6-35-7. Authorization of issuance of bonds.
514 words·~2 min read·
/nm/chapter-6-public-finances/article-35-state-fairgrounds-district/6-35-7·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A. Subject to the provisions of Section 9 of the State Fairgrounds District Act, the district may issue revenue bonds not to exceed five hundred million dollars ($500,000,000) in net proceeds for the purposes of the State Fairgrounds District Act. The district may pledge irrevocably the revenue received by the district from the gross receipts tax distribution and the gaming tax distribution pursuant to Section 13 [7-1-6.73 NMSA 1978] of this 2025 act to the payment of the principal and interest of the bonds.
B. Revenue bonds or refunding bonds or loans may be authorized only by resolution of the board, which shall be approved by a majority of the members of the board.
C. The district shall issue bonds only after:
(1)the state board of finance approves of the proposed issuance of bonds and the district development plan prepared in accordance with Section 10 [6-35-10 NMSA 1978] of the State Fairgrounds District Act;
(2)the state board of finance makes a determination that the proceeds of the bonds will be used for projects in furtherance of the district development plan and in accordance with the State Fairgrounds District Act;
(3)the state board of finance makes a determination that the projects will generate sufficient revenue to repay the bonds;
(4)the New Mexico finance authority approves of the master indenture and any amendments to the master indenture; and
(5)legislative approval of the proposed issuance of the bonds.
D. Revenue bonds or refunding bonds issued pursuant to the State Fairgrounds District Act and other loans to the district are:
(1)not general obligations of the state or any other public entity; and
(2)payable only from properly pledged revenues, and each bond or loan shall state that it is payable solely from the properly pledged revenues and that the bondholders or lenders may not look to any other fund for the payment of the principal and interest of the bond or the loan.
E. Bonds issued pursuant to the State Fairgrounds District Act:
(1)may have principal value, interest or any part thereof payable at intervals or at maturity as may be determined by the board;
(2)may be subject to a prior redemption at the district's option at a time and upon terms and conditions, with or without the payment of a premium, as determined by the board;
(3)may mature at any time not more than twenty-five years after the date that the first bonds are issued for the district;
(4)may be serial in form and maturity, may consist of one bond payable at one time or in installments or may be in another form determined by the board;
(5)shall be sold for cash at, above or below par and at a price that results in a net effective interest rate that does not exceed the maximum permitted by the Public Securities Act [6-14-1 to 6-14-3 NMSA 1978] and the Public Securities Short-Term Interest Rate Act [6-18-1 to 6-18-16 NMSA 1978]; and
(6)may be sold at public or negotiated sale.
History: Laws 2025, ch. 83, § 7.