of trustees shall apply all of the
taxes levied by the school district for payment of bonds of the school district
that are not needed for payment of the principal and interest on bonds of the
school district in the current fiscal year to restore the reserve account to
the level required pursuant to subsection 5.
7. A question presented to the voters
pursuant to subsection 4 may authorize all or a portion of the revenue
generated by the debt rate which is in excess of the amount required:
(a) For debt service in the current fiscal year;
(b) For other purposes related to the bonds by
the instrument pursuant to which the bonds were issued; and
(c) To maintain the reserve account required
pursuant to subsection 5,
Ê to be
transferred to the county school district’s fund for capital projects
established pursuant to NRS 387.328 and
used to pay the cost of capital projects which can lawfully be paid from that
fund. Any such transfer must not limit the ability of the school district to
issue bonds during the period of voter authorization if the findings and
approvals required by subsection 4 are obtained.
8. A municipality may issue special or
medium-term obligations without an election.
[Part 2:70:1937; A 1956, 219]—(NRS A 1959, 594; 1969,
1589; 1975, 862; 1981,
943; 1993,
1066; 1995,
217, 1812,
1960, 1961; 1997, 551, 1209, 2464, 2826; 1999, 610, 611, 1078, 3220, 3222, 3226, 3228; 2001, 232, 1348, 2310; 2003, 45; 2007, 2520; 2011, 149, 2905, 3341)
NRS 350.0205 Committee on Local Government Finance to provide forms for
submitting ballot question and examples of past ballot questions for issuance
or incurrence of general obligations.
1. The Committee on Local Government
Finance shall annually provide to each city clerk, county clerk and district
attorney:
(a) Forms for submitting a ballot question to the
electors of a municipality for the issuance or incurrence of general
obligations as provided in subsection 1 of NRS 350.020;
and
(b) Examples of past ballot questions for the
issuance or incurrence of general obligations.
2. The city clerk, county clerk or
district attorney may make these forms and examples available to the general public.
(Added to NRS by 1999, 1078)
NRS 350.021 Proposal may be combined on ballot with proposal to levy tax ad
valorem for related purpose. A
proposal to issue or incur general obligations pursuant to NRS 350.020 and a proposal to levy an additional tax
ad valorem pursuant to NRS 354.5982
for a purpose related to the purpose for which the general obligations are
issued or incurred may be combined into a single proposition.
(Added to NRS by 1993, 65)
NRS 350.022 Notice of election on proposal to issue general obligations:
Publication.
1. Whenever a municipality by ordinance or
resolution, as the governing body may determine, has ordered that a proposal to
issue or incur general obligations be submitted to the voters at a special
election or the next general municipal election or general state election, the
clerk shall cause notice of the election to be published in a newspaper printed
in and having a general circulation in the municipality 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
municipality, publication of the notice of election must be made in a newspaper
printed in the State of Nevada and having a general circulation in the
municipality.
(Added to NRS by 1965, 138; A 1969, 1590; 1971, 94; 1981, 944; 1993, 1067; 1999, 1081)
NRS 350.024 Sample ballot and notice of election on proposal to issue
general obligations: Contents; consolidation of election with general, primary
or municipal election; publication of notice of close of registration for
special election.
1. The ballot question for a proposal
submitted to the electors of a municipality pursuant to subsection 1 of NRS 350.020 must contain the principal amount of the
general obligations to be issued or incurred, the purpose of the issuance or
incurrence of the general obligations and an estimate established by the
governing body of:
(a) The duration of the levy of property tax that
will be used to pay the general obligations; and
(b) The average annual increase, if any, in the
amount of property taxes that an owner of a new home with a fair market value
of $100,000 will pay for debt service on the general obligations to be issued
or incurred.
2. Except as otherwise provided in
subsection 4, 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 ballot question.
(d) The maximum amount of the obligations,
including the anticipated interest, separately stating the total principal, the
total anticipated interest and the anticipated interest rate.
(e) An estimate of the range of property tax
rates stated in dollars and cents per $100 of assessed value necessary to
provide for debt service upon the obligations for the dates when they are to be
redeemed. The municipality shall, for each such date, furnish an estimate of the
assessed value of the property against which the obligations are to be issued
or incurred, and the governing body shall estimate the tax rate based upon the
assessed value of the property as given in the assessor’s estimates.
3. If an operating or maintenance rate is
proposed in conjunction with the question to issue obligations, the questions
may be combined, but the sample ballot and notice of election must each state
the tax rate required for the obligations separately from the rate proposed for
operation and maintenance.
4. Any election called pursuant to NRS 350.020 to 350.070,
inclusive, may be consolidated with a primary or general municipal election or
a primary or general state 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 election with
which it is consolidated.
5. If the election is a special election,
the clerk shall cause notice of the close of registration to be published in a
newspaper printed in and having a general circulation in the municipality once
in each calendar week for 2 successive calendar weeks next preceding the close
of registration for the election.
(Added to NRS by 1965, 138; A 1969, 1590; 1971, 94; 1981, 945; 1983, 733; 1987, 23, 1469; 1993, 1067, 1419, 2659, 2661; 1995, 718; 1997, 1585, 3477; 1999, 679, 1081)
NRS 350.027 Sample ballot to contain estimate of annual cost to operate,
maintain and repair improvements.
1. In addition to any requirements imposed
pursuant to NRS 350.024, any sample ballot required
to be mailed pursuant to NRS 293.565 or
293C.530 and any notice of election,
for an election that includes a proposal for the issuance by any municipality
of any bonds or other securities, including an election that is not called
pursuant to NRS 350.020 to 350.070,
inclusive, must contain 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 or other securities.
2. For the purposes of this section,
“municipality” has the meaning ascribed to it in NRS
350.538.
(Added to NRS by 1993, 1418; A 1997, 3478)
NRS 350.030 Election on proposal to issue general obligations: Expenses;
ballots; validity of proposal; applicability of general election laws.
1. If the election is not consolidated
with another election, the municipality shall pay the expenses of conducting
it. Any proposal to issue or incur general obligations may be submitted on the
same ballot as otherwise used at a primary or general municipal election or
primary or general state election or may be submitted by separate ballot, as
the governing body may determine.
2. No defect in the statement of such a
proposal other than in the statement of the maximum amount to be authorized
invalidates the proposal.
3. The qualifications of voters, the
manner of registration and voting, and the manner of counting the votes cast
are governed by the general election laws insofar as those laws can reasonably
be made applicable.
[Part 3:70:1937; A 1953, 322]—(NRS A 1971, 95; 1981, 945; 1993, 1068)
NRS 350.070 Approval or disapproval by electors of proposal to issue general
obligations: Procedure; validity of result.
1. If a majority of the electors voting on
the question is in favor of the proposal submitted, the proposal is carried,
and the proper officers of the municipality shall proceed to issue or incur the
obligations proposed.
2. If the majority of the electors voting
on the question is against the proposal submitted, the proposal fails, and the
proper officers of the municipality shall proceed no further except to certify
the result of the election to the proper officers of the governing body.
3. Except as otherwise specifically
provided in NRS 350.030, any informality, omission
or defect in the giving of any notice or the conduct of the election does not
affect the result of the election if it can be ascertained with reasonable
certainty whether the proposal was approved or rejected by a majority of the
registered voters voting on the question.
[Part 4:70:1937; A 1953, 322; 1955, 162]—(NRS A 1959,
486; 1971, 97; 1981,
945)
MEDIUM-TERM OBLIGATIONS
NRS 350.087 Resolution authorizing medium-term obligation or
installment-purchase agreement: Adoption; contents; notice.
1. If the public interest requires a
medium-term obligation or installment-purchase agreement, the governing body of
any local government, by a resolution adopted by two-thirds of its members, may
authorize a medium-term obligation or installment-purchase agreement. For the
purposes of the issuance of a medium-term obligation pursuant to NRS 280.266, a metropolitan police
committee on fiscal affairs shall be deemed the governing body of a local
government.
2. The resolution must contain:
(a) A finding by the governing body that the
public interest requires the medium-term obligation or installment-purchase
agreement;
(b) A statement of the facts upon which the
finding required pursuant to paragraph (a) is based;
(c) A statement that identifies:
(1) Each source of revenue of the local
government that is anticipated to be used to repay the medium-term obligation
or installment-purchase agreement; and
(2) The dollar amount that is anticipated
to be available to repay the medium-term obligation or installment-purchase
agreement from each such source; and
(d) If the resolution is for an
installment-purchase agreement with a term of more than 10 years:
(1) A statement comparing the cost of
installment-purchase financing with other available methods of financing,
including, without limitation, financing with general obligation bonds or
revenue bonds; and
(2) If such statement concludes that
installment-purchase financing is more expensive than other available methods
of financing, a statement explaining the reasons for choosing
installment-purchase financing instead of a less expensive alternative.
3. Except as otherwise provided in
subsection 4, before the adoption of any such resolution, the governing body
shall publish notice of its intention to act thereon in a newspaper of general
circulation for at least one publication. No vote may be taken upon the
resolution until 10 days after the publication of the notice. The cost of
publication of the notice required of an entity is a proper charge against its
general fund.
4. If such a resolution will be adopted by
a metropolitan police committee on fiscal affairs, the sheriff of the county in
which the metropolitan police department is located shall publish the notice
required pursuant to subsection 3.
(Added to NRS by 1995, 1810; A 1997, 1295; 1999, 275; 2001, 2312)
NRS 350.089 Approval of resolution for medium-term obligation or
installment-purchase agreement by Executive Director of Department of Taxation;
appeal to Nevada Tax Commission. Except
as otherwise provided in NRS 280.266
and 496.155:
1. Upon the adoption by a local government
of a resolution for a medium-term obligation or installment-purchase agreement,
as provided in NRS 350.087, a certified copy
thereof must be forwarded to the Executive Director of the Department of
Taxation. As soon as is practicable, the Executive Director of the Department
of Taxation shall, after consideration of the tax structure of the local
government concerned, the probable ability of the local government to repay the
requested medium-term obligation or installment-purchase agreement and the
compliance of the local government with the applicable provisions of law,
including, without limitation, the provisions of chapter
354 of NRS, approve or disapprove the resolution in writing to the
governing board. No such resolution is effective until approved by the
Executive Director of the Department of Taxation. The written approval of the
Executive Director of the Department of Taxation must be recorded in the
minutes of the governing board.
2. If the Executive Director of the
Department of Taxation does not approve the resolution for the medium-term
obligation or installment-purchase agreement, the governing board of the local
government may appeal the Executive Director’s decision to the Nevada Tax
Commission.
(Added to NRS by 1995, 1810; A 1997, 1295; 1999, 276; 2001, 2312)
NRS 350.091 Governing body to update plan for capital improvement under
certain circumstances; issuance and terms of evidence of medium-term obligation
or installment-purchase agreement; regulations; applicability of prevailing
wage requirements to certain lease-purchase or installment-purchase agreements.
1. Whenever the governing body of any
local government is authorized to enter into a medium-term obligation or
installment-purchase agreement as provided in NRS 280.266 or 350.089
that is intended to finance a capital project, the governing body shall update
its plan for capital improvement in the same manner as is required for general
obligation debt pursuant to NRS 350.013.
2. Whenever the governing body of any
local government is authorized to enter into a medium-term obligation as
provided in NRS 350.089, the governing body may
issue, as evidence thereof, negotiable notes or medium-term negotiable bonds
that, except as otherwise provided in subsection 5 of NRS 496.155:
(a) Must mature not later than 10 years after the
date of issuance;
(b) Must bear interest at a rate or rates which
do not exceed by more than 3 percent the Index of Twenty Bonds which was most
recently published before the bids are received or a negotiated offer is
accepted; and
(c) May, at the option of the local government,
contain a provision which allows redemption of the notes or bonds before
maturity, upon such terms as the governing body determines.
