2019 New Mexico Statutes
Chapter 6 - Public Finances
Article 15 - Finances of Counties, Municipalities and School Districts
Section 6-15-12 - Ordinance or resolution for refunding bonds; contents; maturities.

Whenever such governing body shall deem it expedient to issue refunding bonds under the provisions of Sections 6-15-11 to 6-15-22 NMSA 1978, the governing body of a municipality shall adopt an ordinance, and the governing body of a county or school district shall adopt a resolution, which shall be spread on the records of the governing body, which ordinance or resolution shall set out the facts making the issuance of such refunding bonds necessary or advisable, the determination of such necessity or advisability by said governing body and the amount of such refunding bonds which it is deemed necessary and advisable to issue. Such ordinance or resolution shall fix the rate or rates of interest of such bonds, which shall not be in excess of the maximum coupon rate which is permitted by the Public Securities Act [6-14-1 to 6-14-3 NMSA 1978], the date of said refunding bonds, the denomination or denominations thereof, the maturity date or dates, the last of which shall not be more than twenty-five years from the date of said refunding bonds, the place or places of payment within or without the state of New Mexico of both principal and interest, and shall further set out the form of said refunding bonds.

History: Laws 1927, ch. 128, § 2; C.S. 1929, § 90-1102; 1941 Comp., § 7-625; 1953 Comp., § 11-6-24; Laws 1963, ch. 234, § 2; 1975, ch. 326, § 3.

Resolution minutes need not be certified. — A resolution authorizing issuance of school refunding bonds complied with the statute by stating that the old bonds bore 6% interest, and that such bonds might be refunded with bonds at a lower interest. Failure to certify the minutes of such resolution does not invalidate the bonds. Southwest Sec. Co. v. Board of Educ., 1936-NMSC-008, 40 N.M. 59, 54 P.2d 412.

Placing proceeds in escrow does not increase indebtedness. — Where proceeds of municipal refunding bonds were to be placed in escrow and invested in United States bonds for the sole purpose of paying off indebtedness on existing municipal bonds, the refunding bonds could not be considered as an increase in the city's indebtedness within N.M. Const., art. IX, § 12 and N.M. Const., art. IX, § 13, even though some 10 years would lapse between issuance of refunding bonds and final payment of original bonds, and though original bonds would not be paid immediately upon their initial callable date. City of Albuquerque v. Gott, 1964-NMSC-027, 73 N.M. 439, 389 P.2d 207.

Maturity date. — The maturity date of refunding bonds cannot be more than 25 years from their date, nor extend beyond the final maturity date of bonds to be refunded where these become due and payable at the option of the issuing body. 1936 Op. Att'y Gen. No. 36-1415.

Principal amount greater than principal amount of outstanding bonds being refunded. — Subject to the approval of the department of finance and administration, a board of education may issue general obligation refunding bonds in a principal amount that is greater than the principal amount of the outstanding bonds being refunded, provided the proceeds of the refunding bonds are used only for the purpose of refunding existing school district general obligation indebtedness, as provided by law, and not for new capital outlay projects, operating costs of a school district or other purposes besides refunding. 2001 Op. Att'y Gen. No. 01-03.

Am. Jur. 2d, A.L.R. and C.J.S. references. — 20 C.J.S. Counties § 221; 64 C.J.S. Municipal Corporations § 1659; 79 C.J.S. Schools and School Districts § 363.