A. Hereafter all general obligation bonds, except refunding bonds, issued under lawful authority by any county, city, town, village or school district shall be issued in accordance with the provisions of Sections 6-15-3 through 6-15-8 NMSA 1978. As used in Sections 6-15-3 through 6-15-8 NMSA 1978, the term "bonds" means only such general obligations [obligation] bonds, other than refunding bonds, of any county, city, town, village or school district. The bonds shall mature not more than twenty years from their date and be numbered from one upwards consecutively. Interest on all such bonds shall be payable either annually or semiannually, as may be set forth in the act of the governing body of the issuing municipal corporation; provided, that the first installment of interest coming due may be for any period of time which shall not exceed one year from the date of the bonds.
B. The resolution or ordinance authorizing the bonds may provide for the creation of a sinking fund to secure payment of principal or principal and interest on the bonds and may provide for mandatory annual payments to be made to the sinking fund from the taxes levied and collected pursuant to Section 6-15-4 NMSA 1978.
History: Laws 1929, ch. 201, § 1; C.S. 1929, § 16-101; 1941 Comp., § 7-616; 1953 Comp., § 11-6-15; Laws 1973, ch. 393, § 1; 1975, ch. 326, § 1.
Bracketed material. — The bracketed material was inserted by the compiler and is not part of the law.
Cross references. — For limitation on life of bond, see 6-15-7 NMSA 1978.
For creation of sinking fund, see 6-15-22 NMSA 1978.
Maturities at 20 to 30 years invalid. — A preliminary resolution providing for a proposed bond issue for a hospital, fixing the maturities at 20 to 30 years, was invalid since under Section 6-15-7 NMSA 1978 such bonds cannot have a maturity longer than 20 years. Mann v. City of Artesia, 1938-NMSC-014, 42 N.M. 224, 76 P.2d 941.
Am. Jur. 2d, A.L.R. and C.J.S. references. — 64 Am. Jur. 2d Public Securities and Obligations §§ 165 to 182.
20 C.J.S. Counties § 222; 64 C.J.S. Municipal Corporations § 1684; 79 C.J.S. Schools and School Districts § 371; 87 C.J.S. Towns § 215.
Structure 2021 New Mexico Statutes
Article 15 - Finances of Counties, Municipalities and School Districts
Section 6-15-1 - Bonds payable from ad valorem taxes; notice of proposed issuance.
Section 6-15-3 - Bonds; forms; interest; maturities.
Section 6-15-4 - Tax levy for payment of bonds.
Section 6-15-5 - Sale of bonds.
Section 6-15-6 - [Bids for bonds refused; return of deposits.]
Section 6-15-7 - Maturity date of bonds; limitation.
Section 6-15-8 - ["Municipal corporation" as used in Sections 6-15-3 to 6-15-8 NMSA 1978 defined.]
Section 6-15-9 - Bonds authorized at election; time limit on issuance; exceptions.
Section 6-15-10 - Unissued bonds authorized at election; when void; exceptions.
Section 6-15-12 - Ordinance or resolution for refunding bonds; contents; maturities.
Section 6-15-13 - Execution of refunding bonds; interest coupons; mode of payment; installments.
Section 6-15-14 - Levy of taxes to pay annual installments and interest.
Section 6-15-15 - Exchange for bonds to be refunded; sales.
Section 6-15-16 - [Record of refunding bonds.]
Section 6-15-17 - [Retired refunding bonds to be destroyed.]
Section 6-15-18 - [Bonds surrendered for refunding; record; destruction.]
Section 6-15-19 - [Definition of terms.]
Section 6-15-20 - Application of bond proceeds; procedures; limitations.
Section 6-15-21 - Contributions securing payment of bonds.
Section 6-15-22 - Creation of sinking funds to secure payment of bonds.