Issuance, sale and terms of bonds

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48-177. Issuance, sale and terms of bonds

A. Notwithstanding the provisions of any general, special or local law, the district may issue, sell or exchange bonds of such kind, in such amount and with such security or agreements as may be provided by the contract or agreement, and issue and sell such bonds either at one time or from time to time to such persons or in such manner as may be provided in the contract or agreement.

B. The bonds may be in such form, bear such date or dates, be in such denomination or denominations, mature in such amount or amounts and at such time or times not exceeding fifty years from their date, be executed in such manner, be payable in such medium of payment and at such place or places, and bear such privileges as to registration, conversion, reconversion, redemption or exchange, as may be provided in the contract or agreement. In the absence of specific provisions in the contract or agreement as to any of the matters set forth in this subsection, they shall be done or performed in such manner as is acceptable to the federal government and specified in a resolution or resolutions of, or approved by, the governing body of the district.

C. If any of the officers of the district who sign the bonds cease to be officers of the district before the delivery thereof, the bonds shall nevertheless be valid and binding obligations of the district for all purposes when duly delivered and paid for the same as if the persons who signed the bonds had continued to be officers of the district until after delivery and payment.

D. The bonds may bear interest at a rate or rates not to exceed the maximum rate set forth in the notice of election, and may be sold either at public or private sale for an amount equal to not less than one hundred per cent of the principal amount thereof, upon such terms and conditions as the governing body of the district determines, or may be exchanged for a like or greater principal amount of outstanding bonds of the district. If the purchaser pays interest accrued on the bonds at the date of purchase, interest shall be payable on the bonds from the date when the accruals commenced.

E. Notwithstanding their form or tenor, the bonds and any other bonds purchased by the federal government pursuant to the terms of the contract or agreement shall at all times be negotiable instruments, unless they contain on their face an express statement that they are nonnegotiable.


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