0001| AN ACT | 0002| RELATING TO BONDS; DELETING THE REQUIREMENT THAT BID NOTICE FOR SALE OF | 0003| MUNICIPAL BONDS BE MAILED TO THE STATE INVESTMENT COUNCIL AND THE STATE | 0004| TREASURER. | 0005| | 0006| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0007| Section 1. Section 6-15-5 NMSA 1978 (being Laws 1929, Chapter | 0008| 201, Section 3, as amended) is amended to read: | 0009| "6-15-5. SALE OF BONDS.-- | 0010| A. Except as provided in Subsection B of this section, | 0011| before any bonds issued by a municipal corporation are offered for sale, | 0012| the corporate authorities issuing the bonds shall designate the maximum | 0013| rate of interest the bonds shall bear and shall designate the maximum | 0014| net effective interest rate which shall not exceed the maximum permitted | 0015| by the Public Securities Act. All the bonds shall be sold at public | 0016| sale and a notice calling for bids for the purchase of the bonds shall | 0017| be published once a week for two consecutive weeks in a newspaper having | 0018| local circulation. The notice shall specify a place and designate a day | 0019| and hour subsequent to the date of the publication when sealed bids | 0020| shall be received and publicly opened for the purchase of the bonds. | 0021| The notice shall specify the maximum rate of interest the bonds shall | 0022| bear, the maximum net effective interest rate permitted for the bonds | 0023| and the maximum discount if a discount is allowed by the governing body | 0024| and shall require bidders to submit a bid specifying the lowest rate or | 0025| rates of interest and any premium or discount if allowed by the | 0001| governing body at, above or below par at which the bidder will purchase | 0002| the bonds. The bonds shall be sold to the bidder making the best bid, | 0003| subject to the right of the governing body to reject any and all bids | 0004| and readvertise. All bids shall be sealed and, except the bid of New | 0005| Mexico if one is received, shall be accompanied by a deposit of not less | 0006| than two percent of the principal amount of the bonds, either in cash or | 0007| by cashier's or treasurer's check of, or by certified check drawn on, a | 0008| solvent commercial bank or trust company in the United States, which | 0009| deposit shall be returned if the bid is not accepted. If the successful | 0010| bidder does not complete the purchase of the bonds within thirty days | 0011| following the acceptance of his bid or within ten days after the bonds | 0012| are made ready and are offered by the municipal corporation for | 0013| delivery, whichever is later, the amount of his deposit shall be | 0014| forfeited to the municipal corporation issuing the bonds, and, in that | 0015| event, the governing body may accept the bid of the bidder making the | 0016| next best bid. If all bids are rejected, the governing body shall | 0017| readvertise the bonds for sale in the same manner as for the original | 0018| advertisement. If there are two or more equal bids and the bids are the | 0019| best bids received, the governing body shall determine which bid shall | 0020| be accepted. | 0021| B. Bonds issued by a municipal corporation may be sold to | 0022| the state at private sale without advertisement. | 0023| C. Except as provided in this section, bonds to be issued by | 0024| a municipal corporation for various purposes may be sold and issued as a | 0025| single combined issue even though they may have been authorized by | 0001| separate votes at an election or elections. Bonds authorized by any | 0002| city, town or village for the construction or purchase of a system for | 0003| supplying water, a sanitary sewer system or a storm sewer system may be | 0004| combined with each other and sold and issued as a single issue but may | 0005| not be combined with bonds to be issued for any other purpose that may | 0006| be subject to the debt limitation of Article 9, Section 13 of the | 0007| constitution of New Mexico." | 0008| Section 2. EFFECTIVE DATE.--The effective date of the provisions | 0009| of this act is July 1, 1996. | 0010| | 0011| HB | 0012| 334 | 0013| Page  |