Denomination, negotiability and maturity of state securities; rate of interest.

Checkout our iOS App for a better way to browser and research.

1. As the Commission may determine, any bonds and other state securities issued hereunder, except as otherwise provided in the Constitution of the State, or in the State Securities Law, or in any act supplemental thereto, must:

(a) Be of a convenient denomination or denominations;

(b) Be fully negotiable within the meaning of and for all the purposes of the Uniform Commercial Code — Investment Securities;

(c) Mature at such a time or serially at such times in regular numerical order at annual or other designated intervals in such amounts as designated and fixed by the Commission;

(d) Be made payable in lawful money of the United States, at the office of the treasurer or any commercial bank or commercial banks within or without or both within and without the State as may be provided by the Commission; and

(e) Be printed at such a place within or without this state, as the Commission may determine.

2. Any such bonds or other state securities must bear interest at a rate or rates which do not exceed the limit provided in NRS 349.076. The interest must be made payable:

(a) If the security constitutes a debt subject to the limitations stated in the first paragraph of Section 3 of Article 9 of the Constitution of this state, not less often than semiannually.

(b) If the security does not constitute a debt or is issued for the protection and preservation of the State’s property or natural resources or for the purpose of obtaining the benefits thereof, at intervals which the Commission shall designate, and the first interest payment may be for another period.

3. General obligation bonds must mature within 20 years from their date or within 20 years from the date of passage of the act authorizing their issuance or the issuance of any securities funded or refunded thereby, whichever limitation is shorter; but any bonds constituting a debt which is not subject to the limitations stated in the first paragraph of Section 3 of Article 9 of the Constitution of this state must mature within 50 years from their date.

4. Special obligation bonds must mature within 50 years from their date.

(Added to NRS by 1967, 782; A 1969, 1290; 1971, 2113; 1975, 860; 1977, 34, 252; 1981, 1400; 1983, 571; 1985, 276; 2001, 2481)


Download our app to see the most-to-date content.