A. Any municipality or county having issued revenue bonds as authorized in the Lodgers' Tax Act [3-38-13 to 3-38-25 NMSA 1978] may issue refunding revenue bonds payable from pledged revenues therein authorized for the payment of revenue bonds at the time of the refunding or at the time of the issuance of the bonds being refunded as the governing body of the municipality or county may determine, notwithstanding the revenue sources or the pledge of such revenues or both are thereby modified.
B. Refunding bonds may be issued for the purpose of refinancing, paying and discharging all or any part of such outstanding bonds of any one or more or all outstanding issues:
(1) for the acceleration, deceleration or other modification of the payment of such obligations, including without limitation any capitalization of any interest thereon in arrears or about to become due for any period not exceeding one year from the date of the refunding bonds;
(2) for the purpose of reducing interest costs or effecting other economies;
(3) for the purpose of modifying or eliminating restrictive contractual limitations pertaining to the issuance of additional bonds, otherwise concerning the outstanding bonds, or to any facilities relating thereto; or
(4) for any combination of the foregoing purposes.
C. The interest on any bond refunded shall not be increased to any rate in excess of the rate authorized in the Public Securities Act [6-14-1 to 6-14-3 NMSA 1978] and shall be paid as authorized in that act.
D. Bonds for refunding any bonds for any other purpose permitted by the Lodgers' Tax Act may be issued separately or issued in combination in one series or more.
E. Except as otherwise provided in the Lodgers' Tax Act, refunding bonds authorized in the Lodgers' Tax Act shall be issued in accordance with the provisions of Sections 3-31-10 and 3-31-11 NMSA 1978.
History: 1953 Comp., § 14-37-24, enacted by Laws 1969, ch. 199, § 11; 1976 (S.S.), ch. 34, § 8; 1987, ch. 9, § 4.
ANNOTATIONSThe 1987 amendment, effective June 19, 1987, deleted "or" at the end in Subsections B(1) and B(2); substituted "in excess of the rate authorized in the Public Securities Act and shall be paid as authorized in that act" for "exceeding seven percent a year payable annually or semiannually, but the first interest payment may be for any period not exceeding one year" in Subsection C; substituted "authorized in the Lodgers' Tax Act" for "therein authorized" in Subsection E; and substituted "3-31-10 and 3-31-11 NMSA 1978" for "14-30-9 and 14-30-10 NMSA 1953" in Subsection E.