2005 Nevada Revised Statutes - Chapter 350 — Municipal Obligations

CHAPTER 350 - MUNICIPAL OBLIGATIONS

GENERAL PROVISIONS

NRS 350.0015 Definitions.

NRS 350.0045 Generalobligation debt defined.

NRS 350.0055 Installment-purchaseagreement defined.

NRS 350.0065 Localgovernment defined.

NRS 350.007 Medium-termobligation defined.

NRS 350.0075 Specialobligation defined.

NRS 350.008 Termof installment-purchase agreement.

NRS 350.009 Regulations.

DEBT MANAGEMENT COMMISSION

NRS 350.011 Definitions.

NRS 350.0115 Creation;composition; selection and terms of members; interest in securities issued byState or political subdivision prohibited; vacancies.

NRS 350.012 Meetings;officers; removal of member; quorum; compensation.

NRS 350.0125 Technicalassistance provided by Department of Taxation or board of county commissionersto carry out duties of commission.

NRS 350.013 Municipalitiesto submit annually statement of current and contemplated general obligationdebt and special elective taxes, statement of debt management policy, plan forcapital improvement or alternate statement and certain information regardingchief financial officer; update of information; exceptions.

NRS 350.0135 Proposalresulting in increase of rate of property taxes: Determination and notificationof affected governmental entities by municipality; approval or objection byaffected governmental entity; notification of commission of objection;resolution of conflict by commission; establishment of related methods andprocedures by commission; exception.

NRS 350.014 Approvalor notification of commission required for certain proposals.

NRS 350.0145 Noticeand submission of statement of certain proposals to commission; procedure forapproval or disapproval.

NRS 350.015 Criteriafor approval or disapproval of certain proposals; requests for information; useof money received from sale of general obligation debt or from special electivetax.

NRS 350.0155 Commissionto specify percentage of limitation on total ad valorem tax levy and establishpriorities among essential and nonessential facilities and services forpurposes of NRS 350.015.

NRS 350.016 Evaluationof proposal: Power of commission to employ consultants; costs.

NRS 350.0165 Applicabilityof NRS 350.011 to 350.0165, inclusive.

PROPOSALS TO ISSUE OBLIGATIONS

NRS 350.020 Submissionto electors of proposal to issue general obligations; restrictions on specialelections; issuance of general obligations secured by pledge of revenues andissuance of special or medium-term obligations without election; requirementsfor issuance of certain general obligation bonds by board of trustees of schooldistrict.

NRS 350.0205 Committeeon Local Government Finance to provide forms for submitting ballot question andexamples of past ballot questions for issuance or incurrence of generalobligations.

NRS 350.021 Proposalmay be combined on ballot with proposal to levy tax ad valorem for relatedpurpose.

NRS 350.022 Noticeof election on proposal to issue general obligations: Publication.

NRS 350.024 Sampleballot and notice of election on proposal to issue general obligations:Contents; consolidation of election with general, primary or municipalelection; publication of notice of close of registration for special election.

NRS 350.027 Sampleballot to contain estimate of annual cost to operate, maintain and repairimprovements.

NRS 350.030 Electionon proposal to issue general obligations: Expenses; ballots; validity ofproposal; applicability of general election laws.

NRS 350.070 Approvalor disapproval by electors of proposal to issue general obligations: Procedure;validity of result.

MEDIUM-TERM OBLIGATIONS

NRS 350.087 Resolutionauthorizing medium-term obligation or installment-purchase agreement: Adoption;contents; notice.

NRS 350.089 Approvalof resolution for medium-term obligation or installment-purchase agreement byExecutive Director of Department of Taxation; appeal to Nevada Tax Commission.

NRS 350.091 Governingbody to update plan for capital improvement under certain circumstances;issuance and terms of evidence of medium-term obligation orinstallment-purchase agreement; regulations.

NRS 350.093 Limitationson transfer of money for medium-term obligation; refund of transfer.

NRS 350.095 Levyof special tax; transfer of money remaining in fund.

SALE OF BONDS BY COMPETITIVE BID OR NEGOTIATED SALE

NRS 350.105 Definitions.

NRS 350.115 Bonddefined.

NRS 350.125 Competitivebid defined.

NRS 350.135 Financialadviser defined.

NRS 350.145 Negotiatedsale defined.

NRS 350.155 Saleby competitive bid: Requirements; exceptions; contents of certificate requiredfor certain bonds; filing and approval of certificate; publication ofinvitation for competitive bids.

NRS 350.165 Delegationof authority to sign contract to purchase or accept binding bid for bonds;approval of certain terms by governing body required.

NRS 350.175 Negotiatedsale: Notice of request for proposals; description of procedure for request forproposals in debt management policy; time limitation on sale of bonds afterselection of underwriter.

NRS 350.185 Negotiatedsale: Procedure for selection of proposal for sale of bonds; certification ofprocedure.

NRS 350.195 Financialadviser: Prohibited acts.

INTEREST RATES; DISCOUNTS; LIMITATION ON ISSUANCE OR SALE

NRS 350.201 Definitions.

NRS 350.2011 Maximumrate of interest on securities of political subdivisions.

NRS 350.2012 Discounts.

NRS 350.2013 Issuanceor sale more than 6 years after date of election prohibited; exception.

COUNTY DEBT SERVICE FUND

NRS 350.202 Countyordinance may provide for service of bonded indebtedness for generalobligations through single debt service fund; consolidated levy of taxes.

NRS 350.204 Mergerof sinking and other debt service funds into single fund.

NRS 350.206 Sufficiencyof levy of taxes.

NRS 350.208 Obligationof bond not impaired.

WATER AND SEWER REVENUE BOND LAW

NRS 350.350 Shorttitle.

NRS 350.360 Definitions.

NRS 350.370 Additionalpowers of municipality under NRS 350.350to 350.490, inclusive.

NRS 350.373 Supplementalpowers of municipality to prescribe, revise and collect charges; expenses ofcollection.

NRS 350.375 Useof revenues derived from undertaking of municipality.

NRS 350.380 Undertakingand issuance of bonds: Procedure.

NRS 350.400 Saleof bonds.

NRS 350.490 Powersconferred in NRS 350.350 to 350.490, inclusive, additional andsupplemental; controlling provisions.

VIOLATION OF BOND COVENANTS

NRS 350.495 Willfulviolation of covenant in securities by member of governing body, officer oragent of municipality unlawful; penalty.

LOCAL GOVERNMENT SECURITIES LAW

NRS 350.500 Shorttitle.

NRS 350.502 Purpose;supplemental nature.

NRS 350.504 Definitions.

NRS 350.506 Acquisitionand acquire defined.

NRS 350.508 Chairmanand chairman of the municipality defined.

NRS 350.510 Clerkdefined.

NRS 350.512 Commercialbank defined.

NRS 350.514 Condemnationand condemn defined.

NRS 350.516 Costof any project defined.

NRS 350.517 Disposaland dispose defined.

NRS 350.5175 Equipand equipment defined.

NRS 350.518 Facilitiesdefined.

NRS 350.520 FederalGovernment defined.

NRS 350.522 Federalsecurities defined.

NRS 350.524 Governingbody defined.

NRS 350.526 Grossrevenues and gross pledged revenues defined.

NRS 350.528 Hereby,herein, hereinabove, hereinafter, hereinbefore, hereof, hereto,hereunder, heretofore and hereafter defined.

NRS 350.530 Holderdefined.

NRS 350.532 Improvementand improve defined.

NRS 350.534 Municipaldefined.

NRS 350.536 Municipalsecurities and securities defined.

NRS 350.538 Municipalitydefined.

NRS 350.540 Netrevenues and net pledged revenues defined.

NRS 350.542 Operationand maintenance expenses defined.

NRS 350.544 Operationand maintenance expenses limited.

NRS 350.546 Ordinancedefined.

NRS 350.550 Pledgedrevenues defined.

NRS 350.552 Projectdefined.

NRS 350.554 Publicbody defined.

NRS 350.556 Statedefined.

NRS 350.558 Taxationdefined.

NRS 350.560 Taxesdefined.

NRS 350.562 Treasurerdefined.

NRS 350.564 Trustbank defined.

NRS 350.566 UnitedStates defined.

NRS 350.568 Powersof municipality in connection with projects.

NRS 350.569 Powerof eminent domain; reimbursement of public utility for removal and relocation.

NRS 350.570 Powerof municipality to become obligated and issue securities for project.

NRS 350.572 Typesof securities which may be issued; series.

NRS 350.573 Saleof right to call for purchase of securities.

NRS 350.574 Notesand warrants: Maturity; extension or funding.

NRS 350.575 Resolutionto finance preservation or restoration of historic structure; approval ofExecutive Director of Department of Taxation; appeal to Nevada Tax Commission.

NRS 350.5755 Issuanceof negotiable notes or bonds to finance restoration of historic structure;maturity; interest.

NRS 350.576 Temporarybonds: Conditions, terms and provisions; holders rights and remedies.

NRS 350.578 Ordinanceauthorizing issuance of securities: Description of purposes.

NRS 350.579 Emergencyordinances: Adoption; effective date.

NRS 350.580 Generalobligations: Types of securities.

NRS 350.582 Specialobligations: Types of securities.

NRS 350.583 Variablerates of interest for securities; agreement with third party for assurance ofpayment for securities; reimbursement for advances made pursuant to agreement.

NRS 350.5835 Variablerates of interest: Exemption from limitations; conclusive findings of governingbody that procedure for determination of rates is reasonable.

NRS 350.584 Municipalsecurities payable from gross revenues: Covenant requiring appropriations topay operation and maintenance expenses.

NRS 350.586 Securitiesissued as general obligations constitute outstanding indebtedness.

NRS 350.588 Securitiesissued as special obligations do not constitute outstanding indebtedness.

NRS 350.590 Recitalsrequired in municipal securities.

NRS 350.592 Annuallevy of special tax to pay interest on and retire securities issued as generalobligations; proceeds of tax kept in two special funds; consolidated debtservice fund.

NRS 350.594 Timeand duration of levy of special tax.

NRS 350.596 Paymentfrom general fund when taxes insufficient to pay amount due on securitiesissued as general obligations; reimbursement of general fund.

NRS 350.598 Applicationof other available money to payment of interest on and principal of securitiesissued as general obligations.

NRS 350.602 Proceedsof taxes specially appropriated to payment of principal and interest.

NRS 350.604 Paymentof municipal securities not to be secured by encumbrance, mortgage or pledge ofmunicipalitys property; exception.

NRS 350.606 Recourseagainst officers and agents of municipality: Acceptance of securitiesconstitutes waiver and release.

NRS 350.608 Covenantsin ordinance authorizing issuance of special obligations impose no liabilityagainst municipality or its general credit.

NRS 350.610 Faithof State pledged against repeal, amendment or modification of Local GovernmentSecurities Law.

NRS 350.614 Detailsof municipal securities provided by ordinance.

NRS 350.616 Saleor issuance of municipal securities.

NRS 350.628 Recitalin securities conclusive evidence of validity and regularity of issuance.

NRS 350.630 Denomination,negotiability and maturity of municipal securities; rate of interest.

NRS 350.632 Paymentof principal, interest and premium when due without further order.

NRS 350.634 Interestcoupons.

NRS 350.636 Execution,signing and authentication of municipal securities and coupons.

NRS 350.638 Facsimilesignatures and seals.

NRS 350.640 Securitiesnot invalid because signatories cease to fill offices.

NRS 350.642 Adoptionof facsimile signature of predecessor in office.

NRS 350.644 Redemptionbefore maturity.

NRS 350.646 Repurchaseof municipal securities.

NRS 350.648 Useof money received from issuance of municipal securities.

NRS 350.650 Dispositionof unexpended balance of proceeds after completion of project.

NRS 350.652 Validityof securities not dependent on proceedings relating to project or completion ofpurpose; purchasers not responsible for application of proceeds.

NRS 350.654 Specialfunds and accounts: Creation; purposes.

NRS 350.656 Employmentof legal and other expert services; contracts for sale and other purposes.

NRS 350.658 Investmentand reinvestment of revenues and proceeds of taxes and securities in federalsecurities and certain money market mutual funds.

NRS 350.659 Investmentand reinvestment of revenues and proceeds of taxes and certain securities ininvestment contract collateralized with federal securities by governing bodywhose population is 50,000 or more.

NRS 350.660 Covenantsand other provisions in municipal securities.

NRS 350.662 Pledgedrevenues received or credited subject to immediate lien; priority and validityof lien.

NRS 350.664 Rightsand powers of holders of municipal securities and trustees.

NRS 350.666 Receivers:Appointment; powers and duties.

NRS 350.668 Rightsand remedies cumulative.

NRS 350.670 Failureof holder to proceed does not relieve municipality, governing body andofficers, agents and employees of municipality of liability for nonperformanceof duties.

NRS 350.672 Interimdebentures: Issuance for general or special obligations.

NRS 350.674 Issuanceof municipal securities constituting debt to fund or refund special obligationsnot constituting indebtedness: Conditions; restrictions.

NRS 350.676 Interimdebentures: Maturity; use of proceeds; issuance.

NRS 350.678 Interimdebentures: Security for payment.

NRS 350.680 Interimdebentures: Extension and funding.

NRS 350.682 Interimdebentures: Funding by reissuance of bonds pledged as collateral security;issuance of other bonds.

NRS 350.684 Refundingof general and special obligation bonds: Ordinance; trust indenture.

NRS 350.686 Callsfor prior redemption: Limitations.

NRS 350.688 Exchangeof outstanding securities held by State or its agencies for funding orrefunding.

NRS 350.690 Refundingof outstanding securities evidencing long-term loans.

NRS 350.692 Refundingbonds: Sale or exchange for outstanding bonds; exchange for federal securities.

NRS 350.694 Conditionsfor refunding bonds.

NRS 350.696 Refundingbonds: Disposition of proceeds, accrued interest and premium; costs; escrow;trusts.

NRS 350.698 Proceedsof refunding bonds in escrow or trust: Investment; security; sufficient amount;purchaser not responsible for application of proceeds.

NRS 350.700 Refundingbonds payable from taxes or pledged revenues.

NRS 350.702 Issuanceof bonds separately or in combination.

NRS 350.704 Bondsof abolished municipalities may be refunded.

NRS 350.706 Otherstatutory provisions applicable to refunding bonds.

NRS 350.708 Conclusivedetermination of governing body that statutory limitations have been met.

NRS 350.710 Bondsand other securities exempt from taxation; exception.

NRS 350.712 Securitiesissued as general obligations are legal investments for state money.

NRS 350.714 Legalinvestments for other persons.

NRS 350.718 Sufficiencyof Local Government Securities Law.

NRS 350.720 Liberalconstruction.

MISCELLANEOUS PROVISIONS

NRS 350.800 Transactionswhereby municipality acquires property and another person acquires or retainssecurity interest in that or other property.

NRS 350.810 Purchaseof municipal obligations by financial adviser of municipality limited.

NRS 350.820 Agreementsfor exchange of interest rates.

_________

GENERAL PROVISIONS

NRS 350.0015 Definitions. As used in this chapter, unless the context otherwiserequires, the words and terms defined in NRS350.0045 to 350.0075, inclusive,have the meanings ascribed to them in those sections.

(Added to NRS by 2001, 2303)

NRS 350.0045 Generalobligation debt defined. General obligationdebt means debt that is legally payable from general revenues, as a primary orsecondary source of repayment, and is backed by the full faith and credit of agovernmental entity, and if the governmental entity is authorized to levy taxes,by those taxes. The term includes, without limitation, debt represented bylocal government securities issued pursuant to this chapter andinstallment-purchase agreements described in subsection 1 of NRS 350.0055. The term does not include,without limitation:

1. Installment-purchase agreements described insubsection 2 of NRS 350.0055;

2. Special obligations; and

3. Obligations with a term of less than 1 year thatare payable in full from money appropriated for the same fiscal year in whichthe obligations are incurred.

(Added to NRS by 2001, 2303)

NRS 350.0055 Installment-purchaseagreement defined. Installment-purchaseagreement means an agreement for the purchase of real or personal property byinstallment or lease or another transaction that is described in NRS 350.800 which:

1. Is required to be counted against any limit uponthe debt of a local government pursuant to subsection 1 of NRS 350.800; or

2. Is not required to be counted against any limitupon the debt of a local government and:

(a) Exceeds $100,000 for a local government in a countywhose population is 100,000 or more; or

(b) Exceeds $50,000 for a local government in a countywhose population is less than 100,000.

The terminstallment-purchase agreement does not include an obligation to pay rentpursuant to a lease which contains no option or right to purchase or which containsonly an option or right to purchase the property without any credit towards thepurchase price for lease or rental payments.

(Added to NRS by 2001, 2303)

NRS 350.0065 Localgovernment defined. Local government hasthe meaning ascribed to it in NRS 354.474.

(Added to NRS by 2001, 2304)

NRS 350.007 Medium-termobligation defined. Medium-term obligationmeans an obligation to repay borrowed money evidenced by a note or bond whichis authorized to be issued pursuant to NRS350.087 to 350.095, inclusive, andwhich has a term of 10 years or less. The term does not include an obligationwhich has a term of less than 1 year and which is payable in full from moneyappropriated for the same fiscal year that the obligation is incurred.

(Added to NRS by 2001, 2304)

NRS 350.0075 Specialobligation defined. Special obligationmeans a municipal security issued pursuant to NRS350.582.

(Added to NRS by 2001, 2304)

NRS 350.008 Termof installment-purchase agreement. For thepurposes of this chapter, the term of an installment-purchase agreement must bedetermined as the period from the date the agreement is entered into by a localgovernment to the date that the purchase price will be paid in full and mustinclude the term of the original agreement and the term of any renewal,including, without limitation, an optional renewal, of the agreement.

(Added to NRS by 2001, 2304)

NRS 350.009 Regulations.

1. The Committee on Local Government Finance may adoptsuch regulations as are necessary for the administration of this chapter.

2. Any regulations adopted by the Committee on LocalGovernment Finance must be adopted in the manner prescribed for state agenciesin chapter 233B of NRS.

(Added to NRS by 2001, 2304)

DEBT MANAGEMENT COMMISSION

NRS 350.011 Definitions. As used in NRS 350.011to 350.0165, inclusive, unless thecontext otherwise requires:

1. Commission means a debt management commissioncreated pursuant to NRS 350.0115.

2. Special elective tax means a tax imposed pursuantto NRS 354.59817, 354.5982, 387.197, 387.3285or 387.3287.

(Added to NRS by 1965, 1433; A 1993, 2655; 1995, 369,765, 774, 1811; 1997, 550; 1999, 275, 2541; 2001, 880, 2304)(Substitutedin revision for NRS 350.001)

NRS 350.0115 Creation;composition; selection and terms of members; interest in securities issued byState or political subdivision prohibited; vacancies.

1. There is hereby created in each county whosepopulation is 400,000 or more a debt management commission, to be composed of:

(a) Three representatives of the board of countycommissioners from its membership;

(b) One representative of each governing body of thefive largest incorporated cities in the county from its membership;

(c) One representative of the board of trustees of thecounty school district from its membership; and

(d) Two representatives of the public at large.

2. There is hereby created in each county whosepopulation is less than 400,000 a debt management commission, to be composed ofone representative of the county, one representative of the school district andthe following additional representatives:

(a) In each such county which contains more than oneincorporated city:

(1) One representative of the city in which thecounty seat is located;

(2) One representative of the other incorporatedcities jointly; and

(3) One representative of the public at large.

(b) In each such county which contains one incorporatedcity:

(1) One representative of the incorporated city;and

(2) Two representatives of the public at large.

(c) In each such county which contains no incorporatedcity, one representative of the public at large.

(d) In each such county which contains one or moregeneral improvement districts, one representative of the district or districtsjointly and one additional representative of the public at large.

3. In Carson City, there is hereby created a debtmanagement commission, to be composed of one representative of the Board ofSupervisors, one representative of the school district and threerepresentatives of the public at large. The representative of the Board ofSupervisors and the representative of the school district shall select therepresentatives of the public at large and, for that purpose only, constitute aquorum of the debt management commission. Members of the commission serve for aterm of 2 years beginning on January 1, or until their successors are chosen.

4. Except as otherwise provided in subsection 1, eachrepresentative of a single local government must be chosen by its governingbody. Each representative of two or more local governments must be chosen bytheir governing bodies jointly, each governing body having one vote. Eachrepresentative of the general improvement districts must be chosen by theirgoverning bodies jointly, each governing body having one vote. Eachrepresentative of the public at large must be chosen by the other members ofthe commission from residents of the county, or Carson City, as the case maybe, who have a knowledge of its financial structure. A tie vote must beresolved by lot.

5. A person appointed as a member of the commission ina county whose population is 100,000 or more who is not an elected officer or aperson appointed to an elective office for an unexpired term must have at least5 years of experience in the field of public administration, public accountingor banking.

6. A person appointed as a member of the commissionshall not have a substantial financial interest in the ownership or negotiationof securities issued by this State or any of its political subdivisions.

7. Except as otherwise provided in this subsection,members of the commission or their successors must be chosen in January of eachodd-numbered year and hold office for a term of 2 years beginning January 1.The representatives of incorporated cities must be chosen after elections areheld in the cities, but before the annual meeting of the commission in August.The term of a representative who serves pursuant to paragraph (a), (b) or (c)of subsection 1 is coterminous with the term of his elected office, unless thepublic entity that appointed him revokes his appointment.

8. Any vacancy must be filled in the same manner asthe original choice was made for the remainder of the unexpired term.

(Added to NRS by 1965, 1433; A 1969, 332; 1971, 222,943; 1977, 537; 1987, 1719; 1993, 2239; 1995, 765; 1999, 2528, 2541; 2001, 188, 1978; 2005, 123)

NRS 350.012 Meetings;officers; removal of member; quorum; compensation.

