RS 2406 - Sale of bonds, prescriptive period to contest
All bonds issued under authority of this Chapter shall be sold to the highest bidder at a public sale, for not less than par and accrued interest, after advertisement by the district at least once a week for not less than thirty days, in a newspaper of general circulation within the district and in a financial newspaper or journal published in New Orleans, Louisiana, New York, New York, or Chicago, Illinois, reserving to the district the right to reject any and all bids and to readvertise for bids. If the bonds are not sold pursuant to the advertisement, they may be sold by the commission by private sale within sixty days after the date advertised for the reception of sealed bids, but no private sale shall be made at a price less than the highest bid which was received. If not sold, the bonds shall be readvertised in the manner herein prescribed.
For a period of sixty days from the date of the adoption of any resolution of the commission authorizing the issuance of its bonds or notes, any person in interest shall have the right to contest the legality of such resolution and the validity of such bonds or notes issued or proposed to be issued thereunder, after which time no person shall have any cause or right of action to contest the regularity, formality or legality of said resolution or to draw into question the legality of said bonds or notes or the debts represented thereby for any cause whatever, and it shall be conclusively presumed that every legal requirement has been complied with, and no court shall have authority to inquire into such matters after the lapse of said sixty days.
Such bonds shall have all the qualities of negotiable instruments under the law merchant and the Negotiable Instruments Law of this state.
Added by Acts 1966, No. 369, §1. Amended by Acts 1968, No. 111, §3.