3. Whenever the governing body of any
local government is authorized to enter into an installment-purchase agreement
as provided in NRS 280.266 or 350.089, the governing body may issue, as evidence
thereof, an installment-purchase agreement, lease or other evidence of a
transaction described in NRS 350.800. An
installment-purchase agreement, lease or other evidence of a transaction
described in NRS 350.800 issued pursuant to this
subsection:
(a) Must have a term that is 30 years or less;
(b) Must bear interest at a rate or rates that do
not exceed by more than 3 percent the Index of Revenue Bonds which was most
recently published before the local government enters into the
installment-purchase agreement; and
(c) May, at the option of the local government,
contain a provision that allows prepayment of the purchase price upon such
terms as are provided in the agreement.
4. If the term of the medium-term
obligation or installment-purchase agreement is more than 5 years, the weighted
average term of the medium-term obligation or installment-purchase agreement
may not exceed the estimated weighted average useful life of the assets being
financed with the medium-term obligation or installment-purchase agreement. For
the purposes of this subsection, the Committee on Local Government Finance may
adopt regulations that provide guidelines for the useful life of various types
of assets and for calculation of the weighted average useful life of assets.
5. If a lease-purchase or
installment-purchase agreement pursuant to NRS
280.266 or 350.089 involves the construction,
alteration, repair or remodeling of an improvement:
(a) The person or entity that executes one or
more contracts or agreements for the actual construction, alteration, repair or
remodeling of the improvement shall include in such a contract or agreement the
contractual provisions and stipulations that are required to be included in a
contract for a public work pursuant to the provisions of NRS 338.013 to 338.090, inclusive.
(b) The governing body, the contractor who is
awarded the contract or entered into the agreement to perform the construction,
alteration, repair or remodeling of the improvement and any subcontractor on
the project shall comply with the provisions of NRS 338.013 to 338.090, inclusive, in the same manner as
if the governing body had undertaken the project or had awarded the contract.
(Added to NRS by 1995, 1810; A 1997, 1296; 1999, 276; 2001, 2313; 2009, 2070)
NRS 350.093 Limitations on transfer of money for medium-term obligation;
refund of transfer.
1. After a medium-term obligation has been
authorized as provided in NRS 350.089 and if, in
the judgment of the governing board of the local government, the fiscal affairs
of the local government can be carried on without impairment and there is
sufficient money in the general fund or a surplus in any other fund, with the
exception of the bond interest and redemption fund, of the local government,
the governing board may transfer from the general fund or from the surplus
appearing in any fund, with the exception of the bond interest and redemption
fund, money sufficient to meet the purpose of the medium-term obligation.
2. When such a transfer is made, the
governing board of the local government shall comply with the provisions of NRS 350.095, and when the special tax is thereafter
collected, the amount so collected must be placed immediately in the fund from
which the loan was made.
3. In cases where the fund from which the
loan was made, at the time of the transfer of funds therefrom, contains a
surplus that in the judgment of the Executive Director of the Department of
Taxation is or will not be needed for the purposes of the fund in the ordinary
course of events, the special tax need not be levied, collected and placed in
the fund from which the loan was made, but the transfer shall be deemed
refunded for all purposes of NRS 350.087 to 350.095, inclusive.
(Added to NRS by 1995, 1811; A 1999, 277; 2001, 2314)
NRS 350.095 Levy of special tax; transfer of money remaining in fund.
1. At the first tax levy following the
creation of any medium-term indebtedness, the governing board of any local
government shall, if necessary, levy a tax sufficient to pay the medium-term
indebtedness. The tax must be designated “County of ................ Special
Tax,” “City of ................ Special Tax,” “Town of ................ Special
Tax,” “................ School District Special Tax,” “................
Agricultural Association Special Tax,” or “................ District Special
Tax,” as the case may be, the proceeds of which must be placed in a medium-term
debt service fund in the treasury of the county or city, or in a medium-term
debt service fund in the county treasury in the cases of towns, school
districts, irrigation districts, special districts or agricultural
associations, to be used solely to redeem the medium-term indebtedness for
which the tax is levied.
2. The treasurer of any county is
authorized, upon receipt of a written resolution of the governing board of any
local government for which a special tax fund is maintained, to transfer the
money remaining in the medium-term debt service fund of that local government
to the general fund of that local government after payment in full of the
indebtedness and the interest thereon.
(Added to NRS by 1995, 1811)
SALE OF BONDS BY COMPETITIVE BID OR NEGOTIATED SALE
NRS 350.105 Definitions. As
used in NRS 350.105 to 350.195,
inclusive, unless the context otherwise requires, the words and terms defined
in NRS 350.115 to 350.145,
inclusive, have the meanings ascribed to them in those sections.
(Added to NRS by 1995, 1018)
NRS 350.115 “Bond” defined. “Bond”
means any evidence of borrowing by a municipality that is issued pursuant to
the provisions of this chapter or chapter 244,
244A, 268,
269, 271, 318 or 387 of
NRS, whether general or special obligations, including, without limitation,
bonds, notes, debentures, warrants and certificates.
(Added to NRS by 1995, 1018; A 2001, 2314)
NRS 350.125 “Competitive bid” defined. “Competitive
bid” means the procedure for the sale of bonds by a municipality to one or more
purchasers determined by the municipality to have offered the best price and
interest rate.
(Added to NRS by 1995, 1018)
NRS 350.135 “Financial adviser” defined. “Financial
adviser” means a financial consulting firm whose employees have experience in
advising municipalities relating to the issuance of debt instruments, and
which, except for its consulting relationship with the municipality, is not
under the control of the municipality.
(Added to NRS by 1995, 1019)
NRS 350.145 “Negotiated sale” defined. “Negotiated
sale” means the procedure for the sale of bonds by a municipality to one or
more purchasers selected pursuant to NRS 350.175
and 350.185 upon such terms as are agreed upon
after the selection of the purchaser.
(Added to NRS by 1995, 1019)
NRS 350.155 Sale by competitive bid: Requirements; exceptions; contents of
certificate required for certain bonds; filing and approval of certificate;
publication of invitation for competitive bids.
1. Except as otherwise provided in
subsection 2, a municipality shall sell the bonds it issues by competitive bid
if the credit rating for the bonds or any other bonds of the municipality with
the same security, determined without regard to insurance for the bonds or any
other independent enhancement of credit, is rated by a nationally recognized
rating service as “A-,” “A,” “AA,” “AAA,” or their equivalents, 90 days before
and on the day the bonds are sold and:
(a) The bonds are general obligation bonds;
(b) The primary security for the bonds is an
excise tax; or
(c) The bonds are issued pursuant to chapter 271 of NRS and are secured by a pledge
of the taxing power and the general fund of the municipality.
2. The provisions of subsection 1 and NRS 350.175 and 350.185 do
not apply to:
(a) Any bond which is issued with a variable rate
of interest.
(b) A bond issue whose principal amount is
$1,000,000 or less.
(c) A bond issue with a term of 3 years or less.
(d) A bond issue for which an invitation for
competitive bids was issued and for which no bids were received or all bids
were rejected.
(e) Leases, contracts for purchase by installment
and certificates of participation if the obligations of the municipality
thereunder will terminate when the municipality fails to appropriate money to
pay that obligation for the next fiscal year.
(f) Economic development revenue bonds issued
pursuant to the city economic development revenue bond law or the county
economic development revenue bond law.
(g) Bonds sold by the municipality to:
(1) The United States or any agency or
instrumentality thereof;
(2) The State of Nevada;
(3) Any other municipality; or
(4) Not more than 10 investors, each of
whom certifies that he or she:
(I) Has a net worth of $500,000 or
more; and
(II) Is purchasing for investment
and not for resale.
(h) Bonds which require unusual methods of
financing, if the chief administrative officer of the municipality certifies in
writing that the proposed method of financing:
(1) Has not been used previously by any
municipality in this state; and
(2) May provide a substantial benefit to
the municipality.
(i) Refunding bonds, if the chief administrative
officer of the municipality certifies in writing that the use of a negotiated
sale may provide a substantial benefit to the municipality which would not be
available if the bonds were sold by competitive bid.
(j) Bonds which are sold at a time when, because
of particular conditions in the market, a negotiated sale may provide a benefit
to the municipality which would not be available if the bonds were sold by
competitive bid, if the chief administrative officer of the municipality so
certifies in writing.
(k) Bonds which are issued pursuant to chapter 271 of NRS and are not secured by a
pledge of the taxing power and general fund of the municipality.
(l) Revenue bonds which are issued pursuant to chapter 350A of NRS and are secured by a pledge
of the allocable local revenues of the municipality.
3. The certificate required by paragraph
(h) of subsection 2 must specifically describe the proposed method of
financing. The certificate required by paragraph (i) of subsection 2 must
specifically describe the circumstances that may provide a substantial benefit
if the refunding bonds are negotiated. The certificate required by paragraph
(j) of subsection 2 must specifically describe the particular conditions in the
market which indicate that a negotiated sale of the bonds may provide a benefit
to the municipality. Each certificate required pursuant to subsection 2 must be
submitted to the governing body of the municipality at a regularly scheduled
meeting of that body and include:
(a) The estimated amount of the benefit which
will accrue to the municipality.
(b) If the municipality has a financial adviser,
a written report prepared by that financial adviser which specifically
describes the method of sale which will be used for the proposed financing.
4. A copy of:
(a) The certificate required by paragraph (h),
(i) or (j) of subsection 2; and
(b) The report required pursuant to subsection 3,
Ê must be
filed with the debt management commission of the county where the municipality
is located, the county clerk and the Department of Taxation. Before entering
into a contract to sell bonds, at least two-thirds of the members of the
governing body of the municipality must approve the certificate.
5. If a municipality is required to sell the
bonds it issues by competitive bid pursuant to the provisions of this section,
it must cause an invitation for competitive bids, or notice thereof, to be
published before the date of the sale in the daily or weekly version of the
Bond Buyer, published at One State Street Plaza in New York City, New York, or
any successor publication.
6. As used in this section, “invitation
for competitive bids” means a process by which sealed bids or the reasonable
equivalent thereof, as approved by the governing body of a municipality, are
solicited, received and publicly opened at a specified time, place and date.
(Added to NRS by 1995, 1019; A 1997, 514; 2009, 3065;
2013, 3584)
NRS 350.165 Delegation of authority to sign contract to purchase or accept
binding bid for bonds; approval of certain terms by governing body required.
1. The governing body of a municipality
may, before any sale of bonds, whether by competitive bid or negotiated sale,
delegate to the chief administrative officer or chief financial officer of the
municipality or, if the bonds consist of any securities to which subsection 1
of NRS 350.583 applies, a designated agent, 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
governing body 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 governing body of the municipality 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 governing body of the municipality if each of
those terms complies with the requirements specified by the governing body
before the contract for the purchase of the bonds is signed or the bid for the
bonds is accepted.
(Added to NRS by 1995, 1020; A 2007, 434)
NRS 350.175 Negotiated sale: Notice of request for proposals; description of
procedure for request for proposals in debt management policy; time limitation
on sale of bonds after selection of underwriter.
1. If a municipality wishes to sell its
bonds by a negotiated sale, it shall provide notice of the request for
proposals in a manner that ensures that a reasonable number of underwriters for
the size of the bond issue are notified of the request. The governing body of
the municipality shall approve the notice.