1. The commission shall meet during the month ofFebruary of each year to organize by selecting a chairman and vice chairman. Ina county whose population is 400,000 or more, the chairman must be one of therepresentatives of the board of county commissioners. The county clerk is exofficio the secretary of the commission.

2. In addition to the organizational meeting, eachcommission shall meet annually in August of each year and at the call of thechairman whenever business is presented, as provided in NRS 350.014 and 350.0145.

3. In conjunction with the meetings required bysubsections 1 and 2, the commission in a county whose population:

(a) Is 100,000 or more but less than 400,000, shallmeet each calendar quarter.

(b) Is 400,000 or more, shall meet each month.

The meetingsrequired by this subsection must be scheduled at each annual meeting in August.

4. The appointing authority may remove a member of acommission in a county whose population:

(a) Is 400,000 or more if the member fails to attendthree consecutive meetings or five meetings during a calendar year.

(b) Is 100,000 or more but less than 400,000 if themember fails to attend two consecutive meetings or three meetings during acalendar year.

(c) Is less than 100,000 if the member fails to attendat least one meeting during a calendar year.

5. Except as otherwise provided in subsection 3 of NRS 350.0115, a majority of the membersconstitutes a quorum for all purposes.

6. The governing body of the county may provide forthe payment to members of the commission who serve as representatives of thepublic at large:

(a) Compensation of not more than $40, as fixed by thegoverning body, for each day or portion of a day of attendance at a meeting ofthe commission, not to exceed $400 paid to each such member per month.

(b) While engaged in the business of the commission,the per diem allowance and travel expenses generally provided for officers andemployees of the county, if any.

(Added to NRS by 1965, 1433; A 1971, 943; 1977, 537;1995, 766; 1999, 2529,2542; 2001, 187; 2005, 125)

NRS 350.0125 Technicalassistance provided by Department of Taxation or board of county commissionersto carry out duties of commission.

1. The commission in a county whose population is lessthan 45,000 may request technical assistance from the Department of Taxation tocarry out the duties of the commission. Upon such a request, the Department ofTaxation shall provide to that commission such technical assistance to theextent that resources are available.

2. The board of county commissioners of a county whosepopulation is 45,000 or more shall provide the commission in that county withsuch staff as is necessary to carry out the duties of the commission. The staffprovided to the commission pursuant to this subsection shall provide suchtechnical assistance to the commission as the commission requires, except thestaff shall not render an opinion on the merits of any proposal or other matterbefore the commission.

(Added to NRS by 1999, 2541; A 2001, 1979)(Substitutedin revision for NRS 350.0033)

NRS 350.013 Municipalitiesto submit annually statement of current and contemplated general obligationdebt and special elective taxes, statement of debt management policy, plan forcapital improvement or alternate statement and certain information regardingchief financial officer; update of information; exceptions.

1. Except as otherwise provided in this section, on orbefore August 1 of each year, the governing body of a municipality whichproposes to issue or has outstanding any general obligation debt, other generalobligations or special obligations, or which levies or proposes to levy any specialelective tax, shall submit to the Department of Taxation and the commission:

(a) A complete statement of current general obligationdebt and special elective taxes, and a report of current debt and specialassessments and retirement schedules, in the detail and form established by theCommittee on Local Government Finance.

(b) A complete statement, in the detail and formestablished by the Committee on Local Government Finance, of general obligationdebt and special elective taxes contemplated to be submitted to the commissionduring the fiscal year.

(c) A written statement of the debt management policyof the municipality, which must include, without limitation:

(1) A discussion of its ability to affordexisting general obligation debt, authorized future general obligation debt andproposed future general obligation debt;

(2) A discussion of its capacity to incurauthorized and proposed future general obligation debt without exceeding theapplicable debt limit;

(3) A discussion of its general obligation debtthat is payable from property taxes per capita as compared with such debt ofother municipalities in this State;

(4) A discussion of its general obligation debtthat is payable from property taxes as a percentage of assessed valuation ofall taxable property within the boundaries of the municipality;

(5) Policy regarding the manner in which themunicipality expects to sell its debt;

(6) A discussion of its sources of moneyprojected to be available to pay existing general obligation debt, authorizedfuture general obligation debt and proposed future general obligation debt; and

(7) A discussion of its operational costs andrevenue sources, for the ensuing 5 fiscal years, associated with each projectincluded in its plan for capital improvement submitted pursuant to paragraph(d), if those costs and revenues are expected to affect the property tax rate.

(d) Either:

(1) Its plan for capital improvement for theensuing 5 fiscal years, which must include any contemplated issuance of generalobligation debt during this period and the sources of money projected to be availableto pay the debt; or

(2) A statement indicating that no changes arecontemplated in its plan for capital improvement for the ensuing 5 fiscalyears.

(e) A statement containing the name, title, mailingaddress and telephone number of the chief financial officer of themunicipality.

2. The governing body of a municipality may combine astatement or plan required by subsection 1 with the corresponding statement orplan of another municipality if both municipalities have the same governingbody or the governing bodies of both municipalities agree to such acombination.

3. Except as otherwise provided in subsection 4, thegoverning body of each municipality shall update all statements and plansrequired by subsection 1 not less frequently than once each fiscal year.

4. In a county whose population is 100,000 or more,the governing body of each municipality shall update all statements and plansrequired by subsection 1 not less often than once each fiscal year and not moreoften than twice each fiscal year, except that a municipality may update astatement or plan required by subsection 1 more often than twice each fiscalyear:

(a) If the governing body determines, by a two-thirdsvote, that an emergency requires that a statement or plan be updated;

(b) To include an item related to:

(1) An installment purchase that does not countagainst a debt limit; or

(2) An obligation for which no additionalproperty tax is expected;

(c) To update the purpose of a special elective taxwithout changing the rate of the special elective tax; or

(d) To comply with the requirements of subsection 5 of NRS 268.625 or subsection 1 of NRS 350.091.

5. The provisions of this section do not apply to theReno-Tahoe Airport Authority so long as the Authority does not have any generalobligation bonds outstanding and does not issue or propose to issue any suchbonds. At least 30 days before each annual meeting of the commission, theAuthority shall submit to the Department of Taxation a written statementregarding whether the Authority is planning to propose to issue any generalobligation bonds before the next following annual meeting of the commission.

(Added to NRS by 1971, 942; A 1977, 538; 1993, 2656;1995, 147, 308, 766; 2001,880, 2304; 2005, 125)

NRS 350.0135 Proposalresulting in increase of rate of property taxes: Determination and notificationof affected governmental entities by municipality; approval or objection byaffected governmental entity; notification of commission of objection;resolution of conflict by commission; establishment of related methods andprocedures by commission; exception.

1. Before a municipality may submit to the commissiona proposal that will result in an increase in the rate of property taxes, themunicipality shall:

(a) Determine whether there is an affected governmentalentity; and

(b) If there is an affected governmental entity,provide written notification to the affected governmental entity.

2. A notification sent pursuant to subsection 1 mustinclude, without limitation, a description of:

(a) The proposal and the estimated amount the proposalwould increase property taxes; and

(b) The potential effect of the increase on the entity.

3. The governing body of an entity that receives anotification pursuant to subsection 1 shall, by resolution, approve or objectto the proposal described in the notice. If the entity approves the proposal,the entity must state in the resolution approving the proposal that the entityhas no intent to levy property taxes which, if combined with the increaseproposed in the proposal, would cause the combined property tax rate for thearea containing the municipality and the entity to exceed the limitation onproperty taxes set forth in NRS 361.453.

4. If an entity objects to a proposal pursuant tosubsection 3, the municipality which provided notice pursuant to subsection 1shall provide the commission with notification in writing of the objection andthe entitys reasons for objecting when submitting the proposal to thecommission pursuant to NRS 350.014.

5. If the commission receives a proposal to which anobjection has been raised pursuant to subsection 3, the commission shall resolveany conflict between the municipality and the entity over the use of theremaining allowable increase in property taxes and determine whether toapprove, in whole or in part, or reject the increase in property taxes setforth in the proposal.

6. In resolving a conflict pursuant to subsection 5,the commission may impose:

(a) A condition or provision described in subsection 2of NRS 350.0145; and

(b) A condition that:

(1) The amount of the general obligation debtproposed to be imposed must be reduced;

(2) The rate of the special elective tax must bereduced; or

(3) Both subparagraphs (1) and (2).

7. The commission may establish:

(a) A method for resolving conflicts over the unleviedamount of property taxes that may be levied pursuant to NRS 354.59811;

(b) A method for determining the highest and best useof the unlevied amount of property taxes that may be levied pursuant to NRS 354.59811, which must be based upon acomparison of the public needs to be served by the proceeds from the proposeddebt or tax levy in a proposal submitted pursuant to NRS 350.014 and the public needs to beserved by other possible debts or tax levies by other municipalities whosetax-levying powers overlap; and

(c) A procedure for allowing a municipality that doesnot levy the maximum amount of property taxes which it may levy pursuant to NRS 354.59811 to reserve a percentage ofthe remaining allowable increase of property taxes for use in the future and aprocedure for determining whether to grant such a reservation. If established,such procedures must:

(1) Allow all municipalities whose tax-levyingpowers may be affected by such a reservation to enter objections to such areservation; and

(2) Provide a method for resolving conflictsover the remaining allowable increase of property taxes between municipalitieswhose tax-levying powers overlap, which must be based upon the highest and bestuse for the remaining allowable increase of property taxes.

8. This section does not apply to any proposal that isnot expected to result in an increase in the rate of property taxes in anyjurisdiction.

9. As used in this section:

(a) Affected governmental entity means a governmentalentity:

(1) That has territory which overlaps theterritory of the municipality proposing the special elective tax or generalobligation debt;

(2) That is currently not levying the maximumrate of property taxes which it may levy pursuant to NRS 354.59811; and

(3) For which the total combined tax rate leviedon the overlapping territory would exceed the limit set forth in NRS 361.453 if the current combined taxrate levied on the overlapping territory is added to:

(I) The tax rate projected for the specialelective tax or general obligation debt being proposed by the municipality; and

(II) The unlevied amount of property taxesthat currently may be levied by the governmental entity pursuant to NRS 354.59811.

(b) Remaining allowable increase of property taxesmeans the difference between the tax rate allowed for a municipality in thecurrent fiscal year pursuant to NRS354.59811 minus the tax rate levied by the municipality in the currentfiscal year.

(Added to NRS by 2001, 878)

NRS 350.014 Approvalor notification of commission required for certain proposals.

1. Before any proposal to incur a general obligationdebt or levy a special elective tax may be submitted to the electors of amunicipality, before any issuance of general obligation bonds pursuant tosubsection 4 of NRS 350.020, beforeentering into an installment-purchase agreement with a term of more than 10years or, before any other formal action may be taken preliminary to theincurrence of any general obligation debt, the proposed incurrence or levy mustreceive the favorable vote of two-thirds of the members of the commission ofeach county in which the municipality is situated.

2. Before the board of trustees of a districtorganized or reorganized pursuant to chapter 318of NRS whose population within its boundaries is less than 5,000 incurs amedium-term obligation or otherwise borrows money or issues securities to evidencesuch borrowing, other than securities representing a general obligation debt orinstallment-purchase agreements with a term of 10 years or less, the proposedborrowing or issuing of securities must receive the favorable vote of amajority of the members of the commission of each county in which the districtis situated.

3. When any municipality other than a generalimprovement district whose population within its boundaries is less than 5,000issues any special obligations, it shall so notify in its annual report thecommission of each county in which any of its territory is situated.

4. The commission shall not approve any proposalsubmitted to it pursuant to this section by a municipality:

(a) Which, if the proposal is for the financing of acapital improvement, is not included in its plan for capital improvement submittedpursuant to NRS 350.013, if such a planis required to be submitted;

(b) If, based upon:

(1) Estimates of the amount of tax revenue fromproperty taxes needed for the special elective tax, or to repay the generalobligation debt, and the dates that revenue will be needed, as provided by themunicipality;

(2) Estimates of the assessed valuation of themunicipality for each of the years in which tax revenue is needed, as providedby the municipality;

(3) The amount of any other required levies ofproperty taxes, as shown on the most recently filed final budgets of eachentity authorized to levy property taxes on any property within themunicipality submitting the proposal; and

(4) Any other factor the municipality disclosesto the commission,

the proposalwould result in a combined property tax rate in any of the overlapping entitieswithin the county which exceeds the limit provided in NRS 361.453, unless the proposal alsoincludes an agreement which complies with NRS361.457 and which is approved by the governing bodies of all affectedmunicipalities within the area as to how the combined property tax rates willbe brought into compliance with the statutory limitation or unless thecommission adopts a plan that is approved by the Executive Director of theDepartment of Taxation pursuant to which the combined property tax rate will bein compliance with the statutory limitation; or

(c) If, based upon the factors listed in subparagraphs(1) to (4), inclusive, of paragraph (b), the proposal will affect the abilityof an affected governmental entity to levy the maximum amount of property taxesthat it may levy pursuant to NRS 354.59811,unless:

(1) The proposal includes a resolution approvingthe proposal pursuant to subsection 3 of NRS350.0135 from each affected governmental entity whose ability to levyproperty taxes will be affected by the commissions approval of the proposal;or

(2) The commission has resolved all conflictsbetween the municipality and all affected governmental entities and has approvedthe increase in property taxes resulting from the proposal pursuant to NRS 350.0135.

5. Except as otherwise provided in subsection 6, ifgeneral obligation debt is to be incurred more than 36 months after theapproval of that debt by the commission, the governing body of the municipalityshall obtain additional approval of the commission before incurring the generalobligation debt. The commission shall only approve a proposal that is submittedpursuant to this subsection if, based on the information set forth in paragraph(b) of subsection 4 that is accurate as of the date on which the governing bodysubmits, pursuant to this subsection, its request for approval to thecommission:

(a) Incurrence of the general obligation debt will notresult in a combined property tax rate in any of the overlapping entitieswithin the county which exceeds the limit provided in NRS 361.453;

(b) The proposal includes an agreement approved by thegoverning bodies of all affected municipalities within the area as to how thecombined tax rates will be brought into compliance with the statutorylimitation; or

(c) The commission adopts a plan that is approved bythe Executive Director of the Department of Taxation pursuant to which thecombined property tax rate will be in compliance with the statutory limitation.

The approvalof the commission pursuant to this subsection is effective for 18 months. Thegoverning body of the municipality may renew that approval for successiveperiods of 18 months by filing an application for renewal with the commission.Such an application must be accompanied by the information set forth in paragraph(b) of subsection 4 that is accurate as of the date the governing body filesthe application for renewal.

6. The commission may not approve a proposal pursuantto subsection 5 which, based upon the factors listed in subparagraphs (1) to(4), inclusive, of paragraph (b) of subsection 4, will affect the ability of anaffected governmental entity to levy the maximum amount of property taxes thatit may levy pursuant to NRS 354.59811,unless:

(a) The proposal includes a resolution approving theproposal pursuant to subsection 3 of NRS350.0135 from each affected governmental entity whose ability to levyproperty taxes will be affected by the commissions approval of the proposal;or

(b) The commission has resolved all conflicts betweenthe municipality and all affected governmental entities and has approved theincrease in property taxes resulting from the proposal pursuant to NRS 350.0135.

7. As used in this section, affected governmentalentity has the meaning ascribed to it in subsection 9 of NRS 350.0135.

(Added to NRS by 1965, 1434; A 1971, 524; 1977, 538;1981, 943; 1991, 973; 1993, 2656; 1995, 309, 768; 1997, 2463; 1999, 3222; 2001, 881, 2306; 2003, 162)

NRS 350.0145 Noticeand submission of statement of certain proposals to commission; procedure forapproval or disapproval.

1. The governing body of the municipality proposing toincur general obligation debt, to enter an installment-purchase agreement witha term of more than 10 years or to levy a special elective tax and the board oftrustees of a general improvement district whose population within itsboundaries is less than 5,000 who proposes to issue a medium-term obligation orotherwise borrow money and issue any securities other than securitiesrepresenting a general obligation debt or installment-purchase agreements withterms of 10 years or less shall notify the secretary of each appropriatecommission, and shall submit a statement of its proposal in sufficient numberof copies for each member of the commission. The secretary, with the approvalof the chairman, shall, within 10 days, give notice of a meeting, in the mannerrequired by chapter 241 of NRS, to be held notmore than 20 days thereafter. He shall provide a copy of the proposal to eachmember with the notice of the meeting and mail notice of the meeting to thechief financial officer of each municipality in the county which has compliedwith subsection 1 of NRS 350.013 withinthe past year.

2. The commission may grant a conditional orprovisional approval of such proposal. Such conditions or provisions arelimited to:

(a) The scheduling of:

(1) The issuance and retirement of securities,if the proposal is to incur general obligation debt; or

(2) The imposition of the tax, if the proposalis to levy a special elective tax; and

(b) If the proposal would result in a combined propertytax rate in any of the overlapping entities within the county which exceeds 90percent of the limit provided in NRS 361.453,a condition requiring a reduction in the amount of the proposed debt,installment-purchase agreement or special elective tax.

3. If the proposal is from a municipality, thecommission may not approve any portion of the proposal that is not included inthe statement filed pursuant to paragraph (b) of subsection 1 of NRS 350.013, as updated pursuant tosubsection 3 or 4 of NRS 350.013.

4. The commission may adjourn a meeting called toconsider a particular proposal no more than once, for no more than 60 days,except that the commission must approve or disapprove a proposal at least 30days before the date on which the governing body that submitted the proposal isrequired to provide the proposal to the county clerk or city clerk pursuant to NRS 293.481. Notification of the approvalor disapproval of its proposal must be sent to the governing body within 3 daysafter the meeting.

(Added to NRS by 1965, 1434; A 1971, 944; 1977, 538;1981, 943; 1991, 973; 1993, 2657; 1995, 770; 2001, 883, 2308; 2005, 127)

NRS 350.015 Criteriafor approval or disapproval of certain proposals; requests for information; useof money received from sale of general obligation debt or from special electivetax.

1. In determining whether to approve, conditionally orprovisionally approve, or disapprove a proposal to incur debt, to enter aninstallment-purchase agreement with a term of more than 10 years or to levy aspecial elective tax, the commission shall not, except as otherwise provided inparagraph (d) and NRS 350.0135,initiate a determination as to whether the proposed debt, installment-purchaseagreement or special elective tax is sought to accomplish a public purpose orto satisfy a public need. The commission shall consider, but is not limited to,the following criteria:

(a) If the proposal is to incur debt, the amount ofdebt outstanding on the part of the municipality proposing to incur the debt.

(b) The effect of the tax levy required for debtservice on the proposed debt or to repay an installment-purchase agreement witha term of more than 10 years, or of the proposed levy of a special electivetax, upon the ability of the municipality proposing to incur the generalobligation debt, enter the installment-purchase agreement or levy the specialelective tax and of other municipalities to raise revenue for operating purposes.

(c) The anticipated need for other incurrences of debt,installment-purchase agreements or levies of special elective taxes by themunicipality proposing to incur the debt, enter the installment-purchaseagreement or levy the special elective tax and other municipalities whosetax-levying powers overlap, as shown by the county or regional master plan, ifany, and by other available information.

(d) If the information set forth in paragraph (b) ofsubsection 4 of NRS 350.014 indicatesthat the proposal would result in a combined property tax rate in any of theoverlapping entities within the county which exceeds the specified percentage,pursuant to subsection 1 of NRS 350.0155,of the limit provided in NRS 361.453:

(1) The public need to be served by the proceedsfrom the proposed debt or tax levy in accordance with the prioritiesestablished pursuant to subsection 2 of NRS350.0155; and

(2) A comparison of that public need and otherpublic needs that appear on the statements of current and contemplated generalobligation debt and special elective taxes submitted pursuant to paragraphs (a)and (b) of subsection 1 of NRS 350.013that may affect the combined property tax rate in any of the overlappingentities within the county.

2. The commission may make reasonable requests from amunicipality for information relating to the criteria described in paragraphs(a) to (d), inclusive, of subsection 1. A municipality shall use its bestefforts to comply with information requests from the commission in a timelymanner.

3. If the commission approves the proposal, the amountreceived from the sale of the general obligation debt or from the specialelective tax may be expended only for the purposes described in the proposal.

(Added to NRS by 1967, 1386; A 1977, 539; 1993, 2658;1995, 770, 1959; 2001,884, 2309)(Substitutedin revision for NRS 350.0051)

NRS 350.0155 Commissionto specify percentage of limitation on total ad valorem tax levy and establishpriorities among essential and nonessential facilities and services forpurposes of NRS350.015. At the annual meeting inAugust required by NRS 350.012, thecommission shall:

1. Specify a percentage, which must not be less than75 percent, for the purposes of paragraph (d) of subsection 1 of NRS 350.015; and

2. Establish priorities among essential andnonessential facilities and services for the purposes of paragraph (d) ofsubsection 1 of NRS 350.015. Facilitiesand services relating to public safety, education and health must be consideredessential facilities and services, and all other facilities and services mustbe considered nonessential facilities and services.

(Added to NRS by 2001, 878; A 2005, 128)

NRS 350.016 Evaluationof proposal: Power of commission to employ consultants; costs. The commission has the power, with the consent of themunicipality which proposes to incur a debt or levy a special elective tax, tocontract for or employ accountants and financial consultants to evaluate anyproposal which it must approve or disapprove. The cost of such services must bepaid by the consenting municipality which proposes to incur the debt or levythe special elective tax.

(Added to NRS by 1971, 942; A 1977, 539; 1993, 2658;1995, 771)(Substituted in revision for NRS 350.0052)

NRS 350.0165 Applicabilityof NRS350.011 to 350.0165, inclusive. The provisions of NRS350.011 to 350.0165, inclusive, donot apply to:

1. Any general obligation debt incurred or specialelective tax levied before July 1, 1995;

2. Any general obligation debt or special elective taxapproved at an election held before July 1, 1995, whether or not the debt isincurred or tax is levied before that date;

3. Any general obligation debt authorized to beincurred, or special elective tax authorized to be levied, by a special actadopted and approved before July 1, 1995;

4. Any debt incurred for the purpose of refunding anyoutstanding general obligation debt; and

5. Any medium-term obligation, except a medium-termobligation issued after July 1, 2001, by a general improvement district whosepopulation within its boundaries is less than 5,000.

