2020 New Mexico Statutes
Chapter 4 - Counties
Article 59 - County Industrial Revenue Bonds
Section 4-59-5 - Bonds issued to finance projects.
A. Bonds issued by a county under authority of the County Industrial Revenue Bond Act shall not be the general obligation of the county within the meaning of Article 9, Sections 10 and 13 of the constitution of New Mexico. The bonds shall be payable solely out of the revenue derived from the projects for which the bonds are issued. Bonds and interest coupons, if any, issued under authority of the County Industrial Revenue Bond Act shall never constitute an indebtedness of the county within the meaning of any state constitutional provision or statutory limitation and shall never constitute or give rise to a pecuniary liability of the county or a charge against its general credit or taxing powers, and such fact shall be plainly stated on the face of each bond.
B. The bonds may be executed and delivered at any time, and from time to time, may be in such form and denominations, may be of such tenor, may be in registered or bearer form either as to principal or interest or both, may be payable in such installments and at such time or times not exceeding thirty years from their date, may be payable at such place or places, may bear interest at such rate payable at such place or places and evidenced in such manner and may contain such provisions not inconsistent with this section, all as shall be provided in the ordinance and proceedings of the commission under which the bonds shall be authorized to be issued.
C. The bonds issued under the authority of the County Industrial Revenue Bond Act may be sold at public or private sale in such manner and from time to time as may be determined by the commission to be most advantageous, and the county may pay all expenses, attorney, engineering and architects' fees, premiums and commissions that the commission may deem necessary or advantageous in connection with the authorization, sale and issuance of the bonds.
D. The bonds issued under the authority of the County Industrial Revenue Bond Act and all applicable interest coupons shall be construed to be negotiable.
E. A bond shall not be issued by a class A county to finance a project unless an employer of the project that is valued at eight million dollars ($8,000,000) or more:
(1) offers to its employees and their dependents health insurance coverage that is in compliance with the New Mexico Insurance Code [Chapter 59A NMSA 1978, except Articles 30A and 42A]; and
(2) contributes not less than fifty percent of the premium for the health insurance for those employees who choose to enroll; provided that the fifty percent employer contribution shall not be a requirement for the dependent coverage that is offered.
History: 1953 Comp., § 15-60-5, enacted by Laws 1975, ch. 286, § 5; 1983, ch. 265, § 22; 2003, ch. 360, § 2.
ANNOTATIONSCross references. — For refunding bonds, see 4-59-8 NMSA 1978.
For limitations upon county indebtedness, see N.M. Const., art. IX, §§ 10 and 13.
For finances of counties, municipalities and school districts generally, see 6-6-7 NMSA 1978 et seq.
The 2003 amendment, effective January 1, 2004, added Subsection E.
Low interest loans to farmers and ranchers. — Although an intended purpose of this article may be accomplished by means of an agricultural development revenue bond program providing funds for low interest loans to farmers and ranchers, such a loan program is not one of the means prescribed by the legislature to accomplish that purpose. 1981 Op. Att'y Gen. No. 81-19.
Am. Jur. 2d, A.L.R. and C.J.S. references. — 64 Am. Jur. 2d Public Securities and Obligations §§ 1 et seq.
20 C.J.S. Counties §§ 218 to 226.