2. The procedure for a request for
proposals established by a municipality, including any requirement relating to:
(a) The rotation of the managing underwriters;
and
(b) The municipality’s policy of equal
opportunity concerning the selection of underwriters,
Ê must be
described in the written statement of the debt management policy of the
municipality.
3. A municipality may negotiate the sale
of the bonds described in the request for proposals with the underwriter it
selects for not more than 6 years after the date of the selection of that
underwriter. If bonds are not described in the request for proposals or if a
negotiated sale occurs more than 6 years after the selection of an underwriter,
the municipality shall request proposals from underwriters pursuant to
subsection 1 before it selects an underwriter for that negotiated sale.
4. As used in this section, “request for
proposals” means a statement which requests that prospective underwriters
submit proposals to the municipality to provide underwriting services for the
negotiated sale.
(Added to NRS by 1995, 1021)
NRS 350.185 Negotiated sale: Procedure for selection of proposal for sale of
bonds; certification of procedure.
1. The governing body of a municipality
which sells bonds by a negotiated sale shall establish a procedure for the
selection of a proposal for the sale of the bonds. The procedure must include a
consideration of:
(a) The ability and experience of the responding
underwriter in the underwriting of bonds sold by competitive bid or negotiated
sale;
(b) The degree to which the proposal of the
responding underwriter meets the needs of the municipality and minimizes the
risk and cost to the municipality;
(c) An estimation of any fees or other elements
of the gross spread between the price paid to the municipality for the bonds
and the price at which the bonds are sold to investors;
(d) Any other fees, charges or commissions which
the municipality will be required to pay in connection with the issuance of the
bonds; and
(e) Any fees paid by the underwriter to persons
who are not employees of the underwriter to obtain business from the
municipality.
2. The chief administrative officer of the
municipality shall certify that the procedure for selecting a proposal for the
negotiated sale pursuant to NRS 350.175 was
conducted in an open and fair manner.
(Added to NRS by 1995, 1021)
NRS 350.195 Financial adviser: Prohibited acts. A
financial adviser who provides any report required pursuant to NRS 350.105 to 350.195,
inclusive, must not:
1. Be;
2. Control;
3. Be controlled by; or
4. Be under common control with,
Ê an
underwriter for the bonds if those bonds are sold at a negotiated sale.
(Added to NRS by 1995, 1022)
INTEREST RATES; DISCOUNTS; LIMITATION ON ISSUANCE OR SALE
NRS 350.201 Definitions. As
used in NRS 350.201 to 350.2013,
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. “Political subdivision” includes
without limitation a county, city, town, school district or special district.
3. “Security” means a bond or other
evidence of indebtedness.
(Added to NRS by 1967, 219)
NRS 350.2011 Maximum rate of interest on securities of political
subdivisions.
1. Except as otherwise provided in this
section and NRS 99.067, and except
where the provisions, whenever enacted, of a general or special law or of a
special charter otherwise require, the rate or rates of interest on securities
issued by a political subdivision of this state must not exceed by more than 3
percent:
(a) For general obligations, the Index of Twenty
Bonds; and
(b) 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.
2. The rate or rates of interest on
securities issued in whole or in part to finance the costs of a program
established pursuant to NRS 244.3651
must not exceed by more than 2 percent the rate or rates of interest set forth
in subsection 1.
(Added to NRS by 1967, 219; A 1969, 1291; 1971, 2115;
1975, 863; 1981,
1403; 1983,
574; 2009,
2659; 2011,
659)
NRS 350.2012 Discounts. Except
where the provisions, whenever enacted, of a general or special law or of a
special charter otherwise require, securities issued by a political subdivision
of this 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 350.2011.
(Added to NRS by 1967, 219; A 1969, 1291; 1971, 2115;
1975, 863; 1981,
1403; 1983,
574)
NRS 350.2013 Issuance or sale more than 6 years after date of election
prohibited; exception. Except as
otherwise provided in subsection 4 of NRS 350.020,
no security may be issued or sold by a political subdivision of this 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; A 1997, 2466; 1999, 3222)
COUNTY DEBT SERVICE FUND
NRS 350.202 County ordinance may provide for service of bonded indebtedness
for general obligations through single debt service fund; consolidated levy of
taxes. Notwithstanding the
provisions of any special law authorizing the issuance of bonds or any covenant
contained in any bond, the board of county commissioners of any county may
provide by ordinance for the service of all general obligation bonded
indebtedness of the county through a single debt service fund in the county
treasury and a consolidated levy of taxes.
(Added to NRS by 1965, 650)
NRS 350.204 Merger of sinking and other debt service funds into single fund. Such ordinance shall provide that upon the
first day of the ensuing fiscal year, all sinking funds or other debt service
funds however denominated which have been established by statute or pursuant to
covenant for general obligation indebtedness shall be merged into a single
fund.
(Added to NRS by 1965, 650)
NRS 350.206 Sufficiency of levy of taxes. Each
levy of taxes made after the enactment of such an ordinance shall include an
amount for debt service sufficient to meet all general obligation interest
requirements of the fiscal year for which the levy is made and to retire all
bonds scheduled for retirement during that year.
(Added to NRS by 1965, 651)
NRS 350.208 Obligation of bond not impaired. The
provisions of NRS 350.202, 350.204
and 350.206 do not in any way impair the obligation
of any bond issued prior to April 3, 1965, or postpone the due date of any
installment of interest or payment of principal.
(Added to NRS by 1965, 651)
WATER AND SEWER REVENUE BOND LAW
NRS 350.350 Short title. NRS 350.350 to 350.490,
inclusive, may be cited as the Water and Sewer Revenue Bond Law.
[1:109:1937; A 1949, 205; 1943 NCL § 1397.01]
NRS 350.360 Definitions. Wherever
used in NRS 350.350 to 350.490,
inclusive, unless a different meaning clearly appears from the context:
1. “Governing body” means the board of
county commissioners, city council, city commission, board of supervisors, town
council, town board, board of directors or board of trustees of a district, or
other local legislative body of a municipality.
2. “Undertaking” includes the following
revenue-producing undertakings or any combination of two or more of such
undertakings, whether now existing or hereafter acquired or constructed:
Systems, plants, works, instrumentalities and properties used or useful in
connection with:
(a) The obtaining of a water supply and the
conservation, treatment and disposal of water for public and private uses.
(b) The collection, treatment and disposal of
sewage, waste and storm water, together with all parts of any such undertaking
and all appurtenances thereto, including lands, easements, rights in land,
water rights, contract rights, franchises, approaches, dams, reservoirs, sewage
disposal plants, intercepting sewers, trunk, connection and other sewer and
water mains, filtration works, pumping stations and equipment.
[2:109:1937; A 1949, 205; 1943 NCL § 1397.02]—(NRS A
1969, 1591; 1981,
946)
NRS 350.370 Additional powers of municipality under NRS
350.350 to 350.490, inclusive. In addition to the powers which it may now
have, any municipality shall, subject to the limitation stated in this section,
have power under NRS 350.350 to 350.490, inclusive:
1. To acquire by gift, purchase or the
exercise of the right of eminent domain, to construct, to reconstruct, to
improve, to better and to extend any undertaking, wholly within or wholly
without the municipality, or partially within and partially without the
municipality, and to acquire by gift, purchase or the exercise of the right of
eminent domain, lands, easements, rights in lands and water rights in
connection therewith.
2. To operate and maintain any undertaking
for its own use and for the use of public and private consumers, and users
within and without the territorial boundaries of the municipality.
3. To prescribe, revise and collect rates,
fees, tolls or charges for the services, facilities or commodities furnished by
such undertaking, and, in anticipation of the collection of the revenues of
such undertaking, to issue revenue bonds to finance in whole or in part the
cost of the acquisition, construction, reconstruction, improvement, betterment
or extension of any undertaking.
4. To pledge to the punctual payment of
the bonds and interest thereon all or any part of the revenues of such
undertaking (including the revenues of improvements, betterments or extension
thereto thereafter constructed or acquired, as well as the revenues of existing
systems, plants, works, instrumentalities and properties of the undertaking so
improved, bettered or extended) or of any part of such undertaking.
5. When determined by its governing body
to be in the public interest and necessary for the protection of the public
health, to enter into and perform contracts, whether long-term or short-term,
with any industrial or mining establishment for the provision and operation by
the municipality of sewage facilities to abate or reduce the pollution of water
caused by discharges of industrial or mining waste by the industrial or mining
establishment and the payment periodically by the industrial or mining
establishment to the municipality of amounts at least sufficient, in the
determination of such governing body, to compensate the municipality for the
cost of providing (including payment of principal and interest charges, if any)
and of operating and maintaining the sewerage facilities serving such
industrial or mining establishment.
6. Notwithstanding any provision of NRS 350.350 to 350.490,
inclusive, to the contrary or in conflict herewith, to accept contributions or
loans from the United States of America or any department, instrumentality or
agency thereof, for the purpose of financing or aiding in financing the cost of
preliminary investigations and studies, surveys, plans and specifications,
procedures and other action preliminary to construction, and the construction,
maintenance and operation of any undertaking.
7. To make all contracts, execute all
instruments and do all things necessary or convenient in the exercise of the
powers herein granted or in the performance of its covenants or duties or in
order to secure the payment of its bonds; provided:
(a) No encumbrance, mortgage or other pledge of
property of the municipality is created thereby;
(b) No property of the municipality is liable to
be forfeited or taken in payment of the bonds; and
(c) No debt on the credit of the municipality is
thereby incurred in any manner for any purpose.
[3:109:1937; A 1949, 205; 1943 NCL § 1397.03]
NRS 350.373 Supplemental powers of municipality to prescribe, revise and
collect charges; expenses of collection. In
supplementation of the provisions of subsection 3 of NRS
350.370 and elsewhere in the Water and Sewer Revenue Bond Law, any
municipality at any time and under any circumstances:
1. May prescribe, revise and collect
minimum charges, connection charges, charges for availability of service, legal
and other expenses of the collection of delinquencies and penalties
appertaining thereto;
2. May enforce the collection of any
delinquencies by civil action or by any other means then provided by law; and
3. May otherwise prescribe, revise and
collect in advance or otherwise from any owner or occupant of real property
served directly or indirectly by any undertaking, or otherwise, rates, fees,
tolls and charges for the services, facilities or commodities furnished by the
undertaking, or any combination thereof, as the governing body may determine
from time to time.
(Added to NRS by 1967, 672)
NRS 350.375 Use of revenues derived from undertaking of municipality. Subject to any pledges and other contractual
limitations appertaining to revenues derived from the operation of any
undertaking of a municipality, such revenues may be used from time to time for
the following purposes, or any combination thereof, and in such priority, as
the governing body may determine:
1. For the payment of operation and
maintenance expenses of any undertaking;
2. For the payment of the costs of
extensions of and improvements to any undertaking, including without limitation
extraordinary repairs and replacements not constituting maintenance expenses;
3. For the payment of any other costs of
constructing, otherwise acquiring, operating, maintaining, extending and
improving any properties appertaining to water supply, water acquisition,
treatment and distribution facilities, sewage, sanitary sewer collection and
disposal facilities, storm waters, and storm water collection and disposal
facilities, and incidental costs relating thereto, and the payment of any
outstanding bonds and any other outstanding securities issued for any one, all
or any combination of such purposes by the municipality pursuant to the Water
and Sewer Revenue Bond Law or to any other law, and constituting general
obligations, special obligations, or otherwise, and regardless of whether such
payment is secured solely, additionally, or at all by a pledge of such
revenues, as to the principal of, any interest on, and any prior redemption
premiums due in connection with, such bonds and other securities, and any
paying agent charges and other incidental expenses appertaining thereto,
including without limitation any costs of issuing such securities, as the same
become due;
4. For the accumulation of reserves for
any one, all or any combination of the purposes stated above in this section;
and
5. For the payment of any other expenses
of the municipality, regardless of whether or not they appertain to an
undertaking.