(Added to NRS by 1965, 1434; A 1995, 771; 2001, 2310)(Substitutedin revision for NRS 350.006)

PROPOSALS TO ISSUE OBLIGATIONS

NRS 350.020 Submissionto electors of proposal to issue general obligations; restrictions on specialelections; issuance of general obligations secured by pledge of revenues andissuance of special or medium-term obligations without election; requirementsfor issuance of certain general obligation bonds by board of trustees of schooldistrict.

1. Except as otherwise provided by subsections 3 and4, if a municipality proposes to issue or incur general obligations, theproposal must be submitted to the electors of the municipality at a specialelection called for that purpose or the next general municipal election orgeneral state election.

2. Such a special election may be held:

(a) At any time, including, without limitation, on thedate of a primary municipal election or a primary state election, if thegoverning body of the municipality determines, by a unanimous vote, that anemergency exists; or

(b) On the first Tuesday after the first Monday in Juneof an odd-numbered year.

Thedetermination made by the governing body is conclusive unless it is shown thatthe governing body acted with fraud or a gross abuse of discretion. An actionto challenge the determination made by the governing body must be commencedwithin 15 days after the governing bodys determination is final. As used inthis subsection, emergency means any occurrence or combination of occurrenceswhich requires immediate action by the governing body of the municipality toprevent or mitigate a substantial financial loss to the municipality or toenable the governing body to provide an essential service to the residents ofthe municipality.

3. If payment of a general obligation of themunicipality is additionally secured by a pledge of gross or net revenue of aproject to be financed by its issue, and the governing body determines, by anaffirmative vote of two-thirds of the members elected to the governing body,that the pledged revenue will at least equal the amount required in each yearfor the payment of interest and principal, without regard to any optionreserved by the municipality for early redemption, the municipality may, aftera public hearing, incur this general obligation without an election unless,within 90 days after publication of a resolution of intent to issue the bonds,a petition is presented to the governing body signed by not less than 5 percentof the registered voters of the municipality. Any member elected to thegoverning body whose authority to vote is limited by charter, statute orotherwise may vote on the determination required to be made by the governingbody pursuant to this subsection. The determination by the governing bodybecomes conclusive on the last day for filing the petition. For the purpose ofthis subsection, the number of registered voters must be determined as of theclose of registration for the last preceding general election. The resolutionof intent need not be published in full, but the publication must include theamount of the obligation and the purpose for which it is to be incurred. Noticeof the public hearing must be published at least 10 days before the day of thehearing. The publications must be made once in a newspaper of generalcirculation in the municipality. When published, the notice of the publichearing must be at least as large as 5 inches high by 4 inches wide.

4. The board of trustees of a school district mayissue general obligation bonds which are not expected to result in an increasein the existing property tax levy for the payment of bonds of the schooldistrict without holding an election for each issuance of the bonds if thequalified electors approve a question submitted by the board of trustees thatauthorizes issuance of bonds for a period of 10 years after the date ofapproval by the voters. If the question is approved, the board of trustees ofthe school district may issue the bonds for a period of 10 years after the dateof approval by the voters, after obtaining the approval of the debt managementcommission in the county in which the school district is located and, in acounty whose population is 100,000 or more, the approval of the oversight panelfor school facilities established pursuant to NRS393.092 in that county, if the board of trustees of the school districtfinds that the existing tax for debt service will at least equal the amountrequired to pay the principal and interest on the outstanding generalobligations of the school district and the general obligations proposed to beissued. The finding made by the board of trustees is conclusive in the absenceof fraud or gross abuse of discretion. As used in this subsection, generalobligations does not include medium-term obligations issued pursuant to NRS 350.087 to 350.095, inclusive.

5. At the time of issuance of bonds authorizedpursuant to subsection 4, the board of trustees shall establish a reserveaccount in its debt service fund for payment of the outstanding bonds of theschool district. The reserve account must be established and maintained in anamount at least equal to the lesser of the amount of principal and interestpayments due on all of the outstanding bonds of the school district in the nextfiscal year or 10 percent of the outstanding principal amount of the outstandingbonds of the school district. If the amount in the reserve account falls belowthe amount required by this subsection:

(a) The board of trustees shall not issue additionalbonds pursuant to subsection 4 until the reserve account is restored to thelevel required by this subsection; and

(b) The board of trustees shall apply all of the taxeslevied by the school district for payment of bonds of the school district thatare not needed for payment of the principal and interest on bonds of the schooldistrict in the current fiscal year to restore the reserve account to the levelrequired pursuant to this subsection.

6. A municipality may issue special or medium-termobligations without an election.

[Part 2:70:1937; A 1956, 219](NRS A 1959, 594; 1969,1589; 1975, 862; 1981, 943; 1993, 1066; 1995, 217, 1812, 1960, 1961; 1997, 551,1209, 2464, 2826; 1999,610, 611, 1078, 3220, 3222, 3226, 3228; 2001, 232, 1348, 2310; 2003, 45)

NRS 350.0205 Committeeon Local Government Finance to provide forms for submitting ballot question andexamples of past ballot questions for issuance or incurrence of generalobligations.

1. The Committee on Local Government Finance shallannually provide to each city clerk, county clerk and district attorney:

(a) Forms for submitting a ballot question to theelectors of a municipality for the issuance or incurrence of generalobligations as provided in subsection 1 of NRS350.020; and

(b) Examples of past ballot questions for the issuanceor incurrence of general obligations.

2. The city clerk, county clerk or district attorneymay make these forms and examples available to the general public.

(Added to NRS by 1999, 1078)

NRS 350.021 Proposalmay be combined on ballot with proposal to levy tax ad valorem for relatedpurpose. A proposal to issue or incur generalobligations pursuant to NRS 350.020 anda proposal to levy an additional tax ad valorem pursuant to NRS 354.5982 for a purpose related to thepurpose for which the general obligations are issued or incurred may becombined into a single proposition.

(Added to NRS by 1993, 65)

NRS 350.022 Noticeof election on proposal to issue general obligations: Publication.

1. Whenever a municipality by ordinance or resolution,as the governing body may determine, has ordered that a proposal to issue orincur general obligations be submitted to the voters at a special election orthe next general municipal election or general state election, the clerk shallcause notice of the election to be published in a newspaper printed in andhaving a general circulation in the municipality once in each calendar week for2 successive calendar weeks by two weekly insertions a week apart, the firstpublication to be not more than 30 days nor less than 22 days next precedingthe date of the election.

2. If no newspaper is printed in the municipality,publication of the notice of election must be made in a newspaper printed inthe State of Nevada and having a general circulation in the municipality.

(Added to NRS by 1965, 138; A 1969, 1590; 1971, 94;1981, 944; 1993, 1067; 1999,1081)

NRS 350.024 Sampleballot and notice of election on proposal to issue general obligations:Contents; consolidation of election with general, primary or municipalelection; publication of notice of close of registration for special election.

1. The ballot question for a proposal submitted to theelectors of a municipality pursuant to subsection 1 of NRS 350.020 must contain the principalamount of the general obligations to be issued or incurred, the purpose of theissuance or incurrence of the general obligations and an estimate establishedby the governing body of:

(a) The duration of the levy of property tax that willbe used to pay the general obligations; and

(b) The average annual increase, if any, in the amountof property taxes that an owner of a new home with a fair market value of$100,000 will pay for debt service on the general obligations to be issued orincurred.

2. Except as otherwise provided in subsection 4, thesample ballot required to be mailed pursuant to NRS 293.565 or 293C.530 and the notice of election mustcontain:

(a) The time and places of holding the election.

(b) The hours during the day in which the polls will beopen, which must be the same as provided for general elections.

(c) The ballot question.

(d) The maximum amount of the obligations, includingthe anticipated interest, separately stating the total principal, the totalanticipated interest and the anticipated interest rate.

(e) An estimate of the range of property tax ratesstated in dollars and cents per $100 of assessed value necessary to provide fordebt service upon the obligations for the dates when they are to be redeemed.The municipality shall, for each such date, furnish an estimate of the assessedvalue of the property against which the obligations are to be issued orincurred, and the governing body shall estimate the tax rate based upon theassessed value of the property as given in the assessors estimates.

3. If an operating or maintenance rate is proposed inconjunction with the question to issue obligations, the questions may becombined, but the sample ballot and notice of election must each state the taxrate required for the obligations separately from the rate proposed foroperation and maintenance.

4. Any election called pursuant to NRS 350.020 to 350.070, inclusive, may be consolidatedwith a primary or general municipal election or a primary or general stateelection. The notice of election need not set forth the places of holding theelection, but may instead state that the places of holding the election will bethe same as those provided for the election with which it is consolidated.

5. If the election is a special election, the clerkshall cause notice of the close of registration to be published in a newspaperprinted in and having a general circulation in the municipality once in eachcalendar week for 2 successive calendar weeks next preceding the close ofregistration for the election.

(Added to NRS by 1965, 138; A 1969, 1590; 1971, 94;1981, 945; 1983, 733; 1987, 23, 1469; 1993, 1067, 1419, 2659, 2661; 1995, 718;1997, 1585, 3477; 1999,679, 1081)

NRS 350.027 Sampleballot to contain estimate of annual cost to operate, maintain and repairimprovements.

1. In addition to any requirements imposed pursuant toNRS 350.024, any sample ballot requiredto be mailed pursuant to NRS 293.565 or 293C.530 and any notice of election, foran election that includes a proposal for the issuance by any municipality ofany bonds or other securities, including an election that is not calledpursuant to NRS 350.020 to 350.070, inclusive, must contain anestimate of the annual cost to operate, maintain and repair any buildings,structures or other facilities or improvements to be constructed or acquiredwith the proceeds of the bonds or other securities.

2. For the purposes of this section, municipalityhas the meaning ascribed to it in NRS350.538.

(Added to NRS by 1993, 1418; A 1997, 3478)

NRS 350.030 Electionon proposal to issue general obligations: Expenses; ballots; validity ofproposal; applicability of general election laws.

1. If the election is not consolidated with anotherelection, the municipality shall pay the expenses of conducting it. Anyproposal to issue or incur general obligations may be submitted on the sameballot as otherwise used at a primary or general municipal election or primaryor general state election or may be submitted by separate ballot, as thegoverning body may determine.

2. No defect in the statement of such a proposal otherthan in the statement of the maximum amount to be authorized invalidates theproposal.

3. The qualifications of voters, the manner ofregistration and voting, and the manner of counting the votes cast are governedby the general election laws insofar as those laws can reasonably be madeapplicable.

[Part 3:70:1937; A 1953, 322](NRS A 1971, 95; 1981,945; 1993, 1068)

NRS 350.070 Approvalor disapproval by electors of proposal to issue general obligations: Procedure;validity of result.

1. If a majority of the electors voting on thequestion is in favor of the proposal submitted, the proposal is carried, andthe proper officers of the municipality shall proceed to issue or incur theobligations proposed.

2. If the majority of the electors voting on thequestion is against the proposal submitted, the proposal fails, and the properofficers of the municipality shall proceed no further except to certify theresult of the election to the proper officers of the governing body.

3. Except as otherwise specifically provided in NRS 350.030, any informality, omission ordefect in the giving of any notice or the conduct of the election does notaffect the result of the election if it can be ascertained with reasonablecertainty whether the proposal was approved or rejected by a majority of theregistered voters voting on the question.

[Part 4:70:1937; A 1953, 322; 1955, 162](NRS A 1959,486; 1971, 97; 1981, 945)

MEDIUM-TERM OBLIGATIONS

NRS 350.087 Resolutionauthorizing medium-term obligation or installment-purchase agreement: Adoption;contents; notice.

1. If the public interest requires a medium-termobligation or installment-purchase agreement, the governing body of any localgovernment, by a resolution adopted by two-thirds of its members, may authorizea medium-term obligation or installment-purchase agreement. For the purposes ofthe issuance of a medium-term obligation pursuant to NRS 280.266, a metropolitan policecommittee on fiscal affairs shall be deemed the governing body of a localgovernment.

2. The resolution must contain:

(a) A finding by the governing body that the publicinterest requires the medium-term obligation or installment-purchase agreement;

(b) A statement of the facts upon which the findingrequired pursuant to paragraph (a) is based;

(c) A statement that identifies:

(1) Each source of revenue of the localgovernment that is anticipated to be used to repay the medium-term obligationor installment-purchase agreement; and

(2) The dollar amount that is anticipated to beavailable to repay the medium-term obligation or installment-purchase agreementfrom each such source; and

(d) If the resolution is for an installment-purchaseagreement with a term of more than 10 years:

(1) A statement comparing the cost ofinstallment-purchase financing with other available methods of financing,including, without limitation, financing with general obligation bonds orrevenue bonds; and

(2) If such statement concludes thatinstallment-purchase financing is more expensive than other available methodsof financing, a statement explaining the reasons for choosinginstallment-purchase financing instead of a less expensive alternative.

3. Except as otherwise provided in subsection 4,before the adoption of any such resolution, the governing body shall publishnotice of its intention to act thereon in a newspaper of general circulationfor at least one publication. No vote may be taken upon the resolution until 10days after the publication of the notice. The cost of publication of the noticerequired of an entity is a proper charge against its general fund.

4. If such a resolution will be adopted by ametropolitan police committee on fiscal affairs, the sheriff of the county inwhich the metropolitan police department is located shall publish the noticerequired pursuant to subsection 3.

(Added to NRS by 1995, 1810; A 1997, 1295; 1999, 275; 2001, 2312)

NRS 350.089 Approvalof resolution for medium-term obligation or installment-purchase agreement byExecutive Director of Department of Taxation; appeal to Nevada Tax Commission. Except as otherwise provided in NRS 280.266 and 496.155:

1. Upon the adoption by a local government of aresolution for a medium-term obligation or installment-purchase agreement, asprovided in NRS 350.087, a certifiedcopy thereof must be forwarded to the Executive Director of the Department ofTaxation. As soon as is practicable, the Executive Director of the Departmentof Taxation shall, after consideration of the tax structure of the localgovernment concerned, the probable ability of the local government to repay therequested medium-term obligation or installment-purchase agreement and thecompliance of the local government with the applicable provisions of law,including, without limitation, the provisions of chapter354 of NRS, approve or disapprove the resolution in writing to thegoverning board. No such resolution is effective until approved by theExecutive Director of the Department of Taxation. The written approval of theExecutive Director of the Department of Taxation must be recorded in theminutes of the governing board.

2. If the Executive Director of the Department ofTaxation does not approve the resolution for the medium-term obligation orinstallment-purchase agreement, the governing board of the local government mayappeal the Executive Directors decision to the Nevada Tax Commission.

(Added to NRS by 1995, 1810; A 1997, 1295; 1999, 276; 2001, 2312)

NRS 350.091 Governingbody to update plan for capital improvement under certain circumstances;issuance and terms of evidence of medium-term obligation orinstallment-purchase agreement; regulations.

1. Whenever the governing body of any local governmentis authorized to enter into a medium-term obligation or installment-purchaseagreement as provided in NRS 280.266 or 350.089 that is intended to finance acapital project, the governing body shall update its plan for capitalimprovement in the same manner as is required for general obligation debtpursuant to NRS 350.013.

2. Whenever the governing body of any local governmentis authorized to enter into a medium-term obligation as provided in NRS 350.089, the governing body may issue,as evidence thereof, negotiable notes or medium-term negotiable bonds that,except as otherwise provided in subsection 5 of NRS 496.155:

(a) Must mature not later than 10 years after the dateof issuance;

(b) Must bear interest at a rate or rates which do notexceed by more than 3 percent the Index of Twenty Bonds which was most recentlypublished before the bids are received or a negotiated offer is accepted; and

(c) May, at the option of the local government, containa provision which allows redemption of the notes or bonds before maturity, uponsuch terms as the governing body determines.

3. Whenever the governing body of any local governmentis authorized to enter into an installment-purchase agreement as provided in NRS 280.266 or 350.089, the governing body may issue, asevidence thereof, an installment-purchase agreement, lease or other evidence ofa transaction described in NRS 350.800.An installment-purchase agreement, lease or other evidence of a transactiondescribed in NRS 350.800 issued pursuantto this subsection:

(a) Must have a term that is 30 years or less;

(b) Must bear interest at a rate or rates that do notexceed by more than 3 percent the Index of Revenue Bonds which was mostrecently published before the local government enters into theinstallment-purchase agreement; and

(c) May, at the option of the local government, containa provision that allows prepayment of the purchase price upon such terms as areprovided in the agreement.

4. If the term of the medium-term obligation orinstallment-purchase agreement is more than 5 years, the weighted average termof the medium-term obligation or installment-purchase agreement may not exceedthe estimated weighted average useful life of the assets being financed withthe medium-term obligation or installment-purchase agreement.

5. For the purposes of subsection 4, the Committee onLocal Government Finance may adopt regulations that provide guidelines for theuseful life of various types of assets and for calculation of the weightedaverage useful life of assets.

(Added to NRS by 1995, 1810; A 1997, 1296; 1999, 276; 2001, 2313)

NRS 350.093 Limitationson transfer of money for medium-term obligation; refund of transfer.

1. After a medium-term obligation has been authorizedas provided in NRS 350.089 and if, inthe judgment of the governing board of the local government, the fiscal affairsof the local government can be carried on without impairment and there issufficient money in the general fund or a surplus in any other fund, with theexception of the bond interest and redemption fund, of the local government,the governing board may transfer from the general fund or from the surplusappearing in any fund, with the exception of the bond interest and redemptionfund, money sufficient to meet the purpose of the medium-term obligation.

2. When such a transfer is made, the governing boardof the local government shall comply with the provisions of NRS 350.095, and when the special tax isthereafter collected, the amount so collected must be placed immediately in thefund from which the loan was made.

3. In cases where the fund from which the loan wasmade, at the time of the transfer of funds therefrom, contains a surplus thatin the judgment of the Executive Director of the Department of Taxation is orwill not be needed for the purposes of the fund in the ordinary course ofevents, the special tax need not be levied, collected and placed in the fundfrom which the loan was made, but the transfer shall be deemed refunded for allpurposes of NRS 350.087 to 350.095, inclusive.

(Added to NRS by 1995, 1811; A 1999, 277; 2001, 2314)

NRS 350.095 Levyof special tax; transfer of money remaining in fund.

1. At the first tax levy following the creation of anymedium-term indebtedness, the governing board of any local government shall, ifnecessary, levy a tax sufficient to pay the medium-term indebtedness. The taxmust be designated County of ................ Special Tax, City of................ Special Tax, Town of ................ Special Tax,................ School District Special Tax, ................ AgriculturalAssociation Special Tax, or ................ District Special Tax, as thecase may be, the proceeds of which must be placed in a medium-term debt servicefund in the treasury of the county or city, or in a medium-term debt servicefund in the county treasury in the cases of towns, school districts, irrigationdistricts, special districts or agricultural associations, to be used solely toredeem the medium-term indebtedness for which the tax is levied.

2. The treasurer of any county is authorized, uponreceipt of a written resolution of the governing board of any local governmentfor which a special tax fund is maintained, to transfer the money remaining inthe medium-term debt service fund of that local government to the general fundof that local government after payment in full of the indebtedness and theinterest thereon.

(Added to NRS by 1995, 1811)

SALE OF BONDS BY COMPETITIVE BID OR NEGOTIATED SALE

NRS 350.105 Definitions. As used in NRS 350.105to 350.195, inclusive, unless thecontext otherwise requires, the words and terms defined in NRS 350.115 to 350.145, inclusive, have the meaningsascribed to them in those sections.

(Added to NRS by 1995, 1018)

NRS 350.115 Bonddefined. Bond means any evidence ofborrowing by a municipality that is issued pursuant to the provisions of thischapter or chapter 244, 244A, 268, 269, 271, 318 or 387 ofNRS, whether general or special obligations, including, without limitation,bonds, notes, debentures, warrants and certificates.

(Added to NRS by 1995, 1018; A 2001, 2314)

NRS 350.125 Competitivebid defined. Competitive bid means theprocedure for the sale of bonds by a municipality to one or more purchasersdetermined by the municipality to have offered the best price and interestrate.

(Added to NRS by 1995, 1018)

NRS 350.135 Financialadviser defined. Financial adviser means afinancial consulting firm whose employees have experience in advising municipalitiesrelating to the issuance of debt instruments, and which, except for itsconsulting relationship with the municipality, is not under the control of themunicipality.

(Added to NRS by 1995, 1019)

NRS 350.145 Negotiatedsale defined. Negotiated sale means the procedurefor the sale of bonds by a municipality to one or more purchasers selectedpursuant to NRS 350.175 and 350.185 upon such terms as are agreed uponafter the selection of the purchaser.

(Added to NRS by 1995, 1019)

NRS 350.155 Saleby competitive bid: Requirements; exceptions; contents of certificate requiredfor certain bonds; filing and approval of certificate; publication ofinvitation for competitive bids.

1. Except as otherwise provided in subsection 2, amunicipality shall sell the bonds it issues by competitive bid if the creditrating for the bonds or any other bonds of the municipality with the samesecurity, determined without regard to insurance for the bonds or any otherindependent enhancement of credit, is rated by a nationally recognized ratingservice as A-, A, AA, AAA, or their equivalents, 90 days before and onthe day the bonds are sold and:

(a) The bonds are general obligation bonds;

(b) The primary security for the bonds is an excisetax; or

(c) The bonds are issued pursuant to chapter 271 of NRS and are secured by a pledge ofthe taxing power and the general fund of the municipality.

