Nevada § 350.583 - Variable rates of interest for securities; agreement with third party for assurance of payment for securities; reimbursement for advances made pursuant to agreement; issuance of securities as commercial paper

§ 350.583. Variable rates of interest for securities; agreement with third party for assurance of payment for securities; reimbursement for advances made pursuant to agreement; issuance of securities as commercial paper

1. The ordinance or resolution authorizing the issuance of any municipal securities

that bear interest at a variable rate or any securities described in subsection 3,

or any trust indenture or other instrument appertaining thereto, may fix a rate or

rates of interest or provide for the determination of the rate or rates from time

to time by a designated agent according to the procedure specified in that ordinance

or other instrument, which procedure must include the parameters within which the

rate may be fixed by that agent. The rate so determined must approximate the rates then being paid for other securities

which contain similar provisions and have an equivalent rating. A governing body of a municipality may contract with or select any person to make

that determination. 2. A governing body of a municipality may enter into an agreement with a third party

for an assurance of payment of the principal of, the interest on, or premiums, if

any, due in connection with any municipal securities issued by the governing body. The obligation of the governing body to reimburse that third party for any advances

made pursuant to that agreement may be provided in that agreement, recited in those

securities or evidenced by another instrument as designated in the ordinance or resolution

authorizing the issuance of those securities or any other instrument appertaining

thereto. The governing body may assign its rights under that agreement. 3. A municipality may, in accordance with the provisions of this subsection, issue

any securities it is otherwise authorized to issue as commercial paper to fund the

cost of any project or to refinance any commercial paper or other securities previously

issued by that municipality. The term of any commercial paper issued pursuant to this subsection must not exceed

270 days. An agent may be appointed to fix the rates of interest and maturity dates for the

commercial paper. Any commercial paper issued pursuant to this subsection may be refunded by any other

commercial paper or other securities as may be specified in the ordinance or resolution

authorizing the issuance of the commercial paper and the program under which the commercial

paper is issued, without any further action by the governing body of the municipality

or any other governmental entity, subject to the limitations provided in this section

and any limitations provided in that ordinance or resolution. The ordinance or resolution authorizing the issuance of the commercial paper and

the program under which the commercial paper is issued: (a) Must state the maximum principal amount of commercial paper that may be outstanding

at any time; and (b) Except as otherwise provided in this paragraph, may provide that any amount of

the commercial paper which is issued and subsequently retired and repaid, other than

through a refunding with commercial paper issued under the same program, may be reissued

in an amount that does not exceed the amount previously issued, without any reauthorization

of those obligations, if the proceeds of that reissued commercial paper are used only

for the purposes specified in that ordinance or resolution. The authority granted pursuant to this paragraph may be exercised under a program

for the issuance of commercial paper that comprises a general obligation of the municipality

only if: (1) The municipality indicates an intention to exercise that authority in the proposal

to incur that general obligation debt which it submits to the debt management commission; (2) The maximum principal amount of commercial paper which is authorized to be outstanding

is counted against any applicable debt limit of the municipality; and (3) The program terminates: (I) Within 6 years, if the commercial paper comprises a general obligation of the

municipality; or (II) Within 10 years, if the commercial paper comprises a special obligation of the

municipality.