(Added to NRS by 1967, 672)
NRS 350.380 Undertaking and issuance of bonds: Procedure. The acquisition, construction, reconstruction,
improvement, betterment or extension of any undertaking and the issuance, in
anticipation of the collection of the revenues of such undertaking, of bonds to
provide funds to pay the cost thereof may be authorized under NRS 350.350 to 350.490,
inclusive, by ordinance or resolution of the governing body, which may be
adopted at a regular meeting by a vote of a majority of the members elected to
the governing body.
[4:109:1937; 1931 NCL § 1397.04]—(NRS A 1959, 486;
1969, 1592; 1975, 864; 1981, 947)
NRS 350.400 Sale of bonds. The
bonds shall be sold as provided in the Local Government Securities Law.
[Part 5:109:1937; A 1949, 205; 1943 NCL §
1397.05]—(NRS A 1967, 221; 1969, 1592; 1975, 864)
NRS 350.490 Powers conferred in NRS 350.350 to 350.490,
inclusive, additional and supplemental; controlling provisions.
1. The powers conferred by NRS 350.350 to 350.490, inclusive,
shall be in addition and supplemental to, and not in substitution for, and the
limitations imposed by NRS 350.350 to 350.490, inclusive, shall not affect, the powers
conferred by any other general or special law or charter, including, without
limitation, the Local Government Securities Law.
2. The undertaking may be acquired,
purchased, constructed, reconstructed, improved, bettered and extended,
notwithstanding that any special or general law or local charter may provide
for the acquisition, purchase, construction, reconstruction, improvement,
betterment and extension of a like undertaking and without regard to the
requirement, restrictions, debt or other limitations or other provisions
contained in any other general or special law or charter, including, but not
limited to, any restriction or limitation on the incurring of indebtedness or
the issuance of bonds.
3. Insofar as the provisions of NRS 350.350 to 350.490,
inclusive, are inconsistent with the provisions of any other general or special
law or charter, the provisions of NRS 350.350 to 350.490, inclusive, shall be controlling, except as
otherwise provided in NRS 350.350 to 350.490, inclusive; but the provisions of the Local
Government Securities Law are supplemental to NRS
350.350 to 350.490, inclusive, to the extent
the Local Government Securities Law pertains to revenue bonds and other special
obligations.
[11:109:1937; 1931 NCL § 1397.11]—(NRS A 1975, 864)
VIOLATION OF BOND COVENANTS
NRS 350.495 Willful violation of covenant in securities by member of
governing body, officer or agent of municipality unlawful; penalty.
1. Any member of the governing body and
any officer or other agent of a municipality which has issued any bonds or municipal
securities who willfully violates any covenant or provision contained in any
such indentures or other instruments or proceedings appertaining thereto is
guilty of a misdemeanor.
2. A violation of a covenant existing on
July 1, 1969, is not “willful” for the purpose of this section if compliance is
impractical because of competition from a private enterprise or enterpriser
offering a comparable service.
(Added to NRS by 1969, 1088)
LOCAL GOVERNMENT SECURITIES LAW
NRS 350.500 Short title. NRS 350.500 to 350.720,
inclusive, may be cited as the Local Government Securities Law.
(Added to NRS by 1967, 421; A 1985, 2089, 2179; 1993, 1984)
NRS 350.502 Purpose; supplemental nature. It
is the purpose of the Local Government Securities Law to provide a procedure
for financing any projects otherwise authorized by law (other than by the levy
and collection of special assessments) and for the issuance of securities to
evidence or reevidence obligations incurred in connection with any such
projects. The Local Government 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, 421)
NRS 350.504 Definitions. As
used in this chapter and in any instrument or document appertaining thereto,
unless the context otherwise requires, the words and terms defined in NRS 350.506 to 350.566,
inclusive, have the meanings ascribed to them in those sections.
(Added to NRS by 1967, 421; A 1981, 947; 1985, 2179; 1987, 559)
NRS 350.506 “Acquisition” and “acquire” defined. “Acquisition”
or “acquire” includes the opening, laying out, establishment, purchase,
construction, securing, installation, reconstruction, lease, gift, grant from
the Federal Government, this state, any public body 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, 421; A 1967, 943)
NRS 350.508 “Chair” and “chair of the municipality” defined. “Chair” or “chair of the municipality” or any
phrase of similar import means the de facto or de jure chair of the board of
county commissioners, mayor of the city or town, president of the board of
trustees of the school district, chair of the board of directors of any other
type district, or the president thereof, or any other presiding officer or
titular head of the municipality, or his or her successor in functions, if any.
(Added to NRS by 1967, 421)
NRS 350.510 “Clerk” defined. “Clerk”
means the de facto or de jure county clerk, city clerk, town clerk, clerk of
the board of trustees of the school district, secretary or clerk of the board
of directors of any other type district, or other officer of the municipality
who is the custodian of any seal of the municipality and of the records of the
proceedings of the municipality’s governing body, or his or her successor in
functions, if any.
(Added to NRS by 1967, 422)
NRS 350.512 “Commercial bank” defined. “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, 422; A 1999, 1473)
NRS 350.514 “Condemnation” and “condemn” defined. “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, 422; A 1985, 278)
NRS 350.516 “Cost of any project” defined. “Cost
of any project,” or any phrase of similar import, means all or any part
designated by the governing body of the cost of any project, or interest
therein, which cost, at the option of the governing body, may include all or
any part of the incidental costs pertaining to the project, including, without
limitation:
1. Preliminary expenses advanced by the
municipality from money available for use therefor, or advanced by the Federal
Government, or from any other source, with the approval of the governing body
or any board or other agency of the municipality 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 costs 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 governing body 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, of
any replacement expenses, and of any other cost of issuance of the bonds or
other securities;
8. The costs of amending any ordinance,
resolution or other instrument authorizing the issuance of or otherwise
appertaining to outstanding bonds or other securities of the municipality;
9. The costs of funding any medium-term
obligations, construction loans and other temporary loans of not exceeding 10
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 governing body.
(Added to NRS by 1967, 422; A 1975, 865; 1989, 53; 1997, 553)
NRS 350.517 “Disposal” and “dispose” defined. “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, 2114)
NRS 350.5175 “Equip” and “equipment” defined. “Equip”
or “equipment” means the furnishing of all related or appurtenant machinery,
furnishings, apparatus, paraphernalia, or other gear, or any combination
thereof, pertaining to any project or other property, or any interest therein.
(Added to NRS by 1971, 2114)
NRS 350.518 “Facilities” defined. “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, 422)
NRS 350.520 “Federal Government” defined. “Federal
Government” means the United States, or any agency, instrumentality or
corporation thereof.
(Added to NRS by 1967, 423)
NRS 350.522 “Federal securities” defined. “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, 423)
NRS 350.524 “Governing body” defined. “Governing
body” means the board of county commissioners, city council, city commission,
board of supervisors, town council, board of trustees of the school district,
board of directors or trustees of any other type district, or other local legislative
or governing body of the municipality.
(Added to NRS by 1967, 424)
NRS 350.526 “Gross revenues” and “gross pledged revenues” defined. “Gross revenues” or “gross pledged revenues”
means all pledged revenues received by the municipality and pledged wholly or
in part for the payment of any municipal securities issued hereunder.
(Added to NRS by 1967, 424)
NRS 350.528 “Hereby,” “herein,” “hereinabove,” “hereinafter,”
“hereinbefore,” “hereof,” “hereto,” “hereunder,” “heretofore” and “hereafter”
defined. “Hereby,” “herein,”
“hereinabove,” “hereinafter,” “hereinbefore,” “hereof,” “hereto,” “hereunder”
and any similar term refer to the Local Government Securities Law and not
solely to the particular portion thereof in which such word is used; “heretofore”
means before the adoption of the Local Government Securities Law; and
“hereafter” means after the adoption of the Local Government Securities Law.
(Added to NRS by 1967, 424)
NRS 350.530 “Holder” defined. “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, 424)
NRS 350.532 “Improvement” and “improve” defined. “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, 424; A 1967, 943)
NRS 350.534 “Municipal” defined. “Municipal”
means pertaining to a municipality as defined in NRS
350.538.
(Added to NRS by 1967, 424)
NRS 350.536 “Municipal securities” and “securities” defined. “Municipal securities” or merely “securities”
means notes, warrants, bonds, temporary bonds and interim debentures authorized
to be issued by any municipality hereunder.
(Added to NRS by 1967, 424)
NRS 350.538 “Municipality” defined.
1. “Municipality” means any county, any
incorporated city or town, including, without limitation, any city or town
organized under the provisions of a special legislative act or other special
charter, any unincorporated town, any school district or any quasi-municipal
district, including, without limitation, the Nevada rural housing authority and
any district created pursuant to NRS
244.2961 or governed by title 25 of NRS, of this state, or any other public
agency authorized to issue general or special obligations on behalf of any of
these. Where the context so indicates, “municipality” means the geographical
area comprising the municipality.
2. “Municipality” does not include an
irrigation district or other special district governed by title 48 of NRS.
(Added to NRS by 1967, 424; A 1971, 2115; 1981, 947; 1983, 131; 1989, 76; 1995, 815)
NRS 350.540 “Net revenues” and “net pledged revenues” defined. “Net revenues” or “net pledged revenues” means
“gross revenues,” after the deduction of operation and maintenance expenses.
(Added to NRS by 1967, 424)
NRS 350.542 “Operation and maintenance expenses” defined. “Operation and maintenance expenses,” or any
phrase of similar import, means all reasonable and necessary current expenses
of the municipality, 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 governing
body’s option (except as limited by contract or otherwise limited by law),
without limiting the generality of the foregoing:
1. Engineering, auditing, reporting, legal
and other overhead expenses of the various municipal departments directly
related and reasonably allocable to the administration of the facilities;
2. 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;
3. Payments to pension, retirement, health
and hospitalization funds and other insurance;
4. Any taxes, assessments, excise taxes,
or other charges which may be lawfully imposed on the municipality, any
facilities, revenues therefrom, or any privilege in connection with any
facilities or their operation;
5. The reasonable charges of any paying
agent, or commercial bank, trust bank or other depositary bank appertaining to
any securities issued by the municipality or appertaining to any facilities;
6. Contractual services, professional
services, salaries, other administrative expenses, and costs of materials,
supplies, repairs and labor, appertaining to the issuance of any municipal
securities and to any facilities, including without limitation the expenses and
compensation of any trustee, receiver or other fiduciary under the Local
Government Securities Law;
7. The costs incurred by the governing
body in the collection and any refunds of all or any part of the pledged
revenues, including without limitation revenues appertaining to any facilities;
8. Any costs of utility services furnished
to the facilities by the municipality or otherwise;
9. Any lawful refunds of any pledged
revenues; and
10. All other administrative, general and
commercial expenses.
