0001|                               AN ACT
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0002| RELATING TO BONDS; DELETING THE REQUIREMENT THAT BID NOTICE FOR SALE OF
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0003| MUNICIPAL BONDS BE MAILED TO THE STATE INVESTMENT COUNCIL AND THE STATE
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0004| TREASURER.
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0005| 
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0006| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0007|      Section 1.  Section 6-15-5 NMSA 1978 (being Laws 1929, Chapter
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0008| 201, Section 3, as amended) is amended to read:
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0009|      "6-15-5.  SALE OF BONDS.--
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0010|           A.  Except as provided in Subsection B of this section,
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0011| before any bonds issued by a municipal corporation are offered for sale,
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0012| the corporate authorities issuing the bonds shall designate the maximum
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0013| rate of interest the bonds shall bear and shall designate the maximum
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0014| net effective interest rate which shall not exceed the maximum permitted
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0015| by the Public Securities Act.  All the bonds shall be sold at public
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0016| sale and a notice calling for bids for the purchase of the bonds shall
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0017| be published once a week for two consecutive weeks in a newspaper having
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0018| local circulation.  The notice shall specify a place and designate a day
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0019| and hour subsequent to the date of the publication when sealed bids
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0020| shall be received and publicly opened for the purchase of the bonds. 
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0021| The notice shall specify the maximum rate of interest the bonds shall
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0022| bear, the maximum net effective interest rate permitted for the bonds
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0023| and the maximum discount if a discount is allowed by the governing body
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0024| and shall require bidders to submit a bid specifying the lowest rate or
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0025| rates of interest and any premium or discount if allowed by the
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0001| governing body at, above or below par at which the bidder will purchase
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0002| the bonds.  The bonds shall be sold to the bidder making the best bid,
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0003| subject to the right of the governing body to reject any and all bids
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0004| and readvertise.  All bids shall be sealed and, except the bid of New
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0005| Mexico if one is received, shall be accompanied by a deposit of not less
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0006| than two percent of the principal amount of the bonds, either in cash or
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0007| by cashier's or treasurer's check of, or by certified check drawn on, a
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0008| solvent commercial bank or trust company in the United States, which
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0009| deposit shall be returned if the bid is not accepted.  If the successful
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0010| bidder does not complete the purchase of the bonds within thirty days
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0011| following the acceptance of his bid or within ten days after the bonds
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0012| are made ready and are offered by the municipal corporation for
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0013| delivery, whichever is later, the amount of his deposit shall be
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0014| forfeited to the municipal corporation issuing the bonds, and, in that
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0015| event, the governing body may accept the bid of the bidder making the
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0016| next best bid.  If all bids are rejected, the governing body shall
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0017| readvertise the bonds for sale in the same manner as for the original
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0018| advertisement.  If there are two or more equal bids and the bids are the
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0019| best bids received, the governing body shall determine which bid shall
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0020| be accepted.
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0021|           B.  Bonds issued by a municipal corporation may be sold to
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0022| the state at private sale without advertisement.
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0023|           C.  Except as provided in this section, bonds to be issued by
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0024| a municipal corporation for various purposes may be sold and issued as a
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0025| single combined issue even though they may have been authorized by
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0001| separate votes at an election or elections.  Bonds authorized by any
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0002| city, town or village for the construction or purchase of a system for
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0003| supplying water, a sanitary sewer system or a storm sewer system may be
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0004| combined with each other and sold and issued as a single issue but may
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0005| not be combined with bonds to be issued for any other purpose that may
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0006| be subject to the debt limitation of Article 9, Section 13 of the
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0007| constitution of New Mexico."
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0008|      Section 2.  EFFECTIVE DATE.--The effective date of the provisions
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0009| of this act is July 1, 1996.                        
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0010| 
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0011|                                                              HB
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0012| 334
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0013|                                                              Page 
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