33-1107. PLAN AND FORM OF BONDS — AMORTIZATION. School district bonds shall be issued in denominations to be determined by the board of trustees.

No school district bonds shall be issued except upon an amortization plan. The first amortized principal payment shall mature and be payable not more than two (2) years from and after the date of the bonds, and the various annual maturities of any issue of bonds shall be in such principal amounts as will, together with accruing interest on all outstanding bonds of such issue, be met and paid by an equal annual tax levy during the term for which such bonds shall be issued and shall satisfy one (1) of the following:

(1) The annual tax levy in any year shall not exceed by more than ten percent (10%) the average annual tax levy if the principal and interest coming due on the bonds was repaid in equal annual amounts; or

(2) The annual tax levy in any year shall not exceed by more than ten percent (10%) the average annual tax levy if the principal and interest coming due on the bonds, together with the principal and interest coming due on all other outstanding bonds of the school district, was repaid in equal annual amounts; or

(3) The annual tax levy shall result in the repayment of principal and interest coming due on the bonds, or the bonds, together with the principal and interest coming due on all other outstanding bonds of the school district, more rapidly than an equal annual tax levy.

Whenever the amortization plan does not satisfy any of the foregoing alternatives, the board of trustees may adopt such amortization plan as it shall find will result to the benefit and advantage of the district, and the board of trustees may issue and sell such bonds with such annual maturities as it shall determine either prior to or after the fixing of the interest rates such bonds will bear, and in every such instance it shall be permissible for the board of trustees to issue such bonds in the annual maturities so determined upon and bearing the rate or rates of interest ascertained upon the sale of such bonds, and the plan and form thereof together with the contract, if any, for the issue must be approved by the state superintendent of public instruction.

Subject to the provisions of this section, bonds may be issued as serial or term bonds.

Each bond shall bear interest from the date of issue, payable semiannually on the days of such months as shall be determined by the board of trustees, at such interest rate as said board may determine. Each bond of any issue shall be numbered in a consecutive series. Each issue of bonds shall mature and be paid in full not more than thirty (30) years from the date of the bonds.

No issue of school bonds shall at any time be sold at less than its aggregate par value.

History:

[33-1107, added 1963, ch. 13, sec. 103, p. 27; am. 1963, ch. 263, sec. 1, p. 672; am. 1972, ch. 121, sec. 1, p. 240; am. 1988, ch. 135, sec. 1, p. 242; am. 2013, ch. 183, sec. 1, p. 437.]