2. The provisions of subsection 1 and NRS 350.175 and 350.185 do not apply to:

(a) Any bond which is issued with a variable rate ofinterest.

(b) A bond issue whose principal amount is $1,000,000or less.

(c) A bond issue with a term of 3 years or less.

(d) A bond issue for which an invitation forcompetitive bids was issued and for which no bids were received or all bidswere rejected.

(e) Leases, contracts for purchase by installment andcertificates of participation if the obligations of the municipality thereunderwill terminate when the municipality fails to appropriate money to pay thatobligation for the next fiscal year.

(f) Economic development revenue bonds issued pursuantto the city economic development revenue bond law or the county economicdevelopment revenue bond law.

(g) Bonds sold by the municipality to:

(1) The United States or any agency orinstrumentality thereof;

(2) The State of Nevada;

(3) Any other municipality; or

(4) Not more than 10 investors each of whomcertifies that he:

(I) Has a net worth of $500,000 or more;and

(II) Is purchasing for investment and notfor resale.

(h) Bonds which require unusual methods of financing,if the chief administrative officer of the municipality certifies in writingthat the proposed method of financing:

(1) Has not been used previously by anymunicipality in this state; and

(2) May provide a substantial benefit to themunicipality.

(i) Refunding bonds, if the chief administrativeofficer of the municipality certifies in writing that the use of a negotiatedsale may provide a substantial benefit to the municipality which would not beavailable if the bonds were sold by competitive bid.

(j) Bonds which are sold at a time when, because ofparticular conditions in the market, a negotiated sale may provide a benefit tothe municipality which would not be available if the bonds were sold bycompetitive bid, if the chief administrative officer of the municipality socertifies in writing.

(k) Bonds which are issued pursuant to chapter 271 of NRS and are not secured by apledge of the taxing power and general fund of the municipality.

(l) Revenue bonds which are issued pursuant to chapter 350A of NRS and are secured by a pledgeof the allocable local revenues of the municipality.

3. The certificate required by paragraph (h) ofsubsection 2 must specifically describe the proposed method of financing. Thecertificate required by paragraph (i) of subsection 2 must specificallydescribe the circumstances that may provide a substantial benefit if therefunding bonds are negotiated. The certificate required by paragraph (j) ofsubsection 2 must specifically describe the particular conditions in the marketwhich indicate that a negotiated sale of the bonds may provide a benefit to themunicipality. Each certificate required pursuant to subsection 2 must be submittedto the governing body of the municipality at a regularly scheduled meeting ofthat body and include:

(a) The estimated amount of the benefit which willaccrue to the municipality.

(b) If the municipality has a financial adviser, awritten report prepared by that financial adviser which specifically describesthe method of sale which will be used for the proposed financing.

4. A copy of:

(a) The certificate required by paragraph (h), (i) or(j) of subsection 2; and

(b) The report required pursuant to subsection 3,

must befiled with the debt management commission of the county where the municipalityis located, the county clerk and the Department of Taxation. Before enteringinto a contract to sell bonds, at least two-thirds of the members of thegoverning body of the municipality must approve the certificate.

5. If a municipality is required to sell the bonds itissues by competitive bid pursuant to the provisions of this section, it mustcause an invitation for competitive bids, or notice thereof, to be publishedbefore the date of the sale in the daily or weekly version of the Bond Buyer,published at One State Street Plaza in New York City, New York, or anysuccessor publication.

6. As used in this section, invitation forcompetitive bids means a process by which sealed bids or the reasonableequivalent thereof, as approved by the governing body of a municipality, aresolicited, received and publicly opened at a specified time, place and date.

(Added to NRS by 1995, 1019; A 1997, 514)

NRS 350.165 Delegationof authority to sign contract to purchase or accept binding bid for bonds;approval of certain terms by governing body required.

1. The governing body of a municipality may, beforeany sale of bonds, whether by competitive bid or negotiated sale, delegate tothe chief administrative officer or chief financial officer of the municipalitythe authority to sign a contract for the purchase of the bonds or to accept abinding bid for the bonds subject to the requirements specified by thegoverning body concerning:

(a) The rate of interest on the bonds;

(b) The dates on which and the prices at which thebonds may be called for redemption before maturity;

(c) The price at which the bonds will be sold; and

(d) The principal amount of the bonds and the amount ofprincipal maturing in any particular year.

2. All terms of the bonds other than:

(a) The rate of interest;

(b) The dates and prices for the redemption of thebonds;

(c) The price for the sale of the bonds;

(d) The principal amount of the bonds; and

(e) The requirements for the principal maturing inparticular years,

must beapproved by the governing body of the municipality before the bonds aredelivered.

3. The final rate of interest, dates and prices ofredemption, price for the sale of the bonds, principal amount and therequirements for the principal amount maturing in particular years are notrequired to be approved by the governing body of the municipality if each ofthose terms complies with the requirements specified by the governing bodybefore the contract for the purchase of the bonds is signed or the bid for thebonds is accepted.

(Added to NRS by 1995, 1020)

NRS 350.175 Negotiatedsale: Notice of request for proposals; description of procedure for request forproposals in debt management policy; time limitation on sale of bonds afterselection of underwriter.

1. If a municipality wishes to sell its bonds by a negotiatedsale, it shall provide notice of the request for proposals in a manner thatensures that a reasonable number of underwriters for the size of the bond issueare notified of the request. The governing body of the municipality shallapprove the notice.

2. The procedure for a request for proposalsestablished by a municipality, including any requirement relating to:

(a) The rotation of the managing underwriters; and

(b) The municipalitys policy of equal opportunityconcerning the selection of underwriters,

must bedescribed in the written statement of the debt management policy of themunicipality.

3. A municipality may negotiate the sale of the bondsdescribed in the request for proposals with the underwriter it selects for notmore than 6 years after the date of the selection of that underwriter. If bondsare not described in the request for proposals or if a negotiated sale occursmore than 6 years after the selection of an underwriter, the municipality shallrequest proposals from underwriters pursuant to subsection 1 before it selectsan underwriter for that negotiated sale.

4. As used in this section, request for proposalsmeans a statement which requests that prospective underwriters submit proposalsto the municipality to provide underwriting services for the negotiated sale.

(Added to NRS by 1995, 1021)

NRS 350.185 Negotiatedsale: Procedure for selection of proposal for sale of bonds; certification ofprocedure.

1. The governing body of a municipality which sellsbonds by a negotiated sale shall establish a procedure for the selection of aproposal for the sale of the bonds. The procedure must include a considerationof:

(a) The ability and experience of the respondingunderwriter in the underwriting of bonds sold by competitive bid or negotiatedsale;

(b) The degree to which the proposal of the respondingunderwriter meets the needs of the municipality and minimizes the risk and costto the municipality;

(c) An estimation of any fees or other elements of thegross spread between the price paid to the municipality for the bonds and theprice at which the bonds are sold to investors;

(d) Any other fees, charges or commissions which themunicipality will be required to pay in connection with the issuance of thebonds; and

(e) Any fees paid by the underwriter to persons who arenot his employees to obtain business from the municipality.

2. The chief administrative officer of themunicipality shall certify that the procedure for selecting a proposal for thenegotiated sale pursuant to NRS 350.175was conducted in an open and fair manner.

(Added to NRS by 1995, 1021)

NRS 350.195 Financialadviser: Prohibited acts. A financial adviserwho provides any report required pursuant to NRS350.105 to 350.195, inclusive, mustnot:

1. Be;

2. Control;

3. Be controlled by; or

4. Be under common control with,

anunderwriter for the bonds if those bonds are sold at a negotiated sale.

(Added to NRS by 1995, 1022)

INTEREST RATES; DISCOUNTS; LIMITATION ON ISSUANCE OR SALE

NRS 350.201 Definitions. As used in NRS 350.201to 350.2013, inclusive:

1. Par means the principal amount of a security plusthe accrued interest thereon from the date of the bonds to the date of deliveryand full payment.

2. Political subdivision includes without limitationa county, city, town, school district or special district.

3. Security means a bond or other evidence ofindebtedness.

(Added to NRS by 1967, 219)

NRS 350.2011 Maximumrate of interest on securities of political subdivisions. Except where the provisions, whenever enacted, of ageneral or special law or of a special charter otherwise require, the rate orrates of interest on securities issued by a political subdivision of this statemust not exceed by more than 3 percent:

1. For general obligations, the Index of Twenty Bonds;and

2. For special obligations, the Index of RevenueBonds,

which wasmost recently published before the bids are received or a negotiated offer isaccepted.

(Added to NRS by 1967, 219; A 1969, 1291; 1971, 2115;1975, 863; 1981, 1403; 1983, 574)

NRS 350.2012 Discounts. Except where the provisions, whenever enacted, of ageneral or special law or of a special charter otherwise require, securitiesissued by a political subdivision of this state may be sold at par, above paror below par at a discount of not more than 9 percent of the principal amount,but the effective interest rate must not exceed the limit provided in NRS 350.2011.

(Added to NRS by 1967, 219; A 1969, 1291; 1971, 2115;1975, 863; 1981, 1403; 1983, 574)

NRS 350.2013 Issuanceor sale more than 6 years after date of election prohibited; exception. Except as otherwise provided in subsection 4 of NRS 350.020, no security may be issued orsold by a political subdivision of this state after the expiration of 6 yearsfrom the date of the election authorizing such issue, if an election isrequired by any law whenever enacted.

(Added to NRS by 1967, 219; A 1997, 2466; 1999, 3222)

COUNTY DEBT SERVICE FUND

NRS 350.202 Countyordinance may provide for service of bonded indebtedness for generalobligations through single debt service fund; consolidated levy of taxes. Notwithstanding the provisions of any special lawauthorizing the issuance of bonds or any covenant contained in any bond, theboard of county commissioners of any county may provide by ordinance for theservice of all general obligation bonded indebtedness of the county through asingle debt service fund in the county treasury and a consolidated levy oftaxes.

(Added to NRS by 1965, 650)

NRS 350.204 Mergerof sinking and other debt service funds into single fund. Such ordinance shall provide that upon the first day ofthe ensuing fiscal year, all sinking funds or other debt service funds howeverdenominated which have been established by statute or pursuant to covenant forgeneral obligation indebtedness shall be merged into a single fund.

(Added to NRS by 1965, 650)

NRS 350.206 Sufficiencyof levy of taxes. Each levy of taxes madeafter the enactment of such an ordinance shall include an amount for debtservice sufficient to meet all general obligation interest requirements of thefiscal year for which the levy is made and to retire all bonds scheduled forretirement during that year.

(Added to NRS by 1965, 651)

NRS 350.208 Obligationof bond not impaired. The provisions of NRS 350.202, 350.204 and 350.206 do not in any way impair theobligation of any bond issued prior to April 3, 1965, or postpone the due dateof any installment of interest or payment of principal.

(Added to NRS by 1965, 651)

WATER AND SEWER REVENUE BOND LAW

NRS 350.350 Shorttitle. NRS350.350 to 350.490, inclusive, maybe cited as the Water and Sewer Revenue Bond Law.

[1:109:1937; A 1949, 205; 1943 NCL 1397.01]

NRS 350.360 Definitions. Wherever used in NRS350.350 to 350.490, inclusive,unless a different meaning clearly appears from the context:

1. Governing body means the board of countycommissioners, city council, city commission, board of supervisors, towncouncil, town board, board of directors or board of trustees of a district, orother local legislative body of a municipality.

2. Undertaking includes the followingrevenue-producing undertakings or any combination of two or more of suchundertakings, whether now existing or hereafter acquired or constructed:Systems, plants, works, instrumentalities and properties used or useful inconnection with:

(a) The obtaining of a water supply and theconservation, treatment and disposal of water for public and private uses.

(b) The collection, treatment and disposal of sewage,waste and storm water, together with all parts of any such undertaking and allappurtenances thereto, including lands, easements, rights in land, waterrights, contract rights, franchises, approaches, dams, reservoirs, sewagedisposal plants, intercepting sewers, trunk, connection and other sewer andwater mains, filtration works, pumping stations and equipment.

[2:109:1937; A 1949, 205; 1943 NCL 1397.02](NRS A1969, 1591; 1981, 946)

NRS 350.370 Additionalpowers of municipality under NRS 350.350 to 350.490,inclusive. In addition to the powers which itmay now have, any municipality shall, subject to the limitation stated in thissection, have power under NRS 350.350 to350.490, inclusive:

1. To acquire by gift, purchase or the exercise of theright of eminent domain, to construct, to reconstruct, to improve, to betterand to extend any undertaking, wholly within or wholly without themunicipality, or partially within and partially without the municipality, andto acquire by gift, purchase or the exercise of the right of eminent domain,lands, easements, rights in lands and water rights in connection therewith.

2. To operate and maintain any undertaking for its ownuse and for the use of public and private consumers, and users within andwithout the territorial boundaries of the municipality.

3. To prescribe, revise and collect rates, fees, tollsor charges for the services, facilities or commodities furnished by suchundertaking, and, in anticipation of the collection of the revenues of suchundertaking, to issue revenue bonds to finance in whole or in part the cost ofthe acquisition, construction, reconstruction, improvement, betterment orextension of any undertaking.

4. To pledge to the punctual payment of the bonds andinterest thereon all or any part of the revenues of such undertaking (includingthe revenues of improvements, betterments or extension thereto thereafterconstructed or acquired, as well as the revenues of existing systems, plants,works, instrumentalities and properties of the undertaking so improved,bettered or extended) or of any part of such undertaking.

5. When determined by its governing body to be in thepublic interest and necessary for the protection of the public health, to enterinto and perform contracts, whether long-term or short-term, with anyindustrial or mining establishment for the provision and operation by themunicipality of sewage facilities to abate or reduce the pollution of watercaused by discharges of industrial or mining waste by the industrial or miningestablishment and the payment periodically by the industrial or miningestablishment to the municipality of amounts at least sufficient, in the determinationof such governing body, to compensate the municipality for the cost ofproviding (including payment of principal and interest charges, if any) and ofoperating and maintaining the sewerage facilities serving such industrial ormining establishment.

6. Notwithstanding any provision of NRS 350.350 to 350.490, inclusive, to the contrary or inconflict herewith, to accept contributions or loans from the United States ofAmerica or any department, instrumentality or agency thereof, for the purposeof financing or aiding in financing the cost of preliminary investigations andstudies, surveys, plans and specifications, procedures and other actionpreliminary to construction, and the construction, maintenance and operation ofany undertaking.

7. To make all contracts, execute all instruments anddo all things necessary or convenient in the exercise of the powers hereingranted or in the performance of its covenants or duties or in order to securethe payment of its bonds; provided:

(a) No encumbrance, mortgage or other pledge ofproperty of the municipality is created thereby;

(b) No property of the municipality is liable to beforfeited or taken in payment of the bonds; and

(c) No debt on the credit of the municipality isthereby incurred in any manner for any purpose.

[3:109:1937; A 1949, 205; 1943 NCL 1397.03]

NRS 350.373 Supplementalpowers of municipality to prescribe, revise and collect charges; expenses ofcollection. In supplementation of theprovisions of subsection 3 of NRS 350.370and elsewhere in the Water and Sewer Revenue Bond Law, any municipality at anytime and under any circumstances:

1. May prescribe, revise and collect minimum charges,connection charges, charges for availability of service, legal and otherexpenses of the collection of delinquencies and penalties appertaining thereto;

2. May enforce the collection of any delinquencies bycivil action or by any other means then provided by law; and

3. May otherwise prescribe, revise and collect inadvance or otherwise from any owner or occupant of real property serveddirectly or indirectly by any undertaking, or otherwise, rates, fees, tolls andcharges for the services, facilities or commodities furnished by theundertaking, or any combination thereof, as the governing body may determinefrom time to time.

(Added to NRS by 1967, 672)

NRS 350.375 Useof revenues derived from undertaking of municipality. Subjectto any pledges and other contractual limitations appertaining to revenuesderived from the operation of any undertaking of a municipality, such revenuesmay be used from time to time for the following purposes, or any combinationthereof, and in such priority, as the governing body may determine:

1. For the payment of operation and maintenanceexpenses of any undertaking;

2. For the payment of the costs of extensions of andimprovements to any undertaking, including without limitation extraordinaryrepairs and replacements not constituting maintenance expenses;

3. For the payment of any other costs of constructing,otherwise acquiring, operating, maintaining, extending and improving anyproperties appertaining to water supply, water acquisition, treatment anddistribution facilities, sewage, sanitary sewer collection and disposalfacilities, storm waters, and storm water collection and disposal facilities,and incidental costs relating thereto, and the payment of any outstanding bondsand any other outstanding securities issued for any one, all or any combinationof such purposes by the municipality pursuant to the Water and Sewer RevenueBond Law or to any other law, and constituting general obligations, specialobligations, or otherwise, and regardless of whether such payment is securedsolely, additionally, or at all by a pledge of such revenues, as to theprincipal of, any interest on, and any prior redemption premiums due inconnection with, such bonds and other securities, and any paying agent chargesand other incidental expenses appertaining thereto, including withoutlimitation any costs of issuing such securities, as the same become due;

4. For the accumulation of reserves for any one, allor any combination of the purposes stated above in this section; and

5. For the payment of any other expenses of themunicipality, regardless of whether or not they appertain to an undertaking.

(Added to NRS by 1967, 672)

NRS 350.380 Undertakingand issuance of bonds: Procedure. The acquisition,construction, reconstruction, improvement, betterment or extension of anyundertaking and the issuance, in anticipation of the collection of the revenuesof such undertaking, of bonds to provide funds to pay the cost thereof may beauthorized under NRS 350.350 to 350.490, inclusive, by ordinance orresolution of the governing body, which may be adopted at a regular meeting bya vote of a majority of the members elected to the governing body.

[4:109:1937; 1931 NCL 1397.04](NRS A 1959, 486;1969, 1592; 1975, 864; 1981, 947)

NRS 350.400 Saleof bonds. The bonds shall be sold as providedin the Local Government Securities Law.

[Part 5:109:1937; A 1949, 205; 1943 NCL 1397.05](NRS A 1967, 221; 1969, 1592; 1975, 864)

NRS 350.490 Powersconferred in NRS350.350 to 350.490, inclusive, additional andsupplemental; controlling provisions.

1. The powers conferred by NRS 350.350 to 350.490, inclusive, shall be in additionand supplemental to, and not in substitution for, and the limitations imposedby NRS 350.350 to 350.490, inclusive, shall not affect, thepowers conferred by any other general or special law or charter, including,without limitation, the Local Government Securities Law.

2. The undertaking may be acquired, purchased,constructed, reconstructed, improved, bettered and extended, notwithstandingthat any special or general law or local charter may provide for theacquisition, purchase, construction, reconstruction, improvement, bettermentand extension of a like undertaking and without regard to the requirement,restrictions, debt or other limitations or other provisions contained in anyother general or special law or charter, including, but not limited to, any restrictionor limitation on the incurring of indebtedness or the issuance of bonds.

3. Insofar as the provisions of NRS 350.350 to 350.490, inclusive, are inconsistent withthe provisions of any other general or special law or charter, the provisionsof NRS 350.350 to 350.490, inclusive, shall be controlling,except as otherwise provided in NRS 350.350to 350.490, inclusive; but theprovisions of the Local Government Securities Law are supplemental to NRS 350.350 to 350.490, inclusive, to the extent the LocalGovernment Securities Law pertains to revenue bonds and other specialobligations.

[11:109:1937; 1931 NCL 1397.11](NRS A 1975, 864)

VIOLATION OF BOND COVENANTS

NRS 350.495 Willfulviolation of covenant in securities by member of governing body, officer oragent of municipality unlawful; penalty.

1. Any member of the governing body and any officer orother agent of a municipality which has issued any bonds or municipalsecurities who willfully violates any covenant or provision contained in anysuch indentures or other instruments or proceedings appertaining thereto isguilty of a misdemeanor.

2. A violation of a covenant existing on July 1, 1969,is not willful for the purpose of this section if compliance is impracticalbecause of competition from a private enterprise or enterpriser offering acomparable service.

(Added to NRS by 1969, 1088)

LOCAL GOVERNMENT SECURITIES LAW

NRS 350.500 Shorttitle. NRS350.500 to 350.720, inclusive, maybe cited as the Local Government Securities Law.

(Added to NRS by 1967, 421; A 1985, 2089, 2179; 1993,1984)

NRS 350.502 Purpose;supplemental nature. It is the purpose of theLocal Government Securities Law to provide a procedure for financing anyprojects otherwise authorized by law (other than by the levy and collection ofspecial assessments) and for the issuance of securities to evidence orreevidence obligations incurred in connection with any such projects. The LocalGovernment Securities Law is supplemental in nature, and nothing hereincontained shall be construed as authorizing any particular project nor asauthorizing the incurrence of any obligations to defray the cost of anyproject.

(Added to NRS by 1967, 421)

NRS 350.504 Definitions. As used in this chapter and in any instrument or documentappertaining thereto, unless the context otherwise requires, the words andterms defined in NRS 350.506 to 350.566, inclusive, have the meaningsascribed to them in those sections.

(Added to NRS by 1967, 421; A 1981, 947; 1985, 2179;1987, 559)

NRS 350.506 Acquisitionand acquire defined. Acquisition or acquireincludes the opening, laying out, establishment, purchase, construction, securing,installation, reconstruction, lease, gift, grant from the Federal Government,this state, any public body therein, or any person, the endowment, bequest,devise, condemnation, transfer, assignment, option to purchase, other contract,or other acquirement, or any combination thereof, of any properties pertainingto a project, or an interest therein.

(Added to NRS by 1967, 421; A 1967, 943)

NRS 350.508 Chairmanand chairman of the municipality defined. Chairmanor chairman of the municipality or any phrase of similar import means the defacto or de jure chairman of the board of county commissioners, mayor of thecity or town, president of the board of trustees of the school district,chairman of the board of directors of any other type district, or the presidentthereof, or any other presiding officer or titular head of the municipality, orhis successor in functions, if any.

