Expenditure of Bond Funds for Purposes Other Than Stated in Public Bond Notice

  1. Law
  2. Georgia Code
  3. Local Government
  4. Bonds
  5. General Provisions
  6. Expenditure of Bond Funds for Purposes Other Than Stated in Public Bond Notice

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  1. When, subsequent to the issuance of any bonds pursuant to the provisions of this article, the governing authority of any county, municipal corporation, or political subdivision adopts by a two-thirds' majority vote a resolution declaring that:
    1. A portion of the bond funds remains after the purpose stated in the notice required by subsection (b) of Code Section 36-82-1 has been achieved or accomplished;
    2. The purpose stated in such notice is no longer necessary; or
    3. Circumstances have changed such that the expenditure of all or part of such bond funds is no longer practicable or feasible,

      the governing authority shall be authorized to expend such bond funds, including interest, for purposes of a nature substantially similar to the purpose stated in such notice or to reduce the bonded indebtedness of the county, municipality, or political subdivision.

  2. Not sooner than ten days prior to expending bond funds as provided in subsection (a) of this Code section, the governing authority shall cause to be published once in the official county organ a copy of the resolution adopted pursuant to subsection (a) of this Code section, which resolution shall set forth the reason the bond funds were not expended for the original purpose and shall state the purpose for which such funds will be expended. In addition, the governing authorities shall cause a copy of such resolution to be sent by registered or certified mail or statutory overnight delivery to any trustee for bondholders or other paying agent.

(Code 1981, §36-82-4.2, enacted by Ga. L. 1990, p. 1441, § 1; Ga. L. 2000, p. 1589, § 3.)

Editor's notes.

- Ga. L. 2000, p. 1589, § 16, not codified by the General Assembly, provides that the amendment of this Code section is applicable with respect to notices delivered on or after July 1, 2000.

OPINIONS OF THE ATTORNEY GENERAL

Construction of school administration, maintenance, and storage facilities.

- Proceeds of general obligation bonds issued under O.C.G.A. §§ 20-2-430 and20-2-431 may not be used for school administration, maintenance, and storage facilities, but bonds may be issued for such purposes upon compliance by the county school board with the notice and purpose requirements set forth in O.C.G.A. Ch. 82, T. 36. 1998 Op. Att'y Gen. No. 98-12.


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