6-21-11. Bonds of the authority; use; security.
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/nm/chapter-6-public-finances/article-21-finance-authority/6-21-11·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A. The authority may issue and sell bonds in principal amounts it considers necessary to provide sufficient money for any purpose of the New Mexico Finance Authority Act, including:
(1)purchase of securities;
(2)making loans through the purchase of securities;
(3)making grants for public projects from money available to the authority except money in the public project revolving fund;
(4)the acquisition, construction or improvement of public projects, including real and personal property;
(5)the payment, funding or refunding of the principal of or interest or redemption premiums on bonds issued by the authority, whether the bonds or interest to be paid, funded or refunded have or have not become due;
(6)the establishment or increase of reserves or sinking funds to secure or to pay principal, premium, if any, or interest on bonds; and
(7)all other costs or expenses of the authority incident to and necessary or convenient to carry out its corporate purposes and powers.
B. Except as otherwise provided in the New Mexico Finance Authority Act, all bonds or other obligations issued by the authority shall be obligations of the authority payable solely from the revenues, income, fees, charges or funds of the authority that may, pursuant to the provisions of the New Mexico Finance Authority Act, be pledged to the payment of such obligations, and the bonds or other obligations shall not create an obligation, debt or liability of the state. No breach of any pledge, obligation or agreement of the authority shall impose a pecuniary liability or a charge upon the general credit or taxing power of the state or any political subdivision of the state.
C. As security for the payment of the principal, interest or premium, if any, on bonds issued by the authority, the authority is authorized to pledge, transfer and assign:
(1)any obligation that is payable to the authority, including rents and lease payments owing to the authority in connection with the leasing of real or personal property;
(2)the security for the qualified entity's obligations;
(3)money in the public project revolving fund or a subaccount of that fund subject to the provisions of Subsection C of Section 6-21-6 NMSA 1978;
(4)any grant, subsidy or contribution from the United States or any of its agencies or instrumentalities; or
(5)any income, revenues, funds or other money of the authority from any other source authorized for such pledge, transfer or assignment other than from the public project revolving fund under the New Mexico Finance Authority Act.
History: Laws 1992, ch. 61, § 11; 2000, ch. 80, § 5; 2001, ch. 294, § 7.