Sale of General Obligation Refunding Bonds — Notices — Agreement to Sell
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Any local government of this state proposing to sell general obligation refunding bonds for any authorized purpose under this part and part 1 of this chapter is authorized to sell such bonds either at a competitive public sale or at a private negotiated sale as the governing body of the local government may direct. However, if the general obligation refunding bonds are to be sold at a private negotiated sale, then approval must first be obtained from the comptroller of the treasury or the comptroller's designee in accordance with subsection (c).
If the general obligation refunding bonds will be sold at a competitive public sale, the local government shall publish a notice of sale at least five (5) days prior to the date on which the general obligation refunding bonds are to be sold, either in a financial newspaper having national circulation, or via an electronic communication system that is generally available to the financial community. The notice of sale shall set forth the time, date and place of sale, the maximum amount of general obligation refunding bonds to be sold, the maximum interest rate, the maximum discount, if any, that will be permitted, in dollars or as a percentage of par value, and the basis upon which the general obligation refunding bonds will be awarded. If the principal amount of general obligation refunding bonds to be sold is not greater than five million dollars ($5,000,000), then the notice of sale may be published either as set forth in this subsection (b), or solely in a newspaper having general circulation in the local government.
If the general obligation refunding bonds, except for bonds sold pursuant to a commitment of a state or federal agency to purchase the same, will be sold at private negotiated sale, then the local government shall first submit to the comptroller of the treasury or the comptroller's designee for approval, a copy of the initial resolution as adopted, if applicable, a copy of the proposed resolution authorizing the general obligation refunding bonds, a copy of the proposed disclosure statement, if any, and a detailed statement showing the estimated cost of issuance which shall include at least the following, if applicable:
Fiscal agent and/or financial advisor fees;
Bond counsel fees;
Other legal charges, if any;
Credit enhancement fees;
Trustee fees;
Registration fees;
Paying agent fees;
Rating agency fees;
Underwriters' discount or charges;
Remarketing agent fees; and
Printing, advertising and other expenses;
together with any other information deemed pertinent to the bond issue by the local government.
Based upon the information submitted and any additional information deemed pertinent by the local government, the local government shall state and demonstrate in its request for approval to the comptroller of the treasury or the comptroller's designee that the proposed private negotiated sale is feasible, that the proposed private negotiated sale is in the best interests of the local government, and that the local government should be able to amortize the proposed indebtedness together with all other obligations then outstanding. The state funding board may establish guidelines to assist the comptroller of the treasury or the comptroller's designee in reviewing applications so submitted by the local government. Such guidelines, if any, will be made available to the local government upon request to the comptroller of the treasury or the comptroller's designee. The comptroller of the treasury or the comptroller's designee shall notify the governing body of the local government of the comptroller of the treasury's or the comptroller's designee's approval or disapproval within fifteen (15) days from the date that all required information is received by the comptroller of the treasury or the comptroller's designee. If the comptroller of the treasury or the comptroller's designee approves a private negotiated sale for the general obligation refunding bonds or if the comptroller of the treasury or the comptroller's designee fails to act within such time, then the local government may proceed to sell the general obligation refunding bonds in that manner. If the comptroller of the treasury or the comptroller's designee does not approve the proposed negotiated sale, then the local government may proceed to sell the general obligation refunding bonds at a competitive public sale in the manner provided by subsection (b).
The governing body of a local government may enter into an agreement to sell its general obligation refunding bonds under this part providing for delivery of its general obligation refunding bonds on a date greater than ninety (90) days and not greater than the first optional redemption date on which the obligations 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 local government to sell its general obligation refunding bonds as authorized in this subsection (d) is in compliance with the guidelines, rules or regulations adopted or promulgated by the state funding board in accordance with § 9-21-130. Agreements to sell general obligation refunding bonds for delivery ninety (90) days or less from the date of execution of the agreement to sell the general obligation refunding bonds do not require a report of the comptroller of the treasury or the comptroller's designee.