2015 Louisiana Laws
Revised Statutes
TITLE 39 - Public Finance
RS 39:742.2 - Borrowing by political subdivisions in anticipation of special tax collections

§742.2. Borrowing by political subdivisions in anticipation of special tax collections

A. Any political subdivision of the state of Louisiana may anticipate the revenues to be realized from special ad valorem taxes voted pursuant to provisions of the constitution and statutes of the state of Louisiana by borrowing money to be used only for the purpose for which such a tax was voted; however, a political subdivision may not anticipate such revenues for a period of more than ten years or the remaining number of years for which the tax is authorized to be levied, whichever is less. Such a borrowing shall be evidenced by certificates of indebtedness of the political subdivision, said certificates of indebtedness to be payable solely from and secured by an irrevocable pledge and dedication of the revenues of such tax.

B. The principal and interest due in any year on the amount so borrowed for and on behalf of any political subdivision in anticipation of the revenues to be received from a special ad valorem tax shall not exceed seventy-five percent of the revenues estimated to be realized from the levy of such special tax in the year in which such certificates of indebtedness are issued. In applying the aforesaid test, all revenues estimated to be realized from the levy of a special tax in the year in which the certificates of indebtedness are issued, regardless of the date on which the revenues are anticipated to be received, will be included in the estimated revenues for such year.

C.(1) The principal of the certificates of indebtedness shall be made due and payable annually not later than March first of each future year in which principal falls due; provided that such certificates of indebtedness shall mature within ten years from the date of their issuance but not later than March first on the year following the last year in which the tax securing the borrowing is authorized to be levied.

(2) The certificates of indebtedness shall bear such rate or rates of interest per annum and shall be issued and sold in such manner and form as the governing authority of the political subdivision may provide, and they shall be legal and valid obligations of the political subdivision on behalf of which they are issued.

(3) The issuance of the certificates of indebtedness shall be subject to the approval of the State Bond Commission and the approval set forth in Article VI, Section 15 of the Constitution of Louisiana, if applicable.

D. Any certificates of indebtedness issued pursuant to the provisions of this Section, and the interest thereon, shall be exempt from all taxation in the state of Louisiana.

E. The authority set forth in this Section shall be in addition to any and all other authority for political subdivisions to incur indebtedness and issue certificates of indebtedness or other securities.

F. Assessment districts created pursuant to R.S. 47:1925.2 shall be deemed political subdivisions for purposes of this Section.

Acts 1990, No. 947, §1, eff. July 25, 1990; Acts 1995, No. 152, §1.