§ 11-42-602. Bond anticipation notes.

(1) A local entity may by resolution authorize the issuance of bond anticipation notes.

(2) A local entity may use the proceeds from the issuance of bond anticipation notes to pay:

(a) the estimated acquisition and contract price;

(b) the property price;

(c) capitalized interest; and

(d) related costs, including overhead costs.

(3) Each resolution authorizing the issuance of bond anticipation notes shall:

(a) describe the bonds in anticipation of which the bond anticipation notes are to be issued;

(b) specify the principal amount and maturity dates of the notes; and

(c) specify the interest rate applicable to the notes.

(4)

(a) The interest rate on bond anticipation notes issued under this section may be fixed, variable, or a combination of fixed and variable, as determined by the governing body.

(b) If bond anticipation notes carry a variable interest rate, the governing body shall specify the basis upon which the rate is to be determined, the manner in which the rate is to be adjusted, and a maximum interest rate.

(c) A local entity may provide for interest on bond anticipation notes to be paid semiannually, annually, or at maturity.

(5) A local entity may:

(a) issue and sell bond anticipation notes in a manner and at a price, either at, below, or above face value, as the governing body determines by resolution; and

(b) make bond anticipation notes redeemable prior to maturity, at the governing body's option and in the manner and upon the terms fixed by the resolution authorizing their issuance.

(6) Bond anticipation notes shall be executed, be in a form, and have details and terms as provided in the resolution authorizing their issuance.

(7) A local entity may issue bond anticipation notes to refund bond anticipation notes previously issued by the local entity.

(8) A local entity may include interest accruing on bond anticipation notes in the cost of improvements in an assessment area.

Amended by Chapter 246, 2009 General Session