(Added to NRS by 1967, 421)

NRS 350.510 Clerkdefined. Clerk means the de facto or de jurecounty clerk, city clerk, town clerk, clerk of the board of trustees of theschool district, secretary or clerk of the board of directors of any other typedistrict, or other officer of the municipality who is the custodian of any sealof the municipality and of the records of the proceedings of the municipalitysgoverning body, or his successor in functions, if any.

(Added to NRS by 1967, 422)

NRS 350.512 Commercialbank defined. Commercial bank means:

1. A state or national bank or trust company that is amember of the Federal Deposit Insurance Corporation, including, withoutlimitation, a branch of the Federal Reserve Bank.

2. A credit union whose deposits are insured by the NationalCredit Union Share Insurance Fund or by a private insurer approved pursuant to NRS 678.755.

(Added to NRS by 1967, 422; A 1999, 1473)

NRS 350.514 Condemnationand condemn defined. Condemnation orcondemn means the acquisition by the exercise of the power of eminent domainof property for any project, or an interest therein, herein designated.

(Added to NRS by 1967, 422; A 1985, 278)

NRS 350.516 Costof any project defined. Cost of anyproject, or any phrase of similar import, means all or any part designated bythe governing body of the cost of any project, or interest therein, which cost,at the option of the governing body, may include all or any part of theincidental costs pertaining to the project, including, without limitation:

1. Preliminary expenses advanced by the municipalityfrom money available for use therefor, or advanced by the Federal Government,or from any other source, with the approval of the governing body or any boardor other agency of the municipality responsible for the project or defrayingthe cost thereof, or any combination thereof;

2. The costs in the making of surveys, audits,preliminary plans, other plans, specifications, estimates of costs and otherpreliminaries;

3. The costs of premiums on builders risk insuranceand performance bonds, or a reasonably allocable share thereof;

4. The costs of appraising, printing, estimates,advice, services of engineers, architects, financial consultants, attorneys atlaw, clerical help or other agents or employees;

5. The costs of making, publishing, posting, mailingand otherwise giving any notice in connection with a project, the filing orrecordation of instruments, the taking of options, the issuance of bonds andother securities, and bank fees and expenses;

6. The costs of contingencies;

7. The costs of the capitalization with proceeds ofbonds or other securities issued hereunder of any operation and maintenanceexpenses appertaining to any facilities to be acquired as a project and of anyinterest on bonds or other securities for any period not exceeding the periodestimated by the governing body to effect the project plus 1 year, of any discounton bonds or other securities, and of any reserves for the payment of theprincipal of and interest on the bonds or other securities, of any replacementexpenses, and of any other cost of issuance of the bonds or other securities;

8. The costs of amending any ordinance, resolution orother instrument authorizing the issuance of or otherwise appertaining tooutstanding bonds or other securities of the municipality;

9. The costs of funding any medium-term obligations,construction loans and other temporary loans of not exceeding 10 yearsappertaining to a project and of the incidental expenses incurred in connectionwith such loans;

10. The costs of any properties, rights, easements orother interests in properties, or any licenses, privileges, agreements, andfranchises;

11. The costs of demolishing, removing or relocatingany buildings, structures or other facilities on land acquired for any project,and of acquiring lands to which such buildings, structures or other facilitiesmay be moved or relocated; and

12. All other expenses necessary or desirable andappertaining to a project, as estimated or otherwise ascertained by thegoverning body.

(Added to NRS by 1967, 422; A 1975, 865; 1989, 53;1997, 553)

NRS 350.517 Disposaland dispose defined. Disposal or disposemeans the sale, destruction, razing, loan, lease, grant, transfer, assignment,option to sell, other contract, or other disposition, or any combinationthereof, of facilities, other property, or any interest therein.

(Added to NRS by 1971, 2114)

NRS 350.5175 Equipand equipment defined. Equip or equipmentmeans the furnishing of all related or appurtenant machinery, furnishings,apparatus, paraphernalia, or other gear, or any combination thereof, pertainingto any project or other property, or any interest therein.

(Added to NRS by 1971, 2114)

NRS 350.518 Facilitiesdefined. Facilities means buildings,structures, utilities, or other income-producing facilities from the operationof which or in connection with which pledged revenues for the payment of anybonds or other securities issued hereunder are derived, including withoutlimitation any facilities to be acquired with the proceeds of the bonds orsecurities issued hereunder.

(Added to NRS by 1967, 422)

NRS 350.520 FederalGovernment defined. Federal Governmentmeans the United States, or any agency, instrumentality or corporation thereof.

(Added to NRS by 1967, 423)

NRS 350.522 Federalsecurities defined. Federal securitiesmeans bills, certificates of indebtedness, notes, bonds or similar securitieswhich are direct obligations of, or the principal and interest of whichsecurities are unconditionally guaranteed by, the United States.

(Added to NRS by 1967, 423)

NRS 350.524 Governingbody defined. Governing body means theboard of county commissioners, city council, city commission, board ofsupervisors, town council, board of trustees of the school district, board ofdirectors or trustees of any other type district, or other local legislative orgoverning body of the municipality.

(Added to NRS by 1967, 424)

NRS 350.526 Grossrevenues and gross pledged revenues defined. Grossrevenues or gross pledged revenues means all pledged revenues received bythe municipality and pledged wholly or in part for the payment of any municipalsecurities issued hereunder.

(Added to NRS by 1967, 424)

NRS 350.528 Hereby,herein, hereinabove, hereinafter, hereinbefore, hereof, hereto,hereunder, heretofore and hereafter defined. Hereby,herein, hereinabove, hereinafter, hereinbefore, hereof, hereto,hereunder and any similar term refer to the Local Government Securities Lawand not solely to the particular portion thereof in which such word is used;heretofore means before the adoption of the Local Government Securities Law;and hereafter means after the adoption of the Local Government SecuritiesLaw.

(Added to NRS by 1967, 424)

NRS 350.530 Holderdefined. Holder, or any similar term, whenused in conjunction with any coupons, any bonds or any other securities, meansthe person in possession and the apparent owner of the designated item if suchobligation is registered for payment to bearer or is not registered, or theterm means the registered owner of the designated item if it is at the timeregistered for payment otherwise than to bearer.

(Added to NRS by 1967, 424)

NRS 350.532 Improvementand improve defined. Improvement orimprove includes the extension, widening, lengthening, betterment,alteration, reconstruction or other major improvement, or any combinationthereof, of any properties pertaining to a project or an interest therein, butdoes not mean renovation, reconditioning, patching, general maintenance orother minor repair.

(Added to NRS by 1967, 424; A 1967, 943)

NRS 350.534 Municipaldefined. Municipal means pertaining to a municipalityas defined in NRS 350.538.

(Added to NRS by 1967, 424)

NRS 350.536 Municipalsecurities and securities defined. Municipalsecurities or merely securities means notes, warrants, bonds, temporarybonds and interim debentures authorized to be issued by any municipalityhereunder.

(Added to NRS by 1967, 424)

NRS 350.538 Municipalitydefined.

1. Municipality means any county, any incorporatedcity or town, including, without limitation, any city or town organized underthe provisions of a special legislative act or other special charter, anyunincorporated town, any school district or any quasi-municipal district,including, without limitation, the Nevada rural housing authority and anydistrict created pursuant to NRS 244.2961or governed by title 25 of NRS, of this state, or any other public agencyauthorized to issue general or special obligations on behalf of any of these.Where the context so indicates, municipality means the geographical areacomprising the municipality.

2. Municipality does not include an irrigationdistrict or other special district governed by title 48 of NRS.

(Added to NRS by 1967, 424; A 1971, 2115; 1981, 947;1983, 131; 1989, 76; 1995, 815)

NRS 350.540 Netrevenues and net pledged revenues defined. Netrevenues or net pledged revenues means gross revenues, after the deductionof operation and maintenance expenses.

(Added to NRS by 1967, 424)

NRS 350.542 Operationand maintenance expenses defined. Operationand maintenance expenses, or any phrase of similar import, means all reasonableand necessary current expenses of the municipality, paid or accrued, ofoperating, maintaining and repairing the facilities or of levying, collectingand otherwise administrating any excise taxes pertaining to the pledgedrevenues for the payment of the bonds or other securities issued hereunder; andthe term may include at the governing bodys option (except as limited bycontract or otherwise limited by law), without limiting the generality of theforegoing:

1. Engineering, auditing, reporting, legal and otheroverhead expenses of the various municipal departments directly related andreasonably allocable to the administration of the facilities;

2. Fidelity bond and property and liability insurancepremiums appertaining to the facilities, or a reasonably allocable share of apremium of any blanket bond or policy pertaining to the facilities;

3. Payments to pension, retirement, health andhospitalization funds and other insurance;

4. Any taxes, assessments, excise taxes, or othercharges which may be lawfully imposed on the municipality, any facilities,revenues therefrom, or any privilege in connection with any facilities or theiroperation;

5. The reasonable charges of any paying agent, orcommercial bank, trust bank or other depositary bank appertaining to anysecurities issued by the municipality or appertaining to any facilities;

6. Contractual services, professional services,salaries, other administrative expenses, and costs of materials, supplies,repairs and labor, appertaining to the issuance of any municipal securities andto any facilities, including without limitation the expenses and compensationof any trustee, receiver or other fiduciary under the Local GovernmentSecurities Law;

7. The costs incurred by the governing body in thecollection and any refunds of all or any part of the pledged revenues,including without limitation revenues appertaining to any facilities;

8. Any costs of utility services furnished to thefacilities by the municipality or otherwise;

9. Any lawful refunds of any pledged revenues; and

10. All other administrative, general and commercialexpenses.

(Added to NRS by 1967, 424)

NRS 350.544 Operationand maintenance expenses limited. The termoperation and maintenance expenses does not include:

1. Any allowance for depreciation;

2. Any costs of improvements;

3. Any accumulation of reserves for major capitalreplacements (other than normal repairs);

4. Any reserves for operation, maintenance or repairof any facilities;

5. Any allowance for the redemption of any bond orother municipal security evidencing a loan or other obligation or for thepayment of any interest thereon;

6. Any liabilities incurred in the acquisition orimprovement of any properties comprising any project or of any existingfacilities, or any combination thereof; and

7. Any other ground of legal liability not based oncontract.

(Added to NRS by 1967, 425)

NRS 350.546 Ordinancedefined. Ordinance means a county ordinance,city ordinance, town ordinance, school district or other type district resolution,or other type of instrument by the adoption of which the municipality exerciseslegislative powers.

(Added to NRS by 1967, 425)

NRS 350.550 Pledgedrevenues defined. Pledged revenues meansthe moneys pledged wholly or in part for the payment of bonds or othermunicipal securities issued in accordance with the provisions of the LocalGovernment Securities Law, and, subject to any existing pledges or othercontractual limitations:

1. May include at the governing bodys discretionmoneys derived from one, all or any combination of revenue resourcesappertaining to any facilities, including without limitation use and servicecharges, rents, fees and any other income derived from the operation orownership of, from the use or services of, or from the availability of orservices appertaining to, the lease of, any sale or other disposal of, any contractor other arrangement, or otherwise derived in connection with any facilities orall or any part of any property appertaining to any facilities;

2. May so include all loans, grants, or contributionsto the municipality, if any, conditional or unconditional, from the FederalGovernment, the State or any public body for the payment of the principal of,the interest on, and any prior redemption premiums due in connection with anymunicipal securities issued hereunder, or any combination thereof; and

3. May so include the proceeds of any excise taxeslevied and collected by the municipality or otherwise received by it andauthorized by law (other than the Local Government Securities Law) to bepledged for the payment of municipal securities issued in accordance with theprovisions of the Local Government Securities Law, but excluding the proceedsof any taxes as defined in NRS 350.560.

(Added to NRS by 1967, 425; A 1971, 2115)

NRS 350.552 Projectdefined. Project means any undertaking orundertakings which the governing body is authorized by law (other than theLocal Government Securities Law) to do in the name of the municipality, thecost of which the governing body is authorized by law (other than the LocalGovernment Securities Law) to defray wholly or in part by the issuance of bondsor other securities of the municipality as provided hereunder.

(Added to NRS by 1967, 426)

NRS 350.554 Publicbody defined. Public body means the NevadaSystem of Higher Education, the Board of Regents of the University of Nevada,any county, city, town, school district, other type district, authority,commission or other type of body corporate and politic constituting a politicalsubdivision of the State, other than the municipality proceeding hereunder.

(Added to NRS by 1967, 426; A 1993, 395; 2005, 364)

NRS 350.556 Statedefined. State means the State of Nevada, orany board, department or other agency or instrumentality thereof, in the UnitedStates; and where the context so indicates, State means the geographical areacomprising the State of Nevada.

(Added to NRS by 1967, 426; A 1971, 2115)

NRS 350.558 Taxationdefined. Taxation means the levy and collectionof taxes as defined in NRS 350.560, butin NRS 350.710 taxation pertains toany type of tax, including, without limitation, any business, occupation orprivilege tax, any other excise tax, and any property tax, except for the taxon estates imposed pursuant to the provisions of chapter375A of NRS and the tax on generation-skipping transfers imposed pursuantto the provisions of chapter 375B of NRS.

(Added to NRS by 1967, 426; A 1969, 1592; 1989, 2107;1991, 1710)

NRS 350.560 Taxesdefined. Taxes means general (ad valorem)property taxes.

(Added to NRS by 1967, 426)

NRS 350.562 Treasurerdefined.

1. Treasurer means:

(a) The de facto or de jure county treasurer, citytreasurer, town treasurer or treasurer of any district, or his successor infunctions, if any.

(b) The county treasurer in the case of anymunicipality (other than a county) which has no treasurer and for which thecounty treasurer is required or authorized by law to be the official custodianof the moneys of such municipality, or his successor in functions, if any.

2. Treasurer may mean the county treasurer if thegoverning body of the municipality (other than a county) expressly so providesin any instrument or other proceedings hereunder, or his successor infunctions, if any.

(Added to NRS by 1967, 426)

NRS 350.564 Trustbank defined. Trust bank means:

1. A commercial bank as defined in NRS 350.512 that is authorized to exerciseand is exercising trust powers.

2. A branch of the Federal Reserve Bank.

3. A credit union whose deposits are insured by theNational Credit Union Share Insurance Fund or by a private insurer approvedpursuant to NRS 678.755 that isauthorized to exercise and is exercising trust powers.

(Added to NRS by 1967, 426; A 1999, 1473)

NRS 350.566 UnitedStates defined. United States means theUnited States of America; and where the context so indicates, United Statesmeans the geographical area comprising the United States of America.

(Added to NRS by 1967, 426; A 1971, 2116)

NRS 350.568 Powersof municipality in connection with projects. Inconnection with any project, the municipality, acting by and through thegoverning body, except as herein otherwise provided, may:

1. Sue and be sued;

2. Acquire and hold real or personal property, orrights or interests therein, and water rights;

3. Dispose of unnecessary or obsolete property, orproperty obtained for persons or public bodies within the State, includingwithout limitation water or water rights, or rights or interests in any suchproperty;

4. Make contracts and execute all instrumentsnecessary or convenient, as determined by the governing body;

5. Acquire by contract or contracts or by its ownagents and employees or otherwise acquire any properties for any project orprojects, and operate and maintain such properties; and

6. Accept grants of money or materials or property ofany kind from the Federal Government, the State, any public body or any person,upon such terms and conditions as the Federal Government, the State, publicbody or person may impose.

(Added to NRS by 1967, 426)

NRS 350.569 Powerof eminent domain; reimbursement of public utility for removal and relocation.

1. The governing body may:

(a) Exercise on behalf of the municipality the power ofeminent domain in the manner provided in chapter37 of NRS, except as herein otherwise provided;

(b) Take any property necessary to carry out any of theobjects or purposes concerning such a project, whether the property is alreadydevoted to the same use by any person (but not the Federal Government, theState or any other public body in the absence of any provision to the contraryin any act supplemental hereto); and

(c) Condemn any existing works or improvements of anysuch person now or hereafter used.

2. The power of eminent domain vested in the governingbody includes the power to condemn, in the name of the municipality, either thefee simple or any lesser estate or interest in any real property which thegoverning body by ordinance determines is necessary for carrying out thepurposes hereof. The ordinance is prima facie evidence that the taking of thefee simple, easement or other interest, as the case may be, is necessary. Thegoverning body shall not abandon any condemnation proceedings after the dateupon which the municipality has taken possession of the property beingacquired.

3. If the construction or other acquisition of anyproject, or any part thereof, makes necessary the removal and relocation of anypublic utilities, whether on private or public right-of-way, or otherwise, thegoverning body shall reimburse the owner of the public utility facility for theexpense of removal and relocation, including the cost of any necessary land orrights in land, except where the cost of removal and relocation is or has beenconsidered a proper element of just compensation in any settlement bynegotiation or in any eminent domain proceeding.

(Added to NRS by 1985, 277)

NRS 350.570 Powerof municipality to become obligated and issue securities for project. For the purpose of paying the cost of any projectauthorized by law (other than the Local Government Securities Law), at any timeor from time to time the municipality may borrow money or otherwise becomeobligated for the project and may evidence any such obligation by the issuanceof municipal securities in accordance with the provisions of the LocalGovernment Securities Law, to the extent otherwise authorized by law.

(Added to NRS by 1967, 427)

NRS 350.572 Typesof securities which may be issued; series. Themunicipality may issue, in one series or more, without the municipal securitiesbeing authorized at any election in the absence of an expressed provision tothe contrary in the act authorizing the project and the issuance of municipalsecurities therefor or in any act supplemental thereto, in anticipation oftaxes or pledged revenues, or both, and constituting either general obligationsor special obligations of the municipality, any one or more or all of thefollowing types of municipal securities:

1. Notes, evidencing any amount borrowed by themunicipality;

2. Warrants, evidencing the amount due to any personfor any services or supplies, equipment or other materials furnished to or forthe benefit of the municipality and appertaining to a project;

3. Bonds, evidencing any amount borrowed by themunicipality and constituting long-term financing;

4. Temporary bonds, pending the preparation of andexchangeable for definitive bonds of like character and in like principalamount when prepared and issued in compliance with the conditions andlimitations herein provided; and

5. Interim debentures, evidencing any medium-termobligations, construction loans, and other temporary loans of not exceeding 10years, in supplementation of long-term financing and the issuance of bonds, asprovided in NRS 350.672 to 350.682, inclusive.

(Added to NRS by 1967, 427; A 1975, 252; 1989, 54;1997, 554)

NRS 350.573 Saleof right to call for purchase of securities.

1. A municipality may sell the right to call forpurchase all or any part of an issuance of securities if, in the ordinanceauthorizing the issuance of the securities, it has:

(a) Reserved the right to make the sale;

(b) Provided the time during which a call may beexercised; and

(c) Provided the price of the purchase.

2. The municipality shall set forth the price andother terms for the sale of the right to call the security in the ordinanceauthorizing the issuance of the security or a supplemental ordinance adoptedbefore or at the time of the sale of a right to call the security.

3. The owner of the right to call the security maycall it only as provided in the ordinance authorizing the issuance of thesecurity or in an ordinance supplemental thereto. A supplemental ordinance mustnot amend the time during which a call may be exercised or the price of the purchase.

4. The municipality may purchase its own securitypursuant to a right to call the security for purchase. A call for purchase mustbe in accordance with the price and other terms for the purchase set forth inthe ordinance authorizing the issuance of the security or in an ordinancesupplemental thereto. A supplemental ordinance must not amend the time duringwhich a call may be exercised or the price of the purchase. Such a purchase bya municipality does not discharge the indebtedness evidenced by the securityunless the municipality cancels the security so purchased.

(Added to NRS by 1993, 1983)

NRS 350.574 Notesand warrants: Maturity; extension or funding. Notesand warrants may mature at such time or times not exceeding 1 year from thedate or the respective dates of their issuance as the governing body maydetermine. They shall not be extended or funded except by the issuance of bondsor interim debentures in compliance with NRS350.672 to 350.680, inclusive, andother provisions supplemental thereto.

(Added to NRS by 1967, 427)

NRS 350.575 Resolutionto finance preservation or restoration of historic structure; approval ofExecutive Director of Department of Taxation; appeal to Nevada Tax Commission.

1. Upon the adoption of a resolution to finance thepreservation or restoration of a historic structure, in the manner provided in NRS 350.087, by a municipality, a certifiedcopy thereof must be forwarded to the Executive Director of the Department ofTaxation, accompanied by a letter from the Office of Historic Preservation ofthe Department of Cultural Affairs certifying that the preservation orrestoration conforms to accepted standards for such work. As soon as ispracticable, the Executive Director of the Department of Taxation shall, afterconsideration of the tax structure of the municipality concerned and theprobable ability of the municipality to repay the requested financing, approveor disapprove the resolution in writing to the governing board. No suchresolution is effective until approved by the Executive Director of theDepartment of Taxation. The written approval of the Executive Director of theDepartment of Taxation must be recorded in the minutes of the governing board.

2. If the Executive Director of the Department ofTaxation does not approve the financing resolution, the governing board of themunicipality may appeal the Executive Directors decision to the Nevada TaxCommission.

3. As used in this section, historic structure meansa building, facility or other structure which is eligible for listing in theState Register of Historic Places under NRS383.085.

(Added to NRS by 1985, 2178; A 1993, 1570; 1995,1813; 2001, 939)

NRS 350.5755 Issuanceof negotiable notes or bonds to finance restoration of historic structure;maturity; interest.

1. Whenever the governing body of any municipality isauthorized to enter into financing for restoration of a historic structure, asprovided in NRS 350.575, the governingbody may issue, as evidence thereof, negotiable notes or bonds.

2. The negotiable notes or bonds must:

(a) Mature not later than 15 years after the date ofissuance.

