New Mexico § 71-10-7 - Bonding authority

§ 71-10-7. Bonding authority

A. An authority may issue revenue bonds for the purpose of constructing, purchasing,

improving, remodeling, furnishing or equipping any necessary buildings, structures,

roads or other infrastructure of the district. B. An authority may pledge irrevocably any or all of the revenue received by the district

to the payment of the interest on and principal of revenue bonds for any of the purposes

authorized in the Electric Generating Facility Economic District Act. C. Revenues in excess of the annual principal and interest due on revenue bonds secured

by a pledge of revenue may be accumulated in a debt service reserve account. The authority may appoint a commercial bank trust department to act as paying agent

or trustee of the revenues and to administer the payment of principal of and interest

on the bonds. D. Except as otherwise provided in the Electric Generating Facility Economic District

Act, revenue bonds: (1) may have interest, principal value or any part thereof payable at intervals or

at maturity as may be determined by the authority; (2) may be subject to a prior redemption at the district's option at a time and upon

terms and conditions, with or without the payment of a premium, as determined by the

authority; (3) may mature at any time not exceeding thirty years after the date of issuance; (4) may be serial in form and maturity, may consist of one bond payable at one time

or in installments or may be in another form determined by the authority; (5) shall be sold for cash at, above or below par and at a price that results in a

net effective interest rate that does not exceed the maximum permitted by the Public

Securities Act 1 and the Public Securities Short-Term Interest Rate Act 2 ; and (6) may be sold at public or negotiated sale. E. At a regular or special meeting, the authority may adopt a resolution that: (1) declares the necessity for issuing revenue bonds; (2) authorizes the issuance of revenue bonds by an affirmative vote of a majority

of all the members of the authority; and (3) designates the sources of revenues to be pledged to the repayment of the revenue

bonds. 1

NMSA 1978, § 6-14-1, et seq. 2

NMSA 1978, § 6-18-1, et seq.