AN ACT
RELATING TO PUBLIC FINANCE; CLARIFYING
THAT THE STATE WILL NOT IMPAIR TEACHER HOUSING REVENUE BONDS; DECLARING AN
EMERGENCY.
BE IT ENACTED BY THE LEGISLATURE OF
THE STATE OF NEW MEXICO:
Section 1. Section 22-19A-7 NMSA 1978 (being Laws 2002,
Chapter 22, Section 7) is amended to read:
"22-19A-7. BONDS--PLEDGE OF INCOME.--
A. Bonds shall be payable solely from any or all
pledgeable revenue, and the local school board shall irrevocably pledge that
revenue to the prompt payment of the principal, interest and service charges on
the bonds. The bonds shall be equally
and ratably secured, without priority, by this pledge of pledgeable revenue.
B. If the bonds are payable solely from the net
income of the housing project being financed, the local school board shall
operate the housing project so as to ensure a sufficient income to promptly pay
the principal, interest and service charges as they become due on the bonds.
C. The state pledges and agrees with the holders
of bonds issued by a local school board and payable from pledgeable revenue
that the state will not limit or alter the rights of the local school board to
receive, collect and account for pledgeable revenue and to fulfill the terms of
any agreement made with the bondholders or in any way impair the rights and
remedies of the bondholders until the bonds, together with the interest on the
bonds, with interest on any unpaid installments of interest and all costs and
expenses in connection with any action or proceedings by or on behalf of those
bondholders, are fully paid and discharged."
Section 2. EMERGENCY.--It is necessary for the public
peace, health and safety that this act take effect immediately.
HB 195
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