The bonds shall bear interest at a rate or rates not
exceeding the maximum rate authorized by Section 53531, may be
payable at the time or times, may be in one or more series, may bear
a date or dates, may mature at a time or times not exceeding 31 years
from their respective dates, may be payable in the medium of payment
at a place or places, may carry the registration privileges, may be
subject to the terms of redemption at the premiums, may be executed
in a manner, may contain those terms, covenants and conditions, and
may be in the form, either coupon or registered, as the resolution
authorizing the bonds may provide. The bonds may be sold at public or
private sale in the manner and upon the terms as may be provided in
the resolution. Pending the preparation of definitive bonds, interim
receipts or certificates, in the form and with those provisions as
may be provided in the resolution, may be issued to the purchaser or
purchasers of bonds sold pursuant to this article. The bonds and
interim receipts or certificates shall be deemed to be securities and
negotiable instruments within the meaning and for all purposes of
the Uniform Commercial Code of this state, subject to the provisions
for registration thereof contained in the resolution.
Prior to approving the sale of bonds at a private sale, the
legislative body of the issuing entity shall retain an investment
firm which has had no prior underwriting relationship with the
issuing entity on a similar bond issue within the previous three
years to analyze the terms and conditions of the proposed bond issue.
The bonds shall be sold at private sale only if the investment firm
determines and reports to the legislative body that it has found the
following to be true:
(a) The underwriter's price differential is reasonable.
(b) The final negotiated offering is consistent with common
practices in the industry and is comparable to other bond offerings
of a comparable amount that have been offered within the previous six
months.