Issuance of Bonds Upon Favorable Election Vote; Ordinance or Resolution Authorizing Refunding Bonds; Issuance, Content, and Form of Refunding Bonds

1. Law
2. Georgia Code
3. Local Government
4. Bonds
5. General Provisions
6. Issuance of Bonds Upon Favorable Election Vote; Ordinance or Resolution Authorizing Refunding Bonds; Issuance, Content, and Form of Refunding Bonds

1. When notice has been given and the election has been held, in accordance with Code Section 36-82-2, if the requisite majority of those qualified voters of the county, municipality, or political subdivision voting at the election vote for bonds, then the authority to issue the bonds in accordance with Article IX, Section V, Paragraph I or II of the Constitution of Georgia is given to the proper officers of the county, municipality, or political subdivision.
2. The ordinance or resolution of the governing body of the county, municipality, or other political subdivision of this state authorizing the issuance of general obligation refunding bonds in accordance with the terms and conditions of subsection (f) of Code Section 36-82-1 may be adopted at a regular or special meeting by a majority of the members of the governing body and, unless otherwise provided therein, such resolution or ordinance shall take effect immediately and need not be laid over or published or posted.
3. General obligation refunding bonds may be issued in one or more series; may bear such date or dates; may mature at such time or times, and bear interest at such rate or rates per annum, payable at such time or times, subject to the limitations contained in subsection (f) of Code Section 36-82-1, pertaining to the final maturity date and maximum interest rate for such refunding bonds; may be payable in such medium of payment at such place or places; may be in such denomination or denominations; may be in such form, either coupon or registered; may carry such registration, conversion, and exchangeability privileges; may be subject to such terms of redemption, with or without a premium; may be executed in such manner; and may contain such terms, covenants, and conditions as the ordinance or resolution authorizing the issuance of such refunding bonds may provide. All general obligation refunding bonds issued under this article bearing the signature of officers in office on the date of the signing thereof shall be valid and binding, notwithstanding that before delivery thereof and payment therefor such officers whose signatures appear thereon shall have ceased to be officers of the governmental body issuing the bonds. Pending the preparation of the definitive bonds, interim receipts, in such form and with such provisions as the governing body may determine, may be issued to the purchaser or purchasers of bonds to be issued under this article. Such refunding bonds and interim receipts shall be negotiable for all purposes. Such refunding bonds shall be and are declared to be nontaxable for any and all purposes.

(Ga. L. 1878-79, p. 40, § 3; Code 1882, § 508k; Civil Code 1895, § 379; Civil Code 1910, § 442; Code 1933, § 87-203; Ga. L. 1983, p. 3, § 57; Ga. L. 1984, p. 1362, § 2.)

Editor's notes.

- Ga. L. 1984, p. 1362, § 8, not codified by the General Assembly, provided: "The provisions of this Act [which amended this Code section] shall be liberally construed to effect the purposes hereof, and insofar as the provisions of this Act may be inconsistent with the provisions of the Georgia Constitution under circumstances where the General Assembly has been granted the power by law to enlarge or restrict such provisions of the Constitution or the provisions of any law, including any general, local, or special Act of the General Assembly creating or activating any municipality, this Act shall control."

JUDICIAL DECISIONS

Authority to issue bonds.

- Former Civil Code 1910, § 442 (see now O.C.G.A. § 36-82-3) gave express authority to issue bonds when the notice required by former Civil Code 1910, § 440 (see now O.C.G.A. § 36-82-1) was given and the election held in accordance with former Civil Code 1910, § 441 (see now O.C.G.A. § 36-82-2). Cowart v. City of Waycross, 159 Ga. 589, 126 S.E. 476 (1925).

This section must be given effect, subject to the change as made by Ga. Const. 1945, Art. VII, Sec. VII, Para. V (see now Ga. Const. 1983, Art. IX, Sec. VI, Para. I), in reference to the proportion of qualified voters necessary to authorize a bond issue; and no further enabling Act is necessary. McKnight v. City of Decatur, 200 Ga. 611, 37 S.E.2d 915 (1946).

County may issue bonds only when Constitution and laws complied with.

- County may issue bonds to be paid for with funds derived from public taxation, and procure a judgment of the court confirming and validating the bonds, only when the Constitution and laws of the state have been fully complied with. Richter v. Chatham County, 146 Ga. 218, 91 S.E. 35 (1916).

Provision for annual tax must be made before bonds sold.

- After the bonds have been validated, a provision for an annual tax must be made before the bonds can be sold and the debt be thereby actually incurred. Woodall v. Town of Adel, 122 Ga. 301, 50 S.E. 102 (1905); Oliver v. City of Elberton, 124 Ga. 64, 52 S.E. 15 (1905).

Past indebtedness.

- Voters cannot authorize a bond issued for past indebtedness of a municipality. The voters must pass on the debt to be incurred. Mayor of Macon v. Jones, 122 Ga. 455, 50 S.E. 340 (1905).

Bonds may be payable in gold or lawful money.

- It is lawful to make the proposed bonds "payable in gold, or lawful money of the United States, at the option of the holder." Heilbron v. Mayor of Cuthbert, 96 Ga. 312, 23 S.E. 206 (1895).

OPINIONS OF THE ATTORNEY GENERAL

School bond issue requires assent consisting of simply majority of those qualified voters in school bond election. 1963-65 Op. Att'y Gen. p. 769.

RESEARCH REFERENCES

Am. Jur. 2d.

- 64 Am. Jur. 2d, Public Securities and Obligations, §§ 139 et seq., 164.

C.J.S.

- 64A C.J.S., Municipal Corporations, § 2153 et seq.

ALR.

- Estoppel to deny validity of municipal bonds issued under an unconstitutional statute, 37 A.L.R. 1310.

Negotiability of municipal bonds as affected by reference to fund from which they are to be paid, 42 A.L.R. 1027.

Right to call governmental bonds in advance of their maturity, 109 A.L.R. 988.

Effect of delay after authorization by voters on power of governmental unit to issue bonds, 135 A.L.R. 768.

Validity, within authorized debt, tax, or voted limit, of bond issue in excess of amount permitted by law, 175 A.L.R. 823.

Rescission of vote authorizing school district or other municipal bond issue, expenditure, or tax, 68 A.L.R.2d 1041.

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