NRS 349.318 Interim debentures: Issuance for general or special obligations; form; additional security.

430 words·~2 min read·/nv/chapter-349-state-obligations/349-318

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

1. Notwithstanding any limitation or other provision herein, whenever the State is authorized to issue general obligation bonds, regardless of whether majorities of the qualified electors of the State voting on a proposal to issue the general obligation bonds have authorized their issuance by the State for any project, the State is authorized to borrow money without any other election in anticipation of the proceeds of taxes, the proceeds of the bonds, the proceeds of pledged revenues, or any other moneys of the State, or any combination thereof, and to issue general obligation interim debentures to evidence the amount so borrowed.

2. The State also is authorized to borrow money without any election in anticipation of the proceeds of revenue bonds or any other special obligations of the State and of its pledged revenues, or any combination thereof, but excluding the proceeds of any taxes, and to issue special obligation interim debentures to evidence the amount so borrowed.

3. General obligation interim debentures and special obligation interim debentures may be in the form of a note, bond or line of credit agreement with a bank or other lender under which moneys are deposited into the State General Fund, either at one time or from time to time, and used for the general operations of the State or to pay the costs of a project.

4. Any general obligation interim debentures or special obligation interim debentures issued pursuant to this section and any bond administrative expenses may be additionally secured by pledged revenue for the benefit of the owners of the interim debentures and the obligees under any agreement described in subsection 3, by the pledge of, security interest in and first lien on all or a portion of the following, if applicable:

(a)Unrestricted revenues, including tax revenues, payable to the State General Fund to be used for the general operations of the State; or

(b)Money related to the interim debentures held on deposit in any other fund or account under any instrument or agreement pertaining to the interim debentures, including, without limitation, reserves therefor and income on such money.

5. As used in this section, “bond administrative expense” means any expense incurred by the State Treasurer, the State Board of Finance, bond trustees, paying agents, arbitrage compliance agents or any other person or entity to administer an interim debenture line of credit, notes or bonds in the name of the State of Nevada, or as otherwise necessary to ensure compliance with state or federal law.