Bonds shall not be issued or sold by a school district, county or municipality after the expiration of four years from the date of the election authorizing the issue, except for the purpose of refunding previous bond issues or in payment of judgments. The bonds may be sold to the United States or to the state in any case in which the state or the United States has made an offer to purchase the bonds and the offer was accepted prior to the expiration of the four-year period. Any period of time when the validity of bonds or the election therefor is in litigation shall be excluded from the four-year period.

History: Laws 1933, ch. 114, § 1; 1934 (S.S.), ch. 12, § 1; 1941 Comp., § 7-622; 1953 Comp., § 11-6-21; Laws 1959, ch. 358, § 1; 1975, ch. 224, § 1; 1987, ch. 172, § 1; 1999, ch. 232, § 3; 2003, ch. 188, § 1.

Cross references. — For limitation on maturity of bonds, see 6-15-7 NMSA 1978.

The 2003 amendment, effective June 20, 2003, deleted "No" from the beginning and inserted "not" following "shall", substituted "four" for "three" following "the expiration of", deleted "or if the issuance of the bonds has been authorized at a regular election for officers of any such school district, county or municipality or, where authorized by statute, at a special election held for that purpose" following "payment of judgments", deleted "of New Mexico" twice in the second sentence, and substituted "four-year period" for "three-year period" twice.

The 1999 amendment, effective June 18, 1999, deleted "initiation of proceedings for" following "three years from the date of" in the first sentence, and substituted "state of New Mexico in any case in which the state of New Mexico or the United States has made an offer" for "state in any case in which the state has made an offer" in the second sentence.

The 1987 amendment, effective June 19, 1987, substituted "three years" for "two years" and "has made" for "has heretofore made or shall hereafter make" and deleted "heretofore, or may be hereafter" preceding "authorized at a regular election", "of America" following "United States", "of New Mexico" following "to the state", and "heretofore, or hereafter shall be" preceding "accepted prior" in the first sentence; substituted "three-year period" for "two-year period" in the first and second sentences; and made other minor word changes in the first sentence.

Section not applicable to revenue bonds. — This statute is not applicable to revenue bonds as it is to general obligation bonds in view of provisions of Laws 1943, ch. 82, relating to the purchase or construction of a utility by a municipality, and if the provisions of that act are complied with the revenue bonds are valid. 1951 Op. Att'y Gen. No. 51-5360 (rendered before 1959 and 1975 amendments).

Am. Jur. 2d, A.L.R. and C.J.S. references. — 64 Am. Jur. 2d Public Securities and Obligations §§ 183, 187.

20 C.J.S. Counties § 221; 64 C.J.S. Municipal Corporations § 1699; 79 C.J.S. Schools and School Districts § 371.