A. In order to provide funds for the continued development and operation of the employers mutual company, the board of directors of the company is authorized to issue revenue bonds from time to time, in a principal amount outstanding not to exceed ten million dollars ($10,000,000) at any given time, payable solely from premiums received from insurance policies and other revenues generated by the company.
B. The board may issue bonds to refund other bonds issued pursuant to this section.
C. The bonds shall have a maturity of no more than ten years from the date of issuance. The board of directors of the employers mutual company shall determine all other terms, covenants and conditions of the bonds; provided, however, that the bonds may provide for prepayment in part or in full of the balance due at any time without penalty, and the company shall not make any prepayments until it has established adequate reserves for the risks it has insured and has received approval from the superintendent of insurance for the proposed prepayment.
D. The bonds shall be executed with the manual or facsimile signature of the president of the employers mutual company or the chairman of the board of directors of the company and attested by an other member of the board. The bonds may bear the seal, if any, of the company.
E. The proceeds of the bonds and the earnings on those proceeds are appropriated to the board of directors of the employers mutual company for the development and operation of the employers mutual company, to pay expenses incurred in the preparation, issuance and sale of the bonds, to pay any obligations relating to the bonds and the proceeds of the bonds under the federal Internal Revenue Code of 1986, as amended, and for any other lawful purpose.
F. The bonds may be sold either at a public sale or at a private sale to the state investment officer or to the state treasurer. If the bonds are sold at a public sale, the notice of sale and other procedures for the sale shall be as determined by the president or the board of directors of the employers mutual company.
G. This section is full authority for the issuance and sale of the bonds, and the bonds shall not be invalid for any irregularity or defect in the proceedings for their issuance and sale and shall be incontestable in the hands of bona fide purchasers or holders of the bonds for value.
H. An amount of money from the sources specified in Subsection A of this section sufficient to pay the principal of and interest on the bonds as they become due in each year shall be set aside, and is hereby pledged, for the payment of the principal and interest on the bonds.
I. The bonds shall be legal investments for any person or board charged with the investment of public funds and may be accepted as security for any deposit of public money, and the bonds and interest thereon are exempt from taxation by the state and any political subdivision or agency of the state.
J. The bonds shall be payable by the employers mutual company, which shall keep a complete record relating to the payment of the bonds.
History: Laws 1990 (2nd S.S.), ch. 3, § 7; 1992, ch. 24, § 1.
ANNOTATIONSCross references. — For the Insurance Code, see 59A-1-1 NMSA 1978 and notes thereto.
The 1992 amendment, effective May 20, 1992, in Subsection A, inserted "of directors of the company"; in Subsections C, E, and F, inserted "of directors of the employers mutual company"; in Subsection D, inserted "of the employers mutual company" and "of directors of the company"; in Subsection E, deleted the former first sentence, which read "Proceeds from the sale of the bonds shall be used first to pay back the one million dollar ($1,000,000) loan provided to the company from the appropriations contingency fund under Section 9 of this act" and, in the second sentence, deleted "for the repayment of that loan," preceding "for the development and operation" and inserted "and for any other lawful purpose" at the end; in Subsection J, inserted "employers mutual"; and made stylistic changes.