2014 Louisiana Laws
Revised Statutes
TITLE 39 - Public Finance
RS 39:1022 - Publication of resolution; contesting validity

§1022. Publication of resolution; contesting validity

A. Such bonds or other debt obligations shall not be issued until: (1) the governing authority of the political subdivision has adopted an appropriate resolution giving notice of its intention to issue such bonds or other debt obligations, including a general description thereof and the security therefor, and notice of this intention has been published in four consecutive weekly issues of a newspaper of general circulation published in the political subdivision or in the parish where it is located, setting forth a date and time when the governing authority will meet in open and public session to hear any objections to the proposed issuance of such bonds or other obligations, provided, however, if at such hearing a petition duly signed by electors of the political subdivision in a number not less than five per cent of the number of such electors voting at the last special or general election object to the issuance of the proposed bonds or other debt obligations, then such bonds or other debt obligations shall not be issued until approved by a vote of a majority of the qualified electors of the political subdivision who vote at a special election held for the purpose in the manner provided by Part II, Chapter 4, Title 39 of the Louisiana Revised Statutes of 1950. Any such petition shall be accompanied by a certificate of the parish registrar of voters certifying that the signers of the petition are registered electors of the political subdivision and the number of signers amount to not less than five percent of the registered electors that voted in the last tax election in said political subdivision. Prior to the publication of the notice of intention required in the preceding sentence, the State Bond Commission must approve the contents of the proposed notice of intention therein required; (2) the question of the issuance of the bonds receives prior written approval of the state bond commission.

B. For a period of thirty days after the date of each publication any person in interest shall have the right to contest the legality of the resolution and of the bonds or other debt obligations to be issued pursuant thereto and of the security for such bonds or other debt obligations and the franchise granted to the purchaser or purchasers at any sale held for the enforcement of such securities. After the expiration of the thirty-day period, no one shall have any right of action to contest the validity of the bonds or other debt obligations, pledges, or franchises, and all such bonds or other debt obligations, securities, and franchises shall be conclusively presumed to be legal, and no court shall thereafter have authority to inquire into such matters.

C. Notwithstanding the provisions of Subsection A of this Section, any indebtedness that represents a loan to a political subdivision under this Part from the Drinking Water Revolving Loan Fund or the Clean Water State Revolving Fund must be approved by the State Bond Commission prior to the incurring of such indebtedness; however, the State Bond Commission shall not be required to approve the contents of the notice of intention required by Subsection A of this Section.

Added by Acts 1977, No. 706, §1; Acts 2010, No. 296, §3, eff. June 17, 2010.