(b) Bear interest at a rate or rates which do notexceed by more than 3 percent the Index of Twenty Bonds which was most recentlypublished before the bids are received or a negotiated offer is accepted.

(Added to NRS by 1985, 2178)

NRS 350.576 Temporarybonds: Conditions, terms and provisions; holders rights and remedies. Each temporary bond shall set forth substantially the sameconditions, terms and provisions as the definitive bond for which it is exchanged.Each holder of a temporary bond shall have all the rights and remedies which hewould have as a holder of the definitive bond for which the temporary bond isto be exchanged.

(Added to NRS by 1967, 427)

NRS 350.578 Ordinanceauthorizing issuance of securities: Description of purposes. The ordinance authorizing the issuance of any municipalsecurities hereunder shall describe the purpose or purposes for which they areissued at least in general terms and may describe any purpose in detail.

(Added to NRS by 1967, 427)

NRS 350.579 Emergencyordinances: Adoption; effective date.

1. Any ordinance pertaining to the sale, issuance orpayment of bonds or other securities of the municipality (or any combinationthereof) may be adopted as if an emergency existed.

2. The governing bodys declaration, if any, in anyordinance that it is such an ordinance shall be conclusive in the absence offraud or gross abuse of discretion.

3. Such an ordinance may become effective at any timewhen an emergency ordinance of the municipality may go into effect.

4. Such an ordinance may be adopted by an affirmativevote of not less than two-thirds of all the voting members of the governingbody (excluding from any such computation any vacancy on the governing body andany member thereon who may vote only to break a tie vote).

(Added to NRS by 1969, 1612; A 1975, 866)

NRS 350.580 Generalobligations: Types of securities. Themunicipality may issue as general obligations any of the following types ofmunicipal securities:

1. Notes;

2. Warrants;

3. Interim debentures;

4. Bonds; and

5. Temporary bonds,

payable fromtaxes, or payable from taxes and additionally securing such payment by a pledgeof net revenues or gross revenues, as the governing body may determine, exceptas may be otherwise provided in any act supplemental hereto.

(Added to NRS by 1967, 428)

NRS 350.582 Specialobligations: Types of securities. Themunicipality may issue as special obligations any of the following types ofmunicipal securities:

1. Notes;

2. Warrants;

3. Interim debentures;

4. Bonds; and

5. Temporary bonds,

inanticipation of net pledged revenues but not under any circumstances undertheir terms and the proceedings authorizing their issuance in anticipation oftaxes nor, unless otherwise expressly provided in any act supplemental hereto,in anticipation of gross pledged revenues. Such special obligation municipalsecurities may be payable from, secured by a pledge of, and constitute a lienon net pledged revenues and if expressly so provided in any act supplementalhereto gross pledged revenues.

(Added to NRS by 1967, 428)

NRS 350.583 Variablerates of interest for securities; agreement with third party for assurance ofpayment for securities; reimbursement for advances made pursuant to agreement.

1. The ordinance or resolution authorizing theissuance of any municipal securities or any trust indenture or other instrumentappertaining thereto may fix a rate or rates of interest or provide for thedetermination of the rate or rates from time to time by a designated agentaccording to the procedure specified in that ordinance or other instrument. Therate so determined must approximate the rates then being paid for othersecurities which contain similar provisions and have an equivalent rating. Agoverning body of a municipality may contract with or select any person to makethat determination.

2. A governing body of a municipality may enter intoan agreement with a third party for an assurance of payment of the principalof, the interest on, or premiums, if any, due in connection with any municipalsecurities issued by the governing body. The obligation of the governing bodyto reimburse that third party for any advances made pursuant to that agreementmay be provided in that agreement, recited in those securities or evidenced byanother instrument as designated in the ordinance or resolution authorizing theissuance of those securities or any other instrument appertaining thereto. Thegoverning body may assign its rights under that agreement.

(Added to NRS by 1985, 2088)

NRS 350.5835 Variablerates of interest: Exemption from limitations; conclusive findings of governingbody that procedure for determination of rates is reasonable. In fixing the rate or rates of interest for municipal securitiespursuant to subsection 1 of NRS 350.583or the rate or rates of interest imposed on the governing body forreimbursement of any advances made under an agreement pursuant to subsection 2of NRS 350.583, the governing body isnot subject to any limitations on rates of interest provided by statute,including NRS 350.2011, or provided inthe question at an election authorizing the issuance of those securities. Theordinance or resolution fixing that rate or rates of interest must contain thefindings of the governing body that the procedure specified therein fordetermining that rate or rates is reasonable under existing or anticipatedconditions in the market and is necessary and advisable for marketing thesecurities. These findings are conclusive. This section does not prohibit thegoverning body from fixing a maximum rate of interest in that ordinance orresolution.

(Added to NRS by 1985, 2089)

NRS 350.584 Municipalsecurities payable from gross revenues: Covenant requiring appropriations topay operation and maintenance expenses. Anyordinance authorizing the issuance of general obligation securities or specialobligation securities payable from gross revenues or any indenture or otherproceedings appertaining thereto may contain a covenant of the municipalitythat to the extent required, as provided therein, the municipality will payoperation and maintenance expenses by appropriation from its general fund andthat to the extent the moneys accounted for therein are insufficient for thatpurpose the municipality shall levy taxes therefor.

(Added to NRS by 1967, 428)

NRS 350.586 Securitiesissued as general obligations constitute outstanding indebtedness. Any outstanding general obligation bonds, any temporarygeneral obligation bonds to be exchanged for such definitive bonds, and anygeneral obligation interim debentures constitute outstanding indebtedness ofthe municipality and exhaust the debt-incurring power of the municipality underany statutory debt limitation appertaining thereto.

(Added to NRS by 1967, 428)

NRS 350.588 Securitiesissued as special obligations do not constitute outstanding indebtedness. Any other municipal securities (except general obligationnotes and general obligation warrants) constitute special obligations of themunicipality, and all such other securities (including all notes and warrants,general obligations or special obligations, payable within 1 year from date) donot constitute outstanding indebtedness of the municipality nor exhaust itsdebt-incurring power under any such debt limitation.

(Added to NRS by 1967, 428)

NRS 350.590 Recitalsrequired in municipal securities.

1. Municipal securities issued hereunder andconstituting special obligations shall recite in substance that the securitiesand the interest thereon are payable solely from the net revenues or grossrevenues pledged to the payment thereof.

2. Municipal securities issued hereunder andconstituting general obligations shall pledge the full faith and credit of themunicipality for their payment, shall so state, and shall state that they arepayable from taxes.

3. General obligation municipal securities the paymentof which is additionally secured by a pledge of revenues shall recite insubstance, in addition to the statements required by subsection 2 of thissection, that the payment of the securities and the interest thereon isadditionally secured by a pledge of the net revenues or the gross revenues, asthe case may be, designated in the securities.

(Added to NRS by 1967, 428)

NRS 350.592 Annuallevy of special tax to pay interest on and retire securities issued as generalobligations; proceeds of tax kept in two special funds; consolidated debtservice fund.

1. There must be levied annually in due season aspecial tax on all property, both real and personal, subject to taxation withinthe boundaries of the municipality, fully sufficient together with the revenuewhich will result from application of the rate to the net proceeds of minerals,without regard to any statutory or charter tax limitations other than thelimitation set forth in NRS 361.453, topay the interest on the general obligation municipal securities and to pay andretire the securities as provided in the Local Government Securities Law and inany act supplemental hereto. The amount of money to be raised by the tax mustbe included in the annual estimate or budget for each county within the statefor each year for which the tax is hereby required to be levied. The tax mustbe levied and collected in the same manner and at the same time as other taxesare levied and collected.

2. The proceeds thereof levied to pay interest on thesecurities must be kept by the treasurer in a special fund, separate and apartfrom all other funds, and the proceeds of the tax levied to pay the principalof the securities must be kept by the treasurer in a special fund, separate andapart from all other funds. The two special funds must be used for no otherpurpose than the payment of the interest on the securities and the principal thereof,respectively, when due; but, except as prevented by any contractual limitationsimposed upon the municipality by proceedings appertaining to its outstandingsecurities, the municipality may provide for a consolidated debt service fundto pay principal of and interest on outstanding securities, when due.

(Added to NRS by 1967, 429; A 1967, 944; 1989, 44;1993, 2659)

NRS 350.594 Timeand duration of levy of special tax. Such taxshall be levied immediately after the issuance of any general obligationsecurities issued in accordance with the provisions of the Local GovernmentSecurities Law, and annually thereafter, at the times and in the mannerprovided by law, until all of the securities, and the interest thereon, havebeen fully discharged. Such tax may be first levied after the municipality hascontracted to sell any securities but before their issuance.

(Added to NRS by 1967, 429; A 1975, 866)

NRS 350.596 Paymentfrom general fund when taxes insufficient to pay amount due on securities issuedas general obligations; reimbursement of general fund.Any sums coming due on any general obligation municipal securities atany time when there are not on hand from such tax levy or levies sufficientfunds to pay the same shall be promptly paid when due from the general fund ofthe municipality, reimbursement to be made to such general fund in the sumsthus advanced when the taxes herein provided for have been collected.

(Added to NRS by 1967, 429)

NRS 350.598 Applicationof other available money to payment of interest on and principal of securitiesissued as general obligations. Nothingcontained in the Local Government Securities Law shall be so construed as toprevent the municipality from applying any funds (other than taxes) that may beavailable for that purpose to the payment of the interest on or the principalof any general obligation municipal securities as the same respectively mature,and regardless of whether the payment of the general obligation municipalsecurities is additionally secured by a pledge of revenues, and upon suchpayments, the levy or levies of taxes provided in the Local GovernmentSecurities Law may thereupon to that extent be diminished.

(Added to NRS by 1967, 429)

NRS 350.602 Proceedsof taxes specially appropriated to payment of principal and interest. There is by the Local Government Securities Law, and thereshall be by ordinance authorizing the issuance of any indebtedness contractedin accordance with the provisions of the Local Government Securities Law, speciallyappropriated the proceeds of such taxes to the payment of such principal andinterest; and such appropriations shall not be repealed nor the taxes postponedor diminished (except as herein otherwise expressly provided) until theprincipal of and interest on the municipal securities evidencing such debt havebeen wholly paid.

(Added to NRS by 1967, 430)

NRS 350.604 Paymentof municipal securities not to be secured by encumbrance, mortgage or pledge ofmunicipalitys property; exception.

1. Except as otherwise provided in subsection 2:

(a) The payment of municipal securities may not besecured by an encumbrance, mortgage or other pledge of property of themunicipality; and

(b) No property of the municipality is liable to beforfeited or taken in payment of the securities.

2. The payment of municipal securities may be securedby pledged revenues, proceeds of taxes and any other money pledged for thepayment of the securities. A municipality may encumber, mortgage or otherwisepledge property purchased from the proceeds of a loan to secure repayment ofthat loan.

(Added to NRS by 1967, 430; A 1989, 709)

NRS 350.606 Recourseagainst officers and agents of municipality: Acceptance of securitiesconstitutes waiver and release. No recourseshall be had for the payment of the principal of, any interest on, and anyprior redemption premiums due in connection with any bonds or other municipalsecurities or for any claim based thereon or otherwise upon the ordinanceauthorizing their issuance or other instrument appertaining thereto, againstany individual member of the governing body or any officer or other agent ofthe municipality, past, present or future, either directly or indirectlythrough the governing body or the municipality, or otherwise, whether by virtueof any constitution, statute or rule of law, or by the enforcement of anypenalty or otherwise, all such liability, if any, being by the acceptance ofthe securities and as a part of the consideration of their issuance speciallywaived and released.

(Added to NRS by 1967, 430; A 1975, 866)

NRS 350.608 Covenantsin ordinance authorizing issuance of special obligations impose no liabilityagainst municipality or its general credit. Noneof the covenants, agreements, representations and warranties contained in anyordinance authorizing the issuance of bonds or other municipal securitiesissued under the provisions of the Local Government Securities Law andconstituting special obligations, or in any other instrument appertainingthereto, in the absence of any breach thereof, shall ever impose or shall beconstrued as imposing any liability, obligation or charge against themunicipality (except the special funds pledged therefor) or against the generalcredit of the municipality, payable out of the general fund of themunicipality, or out of any funds derived from taxation.

(Added to NRS by 1967, 430)

NRS 350.610 Faithof State pledged against repeal, amendment or modification of Local GovernmentSecurities Law. The faith of the State ishereby pledged that the Local Government Securities Law, any law supplementalor otherwise appertaining thereto, and any other act concerning the bonds orother municipal securities, taxes or the pledged revenues or any combination ofsuch securities, such taxes and such revenues shall not be repealed nor amendedor otherwise directly or indirectly modified in such a manner as to impairadversely any outstanding municipal securities, until all such securities havebeen discharged in full or provision for their payment and redemption has beenfully made, including without limitation the known minimum yield from theinvestment or reinvestment of moneys pledged therefor in federal securities.

(Added to NRS by 1967, 431)

NRS 350.614 Detailsof municipal securities provided by ordinance. Exceptas otherwise provided in the Local Government Securities Law and in any otheract the provisions of which are relevant by express reference herein thereto orby provisions to that effect therein, any securities issued hereunder must be:

1. In such a form;

2. Issued in such a manner, at, above or below par atsuch a discount not exceeding 9 percent of the principal amount of thesecurities, and at such a price which will result in an effective interest ratewhich does not exceed the limit provided in NRS350.2011;

3. Issued with such provisions:

(a) For the application of any accrued interest and anypremium from the sale of any bonds or other municipal securities hereunder asprovided in NRS 350.648;

(b) For the registration of the bonds or othersecurities for payment as to principal only, or as to both principal andinterest, at the option of any holder of a bond or other security, or forregistration for payment only in either manner designated;

(c) For the endorsement of payments of interest on thebonds or other securities or for reconverting the bonds or other securitiesinto coupon bonds or other coupon securities, or both for such endorsement andsuch reconversion, where any bond or other security is registered for paymentas to interest; and where interest accruing on the securities is notrepresented by interest coupons the securities may provide for the endorsing ofpayments of interest thereon;

(d) For the endorsement of payments of principal on thebonds or other securities, where any bond or other securities are registeredfor payment as to principal;

(e) For the initial issuance of one or more bonds orother securities aggregating the amount of the entire issue or any portionthereof, and the endorsement of payments of interest or principal, or bothinterest and principal, on the securities;

(f) For the manner and circumstances in and under whichany such bond or other securities may in the future, at the request of theholder thereof, be converted into bonds or other securities of larger orsmaller denominations, which bonds or other securities of larger or smallerdenominations may in turn be either coupon bonds or other coupon securities orbonds or other securities registered for payment, or coupon bonds or othercoupon securities with provisions for registration for payment;

(g) For the reissuance of any outstanding bonds orother securities, and the terms and conditions thereof, whether lost,apparently destroyed, wrongfully taken, or for any other reason, as provided inthe Uniform Commercial CodeInvestment Securities, or otherwise;

(h) For the deposit of money, federal securities orother securities of the Federal Government, or both money and all suchsecurities, with and securing their repayment by a commercial bank orcommercial banks within or without or both within and without this state;

(i) For the payment of costs or expenses incident tothe enforcement of the securities or of the provisions of the ordinance or ofany covenant or contract with the holders of the securities; and

4. Issued otherwise with such recitals, terms,covenants, conditions and other provisions,

as may beprovided by the governing body in an ordinance authorizing their issuance andin any indenture or other proceedings appertaining thereto.

(Added to NRS by 1967, 431; A 1969, 1292; 1971, 2116;1975, 866; 1981, 1403; 1983, 574)

NRS 350.616 Saleor issuance of municipal securities.

1. Notes, bonds and interim debentures must be sold inthe manner prescribed in NRS 350.105 to 350.195, inclusive.

2. Warrants may be issued to evidence the amount dueto any person furnishing services or materials as provided in the LocalGovernment Securities Law.

3. Temporary bonds must be issued to a purchaser ofthe definitive bonds in anticipation of the exchange of the former for thelatter.

(Added to NRS by 1967, 432; A 1971, 2117; 1973, 560;1983, 593; 1995, 1022)

NRS 350.628 Recitalin securities conclusive evidence of validity and regularity of issuance. An ordinance providing for the issuance of bonds or othermunicipal securities hereunder or an indenture or other proceedingsappertaining thereto may provide that the securities contain a recital thatthey are issued pursuant to the Local Government Securities Law, which recitalshall be conclusive evidence of their validity and the regularity of theirissuance.

(Added to NRS by 1967, 433)

NRS 350.630 Denomination,negotiability and maturity of municipal securities; rate of interest.

1. As the governing body may determine, any bonds andother municipal securities issued hereunder, except as otherwise provided inthe Local Government Securities Law, or in any act supplemental thereto, must:

(a) Be of a convenient denomination or denominations;

(b) Be fully negotiable within the meaning of and forall the purposes of the Uniform Commercial CodeInvestment Securities;

(c) Mature at such time or serially at such times inregular numerical order at annual or other designated intervals in amountsdesignated and fixed by the governing body, except as herein otherwiseprovided;

(d) Bear interest at a rate or rates which do notexceed the limit provided in NRS 350.2011,payable annually, semiannually or at other designated intervals, but the firstinterest payment date may be for interest accruing for any other period;

(e) Be made payable in lawful money of the UnitedStates, at the office of the treasurer or any commercial bank or commercialbanks within or without or both within and without the State as may be providedby the governing body; and

(f) Be printed at such a place, within or without thisState, as the governing body may determine.

2. General obligation bonds must mature within 30 yearsfrom their respective dates and, if they mature serially, commencing not laterthan the fifth year thereafter, in such manner as the governing body maydetermine.

3. Special obligation bonds must mature within 50years from their respective dates.

(Added to NRS by 1967, 433; A 1969, 1293; 1971, 2118;1975, 867; 1981, 948, 1404; 1983, 575)

NRS 350.632 Paymentof principal, interest and premium when due without further order. The principal of, the interest on and any prior redemptionpremium due in connection with any municipal securities shall be paid as thesame become due in accordance with the terms of the securities and anyordinances and other proceedings appertaining to their issuance, without anywarrant or further order or other preliminaries.

(Added to NRS by 1967, 433)

NRS 350.634 Interestcoupons. Any bonds issued hereunder (excepttemporary bonds) shall have one or two sets of interest coupons, bearing thenumber of the bond to which they are respectively attached, numberedconsecutively in regular numerical order, and attached in such manner that theycan be removed upon the payment of the installments of interest without injuryto the bonds, except as herein otherwise provided.

(Added to NRS by 1967, 434)

NRS 350.636 Execution,signing and authentication of municipal securities and coupons. Bonds and other municipal securities issued hereundershall be executed in the name of the municipality, shall be signed by thechairman of the municipality and by the treasurer, and shall be attested by theclerk; and the bonds or other securities shall be authenticated by the seal ofthe municipality affixed thereto, unless it has no seal. Any coupons shall besigned by the treasurer. Facsimile signatures may be used on any coupons.

(Added to NRS by 1967, 434)

NRS 350.638 Facsimilesignatures and seals. Any bonds or other securities,including without limitation any certificates endorsed thereon, may be executedwith facsimile signatures and seals as provided in chapter351 of NRS. A compliance therewith is not a condition precedent to theexecution of any coupon with a facsimile signature.

(Added to NRS by 1967, 434; A 1985, 279)

NRS 350.640 Securitiesnot invalid because signatories cease to fill offices.The bonds, any coupons appertaining thereto and other securities,bearing the signatures of the officers in office at the time of the signingthereof, shall be the valid and binding obligations of the municipality,notwithstanding that before the delivery thereof and payment therefor any orall of the persons whose signatures appear thereon have ceased to fill theirrespective offices.

(Added to NRS by 1967, 434)

NRS 350.642 Adoptionof facsimile signature of predecessor in office. Any officer authorizedor permitted to sign any bonds, any coupons or any other securities, at thetime of their execution and of a signature certificate appertaining thereto,may adopt as and for his own facsimile signature the facsimile signature of hispredecessor in office in the event that such facsimile signature appears uponthe bonds, coupons and other securities appertaining thereto, or anycombination thereof.

(Added to NRS by 1967, 435)

NRS 350.644 Redemptionbefore maturity. The governing body may providefor the redemption of any or all of the bonds or other municipal securitiesbefore maturity, in such order, by lot or otherwise, at such a time or times,without or with the payment of such a premium or premiums not exceeding 9percent of the principal amount of each bond or other security so redeemed, andotherwise upon such terms as may be provided by the governing body in theordinance authorizing the issuance of the securities or other instrumentappertaining thereto.

(Added to NRS by 1967, 435; A 1971, 2118; 1975, 868;1981, 1405)

NRS 350.646 Repurchaseof municipal securities. Any bonds or other municipalsecurities may be repurchased by the governing body out of any funds availablefor such purpose at a price of not more than the principal amount thereof andaccrued interest, plus the amount of the premium, if any, which might on thenext prior redemption date of such securities be paid to the holders thereof ifsuch securities should be called for redemption on such date pursuant to theirterms, and all securities so repurchased shall be cancelled; but if thesecurities may not be called for prior redemption at the municipalitys optionwithin 1 year from the date of their purchase, they may be repurchased withoutlimitation as to price.

(Added to NRS by 1967, 435)

NRS 350.648 Useof money received from issuance of municipal securities. All moneys received from the issuance of any securitiesherein authorized shall be used solely for the purpose or purposes for whichissued and to defray wholly or in part the cost of the project therebydelineated. Any accrued interest and any premium shall be applied to the costof the project or to the payment of the interest on or the principal of thesecurities, or both interest and principal, or shall be deposited in a reservetherefor, or any combination thereof, as the governing body may determine.

