(1) Notes shall be issued in a form consistent with the provisions of this part 9, describing the fund and the revenue from which such notes are payable; shall mature not later than three days before the last day of the fiscal year in which the same were issued; shall bear interest, if any, at a rate or rates determined by the state treasurer to be for the best advantage of the state; and may be redeemable, payable, or subject to purchase prior to maturity at such time and upon the payment of such premium or premiums, if any, as shall be determined by the state treasurer to be for the best advantage of the state. Book entry issuance is a form consistent with this part 9. The rate or rates of interest borne by the notes may be fixed, adjustable, or variable or any combination thereof. If any rate or rates are adjustable or variable, the standard, index, method, or formula pursuant to which the same are to be determined from time to time shall be set forth in the state treasurer's resolution authorizing the issuance of the notes. Such standard, index, method, or formula may include a delegation of authority to an agent acting for and on behalf of the state to determine a rate or rates within parameters, including a maximum interest rate, prescribed by the state treasurer in the resolution authorizing the issuance of the notes.
In connection with the issuance of any notes, the state treasurer may direct the controller to create such restricted accounts within any fund as may be necessary or convenient for the segregation of note proceeds and investment income therefrom, revenue and investment income therefrom, or other sums, and the state treasurer may pledge any such accounts to and create liens thereon in favor of the owners of the notes; except that the aggregate amount of all such restricted accounts other than those created for note proceeds and investment income therefrom shall not exceed the principal and interest due at maturity on such notes. In connection with such issuance, the state treasurer may also make such customary covenants on behalf of the state as may be necessary to secure the notes.
Any pledge made by the state treasurer shall be valid and binding from the time thepledge is made. The revenues and moneys so pledged and thereafter received shall immediately be subject to the lien of such pledge without any physical delivery or further act, and the lien of such pledge shall be valid and binding against all parties having claims of any kind in tort, by contract, or otherwise against such pledging parties, irrespective of whether such claiming parties have notice of such lien. The resolution by which a pledge is created need not be recorded. Said resolution shall constitute a commitment voucher for purposes of section 24-30202. The execution by the state treasurer and the controller of said resolution shall constitute the controller's approval of the commitment voucher and the treasurer's authorization of the expenditure of moneys from the state treasury to pay costs of issuance and the principal of and interest on notes at maturity.
Source: L. 86: Entire part R&RE, p. 969, § 1, effective July 1. L. 89: Entire section amended, p. 1137, § 3, effective March 21.
Editor's note: This section is similar to former § 24-75-907 as it existed prior to 1986.