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The counties, through their respective county legislative bodies, are authorized to issue and sell bonds for the purposes and in the manner provided in this part.
All bonds issued under the authority of this part shall be sold for no less than ninety-eight percent (98%) of par value and accrued interest as the governing body of the county may direct.
The bonds may be issued by the county legislative body of any county by resolution adopted by a majority of the members of the county legislative body at any regular, special or adjourned meeting of the county legislative body.
“A majority of the members of the county legislative body” means a majority of the duly qualified and acting members of the county legislative body; and where a vacancy or vacancies exist in the county legislative body, the vacancy or vacancies shall not be included in determining the membership of the county legislative body within the meaning of this subsection (b).
The bonds shall not be issued for any other purpose than expressed in this part, and any bonds issued pursuant to this part and the income from the bonds shall be exempt from all state, county and municipal taxation except for inheritance, transfer and estate taxes and except as otherwise provided in this code.
The bonds shall be known as school bonds or as general obligation school bonds, and shall bear interest at a zero (0) rate or at such rate or rates, which may vary from time to time, not exceeding the maximum rate provided in the resolution authorizing the bonds, payable at such time or times as may be provided in the resolution authorizing the bonds; and the bonds shall be due and payable in not more than forty (40) years from the date of their issuance.
The bonds shall be issued in such denominations and numbers, may be payable in such place or places, may carry such registration privileges, may be subject to such terms of redemption, with or without premium, all as may be provided in the resolution authorizing the bonds. Each bond shall recite on its face that it is issued pursuant to this part.
Each of the bonds shall be executed in such manner and by such officials as may be provided by resolution of the county legislative body of the county.
The bonds shall be sold for cash by the county mayor; provided, that the sale shall be advertised for a period of not less than five (5) days next preceding the date of the sale.
The county legislative bodies are authorized to pay out of the bond proceeds the necessary expenses in the issuance and sale of the bonds.
With respect to all or any portion of any issue of bonds issued or anticipated to be issued under this part, at any time during the term of the bonds, and upon receipt of a report of the comptroller of the treasury or the comptroller's designee finding that the contracts and agreements authorized in this subsection (h) are in compliance with the guidelines, rules or regulations adopted or promulgated by the state funding board, as set forth in subsection (i), a county by resolution may authorize and enter into interest rate swap or exchange agreements, agreements establishing interest rate floors or ceilings or both, and other interest rate hedging agreements under such terms and conditions as the governing body of the county may determine, including, but not limited to, provisions permitting the county to pay to or receive from any person or entity any loss of benefits under such agreement upon early termination of the agreement or default under the agreement.
The governing body of a county may enter into an agreement to sell its bonds, other than its refunding bonds, under this chapter providing for delivery of its bonds on a date greater than ninety (90) days and not greater than five (5) years, or such greater period of time if approved by the comptroller of the treasury or the comptroller's designee, from the date of execution of the agreement or to sell its refunding bonds under this chapter providing for delivery of its refunding bonds on a date greater than ninety (90) days from the date of execution of the agreement and not greater than the first optional redemption date on which the bonds being refunded can be optionally redeemed resulting in cost savings or at par, whichever is earlier, only upon receipt of a report of the comptroller of the treasury or the comptroller's designee finding that the agreement or contract of a county to sell its bonds as authorized in this subsection (i) is in compliance with the guidelines, rules or regulations adopted or promulgated by the state funding board in accordance with subsection (j). Agreements to sell bonds and refunding bonds for delivery ninety (90) days or less from the date of execution of the agreement do not require a report of the comptroller of the treasury or the comptroller's designee.
The state funding board shall establish guidelines, rules or regulations with respect to the agreements and contracts referenced in subsections (h) and (i), which may include, but shall not be limited to:
The conditions under which the agreements or contracts can be entered into;
The methods by which the contracts are to be solicited and procured;
The form and content the contracts shall take;
The aspects of risk exposure associated with the contracts;
The standards and procedures for counterparty selection, including rating criteria;
The procurement of credit enhancement, liquidity facilities or the setting aside of reserves in connection with the contracts or agreements;
The methods of securing the financial interest in the contracts;
The methods to be used to reflect the contracts in the county's financial statements;
Financial monitoring and periodic assessment of the contracts by the county;
The application and source of nonperiodic payments; and
Educational requirements for officials of any county responsible for approving any such contract or agreement;
Prior to the adoption by the governing body of the county of a resolution authorizing the contract or agreement, a request shall be submitted to the comptroller of the treasury or the comptroller's designee for a report finding that the contract or agreement is in compliance with the guidelines, rules or regulations of the state funding board. Within fifteen (15) days of receipt of the request, the comptroller of the treasury or the comptroller's designee shall determine whether the contract or agreement substantially complies with the guidelines, rules or regulations and shall report on the determination to the county. If the report of the comptroller of the treasury or the comptroller's designee finds that the contract or agreement complies with the guidelines, rules or regulations of the state funding board or the comptroller of the treasury or the comptroller's designee fails to report within the fifteen-day period, then the county may take such action with respect to the proposed contract or agreement as it deems advisable in accordance with this section and the guidelines, rules or regulations of the state funding board. If the report of the comptroller of the treasury or the comptroller's designee finds that the contract or agreement is not in compliance with the guidelines, rules or regulations, then the county is not authorized to enter into the contract or agreement. The guidelines, rules or regulations shall provide for an appeal process to a determination of noncompliance.
When entering into any contracts or agreements facilitating the issuance and sale of bonds, including contracts or agreements providing for liquidity and credit enhancement and reimbursement agreements relating thereto, interest rate swap or exchange agreements, agreements establishing interest rate floors or ceilings or both, other interest rate hedging agreements, and agreements with the purchaser of the bonds authorized under this section evidencing a transaction bearing a reasonable relationship to this state and also to another state or nation, the county may agree in the written contract or agreement that the rights and remedies of the parties to the contract or agreement shall be governed by the laws of this state or the laws of such other state or nation; provided, that jurisdiction over any county against which an action on such a contract or agreement is brought shall lie solely in a court in this state that would otherwise have jurisdiction of actions brought in contract against such county.