9-25-12. Promissory notes authorized--Sources of repayment--Recitals--Issuance and sale--Maximum term.
217 words·~1 min read·
/sd/title-9/chapter-9-25/9-25-12·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A municipality may borrow money from any source willing to lend the money by issuing a promissory note subject to the limitations set in §§ 9-25-13 to 9-25-16 , inclusive. Notes issued pursuant to this section are payable solely from the sources provided in § 9-25-13 and do not constitute an indebtedness of the municipality within the meaning of any constitutional or statutory provisions or limitations, any provisions in the notes set forth or set forth in the resolution authorizing the notes to the contrary notwithstanding.
The notes shall recite the authority under which the notes are issued and shall state that the notes are issued in conformity with the provisions, restrictions, and limitations of §§ 9-25-13 to 9-25-16 , inclusive, and that the notes and the interest thereon are payable from the sources provided. The notes shall be authorized, issued, and sold in accordance with chapter 6-8B . No election is required and the notes may not be issued for a term in excess of five years. However, a note issued for any loan authorized by the United States Department of Agriculture may be issued for a term of not more than ten years and an unsecured promissory note under the municipal debt limit may be issued for a term of not more than twenty years.