(Added to NRS by 1967, 424)
NRS 350.544 “Operation and maintenance expenses” limited. The term “operation and maintenance expenses”
does not include:
1. Any allowance for depreciation;
2. Any costs of improvements;
3. Any accumulation of reserves for major
capital replacements (other than normal repairs);
4. Any reserves for operation, maintenance
or repair of any facilities;
5. Any allowance for the redemption of any
bond or other municipal security evidencing a loan or other obligation or for
the payment of any interest thereon;
6. Any liabilities incurred in the
acquisition or improvement of any properties comprising any project or of any
existing facilities, or any combination thereof; and
7. Any other ground of legal liability not
based on contract.
(Added to NRS by 1967, 425)
NRS 350.546 “Ordinance” defined. “Ordinance”
means a county ordinance, city ordinance, town ordinance, school district or
other type district resolution, or other type of instrument by the adoption of
which the municipality exercises legislative powers.
(Added to NRS by 1967, 425)
NRS 350.550 “Pledged revenues” defined. “Pledged
revenues” means the moneys pledged wholly or in part for the payment of bonds
or other municipal securities issued in accordance with the provisions of the
Local Government Securities Law, and, subject to any existing pledges or other
contractual limitations:
1. May include at the governing body’s
discretion moneys derived from one, all or any combination of revenue resources
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 municipality, if any, conditional or unconditional, from
the Federal Government, the State or any public body for the payment of the
principal of, the interest on, and any prior redemption premiums due in
connection with any municipal securities issued hereunder, or any combination
thereof; and
3. May so include the proceeds of any
excise taxes levied and collected by the municipality or otherwise received by
it and authorized by law (other than the Local Government Securities Law) to be
pledged for the payment of municipal securities issued in accordance with the
provisions of the Local Government Securities Law, but excluding the proceeds
of any taxes as defined in NRS 350.560.
(Added to NRS by 1967, 425; A 1971, 2115)
NRS 350.552 “Project” defined. “Project”
means any undertaking or undertakings which the governing body is authorized by
law (other than the Local Government Securities Law) to do in the name of the
municipality, the cost of which the governing body is authorized by law (other
than the Local Government Securities Law) to defray wholly or in part by the
issuance of bonds or other securities of the municipality as provided
hereunder.
(Added to NRS by 1967, 426)
NRS 350.554 “Public body” defined. “Public
body” means the Nevada System of Higher Education, the Board of Regents of the
University of Nevada, any county, city, town, school district, other type
district, authority, commission or other type of body corporate and politic
constituting a political subdivision of the State, other than the municipality
proceeding hereunder.
(Added to NRS by 1967, 426; A 1993, 395; 2005, 364)
NRS 350.556 “State” defined. “State”
means the State of Nevada, or any board, department or other agency or
instrumentality thereof, in the United States; and where the context so
indicates, “State” means the geographical area comprising the State of Nevada.
(Added to NRS by 1967, 426; A 1971, 2115)
NRS 350.558 “Taxation” defined. “Taxation”
means the levy and collection of taxes as defined in NRS
350.560, but in NRS 350.710 “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, 426; A 1969, 1592; 1989, 2107; 1991, 1710)
NRS 350.560 “Taxes” defined. “Taxes”
means general (ad valorem) property taxes.
(Added to NRS by 1967, 426)
NRS 350.562 “Treasurer” defined.
1. “Treasurer” means:
(a) The de facto or de jure county treasurer,
city treasurer, town treasurer or treasurer of any district, or his or her
successor in functions, if any.
(b) The county treasurer in the case of any
municipality (other than a county) which has no treasurer and for which the
county treasurer is required or authorized by law to be the official custodian
of the moneys of such municipality, or his or her successor in functions, if
any.
2. “Treasurer” may mean the county
treasurer if the governing body of the municipality (other than a county)
expressly so provides in any instrument or other proceedings hereunder, or his
or her successor in functions, if any.
(Added to NRS by 1967, 426)
NRS 350.564 “Trust bank” defined. “Trust
bank” means:
1. A commercial bank as defined in NRS 350.512 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, 426; A 1999, 1473)
NRS 350.566 “United States” defined. “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, 426; A 1971, 2116)
NRS 350.568 Powers of municipality in connection with projects. In connection with any project, the
municipality, acting by and through the governing body, 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 public bodies 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 governing body;
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 public body or
any person, upon such terms and conditions as the Federal Government, the
State, public body or person may impose.
(Added to NRS by 1967, 426)
NRS 350.569 Power of eminent domain; reimbursement of public utility for
removal and relocation.
1. The governing body may:
(a) Exercise on behalf of the municipality 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 public body in the absence of any provision to the
contrary in any act supplemental hereto); 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 governing body includes the power to condemn, in the name of the
municipality, either the fee simple or any lesser estate or interest in any
real property which the governing body by ordinance determines is necessary for
carrying out the purposes hereof. The ordinance is prima facie evidence that
the taking of the fee simple, easement or other interest, as the case may be,
is necessary. The governing body shall not abandon any condemnation proceedings
after the date upon which the municipality 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 governing body 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, 277)
NRS 350.570 Power of municipality to become obligated and issue securities
for project. For the purpose of
paying the cost of any project authorized by law (other than the Local
Government Securities Law), at any time or from time to time the municipality
may borrow money or otherwise become obligated for the project and may evidence
any such obligation by the issuance of municipal securities in accordance with
the provisions of the Local Government Securities Law, to the extent otherwise
authorized by law.
(Added to NRS by 1967, 427)
NRS 350.572 Types of securities which may be issued; series. The municipality may issue, in one series or
more, without the municipal 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 municipal 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
municipality, any one or more or all of the following types of municipal
securities:
1. Notes, evidencing any amount borrowed
by the municipality;
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 municipality and appertaining to a project;
3. Bonds, evidencing any amount borrowed
by the municipality 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
medium-term obligations, construction loans, and other temporary loans of not
exceeding 10 years, in supplementation of long-term financing and the issuance
of bonds, as provided in NRS 350.672 to 350.682, inclusive.
(Added to NRS by 1967, 427; A 1975, 252; 1989, 54; 1997, 554)
NRS 350.573 Sale of right to call for purchase of securities.
1. A municipality may sell the right to
call for purchase all or any part of an issuance of securities if, in the
ordinance authorizing the issuance of the securities, it has:
(a) Reserved the right to make the sale;
(b) Provided the time during which a call may be
exercised; and
(c) Provided the price of the purchase.
2. The municipality shall set forth the
price and other terms for the sale of the right to call the security in the
ordinance authorizing the issuance of the security or a supplemental ordinance
adopted before or at the time of the sale of a right to call the security.
3. The owner of the right to call the
security may call it only as provided in the ordinance authorizing the issuance
of the security or in an ordinance supplemental thereto. A supplemental
ordinance must not amend the time during which a call may be exercised or the
price of the purchase.
4. The municipality may purchase its own
security pursuant to a right to call the security for purchase. A call for
purchase must be in accordance with the price and other terms for the purchase
set forth in the ordinance authorizing the issuance of the security or in an
ordinance supplemental thereto. A supplemental ordinance must not amend the
time during which a call may be exercised or the price of the purchase. Such a
purchase by a municipality does not discharge the indebtedness evidenced by the
security unless the municipality cancels the security so purchased.
(Added to NRS by 1993, 1983)
NRS 350.574 Notes and warrants: Maturity; extension or funding. 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 governing body may determine. They shall not be extended or
funded except by the issuance of bonds or interim debentures in compliance with
NRS 350.672 to 350.680,
inclusive, and other provisions supplemental thereto.
(Added to NRS by 1967, 427)
NRS 350.575 Resolution to finance preservation or restoration of historic
structure; approval of Executive Director of Department of Taxation; appeal to
Nevada Tax Commission.
1. Upon the adoption of a resolution to
finance the preservation or restoration of a historic structure, in the manner
provided in NRS 350.087, by a municipality, a
certified copy thereof must be forwarded to the Executive Director of the
Department of Taxation, accompanied by a letter from the Office of Historic
Preservation of the State Department of Conservation and Natural Resources
certifying that the preservation or restoration conforms to accepted standards
for such work. As soon as is practicable, the Executive Director of the
Department of Taxation shall, after consideration of the tax structure of the
municipality concerned and the probable ability of the municipality to repay
the requested financing, approve or disapprove the resolution in writing to the
governing board. No such resolution is effective until approved by the
Executive Director of the Department of Taxation. The written approval of the
Executive Director of the Department of Taxation must be recorded in the
minutes of the governing board.
2. If the Executive Director of the
Department of Taxation does not approve the financing resolution, the governing
board of the municipality may appeal the Executive Director’s decision to the
Nevada Tax Commission.
3. As used in this section, “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, 2178; A 1993, 1570; 1995, 1813; 2001, 939; 2011, 2973)
NRS 350.5755 Issuance of negotiable notes or bonds to finance restoration of
historic structure; maturity; interest.
1. Whenever the governing body of any
municipality is authorized to enter into financing for restoration of a
historic structure, as provided in NRS 350.575, the
governing body may issue, as evidence thereof, negotiable notes or bonds.
2. The negotiable notes or bonds must:
(a) Mature not later than 15 years after the date
of issuance.
(b) Bear interest at a rate or rates which do not
exceed by more than 3 percent the Index of Twenty Bonds which was most recently
published before the bids are received or a negotiated offer is accepted.
(Added to NRS by 1985, 2178)
NRS 350.576 Temporary bonds: Conditions, terms and provisions; holder’s
rights and remedies. 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 or she would
have as a holder of the definitive bond for which the temporary bond is to be
exchanged.
(Added to NRS by 1967, 427)
NRS 350.578 Ordinance authorizing issuance of securities: Description of
purposes. The ordinance
authorizing the issuance of any municipal 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, 427)
NRS 350.579 Emergency ordinances: Adoption; effective date.
1. Any ordinance pertaining to the sale,
issuance or payment of bonds or other securities of the municipality (or any
combination thereof) may be adopted as if an emergency existed.
2. The governing body’s declaration, if
any, in any ordinance that it is such an ordinance shall be conclusive in the
absence of fraud or gross abuse of discretion.
3. Such an ordinance may become effective
at any time when an emergency ordinance of the municipality may go into effect.
4. Such an ordinance may be adopted by an
affirmative vote of not less than two-thirds of all 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).
(Added to NRS by 1969, 1612; A 1975, 866)
NRS 350.580 General obligations: Types of securities. The municipality may issue as general
obligations any of the following types of municipal 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 governing body may determine, except
as may be otherwise provided in any act supplemental hereto.
(Added to NRS by 1967, 428)
NRS 350.582 Special obligations: Types of securities. The municipality may issue as special
obligations any of the following types of municipal 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, unless otherwise expressly provided in any act supplemental hereto,
in anticipation of gross pledged revenues. Such special obligation municipal
securities may be payable from, secured by a pledge of, and constitute a lien
on net pledged revenues and if expressly so provided in any act supplemental
hereto gross pledged revenues.
(Added to NRS by 1967, 428)
NRS 350.583 Variable rates of interest for securities; agreement with third
party for assurance of payment for securities; reimbursement for advances made
pursuant to agreement; issuance of securities as commercial paper.
1. The ordinance or resolution authorizing
the issuance of any municipal securities that bear interest at a variable rate
or any securities described in subsection 3, 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 ordinance or other instrument,
which procedure must include the parameters within which the rate may be fixed
by that agent. The rate so determined must approximate the rates then being
paid for other securities which contain similar provisions and have an
equivalent rating. A governing body of a municipality may contract with or
select any person to make that determination.
2. A governing body of a municipality 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
municipal securities issued by the governing body. The obligation of the
governing body 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 ordinance or resolution
authorizing the issuance of those securities or any other instrument
appertaining thereto. The governing body may assign its rights under that
agreement.