(Added to NRS by 1967, 435)

NRS 350.650 Dispositionof unexpended balance of proceeds after completion of project. Any unexpended balance of the proceeds of such securitiesremaining after the completion of the acquisition or improvement of propertiespertaining to the project or otherwise the completion of the purpose orpurposes for which such securities were issued shall be credited immediately tothe fund or account created for the payment of the interest on or the principalof the securities, or both principal and interest, and shall be used therefor,subject to the provisions as to the times and methods for their payment asstated in the securities and the proceedings authorizing or otherwiseappertaining to their issuance, or so paid into a reserve therefor, or anycombination thereof, as the governing body may determine.

(Added to NRS by 1967, 435)

NRS 350.652 Validityof securities not dependent on proceedings relating to project or completion ofpurpose; purchasers not responsible for application of proceeds.

1. The validity of any securities shall not bedependent on nor affected by the validity or regularity of any proceedingsrelating to a project or the proper completion of any purpose for which thesecurities are issued.

2. The purchaser or purchasers of the securities shallin no manner be responsible for the application of the proceeds of thesecurities by the municipality or any of its officers, agents and employees.

(Added to NRS by 1967, 435)

NRS 350.654 Specialfunds and accounts: Creation; purposes. The governingbody in any ordinance authorizing the issuance of bonds or other securitieshereunder or in any instrument or other proceedings appertaining thereto maycreate special funds and accounts for the payment of the cost of a project, ofoperation and maintenance expenses, of the securities, including theaccumulation and maintenance of reserves therefor, of improvements, includingthe accumulation and maintenance of reserves therefor, and of other obligationsappertaining to the securities, any project or any facilities.

(Added to NRS by 1967, 436)

NRS 350.656 Employmentof legal and other expert services; contracts for sale and other purposes.

1. The governing body on the behalf of themunicipality may employ legal, fiscal, engineering and other expert services inconnection with any project or any facilities, or both such project andfacilities, and the authorization, sale and issuance of bonds and othersecurities hereunder.

2. The governing body on the behalf of themunicipality is authorized to enter into any contracts or arrangements, notinconsistent with the provisions hereof, with respect to the sale of bonds orother securities hereunder, the employment of engineers, architects, financialconsultants and bond counsel, and other matters as the governing body maydetermine to be necessary or desirable in accomplishing the purposes hereof.

(Added to NRS by 1967, 436)

NRS 350.658 Investmentand reinvestment of revenues and proceeds of taxes and securities in federalsecurities and certain money market mutual funds.

1. The governing body, subject to any contractuallimitations from time to time imposed upon the municipality by any ordinanceauthorizing the issuance of the municipalitys outstanding securities or by anytrust indenture or other proceedings appertaining thereto, may cause to beinvested and reinvested any proceeds of taxes, any pledged revenues and anyproceeds of bonds or other municipal securities issued hereunder in:

(a) Federal securities and other securities of theFederal Government.

(b) Money market mutual funds that:

(1) Are registered with the Securities andExchange Commission;

(2) Are rated by a nationally recognized ratingservice as AAA or its equivalent; and

(3) Invest only in securities issued orguaranteed as to payment of principal and interest by the Federal Government,or its agencies or instrumentalities, or in repurchase agreements that arefully collateralized by such securities.

Thegoverning body may cause such proceeds of taxes, revenues, municipal securities,federal securities, other securities of the Federal Government and money marketmutual funds to be deposited in any trust bank or trust banks within or withoutor both within and without this state and secured in such manner and subject tosuch terms and conditions as the governing body may determine, with or withoutthe payment of any interest on such deposit, including, without limitation,time deposits evidenced by certificates of deposit.

2. Any federal securities, other securities of theFederal Government, shares in money market mutual funds and any suchcertificates of deposit thus held may, from time to time, be sold, and theproceeds may be so reinvested or redeposited as provided in this section.

3. Sales and redemptions of any federal securities,other securities of the Federal Government, shares in money market mutual fundsand such certificates of deposit thus held must, from time to time, be made inseason so that the proceeds may be applied to the purposes for which the moneywith which such securities, shares in money market mutual funds and certificates of deposit were originallyacquired was placed in the municipal treasury.

4. Any gain from any such investments or reinvestmentsmay be credited to any fund or account pledged for the payment of any municipalsecurities issued hereunder, including any reserve therefor, or any other fundor account appertaining to a project or any facilities or the municipalitysgeneral fund, subject to any contractual limitations in any proceedingsappertaining to outstanding municipal securities.

5. It is lawful for any commercial bank incorporatedunder the laws of this state which may act as depository of the proceeds of anysecurities issued hereunder, any federal securities, other securities of theFederal Government and shares in money market mutual funds owned by themunicipality, any proceeds of taxes, any pledged revenues, and any moneyotherwise appertaining to a project or any facilities, or any combinationthereof, to furnish such indemnifying bonds and to pledge such federalsecurities, such other securities issued by the Federal Government, such sharesin money market funds and such othersecurities as may be required by the governing body.

(Added to NRS by 1967, 436; A 1997, 2869)

NRS 350.659 Investmentand reinvestment of revenues and proceeds of taxes and certain securities ininvestment contract collateralized with federal securities by governing bodywhose population is 50,000 or more. The governingbody of a municipality whose population is 50,000 or more, subject to any contractuallimitations from time to time imposed upon the municipality by any ordinanceauthorizing the issuance of outstanding securities of the municipality or byany trust indenture or other proceedings appertaining thereto, may cause to beinvested and reinvested, except as otherwise provided in NRS 350.698, any proceeds of taxes, anypledged revenues and any proceeds of bonds or other municipal securities issuedhereunder for which the amount of the principal of the original issuance was$10,000,000 or more in an investment contract that is collateralized with securitiesissued by the Federal Government or agencies of the Federal Government if:

1. The collateral has a market value of at least 102percent of the amount invested and any accrued unpaid interest thereon;

2. The municipality receives a security interest inthe collateral that is fully perfected and the collateral is held in custodyfor the municipality or its trustee by a third-party agent of the municipalitywhich is a commercial bank authorized to exercise trust powers;

3. The market value of the collateral is determinednot less frequently than weekly and, if the ratio required by subsection 1 isnot met, sufficient additional collateral is deposited with the agent of themunicipality to meet that ratio within 2 business days after the determination;and

4. The party with whom the investment contract isexecuted is a commercial bank, or that party or a guarantor of the performanceof that party is:

(a) An insurance company which has a rating on itsability to pay claims of not less than Aa2 by Moodys Investors Service,Inc., or AA by Standard and Poors Ratings Services, or their equivalent; or

(b) An entity which has a credit rating on itsoutstanding long-term debt of not less than A2 by Moodys Investors Service,Inc., or A by Standard and Poors Ratings Services, or their equivalent.

(Added to NRS by 1997, 2868; A 2003, 824)

NRS 350.660 Covenantsand other provisions in municipal securities. Anyordinance providing for the issuance of any bonds or other municipal securitieshereunder payable from pledged revenues and any indenture or other instrumentor proceedings appertaining thereto may at the discretion of the governing bodycontain covenants or other provisions, notwithstanding such covenants andprovisions may limit the exercise of powers conferred hereby, in order tosecure the payment of such securities, in agreement with the holders of suchsecurities, including without limitation covenants or other provisions as toany one or more of the following:

1. The pledged revenues and, in the case of generalobligations, the taxes to be fixed, charged or levied and the collection, useand disposition thereof, including but not limited to the foreclosure of liensfor delinquencies, the discontinuance of services, facilities or use of anyproperties or facilities, prohibition against free service, the collection ofpenalties and collection costs, and the use and disposition of any moneys ofthe municipality, derived or to be derived, from any source herein designated;

2. The acquisition, improvement or equipment of all orany part of properties pertaining to any project or any facilities;

3. The creation and maintenance of reserves or sinkingfunds to secure the payment of the principal of and interest on any securitiesor of operation and maintenance expenses of any facilities, or part thereof,and the source, custody, security, regulation, use and disposition of any suchreserves or funds, including but not limited to the powers and duties of anytrustee with regard thereto;

4. A fair and reasonable payment by the municipalityfrom its general fund or other available moneys to the account of anydesignated facilities for services rendered thereby to the municipality;

5. The payment of the cost of any project bydelineating the purpose or purposes to which the proceeds of the sale ofsecurities may be applied, and the custody, security, use, expenditure,application and disposition thereof;

6. The temporary investment and any reinvestment ofproceeds of bonds, other securities, any taxes or pledged revenues, or anycombination thereof, in federal securities and other securities issued by theFederal Government;

7. The pledge of and the creation of a lien uponpledged revenues or the proceeds of bonds or other municipal securities pendingtheir application to defray the cost of any project, or both such revenues andproceeds of such securities, to secure the payment of bonds or other suchsecurities issued hereunder;

8. The payment of the principal of and interest on anymunicipal securities, and any prior redemption premiums due in connectiontherewith, and the sources and methods thereof, the rank or priority of anysecurities as to any lien or security for payment, or the acceleration of anymaturity of any securities, or the issuance of other or additional securitiespayable from or constituting a charge against or lien upon any pledged revenuesor other moneys pledged for the payment of securities and the creation offuture liens and encumbrances thereagainst;

9. The use, regulation, inspection, management,operation, maintenance or disposition, or any limitation or regulation of theuse, of all or any part of the facilities or any property of the municipalityappertaining thereto;

10. The determination or definition of pledgedrevenues from any facilities or of operation and maintenance expenses offacilities, the use and disposition of such revenues and the manner of andlimitations upon paying such expenses;

11. The creation of special funds and accountsappertaining to any pledged revenues or to the bonds or other securities issuedhereunder;

12. The insurance to be carried by the municipality orany other person in interest and use and disposition of insurance moneys, theacquisition of completion, performance, surety and fidelity bonds appertainingto any project or funds, or both, and the use and disposition of any proceedsof such bonds;

13. Books of account, the inspection and auditthereof, and other records appertaining to any project, facilities or pledgedrevenues;

14. The assumption or payment or discharge of anyobligation, lien or other claim relating to any part of any project, anyfacilities or any securities having or which may have a lien on any part of anypledged revenues or other moneys of the municipality;

15. Limitations on the powers of the municipality toacquire or operate, or permit the acquisition or operation of, any structures,facilities or properties which may compete or tend to compete with anyfacilities;

16. The vesting in a corporate or other trustee ortrustees of such property, rights, powers and duties in trust as the governingbody may determine, which may include any or all of the rights, powers andduties of the trustee appointed by the holders of securities, and limiting orabrogating the right of such holders to appoint a trustee, or limiting therights, duties and powers of such trustee;

17. Events of default, rights and liabilities arisingtherefrom, and the rights, liabilities, powers and duties arising upon thebreach by the municipality of any covenants, conditions or obligations;

18. The terms and conditions upon which the holders ofthe municipal securities or any portion, percentage or amount of them mayenforce any covenants or provisions made hereunder or duties imposed thereby;

19. The terms and conditions upon which the holders ofthe securities or of a specified portion, percentage or amount thereof; or anytrustee therefor, shall be entitled to the appointment of a receiver, whichreceiver may enter and take possession of any facilities or service, operateand maintain the same, prescribe fees, rates and charges, and collect, receiveand apply all revenues thereafter arising therefrom in the same manner as themunicipality itself might do;

20. A procedure by which the terms of any ordinanceauthorizing securities, or any other contract with any holders of municipalsecurities, including but not limited to an indenture of trust or similarinstrument, may be amended or abrogated, and as to the proportion, percentageor amount of securities the holders of which must consent thereto, and themanner in which such consent may be given;

21. The terms and conditions upon which any or all ofthe securities shall become or may be declared due before maturity, and as tothe terms and conditions upon which such declaration and its consequences maybe waived; and

22. All such acts and things as may be necessary orconvenient or desirable in order to secure the securities, or in the discretionof the governing body tend to make the securities more marketable,notwithstanding that such covenant, act or thing may not be enumerated herein,it being the intention hereof to give the governing body power to do in thename and on behalf of the municipality all things in the issuance of municipalsecurities and for their security except as herein expressly limited.

(Added to NRS by 1967, 437)

NRS 350.662 Pledgedrevenues received or credited subject to immediate lien; priority and validityof lien.

1. Revenues pledged for the payment of any securities,as received by or otherwise credited to the municipality, shall immediately besubject to the lien of each such pledge without any physical delivery thereof,any filing or further act.

2. The lien of each such pledge and the obligation toperform the contractual provisions made in the authorizing resolution or otherinstrument appertaining thereto shall have priority over any or all otherobligations and liabilities of the municipality, except as may be otherwiseprovided herein or in the resolution or other instrument, and subject to anyprior pledges and liens theretofore created.

3. The lien of each such pledge shall be valid andbinding as against all persons having claims of any kind in tort, contract orotherwise against the municipality irrespective of whether such persons havenotice thereof.

(Added to NRS by 1967, 439)

NRS 350.664 Rightsand powers of holders of municipal securities and trustees. Subject to any contractual limitations binding upon theholders of any issue or series of municipal securities, or trustee therefor,including but not limited to the restriction of the exercise of any remedy to aspecified proportion, percentage or number of such holders, and subject to anyprior or superior rights of others, any holder of securities, or trusteetherefor, shall have the right and power, for the equal benefit and protectionof all holders of securities similarly situated:

1. By mandamus or other suit, action or proceeding atlaw or in equity to enforce his rights against the municipality, the governingbody, and any other of the officers, agents and employees of the municipality,to require and compel the municipality, the governing body, or any suchofficers, agents or employees to perform and carry out their respective duties,obligations or other commitments hereunder and their respective covenants andagreements with the holder of any security;

2. By action or suit in equity to require themunicipality to account as if it is the trustee of an express trust;

3. By action or suit in equity to have appointed areceiver, which receiver may enter and take possession of any facilities andany pledged revenues for the payment of the securities, prescribe sufficientfees derived from the facilities, and collect, receive and apply all pledgedrevenues or other moneys pledged for the payment of the securities in the samemanner as the municipality itself might do in accordance with the obligationsof the municipality; and

4. By action or suit in equity to enjoin any acts orthings which may be unlawful or in violation of the rights of the holder of anysecurities and to bring suit thereupon.

(Added to NRS by 1967, 439)

NRS 350.666 Receivers:Appointment; powers and duties.

1. If an ordinance of the governing body authorizingor providing for the issuance of any municipal securities of any series or anyother proceedings appertaining thereto contains a provision authorized bysubsection 19 of NRS 350.660 and furtherprovides in substance that any trustee appointed pursuant to subsection 16 of NRS 350.660 shall have the powers providedby that subsection, then such trustee, whether or not all of the bonds or othersecurities of such series have been declared due and payable, shall be entitledas of right to the appointment of a receiver of the facilities appertainingthereto.

2. Any receiver appointed as permitted by subsection19 of NRS 350.660 may enter upon andtake possession of the facilities and property appertaining thereto, and,subject to any pledge or contract with the holders of such securities, shalltake possession of all moneys and other property derived from or applicable tothe acquisition, operation, maintenance or improvement of the facilities andproceed with such acquisition, operation, maintenance or improvement which thegoverning body on the behalf of the municipality is under any obligation to do,and operate, maintain, equip and improve the facilities, and fix, charge,collect, enforce and receive the service charges and all revenues thereafterarising subject to any pledge thereof or contract with the holders of suchsecurities relating thereto and perform the public duties and carry out thecontracts and obligations of the municipality in the same manner as thegoverning body itself might do and under the direction of the court.

(Added to NRS by 1967, 440)

NRS 350.668 Rightsand remedies cumulative. No right or remedy conferredupon any holder of any securities or any coupon appertaining thereto or anytrustee for such holder hereby or by any proceedings appertaining to theissuance of such securities or coupon is exclusive of any right or remedy, buteach such right or remedy is cumulative and in addition to every other right orremedy and may be exercised without exhausting and without regard to any otherremedy conferred hereby or by any other law.

(Added to NRS by 1967, 440)

NRS 350.670 Failureof holder to proceed does not relieve municipality, governing body andofficers, agents and employees of municipality of liability for nonperformanceof duties. The failure of any holder of anymunicipal securities or any coupons appertaining thereto so to proceed asherein provided or in such proceedings shall not relieve the municipality, thegoverning body or any of the officers, agents and employees of the municipalityof any liability for failure to perform or carry out any duty, obligation orother commitment.

(Added to NRS by 1967, 440)

NRS 350.672 Interimdebentures: Issuance for general or special obligations.

1. Notwithstanding any limitation or other provisionherein, whenever the municipality is authorized to issue general obligationbonds, but only if the qualified electors of the municipality voting on aproposal to issue the general obligation bonds have authorized in the mannerrequired by law their issuance by the municipality for any project, if suchgeneral obligation bonds as a condition to their issuance are so required to beauthorized at an election, the municipality is authorized to borrow moneywithout any other election in anticipation of the proceeds of taxes, theproceeds of the bonds, the proceeds of pledged revenues, or any other moneys ofthe municipality, or any combination thereof, and to issue general obligationinterim debentures to evidence the amount so borrowed.

2. Notwithstanding any limitation or other provisionherein, whenever the municipality is authorized to issue special obligation revenuebonds, but only if the qualified electors of the municipality voting on aproposal to issue the revenue bonds have authorized in the manner required bylaw their issuance by the municipality for any project, if such revenue bondsas a condition to their issuance are so required to be authorized at anelection, the municipality also is authorized to borrow money without anyelection in anticipation of the proceeds of revenue bonds or any other specialobligations of the municipality and of its pledged revenues, or any combinationthereof, but excluding the proceeds of any taxes, and to issue specialobligation interim debentures to evidence the amount so borrowed.

(Added to NRS by 1967, 440)

NRS 350.674 Issuanceof municipal securities constituting debt to fund or refund special obligationsnot constituting indebtedness: Conditions; restrictions.

1. Subject to the provisions of subsections 2, 3, 4and 5, nothing contained herein shall be construed as authorizing themunicipality to issue any municipal securities constituting a debt for thepurpose of funding or refunding municipal securities constituting specialobligations which do not constitute an indebtedness.

2. Any special obligation securities of a municipalitypertaining to any project may be funded or refunded by general obligationsecurities pertaining to the project only if the municipality is authorized bylaw to issue such funding or refunding securities at the time of theirissuance, even though the municipality was not so authorized to issue them atthe time of the issuance of any such funded or refunded securities.

3. If the issuance of general obligation bonds todefray the cost of the project is conditioned upon their approval by thequalified electors of the municipality at an election, any general obligationsecurities pertaining to the project and creating an indebtedness, by fundingor refunding special obligation securities or otherwise, may be issued only ifthe bonds have been so approved at an election in the manner provided by law.

4. If a debt limitation pertains to any generalobligation bonds or other securities of a municipality constituting anindebtedness and relating to any project, no general obligation securitiespertaining to the project and creating an indebtedness, by funding or refundingspecial obligation securities or otherwise (in contradistinction to funding orrefunding bonds merely reevidencing an indebtedness formerly evidenced by thesecurities funded or refunded), shall be issued in a principal amount exceedingsuch debt limitation.

5. No bonds of a municipality shall be refunded by theissuance of its interim debentures, its notes or its warrants. No interimdebentures of a municipality shall be funded by the issuance of its notes orits warrants.

(Added to NRS by 1967, 441; A 1969, 1593)

NRS 350.676 Interimdebentures: Maturity; use of proceeds; issuance.

1. Any interim debentures may mature at such time ortimes not exceeding a period of time equal to the estimated time needed toeffect the purpose or purposes for which they are issued or for which the bondsare authorized to be issued, but not exceeding 5 years from the date of theinterim debentures, as the governing body may determine.

2. The proceeds of interim debentures shall be used todefray the cost of a project.

3. Any notes or warrants or both notes and warrantsmay be funded with the proceeds of interim debentures, as well as bonds.

4. Except as otherwise provided in NRS 350.672 to 350.682, inclusive, interim debenturesshall be issued as provided herein for municipal securities in NRS 350.584 to 350.670, inclusive, and NRS 350.708 to 350.720, inclusive.

(Added to NRS by 1967, 441; A 1969, 1593; 1975, 868)

NRS 350.678 Interimdebentures: Security for payment.

1. Except as otherwise provided in NRS 350.674, the proceeds of taxes, pledgedrevenues and other money, including without limitation proceeds of bonds to beissued or reissued after the issuance of interim debentures, and bonds issuedto secure the payment of interim debentures, or any combination thereof, may bepledged to secure the payment of interim debentures; but the proceeds of taxesand the proceeds of bonds payable from taxes, or any combination thereof, mustnot be used to pay any special obligation interim debentures nor may theirpayment be secured by a pledge of any such general obligation bonds.

2. Any bonds pledged as collateral security for thepayment of any interim debentures must mature at such time or times as thegoverning body may determine, except as otherwise provided in subsections 2 and3 of NRS 350.630.

3. Any bonds pledged as collateral security must notbe issued in an aggregate principal amount exceeding the aggregate principalamount of the interim debenture or interim debentures secured by a pledge ofsuch bonds, nor may they bear interest at any time which, with any interestaccruing at the same time on the interim debenture or interim debentures sosecured, exceeds the rate permitted on the debenture or debentures secured,computed from the appropriate index which was most recently published beforethe bids are received or a negotiated offer is accepted.

(Added to NRS by 1967, 441; A 1969, 1294; 1971, 2119;1975, 868; 1981, 1405; 1983, 576)

NRS 350.680 Interimdebentures: Extension and funding. No interimdebentures issued pursuant to the provisions of NRS 350.672 to 350.678, inclusive, shall be extended orfunded except by the issuance or reissuance of a bond or bonds in compliancewith NRS 350.682.

(Added to NRS by 1967, 442)

NRS 350.682 Interimdebentures: Funding by reissuance of bonds pledged as collateral security;issuance of other bonds.

