24.05.05.08 - Requirements of Issuance

24.05.05.08. Requirements of Issuance

Bonds issued by the Authority shall meet the following requirements before issuance:

A. Approval of Local Political Subdivision. The legislative body of the county or municipality in which the facility to be financed with the proceeds of the bonds is to be located shall adopt a resolution which shall:

(1) Be administrative in nature, not subject to the procedures required for legislative acts, and not subject to referendum;

(2) Specify and describe the facility; and

(3) Generally describe the public purpose to be served by the facility.

B. Public Hearing. When issuing bonds that are exempt from taxation under the Internal Revenue Code of 1986, as amended, 26 U.S.C. § 1 et seq., which is incorporated by reference, a public hearing shall be held in order to allow the public an opportunity to offer comments on the proposed financial assistance for the facility.

C. Notice to Department of Budget and Fiscal Planning. The Authority shall advise the State Department of Budget and Fiscal Planning of its intent to issue bonds by written notice describing the transaction and stating the proposed date of the issuance of the bonds. The State Department of Budget and Fiscal Planning shall receive the notice at least 30 days before the issuance of the bonds.

D. Notice to State Board of Public Works. The Authority shall notify the State Board of Public Works of its intention to issue the bonds up to a stated amount and the Board of Public Works may coordinate the issuance of the bonds with any intended issuance of bonds of the State, its agencies, and public instrumentalities. However, the failure to notify the Board of Public Works may not affect in any way the:

(1) Validity or enforceability of any bonds issued by the Authority;

(2) Validity of any finding or determination by the Authority under the MIDFA Act; or

(3) Validity or enforceability of any agreement entered into by the Authority under the MIDFA Act.

E. Approval of Governor. When issuing bonds that are exempt from taxation under the Internal Revenue Code of 1986, as amended, 26 U.S.C. § 1 et seq., which is incorporated by reference, the Governor of the State shall approve the issuance of bonds.

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