3. A municipality may, in accordance with
the provisions of this subsection, issue any securities it is otherwise
authorized to issue as commercial paper to fund the cost of any project or to
refinance any commercial paper or other securities previously issued by that
municipality. The term of any commercial paper issued pursuant to this
subsection must not exceed 270 days. An agent may be appointed to fix the rates
of interest and maturity dates for the commercial paper. Any commercial paper
issued pursuant to this subsection may be refunded by any other commercial
paper or other securities as may be specified in the ordinance or resolution
authorizing the issuance of the commercial paper and the program under which
the commercial paper is issued, without any further action by the governing
body of the municipality or any other governmental entity, subject to the
limitations provided in this section and any limitations provided in that
ordinance or resolution. The ordinance or resolution authorizing the issuance of
the commercial paper and the program under which the commercial paper is
issued:
(a) Must state the maximum principal amount of
commercial paper that may be outstanding at any time; and
(b) Except as otherwise provided in this
paragraph, may provide that any amount of the commercial paper which is issued
and subsequently retired and repaid, other than through a refunding with
commercial paper issued under the same program, may be reissued in an amount
that does not exceed the amount previously issued, without any reauthorization
of those obligations, if the proceeds of that reissued commercial paper are
used only for the purposes specified in that ordinance or resolution. The
authority granted pursuant to this paragraph may be exercised under a program for
the issuance of commercial paper that comprises a general obligation of the
municipality only if:
(1) The municipality indicates an
intention to exercise that authority in the proposal to incur that general
obligation debt which it submits to the debt management commission;
(2) The maximum principal amount of
commercial paper which is authorized to be outstanding is counted against any
applicable debt limit of the municipality; and
(3) The program terminates:
(I) Within 6 years, if the
commercial paper comprises a general obligation of the municipality; or
(II) Within 10 years, if the
commercial paper comprises a special obligation of the municipality.
(Added to NRS by 1985, 2088; A 2007, 435)
NRS 350.5835 Variable rates of interest: Exemption from limitations;
conclusive findings of governing body that procedure for determination of rates
is reasonable. In fixing the rate
or rates of interest for municipal securities pursuant to subsection 1 of NRS 350.583 or the rate or rates of interest imposed
on the governing body for reimbursement of any advances made under an agreement
pursuant to subsection 2 of NRS 350.583, the
governing body is not subject to any limitations on rates of interest provided
by statute, including NRS 350.2011, or provided in
the question at an election authorizing the issuance of those securities. The
ordinance or resolution fixing that rate or rates of interest must contain the
findings of the governing body that the procedure specified therein 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
governing body from fixing a maximum rate of interest in that ordinance or
resolution.
(Added to NRS by 1985, 2089)
NRS 350.584 Municipal securities payable from gross revenues: Covenant
requiring appropriations to pay operation and maintenance expenses. Any ordinance authorizing the issuance of
general obligation securities or special obligation securities payable from
gross revenues or any indenture or other proceedings appertaining thereto may
contain a covenant of the municipality that to the extent required, as provided
therein, the municipality 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 municipality shall levy taxes
therefor.
(Added to NRS by 1967, 428)
NRS 350.586 Securities issued as general obligations constitute outstanding
indebtedness. 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 municipality and exhaust
the debt-incurring power of the municipality under any statutory debt
limitation appertaining thereto.
(Added to NRS by 1967, 428)
NRS 350.588 Securities issued as special obligations do not constitute
outstanding indebtedness. Any
other municipal securities (except general obligation notes and general
obligation warrants) constitute special obligations of the municipality, 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 municipality nor exhaust its debt-incurring
power under any such debt limitation.
(Added to NRS by 1967, 428)
NRS 350.590 Recitals required in municipal securities.
1. Municipal 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 or
gross revenues pledged to the payment thereof.
2. Municipal securities issued hereunder
and constituting general obligations shall pledge the full faith and credit of
the municipality for their payment, shall so state, and shall state that they
are payable from taxes.
3. General obligation municipal 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, 428)
NRS 350.592 Annual levy of special tax to pay interest on and retire
securities issued as general obligations; proceeds of tax kept in two special
funds; consolidated debt service fund.
1. There must be levied annually in due
season a special tax on all property, both real and personal, subject to
taxation within the boundaries of the municipality, 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 or charter tax
limitations other than the limitation set forth in NRS 361.453, to pay the interest on the
general obligation municipal securities and to pay and retire the securities as
provided in the Local Government 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 within 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 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; but, except as prevented by
any contractual limitations imposed upon the municipality by proceedings
appertaining to its outstanding securities, the municipality may provide for a
consolidated debt service fund to pay principal of and interest on outstanding
securities, when due.
(Added to NRS by 1967, 429; A 1967, 944; 1989, 44; 1993, 2659; 2013, 3135)
NRS 350.594 Time and duration of levy of special tax. Such tax shall be levied immediately after the
issuance of any general obligation securities issued in accordance with the
provisions of the Local Government 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 municipality has contracted to sell any securities but before their
issuance.
(Added to NRS by 1967, 429; A 1975, 866)
NRS 350.596 Payment from general fund when taxes insufficient to pay amount
due on securities issued as general obligations; reimbursement of general fund. Any sums coming due on any general obligation
municipal 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 municipality, 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, 429)
NRS 350.598 Application of other available money to payment of interest on and
principal of securities issued as general obligations. Nothing
contained in the Local Government Securities Law shall be so construed as to
prevent the municipality 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 municipal securities as the same respectively mature,
and regardless of whether the payment of the general obligation municipal
securities is additionally secured by a pledge of revenues, and upon such
payments, the levy or levies of taxes provided in the Local Government
Securities Law may thereupon to that extent be diminished.
(Added to NRS by 1967, 429)
NRS 350.602 Proceeds of taxes specially appropriated to payment of principal
and interest. There is by the
Local Government Securities Law, and there shall be by ordinance authorizing
the issuance of any indebtedness contracted in accordance with the provisions
of the Local Government 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 municipal securities evidencing such debt have been wholly
paid.
(Added to NRS by 1967, 430)
NRS 350.604 Payment of municipal securities not to be secured by
encumbrance, mortgage or pledge of municipality’s property; exception.
1. Except as otherwise provided in subsection
2:
(a) The payment of municipal securities may not
be secured by an encumbrance, mortgage or other pledge of property of the
municipality; and
(b) No property of the municipality is liable to
be forfeited or taken in payment of the securities.
2. The payment of municipal securities may
be secured by pledged revenues, proceeds of taxes and any other money pledged
for the payment of the securities. A municipality may encumber, mortgage or
otherwise pledge property purchased from the proceeds of a loan to secure
repayment of that loan.
(Added to NRS by 1967, 430; A 1989, 709)
NRS 350.606 Recourse against officers and agents of municipality: Acceptance
of securities constitutes waiver and release. 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
municipal securities or for any claim based thereon or otherwise upon the
ordinance authorizing their issuance or other instrument appertaining thereto,
against any individual member of the governing body or any officer or other
agent of the municipality, past, present or future, either directly or
indirectly through the governing body or the municipality, 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, 430; A 1975, 866)
NRS 350.608 Covenants in ordinance authorizing issuance of special
obligations impose no liability against municipality or its general credit. None of the covenants, agreements,
representations and warranties contained in any ordinance authorizing the
issuance of bonds or other municipal securities issued under the provisions of
the Local Government 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 municipality (except the special funds pledged
therefor) or against the general credit of the municipality, payable out of the
general fund of the municipality, or out of any funds derived from taxation.
(Added to NRS by 1967, 430)
NRS 350.610 Faith of State pledged against repeal, amendment or modification
of Local Government Securities Law. The
faith of the State is hereby pledged that the Local Government Securities Law,
any law supplemental or otherwise appertaining thereto, and any other act
concerning the bonds or other municipal 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 municipal 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, 431)
NRS 350.614 Details of municipal securities provided by ordinance. Except as otherwise provided in the Local
Government Securities Law and in any other act the provisions of which are relevant
by express reference herein thereto or by provisions to that effect therein,
any securities issued hereunder must be:
1. In such a form;
2. Issued in such a manner, at, above or
below par at such a discount not exceeding 9 percent of the principal amount of
the securities, and at such a price which will result in an effective interest
rate which does not exceed the limit provided in NRS
350.2011;
3. Issued with such provisions:
(a) For the application of any accrued interest
and any premium from the sale of any bonds or other municipal securities
hereunder as provided in NRS 350.648;
(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 all such
securities, with and securing their repayment by a commercial bank or
commercial banks within or without or both within and without this state;
(i) For the payment of costs or expenses incident
to the enforcement of the securities or of the provisions of the ordinance 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 governing body in an ordinance authorizing their issuance and
in any indenture or other proceedings appertaining thereto.
(Added to NRS by 1967, 431; A 1969, 1292; 1971, 2116;
1975, 866; 1981,
1403; 1983,
574)
NRS 350.616 Sale or issuance of municipal securities.
1. Notes, bonds and interim debentures
must be sold in the manner prescribed in NRS 350.105
to 350.195, inclusive.
2. Warrants may be issued to evidence the
amount due to any person furnishing services or materials as provided in the
Local Government 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.
(Added to NRS by 1967, 432; A 1971, 2117; 1973, 560; 1983, 593; 1995, 1022)
NRS 350.628 Recital in securities conclusive evidence of validity and
regularity of issuance. An
ordinance providing for the issuance of bonds or other municipal 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
Local Government Securities Law, which recital shall be conclusive evidence of
their validity and the regularity of their issuance.
(Added to NRS by 1967, 433)
NRS 350.630 Denomination, negotiability and maturity of municipal
securities; rate of interest.
1. As the governing body may determine,
any bonds and other municipal securities issued hereunder, except as otherwise
provided in the Local Government 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 time or serially at such times
in regular numerical order at annual or other designated intervals in amounts
designated and fixed by the governing body, except as herein otherwise
provided;
(d) Bear interest at a rate or rates which do not
exceed the limit provided in NRS 350.2011, payable
annually, semiannually or at other designated intervals, but the first interest
payment date may be for interest accruing for any other period;
(e) 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 governing body; and
(f) Be printed at such a place, within or without
this State, as the governing body may determine.
2. Except as otherwise provided in
subsection 3, general obligation bonds must mature within 30 years from their
respective dates and, if they mature serially, commencing not later than the
fifth year thereafter, in such manner as the governing body may determine.
3. General obligation bonds issued for a
water facility or wastewater facility must mature within 40 years from their
respective dates and, if they mature serially, commencing not later than the
15th year thereafter, in such manner as the governing body may determine.
4. Special obligation bonds must mature
within 50 years from their respective dates.
5. As used in this section:
(a) “Wastewater facility” has the meaning
ascribed to it in NRS 377B.030.
(b) “Water facility” has the meaning ascribed to
it in NRS 377B.050.
(Added to NRS by 1967, 433; A 1969, 1293; 1971, 2118;
1975, 867; 1981,
948, 1404;
1983, 575; 2011, 3327)
NRS 350.632 Payment of principal, interest and premium when due without
further order. The principal of,
the interest on and any prior redemption premium due in connection with any
municipal securities shall be paid as the same become due in accordance with
the terms of the securities and any ordinances and other proceedings
appertaining to their issuance, without any warrant or further order or other
preliminaries.
