2006 New Mexico Statutes - Section 3-46-35 — Issuance of bonds.

3-46-35. Issuance of bonds.

A.     A municipality shall have power to issue bonds from time to time in its discretion, to finance the undertaking of any urban renewal project or land development project under the Urban Renewal Law [ 3-46-1 to 3-46-45 NMSA 1978], including without limiting the generality thereof, the payment of principal and interest upon any advances for surveys and plans for urban renewal or land development projects, and shall also have power to issue refunding bonds for the payment or retirement of the bonds previously issued by it. These bonds shall be made payable, as to both principal and interest, solely from the income, proceeds, revenues, and funds of the municipality derived from or held in connection with its undertaking and carrying out of urban renewal and land development projects under the Urban Renewal Law; provided, however, that payment of these bonds, both as to principal and interest, may be further secured by a pledge of any loan, grant or contribution from the federal government or other source, in aid of any urban renewal or land development projects of the municipality under the Urban Renewal Law, and by a mortgage of any of the urban renewal or land development projects, or any part thereof, title to which is in the municipality.   

B.     Bonds issued under this section shall not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction, and shall not be subject to the provisions of any other law or charter relating to the authorization, issuance or sale of bonds. Bonds issued under the provisions of the Urban Renewal Law are declared to be issued for an essential public and governmental purpose and, together with interest thereon and income thereon and income therefrom, shall be exempted from all taxes.   

C.     Bonds issued under this section shall be authorized by ordinance of the local governing body and may be issued in one or more series and shall bear a date or dates, be payable upon demand or mature at a time or times, bear interest at a rate or rates, not exceeding six percent a year, be in a denomination or denominations, be in a form either coupon or registered, carry conversion or registration privileges, have rank or priority, be executed in a manner, be payable in a medium of payment, at a place or places, and be subject to the terms of redemption, with or without premium, be secured in a manner, and have the other characteristics, as may be provided by the resolution or trust indenture or mortgage issued pursuant thereto.   

D.     The bonds or any portion thereof may be sold at not less than par at public sales held after notice published prior to the sale in a newspaper having a general circulation in the area of operation and in any other medium of publication as the municipality may determine or may be exchanged for other bonds on the basis of par; provided, that the bonds may be sold to the federal government or to the state of New Mexico at private sale at not less than par, and, in the event less than all of the authorized principal amount of the bonds is sold to the federal government or to the state of New Mexico, the balance may be sold at private sale at not less than par at an interest cost to the municipality of not to exceed the interest cost to the municipality of the portion of the bonds sold to the federal government.   

E.     In case any of the public officials of the municipality whose signatures appear on any bonds or coupons issued under the Urban Renewal Law shall cease to be public officials before the delivery of the bonds, the signatures shall, nevertheless, be valid and sufficient for all purposes, the same as if the officials had remained in office until delivery. Any provision of any law to the contrary, notwithstanding, any bonds issued pursuant to the Urban Renewal Law shall be fully negotiable.   

F.     In any suit, action or proceeding involving the validity or enforceability of any bond issued under the Urban Renewal Law or the security therefor, any bond reciting in substance that it has been issued by the municipality in connection with an urban renewal or land development project shall be conclusively deemed to have been issued for such purpose and the project shall be conclusively deemed to have been planned, located and carried out in accordance with the provisions of the Urban Renewal Law.   

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