2014 Louisiana Laws
Revised Statutes
TITLE 39 - Public Finance
RS 39:573 - Violations of law in connection with sales of bonds
§573. Violations of law in connection with sales of bonds
A. It shall be unlawful, within the meaning of this Section and R.S. 39:572:
(1) To sell or dispose of bonds authorized for works of public improvement except for cash, or at a price less than that fixed by the constitution and the law.
(2) To sell or dispose of bonds upon any understanding which tends to hamper or restrict the free letting of public work by the governing authority. Any contract let contrary to this provision shall be contra bonos mores, and void and unenforceable, provided, nothing herein contained shall affect the rights of bona fide purchasers of such bonds, who hold them for value as innocent third holders.
B. It shall also be unlawful, within the meaning of this Section and R.S. 39:572:
(1) For any bidder or prospective purchaser of bonds to propose, or for the governing authority to entertain any proposal for the purchase of bonds which is coupled with a stipulation that the bidder shall have the right to name or suggest the name of the contractor or builder to do the work for which the bonds are to be sold, or coupled with any other condition calculated to affect the free letting of the public work.
(2) For any person to act in collusion to restrict free bidding for bonds when offered for sale.
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