(Added to NRS by 1967, 433)
NRS 350.634 Interest coupons. 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, 434)
NRS 350.636 Execution, signing and authentication of municipal securities
and coupons. Bonds and other
municipal securities issued hereunder shall be executed in the name of the
municipality, shall be signed by the chair of the municipality and by the
treasurer, and shall be attested by the clerk; and the bonds or other
securities shall be authenticated by the seal of the municipality affixed
thereto, unless it has no seal. Any coupons shall be signed by the treasurer.
Facsimile signatures may be used on any coupons.
(Added to NRS by 1967, 434)
NRS 350.638 Facsimile signatures and seals. 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, 434; A 1985, 279)
NRS 350.640 Securities not invalid because signatories cease to fill
offices. 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 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.
(Added to NRS by 1967, 434)
NRS 350.642 Adoption of facsimile signature of predecessor in office. 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
or her own facsimile signature the facsimile signature of his or her
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, 435)
NRS 350.644 Redemption before maturity. The
governing body may provide for the redemption of any or all of the bonds or other
municipal securities before maturity, in such order, by lot or otherwise, at
such a time or times, without or with the payment of such a 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 governing
body in the ordinance authorizing the issuance of the securities or other
instrument appertaining thereto.
(Added to NRS by 1967, 435; A 1971, 2118; 1975, 868; 1981, 1405)
NRS 350.646 Repurchase of municipal securities. Any
bonds or other municipal securities may be repurchased by the governing body
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 municipality’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, 435)
NRS 350.648 Use of money received from issuance of municipal securities. 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 governing body may
determine.
(Added to NRS by 1967, 435)
NRS 350.650 Disposition of unexpended balance of proceeds after completion
of project. 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 governing body may
determine.
(Added to NRS by 1967, 435)
NRS 350.652 Validity of securities not dependent on proceedings relating to
project or completion of purpose; purchasers not responsible for application of
proceeds.
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 municipality or any of its officers, agents
and employees.
(Added to NRS by 1967, 435)
NRS 350.654 Special funds and accounts: Creation; purposes. The governing body in any ordinance
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, 436)
NRS 350.656 Employment of legal and other expert services; contracts for
sale and other purposes.
1. The governing body on the behalf of the
municipality 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 governing body on the behalf of the
municipality 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 governing body may
determine to be necessary or desirable in accomplishing the purposes hereof.
(Added to NRS by 1967, 436)
NRS 350.658 Investment and reinvestment of revenues and proceeds of taxes
and securities in federal securities and certain money market mutual funds.
1. The governing body, subject to any
contractual limitations from time to time imposed upon the municipality by any
ordinance authorizing the issuance of the municipality’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 municipal 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
governing body may cause such proceeds of taxes, revenues, municipal
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 governing body 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
municipal treasury.
4. Any gain from any such investments or
reinvestments may be credited to any fund or account pledged for the payment of
any municipal securities issued hereunder, including any reserve therefor, or
any other fund or account appertaining to a project or any facilities or the
municipality’s general fund, subject to any contractual limitations in any
proceedings appertaining to outstanding municipal 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 municipality, 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 and to pledge such federal
securities, such other securities issued by the Federal Government, such shares
in money market funds and such other securities as may be required by the
governing body.
(Added to NRS by 1967, 436; A 1997, 2869)
NRS 350.659 Investment and reinvestment of revenues and proceeds of taxes
and certain securities in investment contract collateralized with federal
securities by governing body in county whose population is 20,000 or more. The governing body of a local government in a
county whose population is 20,000 or more, subject to any contractual
limitations from time to time imposed upon the local government by any ordinance
authorizing the issuance of outstanding securities of the local government or
by any trust indenture or other proceedings appertaining thereto, may cause to
be invested and reinvested, except as otherwise provided in NRS 350.698, any proceeds of taxes, any pledged
revenues and any proceeds of bonds or other local government securities issued
hereunder for which the amount of the principal of the original issuance was $5,000,000
or more in an investment contract that is collateralized with securities issued
by the Federal Government or agencies of the Federal Government if:
1. The collateral has a market value of at
least 102 percent of the amount invested and any accrued unpaid interest
thereon;
2. In a county whose population is 20,000
or more but less than 55,000:
(a) The local government employs a full-time
finance director; and
(b) The terms of the investment contract have
been reviewed by independent bond counsel, who has determined that the contract
complies with this section;
3. The local government receives a
security interest in the collateral that is fully perfected and the collateral
is held in custody for the local government or its trustee by a third-party
agent of the local government which is a commercial bank authorized to exercise
trust powers;
4. The market value of the collateral is
determined not less frequently than weekly and, if the ratio required by
subsection 1 is not met, sufficient additional collateral is deposited with the
agent of the local government to meet that ratio within 2 business days after
the determination; and
5. The party with whom the investment
contract is executed is a commercial bank, or that party or a guarantor of the
performance of that party is:
(a) An insurance company which has a rating on
its ability to pay claims of not less than “Aa2” by Moody’s Investors Service,
Inc., or “AA” by Standard and Poor’s Ratings Services, or their equivalent; or
(b) An entity which has a credit rating on its
outstanding long-term debt of not less than “A2” by Moody’s Investors Service,
Inc., or “A” by Standard and Poor’s Ratings Services, or their equivalent.
(Added to NRS by 1997, 2868; A 2003, 824; 2007, 2522; 2011, 1218)
NRS 350.660 Covenants and other provisions in municipal securities. Any ordinance providing for the issuance of
any bonds or other municipal securities hereunder payable from pledged revenues
and any indenture or other instrument or proceedings appertaining thereto may
at the discretion of the governing body 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 municipality, 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
municipality from its general fund or other available moneys to the account of
any designated facilities for services rendered thereby to the municipality;
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 municipal
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 such securities issued hereunder;
8. The payment of the principal of and
interest on any municipal 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 municipality 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
municipality 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 municipality;
15. Limitations on the powers of the
municipality 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
governing body 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 municipality of any covenants, conditions or
obligations;
18. The terms and conditions upon which
the holders of the municipal 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 municipality itself might do;
20. A procedure by which the terms of any
ordinance authorizing securities, or any other contract with any holders of
municipal 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 governing body 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 governing body
power to do in the name and on behalf of the municipality all things in the
issuance of municipal securities and for their security except as herein expressly
limited.
(Added to NRS by 1967, 437)
NRS 350.662 Pledged revenues received or credited subject to immediate lien;
priority and validity of lien.
1. Revenues pledged for the payment of any
securities, as received by or otherwise credited to the municipality, 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 municipality, 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 municipality irrespective of whether such
persons have notice thereof.
(Added to NRS by 1967, 439)
NRS 350.664 Rights and powers of holders of municipal securities and
trustees. Subject to any
contractual limitations binding upon the holders of any issue or series of
municipal 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 or her rights against the
municipality, the governing body, and any other of the officers, agents and
employees of the municipality, to require and compel the municipality, the
governing body, 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 municipality 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 municipality itself might do in accordance
with the obligations of the municipality; 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, 439)
NRS 350.666 Receivers: Appointment; powers and duties.
1. If an ordinance of the governing body
authorizing or providing for the issuance of any municipal securities of any
series or any other proceedings appertaining thereto contains a provision
authorized by subsection 19 of NRS 350.660 and
further provides in substance that any trustee appointed pursuant to subsection
16 of NRS 350.660 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 350.660 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
governing body on the behalf of the municipality 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 municipality in the same manner as the
governing body itself might do and under the direction of the court.
(Added to NRS by 1967, 440)
NRS 350.668 Rights and remedies cumulative. 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, 440)
NRS 350.670 Failure of holder to proceed does not relieve municipality,
governing body and officers, agents and employees of municipality of liability
for nonperformance of duties. The
failure of any holder of any municipal securities or any coupons appertaining
thereto so to proceed as herein provided or in such proceedings shall not
relieve the municipality, the governing body or any of the officers, agents and
employees of the municipality of any liability for failure to perform or carry
out any duty, obligation or other commitment.
(Added to NRS by 1967, 440)
NRS 350.672 Interim debentures: Issuance for general or special obligations.
1. Notwithstanding any limitation or other
provision herein, whenever the municipality is authorized to issue general
obligation bonds, but only if the qualified electors of the municipality voting
on a proposal to issue the general obligation bonds have authorized in the
manner required by law their issuance by the municipality for any project, if
such general obligation bonds as a condition to their issuance are so required
to be authorized at an election, the municipality 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 municipality, or any combination thereof, and to issue general obligation
interim debentures to evidence the amount so borrowed.
2. Notwithstanding any limitation or other
provision herein, whenever the municipality is authorized to issue special
obligation revenue bonds, but only if the qualified electors of the
municipality voting on a proposal to issue the revenue bonds have authorized in
the manner required by law their issuance by the municipality for any project,
if such revenue bonds as a condition to their issuance are so required to be
authorized at an election, the municipality also is authorized to borrow money
without any election in anticipation of the proceeds of revenue bonds or any
other special obligations of the municipality 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, 440)
NRS 350.674 Issuance of municipal securities constituting debt to fund or
refund special obligations not constituting indebtedness: Conditions;
restrictions.
1. Subject to the provisions of
subsections 2, 3, 4 and 5, nothing contained herein shall be construed as
authorizing the municipality to issue any municipal securities constituting a
debt for the purpose of funding or refunding municipal securities constituting
special obligations which do not constitute an indebtedness.
2. Any special obligation securities of a
municipality pertaining to any project may be funded or refunded by general
obligation securities pertaining to the project only if the municipality is
authorized by law to issue such funding or refunding securities at the time of
their issuance, even though the municipality 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 municipality at an 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 an election in the manner
provided by law.
4. If a debt limitation pertains to any
general obligation bonds or other securities of a municipality 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), shall be issued in a principal amount exceeding
such debt limitation.
5. No bonds of a municipality shall be
refunded by the issuance of its interim debentures, its notes or its warrants.
No interim debentures of a municipality shall be funded by the issuance of its
notes or its warrants.
(Added to NRS by 1967, 441; A 1969, 1593)
NRS 350.676 Interim debentures: Maturity; use of proceeds; issuance.
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 governing body 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.
4. Except as otherwise provided in NRS 350.672 to 350.682,
inclusive, interim debentures shall be issued as provided herein for municipal
securities in NRS 350.584 to 350.670,
inclusive, and NRS 350.708 to 350.720, inclusive.
(Added to NRS by 1967, 441; A 1969, 1593; 1975, 868)
NRS 350.678 Interim debentures: Security for payment.
1. Except as otherwise provided in NRS 350.674, 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 governing body may determine, except as otherwise provided in subsections
2, 3 and 4 of NRS 350.630.
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 may 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, 441; A 1969, 1294; 1971, 2119;
1975, 868; 1981,
1405; 1983, 576;
2011, 3328)
NRS 350.680 Interim debentures: Extension and funding. No interim debentures issued pursuant to the provisions
of NRS 350.672 to 350.678,
inclusive, shall be extended or funded except by the issuance or reissuance of
a bond or bonds in compliance with NRS 350.682.
(Added to NRS by 1967, 442)
NRS 350.682 Interim debentures: Funding by reissuance of bonds pledged as
collateral security; issuance of other bonds.
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 bonds required by law so
to be authorized, and otherwise merely by the governing body, 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 governing body may determine, except as otherwise provided
in subsections 2, 3 and 4 of NRS 350.630.
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 herein otherwise provided in
this section and in NRS 350.676, 350.678 and 350.680, any
such funding bonds shall be issued as is provided herein for other bonds.