1. For the purpose of funding any interim debentures,any bonds pledged as collateral security to secure the payment of such interimdebentures, upon their surrender as pledged property, may be reissued withoutan election, and any bonds not previously issued but authorized to be issued,at an election in the case of bonds required by law so to be authorized, andotherwise merely by the governing body, for a purpose or purposes the same asor encompassing the purpose or purposes for which the interim debentures wereissued, may be issued for such a funding.

2. Any such bonds shall mature at such time or timesas the governing body may determine, except as otherwise provided in subsections2 and 3 of NRS 350.630.

3. Bonds for funding (including but not necessarilylimited to any such reissued bonds) and bonds for any other purpose or purposesmay be issued separately or issued in combination in one series or more.

4. Except as herein otherwise provided in this sectionand in NRS 350.676, 350.678 and 350.680, any such funding bonds shall beissued as is provided herein for other bonds.

(Added to NRS by 1967, 442)

NRS 350.684 Refundingof general and special obligation bonds: Ordinance; trust indenture. Subject to the provisions of NRS 350.674, any general obligation bondsor special obligation bonds of the municipality issued in accordance with theprovisions of the Local Government Securities Law or any other act and payablefrom any pledged revenues and any general obligation bonds of the municipalityso issued but not payable from pledged revenues may be refunded on behalf ofthe municipality by the governing body, without the necessity of the refundingbonds being authorized at an election except as otherwise provided in NRS 350.674, by the adoption of anordinance or ordinances by the governing body and by any trust indenture orother proceedings appertaining thereto, authorizing the issuance of refundingbonds to refund, pay and discharge all or any part of such outstanding bonds ofany one or more or all outstanding issues:

1. For the acceleration, deceleration or othermodification of the payment of such obligations, including any interest thereonin arrears, or about to become due for any period not exceeding 3 years fromthe date of the refunding bonds, unless the capitalization of interest on bondsconstituting an indebtedness increases the municipal debt in excess of themunicipalitys debt limitation, if any;

2. For the purpose of reducing interest costs oreffecting other economies;

3. For the purpose of modifying or eliminatingrestrictive contractual limitations appertaining to the issuance of additionalbonds, otherwise concerning the outstanding bonds, or otherwise relating to anyfacilities appertaining thereto; or

4. For any combination of the purposes stated in subsections1, 2 and 3.

(Added to NRS by 1967, 442; A 1969, 1594)

NRS 350.686 Callsfor prior redemption: Limitations. Nothingcontained in the Local Government Securities Law or in any other law of thisstate shall be construed to permit the governing body to call on behalf of themunicipality bonds or other securities outstanding now or any time after April12, 1967, for prior redemption in order to fund or refund such securities or inorder to pay them prior to their stated maturities, unless the right to callsuch securities for prior redemption was specifically reserved and stated insuch securities at the time of their issuance, and all conditions with respectto the manner, price and time applicable to such prior redemption as set forthin the proceedings authorizing the outstanding securities are strictlyobserved. It is the intention of the Legislature in this section to make it certainthat the holder of no outstanding bond or other security may be compelled tosurrender such security for funding or refunding prior to its stated maturityor optional date of prior redemption expressly reserved therein, even thoughsuch funding or refunding might result in financial benefit to themunicipality.

(Added to NRS by 1967, 442; A 1967, 943; 1969, 1594)

NRS 350.688 Exchangeof outstanding securities held by State or its agencies for funding orrefunding. Notwithstanding the provisions of NRS 350.686 or of any other law, thisstate, acting by and through the State Board of Finance, may agree with thegoverning body to exchange any outstanding bonds or other securities issued bythe municipality and held by the State, or any agency, corporation, departmentor other instrumentality of the State, for funding or refunding bonds or otherfunding securities of the municipality or otherwise to surrender at such priceand time and otherwise upon such conditions and other terms and in such manneras may be mutually agreeable such outstanding bonds or other securities to thegoverning body for funding or refunding at any time prior to their respectivematurities or to any date as of which the municipality has the right and optionto call on its behalf such outstanding securities for prior redemption as expresslyprovided in the outstanding securities and any ordinance, trust indenture orother proceedings authorizing their issuance.

(Added to NRS by 1967, 443; A 1969, 1595)

NRS 350.690 Refundingof outstanding securities evidencing long-term loans. Anyprovision herein concerning the refunding of outstanding bonds includes anyoutstanding securities evidencing long-term loans to the municipalityregardless of whether such securities are designated as bonds, certificates,single certificates or otherwise.

(Added to NRS by 1967, 443)

NRS 350.692 Refundingbonds: Sale or exchange for outstanding bonds; exchange for federal securities.

1. Any bonds issued for refunding purposes may bedelivered in exchange for the outstanding bonds being refunded or may be soldin the manner prescribed in NRS 350.105to 350.195, inclusive.

2. The refunding bonds, or any part thereof, except aslimited by subsection 2 of NRS 350.698,may be exchanged by the municipality for federal securities and othersecurities of the Federal Government which have been made available for escrowinvestment by any purchaser of refunding bonds, upon terms of exchange mutuallyagreed upon, and any such securities so received by the municipality must beplaced in escrow as provided in NRS 350.696and 350.698.

(Added to NRS by 1967, 443; A 1995, 1022)

NRS 350.694 Conditionsfor refunding bonds.

1. No bonds may be refunded under this chapter unlessthe holders thereof voluntarily surrender them for exchange or payment, orunless they either mature or are callable for prior redemption under theirterms within 25 years from the date of issuance of the refunding bonds.Provision must be made for paying the securities within that period.

2. The maturity of any bond refunded may not beextended beyond 25 years, or beyond 1 year next following the date of the lastoutstanding maturity, whichever limitation is later, nor may any interest onany bond refunded be increased to any rate which exceeds the limit provided in NRS 350.2011.

3. The principal amount of the refunding bonds mayexceed the principal amount of the refunded bonds, but in the case of any bondsconstituting a debt the principal of the bonds may not be increased to anyamount in excess of any municipal debt limitation.

4. The principal amount of the refunding bonds mayalso be less than or the same as the principal amount of the bonds being refundedso long as provision is duly and sufficiently made for their payment.

5. If at the time of the issuance of any issue ofgeneral obligation refunding bonds provision is not made for the redemption ofall the outstanding bonds of the or each issue refunded, as the case may be, bythe use of proceeds of the refunding bonds and any other money available forthe redemption, the general obligation refunding bonds may mature but are notrequired to mature serially commencing not later than the fifth year aftertheir respective dates in accordance with subsection 2 of NRS 350.630.

(Added to NRS by 1967, 443; A 1969, 1294; 1971, 2119;1975, 869; 1981, 948, 1405; 1983, 576, 1595)

NRS 350.696 Refundingbonds: Disposition of proceeds, accrued interest and premium; costs; escrow;trusts.

1. Except as herein otherwise provided, the proceedsof refunding bonds shall either be immediately applied to the retirement of thebonds to be refunded or be placed in escrow or trust in any trust bank or trustbanks within or without or both within and without this state to be applied tothe payment of the refunded bonds or the refunding bonds, or both the refundedbonds and the refunding bonds, upon their presentation therefor to the extent,in such priority and otherwise in the manner which the governing body maydetermine.

2. The incidental costs of refunding bonds may be paidby the purchaser of the refunding bonds or be defrayed from any general fund(subject to appropriations therefor as otherwise provided by law) or otheravailable revenues of the municipality under the control of the governing bodyor from the proceeds of the refunding bonds, or from the interest or otheryield derived from the investment of any refunding bond proceeds or othermoneys in escrow or trust, or from any other sources legally availabletherefor, or any combination thereof, as the governing body may determine.

3. Any accrued interest and any premium appertainingto a sale of refunding bonds may be applied to the payment of the interestthereon or the principal thereof, or to both interest and principal, or may bedeposited in a reserve therefor, or may be used to refund bonds by deposit inescrow, trust or otherwise, or may be used to defray any incidental costsappertaining to the refunding, or any combination thereof, as the governingbody may determine.

(Added to NRS by 1967, 444)

NRS 350.698 Proceedsof refunding bonds in escrow or trust: Investment; security; sufficient amount;purchaser not responsible for application of proceeds.

1. Any such escrow or trust shall not necessarily belimited to proceeds of refunding bonds but may include other moneys availablefor its purpose.

2. Any proceeds in escrow or trust, pending such use,may be invested or reinvested in federal securities, and in the case of anescrow or trust for the refunding of outstanding municipal special obligation(but not general obligation) securities, in other securities issued by theFederal Government, if the ordinance authorizing the issuance of suchoutstanding municipal securities or any trust indenture or other proceedingsappertaining thereto expressly permits any such investment or reinvestment insuch securities issued by the Federal Government other than federal securities.

3. Any trust bank accounting for federal securitiesand other securities issued by the Federal Government in such escrow or trustmay place them for safekeeping wholly or in part in any trust bank or trustbanks within or without or both within and without this state.

4. Any trust bank shall continuously secure any moneysplaced in escrow or trust and not so invested or reinvested in federalsecurities and other securities issued by the Federal Government by a pledge inany trust bank or trust banks within or without or both within and without thestate of federal securities in an amount at all times at least equal to thetotal uninvested amount of such moneys accounted for in such escrow or trust.

5. Such proceeds and investments in escrow or trust,together with any interest or other gain to be derived from any suchinvestment, shall be in an amount at all times at least sufficient to payprincipal, interest, any prior redemption premiums due, and any charges of theescrow agent or trustee and any other incidental expenses payable therefrom,except to the extent provision may have been previously otherwise madetherefor, as such obligations become due at their respective maturities or dueat designated prior redemption date or dates in connection with which the governingbody has exercised or is obligated to exercise a prior redemption option onbehalf of the municipality.

6. The computations made in determining suchsufficiency shall be verified by a certified public accountant licensed topractice in this state or in any other state.

7. Any purchaser of any refunding bond issuedhereunder shall in no manner be responsible for the application of the proceedsthereof by the municipality, the governing body or any of the officers, agentsor employees of the municipality.

(Added to NRS by 1967, 444)

NRS 350.700 Refundingbonds payable from taxes or pledged revenues. Refundingbonds may be made payable from any taxes or pledged revenues, or both taxes andsuch revenues, which might be legally pledged for the payment of the bondsbeing refunded at the time of the refunding or at the time of the issuance ofthe bonds being refunded, as the governing body may determine, notwithstandingthe taxes, or the revenue sources, or the pledge of such revenues, or anycombination thereof, for the payment of the outstanding bonds being refunded isthereby modified, subject to the provisions of NRS 350.674.

(Added to NRS by 1967, 445)

NRS 350.702 Issuanceof bonds separately or in combination. Bondsfor refunding and bonds for any other purpose or purposes authorized hereby orby any other law may be issued separately or issued in combination in oneseries or more by the municipality in accordance with the provisions of theLocal Government Securities Law.

(Added to NRS by 1967, 445)

NRS 350.704 Bondsof abolished municipalities may be refunded.

1. Bonds of any municipality abolished by law may berefunded under the provisions hereof. Whether or not the bonds of the abolishedmunicipality have been assumed by any successor municipality prior to theissuance of the refunding bonds, the refunding bonds must be authorized by thegoverning body of each successor municipality in which is situated all or anypart of the area of the abolished municipality.

2. If the obligation of the abolished municipalityevidenced by its outstanding bonds has not been assumed wholly or in part by asuccessor municipality prior to the authorization of the issuance of therefunding bonds, the refunding bonds shall be issued in the name of theabolished municipality and shall evidence the same character of obligations asevidenced by the refunded bonds.

3. To the extent any obligation evidenced by therefunded bonds has been so assumed by a successor municipality, the refundingbonds shall be authorized to be issued in the name of the successormunicipality which shall reevidence such assumed obligation and shall evidencethe same character of obligation as evidenced by such obligation as assumed bythe successor municipality, subject to the limitations and other provisions in NRS 350.674 and 350.700.

(Added to NRS by 1967, 445; A 1979, 1641)

NRS 350.706 Otherstatutory provisions applicable to refunding bonds. Exceptas in NRS 350.684 to 350.704, inclusive, expressly provided ornecessarily implied, the relevant provisions elsewhere herein appertaininggenerally to the issuance of bonds to defray the cost of any project shall beequally applicable in the authorization and issuance of refunding bonds,including their terms and security, the covenants and other provisions of theordinance authorizing the issuance of the bonds, or other instrument orproceedings appertaining thereto, and other aspects of the bonds.

(Added to NRS by 1967, 446)

NRS 350.708 Conclusivedetermination of governing body that statutory limitations have been met. The determination of the governing body that the limitationsin the Local Government Securities Law imposed upon the issuance of bonds orupon the issuance of other securities hereunder, including without limitationany securities for funding or refunding securities, have been met shall beconclusive in the absence of fraud or arbitrary and gross abuse of discretionregardless of whether the authorizing ordinance or the securities therebyauthorized contain a recital as authorized by NRS350.628.

(Added to NRS by 1967, 446; A 1969, 1595)

NRS 350.710 Bondsand other securities exempt from taxation; exception.

1. Except as otherwise provided in subsection 2, bondsand other securities issued pursuant to the provisions of the Local GovernmentSecurities Law, their transfer and the income therefrom must forever be andremain free and exempt from taxation by this state or any subdivision thereof.

2. The provisions of subsection 1 do not apply to thetax on estates imposed pursuant to the provisions of chapter 375A of NRS or the tax ongeneration-skipping transfers imposed pursuant to the provisions of chapter 375B of NRS.

(Added to NRS by 1967, 446; A 1989, 2107; 1991, 1710)

NRS 350.712 Securitiesissued as general obligations are legal investments for state money. It is legal for the State Board of Finance to invest anypermanent state funds or other state funds available for investment in any ofthe bonds or other securities authorized to be issued pursuant to theprovisions hereof if the securities constitute general obligations payable fromtaxes.

(Added to NRS by 1967, 446)

NRS 350.714 Legalinvestments for other persons.

1. It is legal for any bank, trust company, banker,savings bank or institution, savings and loan association, investment companyand any other person carrying on a banking or investment business, anyinsurance company, insurance association, or any other person carrying on aninsurance business, and any executor, administrator, curator, trustee or anyother fiduciary, to invest funds or money in his custody in any of the bonds orother securities issued in accordance with the provisions of the LocalGovernment Securities Law.

2. Nothing contained in this section with regard tolegal investments relieves any representative of any corporation or otherperson of any duty of exercising reasonable care in selecting securities.

(Added to NRS by 1967, 446; A 1983, 131)

NRS 350.718 Sufficiencyof Local Government Securities Law.

1. The Local Government Securities Law, withoutreference to other statutes of this state, except as herein otherwise expresslyprovided, shall constitute full authority for the exercise of the incidentalpowers herein granted concerning the borrowing of money and any otherincurrence of obligations to defray wholly or in part the cost of any projectappertaining to the municipality and otherwise authorized by law, or torefinance outstanding loans, or both, and the issuance of bonds or othersecurities to evidence such loans or other obligations or to fund or refundoutstanding securities, or any combination thereof, as the governing body maydetermine.

2. No other act or law with regard to the authorizationor issuance of securities or the exercise of any other power herein grantedthat requires an election or another approval or in any way impedes orrestricts the carrying out of the acts herein authorized to be done shall beconstrued as applying to any proceedings taken hereunder or acts done pursuanthereto, except as otherwise provided in the Local Government Securities Law orin any act supplemental hereto.

3. The powers conferred by the Local GovernmentSecurities Law shall be in addition and supplemental to and not in substitutionfor, and the limitations imposed by the Local Government Securities Law shallnot affect the powers conferred by, any other law.

4. Nothing contained in the Local GovernmentSecurities Law shall be construed as preventing the exercise of any powergranted to the municipality, acting by and through the governing body, or anyofficer, agent or employee of the municipality, or otherwise, by any other law.

5. No part of the Local Government Securities Lawshall repeal or affect any other law or part thereof, it being intended thatthe Local Government Securities Law shall provide a separate method ofaccomplishing its objectives and not an exclusive one; and the Local GovernmentSecurities Law shall not be construed as repealing, amending or changing anysuch other law.

(Added to NRS by 1967, 448)

NRS 350.720 Liberalconstruction. The Local Government SecuritiesLaw being necessary to secure the public health, safety, convenience andwelfare, shall be liberally construed to effect its purposes.

(Added to NRS by 1967, 448)

MISCELLANEOUS PROVISIONS

NRS 350.800 Transactionswhereby municipality acquires property and another person acquires or retainssecurity interest in that or other property.

1. A transaction whereby a municipality acquires realor personal property and another person acquires or retains a security interestin that or other property creates a general obligation of the municipalitywhich must be counted against any limit upon its debt unless:

(a) The obligation by its terms is extinguished byfailure of the governing body to appropriate money for the ensuing fiscal yearfor payment of the amounts then due; or

(b) The budget of the municipality for the fiscal yearin which the transaction occurs includes a provision for the discharge of theobligation in full.

2. Any member of the governing body may vote upon sucha transaction whether or not the obligation incurred is expected to extendbeyond his term of office, without any special notice or other formality.

3. Any such transaction is subject to the requirementsof this chapter for an election if it must be counted against a debt limit,but, except as otherwise provided in NRS350.011 to 350.0165, inclusive, and350.087 to 350.095, inclusive, is not subject to anyother requirement of this chapter.

4. In addition to or as a substitute for granting asecurity interest in the property being acquired in a transaction described insubsection 1, the municipality may grant a security interest in other propertyif the governing body finds that:

(a) Granting the security interest in the otherproperty will result in lower financing costs to the municipality; and

(b) The value of all property in which a securityinterest is granted does not, at the time the security interest is granted,exceed an amount equal to one and one-half times the value of the propertybeing acquired.

The findingand determination of values by the governing body are conclusive in the absenceof fraud or gross abuse of discretion.

(Added to NRS by 1981, 942; A 1989, 166; 2001, 2314)

NRS 350.810 Purchaseof municipal obligations by financial adviser of municipality limited.

1. Except as permitted by this section, no person whofor compensation advises a municipality concerning the acquisition of a projectto be financed in whole or in part by issuing general or special obligations ofthe municipality, or concerning the issuance or sale of those obligations, maypurchase any of them from the municipality. This subsection does not prohibit:

(a) One who performs work or furnishes property for theproject from accepting municipal obligations in payment for his work orproperty.

(b) An adviser from purchasing municipal obligations ata public sale if such a purchase is authorized by prior written agreement.

(c) An adviser from purchasing municipal obligations ata private sale if he has:

(1) Terminated his status as adviser in writingand at or after this termination the municipality has consented in writing tothe purchase; and

(2) Disclosed in writing to the municipality ator before this termination the possibility of a conflict of interest on hispart and the source and anticipated amount of all his remuneration, in additionto his compensation as adviser, with respect to the obligations to be sold, andthe municipality has acknowledged in writing the receipt of these disclosures.

2. If municipal obligations are to be issued to refundothers already outstanding, no person may accept any compensation for adviceunless the compensation is fixed in advance, but such a person may purchase therefunding obligations.

(Added to NRS by 1981, 942)

NRS 350.820 Agreementsfor exchange of interest rates.

1. A municipality that has issued or proposes to issuemunicipal securities in the amount of $10,000,000 or more may enter into anagreement for an exchange of interest rates as provided in this section if itfinds that such an agreement would be in the best interests of themunicipality.

2. A municipality may enter into an agreement toexchange interest rates only if:

(a) The long-term debt obligations of the person withwhom the municipality enters the agreement are rated A or better by anationally recognized rating agency; or

(b) The obligations pursuant to the agreement of theperson with whom the municipality enters the agreement are either:

(1) Guaranteed by a person whose long-term debtobligations are rated A or better by a nationally recognized rating agency;or

(2) Collateralized by obligations deposited withthe municipality or an agent of the municipality which would be legalinvestments for the State pursuant to NRS355.140 and which have a market value at the time agreement is made of notless than 100 percent of the principal amount upon which the exchange ofinterest rates is based.

3. A municipality may agree, with respect tosecurities that the municipality has issued or proposes to issue bearinginterest at a variable rate, to pay sums equal to interest at a fixed rate orrates or at a different variable rate determined pursuant to a formula setforth in the agreement on an amount not to exceed the principal amount of themunicipal securities with respect to which the agreement is made, in exchangefor an agreement to pay sums equal to interest on the same principal amount ata variable rate determined pursuant to a formula set forth in the agreement.

4. A municipality may agree, with respect tosecurities that the municipality has issued or proposes to issue bearinginterest at a fixed rate or rates, to pay sums equal to interest at a variablerate determined pursuant to a formula set forth in the agreement on an amountnot to exceed the outstanding principal amount of the municipal securities withrespect to which the agreement is made, in exchange for an agreement to paysums equal to interest on the same principal amount at a fixed rate or ratesset forth in the agreement.

5. The term of an agreement entered into pursuant tothis section must not exceed the term of the municipal securities with respectto which the agreement was made.

6. An agreement entered into pursuant to this sectionis not a debt or indebtedness of the municipality for the purposes of anylimitation upon the indebtedness of the municipality or any requirement for anelection with regard to the issuance of securities that is applicable to themunicipality.

7. Limitations upon the rate of interest on amunicipal security do not apply to interest paid pursuant to an agreemententered into pursuant to this section.

8. A municipality which has entered into an agreementpursuant to this section with respect to those securities may treat the amountor rate of interest on the securities as the amount or rate of interest payableafter giving effect to the agreement for the purpose of calculating:

(a) Rates and charges of a revenue-producing enterprisewhose revenues are pledged to or used to pay municipal securities;

(b) Statutory requirements concerning revenue coveragethat are applicable to municipal securities;

(c) Tax levies to pay debt service on municipalsecurities; and

(d) Any other amounts which are based upon the rate ofinterest of municipal securities.

9. Subject to covenants applicable to the securities,any payments required to be made by the municipality under the agreement may bemade from money pledged to pay debt service on the securities with respect to whichthe agreement was made or from any other legally available source.

(Added to NRS by 1991, 356)

 

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