2011 New Mexico Statutes
Chapter 21: State and Private Education Institutions
Article 2A: College District Tax, 21-2A-1 through 21-2A-12
Section 21-2A-6: College district general obligation bonds; interest; form; payment.

21-2A-6. College district general obligation bonds; interest; form; payment.

A. Any board other than a board created pursuant to the provisions of the Off-Campus Instruction Act [21-14A-1 NMSA 1978], may borrow money for the purpose of erecting and furnishing, constructing, purchasing, remodeling and equipping buildings and utility facilities and making other real property improvements or for purchasing grounds, exclusive of stadiums. To carry out the purposes of the College District Tax Act [21-2A-1 NMSA 1978], the board may issue negotiable coupon general obligation bonds of the college district, if approved by the commission on higher education and then approved at an election by a majority of the qualified electors voting on the issue; provided, however, no bonds shall be issued that create a total bonded indebtedness in the district in excess of three percent of the assessed valuation of the taxable property within the college district as shown in the preceding general assessment, which debt limitation is to be in excess of other existing debt limitations. Bonds shall be sold at a price that does not result in a net effective interest rate exceeding the maximum net effective interest rate permitted by the Public Securities Act [6-14-1 NMSA 1978]. The bonds shall be sold and may be in such denominations as the board determines, and the bonds and the attached coupons shall be payable to the bearer but may also be made registrable as to principal or as to principal and interest.

B. The bonds shall be due and payable serially either annually or semiannually commencing not later than three years from their date. The bonds shall be issued for a term of not less than five or more than twenty years. The form and terms of the bonds, including provisions for their payment and redemption, shall be as determined by the board. If the board so determines, the bonds may be redeemable prior to maturity upon payment of a premium not exceeding three percent of the principal of the bonds. The bonds shall be executed in the name of and on behalf of the college district, signed by the chairman of the board, with the seal of the college district affixed to the bonds, and attested by the secretary of the board. The bonds may be executed and sealed in accordance with the provisions of the Uniform Facsimile Signature of Public Officials Act [6-9-1 NMSA 1978]. Interest coupons shall bear the original or facsimile signature of the chairman of the board.

C. To provide for the payment of the interest and principal of the bonds issued and sold pursuant to the provisions of the College District Tax Act, upon approval of the bonds at an election by a majority of the qualified electors in the college district who voted on the issue, the board of county commissioners shall annually make and levy, during each year in which any bonds are outstanding, an ad valorem tax on all taxable property in the district in an amount sufficient to produce a sum equal to one year's interest on all bonds then outstanding, together with an amount sufficient to pay the principal on all bonds as they mature. This levy shall not exceed five mills; provided, however, that this five-mill limitation may be exceeded in any year in which the valuation of the property within the college district declines to a level lower than the valuation of the property in the year in which the bonds were issued. The taxes authorized by this subsection shall be levied, assessed and collected at the times and in the manner that ad valorem taxes for school districts are assessed, levied and collected, and it shall be the duty of all tax officials and authorities to cause taxes authorized by this subsection to be levied, assessed and collected.

D. The proceeds obtained from the issuance of the bonds shall not be diverted or expended for any purposes other than those provided in the College District Tax Act; provided that no building shall be built without prior approval of detailed plans by the commission on higher education; and further provided that the expenses incurred in the preparation and sale of the bonds may be paid out of the proceeds from the sale of the bonds.

E. Prior to the issuance and sale of bonds, the attorney general shall approve all bond transcripts and certify his approval or rejection thereof in the same manner as is required by law for the approval of school bonds. Unless otherwise specifically provided, the provisions of the College District Tax Act for the issuance of bonds shall be deemed exclusive of the provisions of all other laws.