Nrs: Chapter 350 - Municipal Obligations

Link to law: https://www.leg.state.nv.us/NRS/NRS-350.html
Published: 2015

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[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)