(Added to NRS by 1967, 442; A 2011, 3328)
NRS 350.684 Refunding of general and special obligation bonds: Ordinance;
trust indenture. Subject to the
provisions of NRS 350.674, any general obligation
bonds or special obligation bonds of the municipality issued in accordance with
the provisions of the Local Government Securities Law or any other act and
payable from any pledged revenues and any general obligation bonds of the
municipality so issued but not payable from pledged revenues may be refunded on
behalf of the municipality by the governing body, without the necessity of the
refunding bonds being authorized at an election except as otherwise provided in
NRS 350.674, by the adoption of an ordinance or
ordinances by the governing body 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 municipal debt in excess of
the municipality’s debt limitation, if any;
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; or
4. For any combination of the purposes
stated in subsections 1, 2 and 3.
(Added to NRS by 1967, 442; A 1969, 1594)
NRS 350.686 Calls for prior redemption: Limitations. Nothing contained in the Local Government
Securities Law or in any other law of this state shall be construed to permit
the governing body to call on behalf of the municipality bonds or other
securities outstanding now or any time after April 12, 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 municipality.
(Added to NRS by 1967, 442; A 1967, 943; 1969, 1594)
NRS 350.688 Exchange of outstanding securities held by State or its agencies
for funding or refunding. Notwithstanding
the provisions of NRS 350.686 or of any other law,
this state, acting by and through the State Board of Finance, may agree with
the governing body to exchange any outstanding bonds or other securities issued
by the municipality 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 municipality 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 governing body for funding or refunding at any time prior to
their respective maturities or to any date as of which the municipality 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
ordinance, trust indenture or other proceedings authorizing their issuance.
(Added to NRS by 1967, 443; A 1969, 1595)
NRS 350.690 Refunding of outstanding securities evidencing long-term loans. Any provision herein concerning the refunding
of outstanding bonds includes any outstanding securities evidencing long-term
loans to the municipality regardless of whether such securities are designated
as bonds, certificates, single certificates or otherwise.
(Added to NRS by 1967, 443)
NRS 350.692 Refunding bonds: Sale or exchange for outstanding bonds;
exchange for federal securities.
1. Any bonds issued for refunding purposes
may be delivered in exchange for the outstanding bonds being refunded or may be
sold in the manner prescribed in NRS 350.105 to 350.195, inclusive.
2. The refunding bonds, or any part
thereof, except as limited by subsection 2 of NRS
350.698, may be exchanged by the municipality 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 municipality
must be placed in escrow as provided in NRS 350.696
and 350.698.
(Added to NRS by 1967, 443; A 1995, 1022)
NRS 350.694 Conditions for refunding bonds.
1. No bonds may be refunded under this
chapter 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 may any
interest on any bond refunded be increased to any rate which exceeds the limit
provided in NRS 350.2011.
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 municipal debt limitation.
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.
5. If at the time of the issuance of any
issue of general obligation refunding bonds provision is not made for the
redemption of all the outstanding bonds of the issue refunded or the
outstanding bonds of each issue refunded, as the case may be, by the use of
proceeds of the refunding bonds and any other money available for the
redemption, the general obligation refunding bonds may mature but are not
required to mature serially in accordance with subsections 2 and 3 of NRS 350.630.
(Added to NRS by 1967, 443; A 1969, 1294; 1971, 2119;
1975, 869; 1981,
948, 1405;
1983, 576, 1595; 2011, 3329)
NRS 350.696 Refunding bonds: Disposition of proceeds, accrued interest and
premium; costs; escrow; trusts.
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 governing body 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 municipality under the control of the
governing body 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 governing body 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
governing body may determine.
(Added to NRS by 1967, 444)
NRS 350.698 Proceeds of refunding bonds in escrow or trust: Investment;
security; sufficient amount; purchaser not responsible for application of
proceeds.
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 municipal
special obligation (but not general obligation) securities, in other securities
issued by the Federal Government, if the ordinance authorizing the issuance of
such outstanding municipal 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
governing body has exercised or is obligated to exercise a prior redemption
option on behalf of the municipality.
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 municipality, the governing body or any of the
officers, agents or employees of the municipality.
(Added to NRS by 1967, 444)
NRS 350.700 Refunding bonds payable from taxes or pledged revenues. 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
governing body 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 350.674.
(Added to NRS by 1967, 445)
NRS 350.702 Issuance of bonds separately or in combination. 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 municipality
in accordance with the provisions of the Local Government Securities Law.
(Added to NRS by 1967, 445)
NRS 350.704 Bonds of abolished municipalities may be refunded.
1. Bonds of any municipality abolished by
law may be refunded under the provisions hereof. Whether or not the bonds
of the abolished municipality have been assumed by any successor municipality
prior to the issuance of the refunding bonds, the refunding bonds must be
authorized by the governing body of each successor municipality in which is
situated all or any part of the area of the abolished municipality.
2. If the obligation of the abolished
municipality evidenced by its outstanding bonds has not been assumed wholly or
in part by a successor municipality prior to the authorization of the issuance
of the refunding bonds, the refunding bonds shall be issued in the name of the
abolished municipality and shall evidence the same character of obligations as
evidenced by the refunded bonds.
3. To the extent any obligation evidenced
by the refunded bonds has been so assumed by a successor municipality, the
refunding bonds shall be authorized to be issued in the name of the successor
municipality which shall reevidence such assumed obligation and shall evidence
the same character of obligation as evidenced by such obligation as assumed by
the successor municipality, subject to the limitations and other provisions in NRS 350.674 and 350.700.
(Added to NRS by 1967, 445; A 1979, 1641)
NRS 350.706 Other statutory provisions applicable to refunding bonds. Except as in NRS
350.684 to 350.704, 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 ordinance authorizing the issuance of the bonds, or other
instrument or proceedings appertaining thereto, and other aspects of the bonds.
(Added to NRS by 1967, 446)
NRS 350.708 Conclusive determination of governing body that statutory
limitations have been met. The
determination of the governing body that the limitations in the Local
Government 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 ordinance or the securities thereby
authorized contain a recital as authorized by NRS
350.628.
(Added to NRS by 1967, 446; A 1969, 1595)
NRS 350.710 Bonds and other securities exempt from taxation; exception.
1. Except as otherwise provided in
subsection 2, bonds and other securities issued pursuant to the provisions of
the Local Government 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, 446; A 1989, 2107; 1991, 1710)
NRS 350.712 Securities issued as general obligations are legal investments
for state money. 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, 446)
NRS 350.714 Legal investments for other persons.
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 or her custody
in any of the bonds or other securities issued in accordance with the
provisions of the Local Government 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, 446; A 1983, 131)
NRS 350.718 Sufficiency of Local Government Securities Law.
1. The Local Government 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 municipality 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 governing body 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 Local Government
Securities Law or in any act supplemental hereto.
3. The powers conferred by the Local
Government Securities Law shall be in addition and supplemental to and not in
substitution for, and the limitations imposed by the Local Government
Securities Law shall not affect the powers conferred by, any other law.
4. Nothing contained in the Local
Government Securities Law shall be construed as preventing the exercise of any
power granted to the municipality, acting by and through the governing body, or
any officer, agent or employee of the municipality, or otherwise, by any other
law.
5. No part of the Local Government
Securities Law shall repeal or affect any other law or part thereof, it being
intended that the Local Government Securities Law shall provide a separate
method of accomplishing its objectives and not an exclusive one; and the Local
Government Securities Law shall not be construed as repealing, amending or
changing any such other law.
(Added to NRS by 1967, 448)
NRS 350.720 Liberal construction. The
Local Government 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, 448)
MISCELLANEOUS PROVISIONS
NRS 350.800 Transactions whereby municipality acquires property and another
person acquires or retains security interest in that or other property.
1. A transaction whereby a municipality
acquires real or personal property and another person acquires or retains a
security interest in that or other property creates a general obligation of the
municipality which must be counted against any limit upon its debt unless:
(a) The obligation by its terms is extinguished
by failure of the governing body to appropriate money for the ensuing fiscal
year for payment of the amounts then due; or
(b) The budget of the municipality for the fiscal
year in which the transaction occurs includes a provision for the discharge of
the obligation in full.
2. Any member of the governing body may
vote upon such a transaction whether or not the obligation incurred is expected
to extend beyond his or her term of office, without any special notice or other
formality.
3. Any such transaction is subject to the
requirements of this chapter for an election if it must be counted against a
debt limit, but, except as otherwise provided in NRS
350.011 to 350.0165, inclusive, and 350.087 to 350.095,
inclusive, is not subject to any other requirement of this chapter.
4. In addition to or as a substitute for
granting a security interest in the property being acquired in a transaction
described in subsection 1, the municipality may grant a security interest in
other property if the governing body finds that:
(a) Granting the security interest in the other
property will result in lower financing costs to the municipality; and
(b) The value of all property in which a security
interest is granted does not, at the time the security interest is granted,
exceed an amount equal to one and one-half times the value of the property
being acquired.
Ê The finding
and determination of values by the governing body are conclusive in the absence
of fraud or gross abuse of discretion.
(Added to NRS by 1981, 942; A 1989, 166; 2001, 2314)
NRS 350.810 Purchase of municipal obligations by financial adviser of
municipality limited.
1. Except as permitted by this section, no
person who for compensation advises a municipality concerning the acquisition
of a project to be financed in whole or in part by issuing general or special
obligations of the municipality, or concerning the issuance or sale of those
obligations, may purchase any of them from the municipality. This subsection
does not prohibit:
(a) One who performs work or furnishes property
for the project from accepting municipal obligations in payment for his or her
work or property.
(b) An adviser from purchasing municipal obligations
at a public sale if such a purchase is authorized by prior written agreement.
(c) An adviser from purchasing municipal
obligations at a private sale if he or she has:
(1) Terminated his or her status as
adviser in writing and at or after this termination the municipality has
consented in writing to the purchase; and
(2) Disclosed in writing to the
municipality at or before this termination the possibility of a conflict of
interest on his or her part and the source and anticipated amount of all his or
her remuneration, in addition to his or her compensation as adviser, with
respect to the obligations to be sold, and the municipality has acknowledged in
writing the receipt of these disclosures.
2. If municipal obligations are to be
issued to refund others already outstanding, no person may accept any
compensation for advice unless the compensation is fixed in advance, but such a
person may purchase the refunding obligations.
(Added to NRS by 1981, 942)
NRS 350.820 Agreements for exchange of interest rates.
1. A municipality that has issued or
proposes to issue municipal securities in the amount of $10,000,000 or more may
enter into an agreement for an exchange of interest rates as provided in this
section if it finds that such an agreement would be in the best interests of
the municipality.
2. A municipality may enter into an
agreement to exchange interest rates only if:
(a) The long-term debt obligations of the person
with whom the municipality 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 municipality enters the agreement are either:
(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 municipality or an agent of the municipality 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 100 percent of the principal amount upon which the exchange of
interest rates is based.
3. A municipality may agree, with respect
to securities that the municipality 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
municipal 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 municipality may agree, with respect
to securities that the municipality 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 municipal 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 municipal 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 municipality for the purposes
of any limitation upon the indebtedness of the municipality or any requirement
for an election with regard to the issuance of securities that is applicable to
the municipality.
7. Limitations upon the rate of interest
on a municipal security do not apply to interest paid pursuant to an agreement
entered into pursuant to this section.
8. A municipality 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 municipal securities;
(b) Statutory requirements concerning revenue
coverage that are applicable to municipal securities;
(c) Tax levies to pay debt service on municipal
securities; and
(d) Any other amounts which are based upon the
rate of interest of municipal securities.
9. Subject to covenants applicable to the
securities, any payments required to be made by the municipality 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 1991, 356)
