17-5-803. Form — principal and interest — fiscal agent — bond registrar and transfer agent — deposit of proceeds. (1) Subject to the limitations contained in this part and in the bond act and in the furtherance of each bond act, bonds may be issued by the board upon request of the department. The bonds may be issued in the denominations and form, whether payable to bearer or registered as to principal or both principal and interest, with provisions for conversion or exchange, and, for the issuance of temporary bonds, bearing interest at a rate or rates, maturing at times not exceeding 30 years from date of issue, subject to redemption at earlier times and prices and on notice, and payable at the office of the fiscal agency of the state as the board determines.

Terms Used In Montana Code 17-5-803

  • Board: means the board of examiners provided for in 2-15-1007. See Montana Code 17-5-801
  • Bond act: means an act approved by the vote of two-thirds of the members of each house of the legislature or by a majority of the electors voting thereon, authorizing the issuance of bonds for the purpose set forth therein and adopting this part by reference. See Montana Code 17-5-801
  • Bonds: means general obligation bonds, notes, or other evidences of indebtedness issued in accordance with the provisions of this part. See Montana Code 17-5-801
  • Capital projects account: means a separate general obligation bond and note account created within the capital projects fund type established in 17-2-102. See Montana Code 17-5-801
  • Costs: includes those expenses related to acquiring land; planning, design, and construction of capital projects and of buildings as defined in 18-2-101; or any other administrative expenses of the department, including legal fees, incurred in the performance of its duties under Title 18, chapter 2. See Montana Code 17-5-801
  • Debt service account: means a separate general obligation bond and note account created within the debt service fund type established in 17-2-102. See Montana Code 17-5-801
  • Department: means the department of administration created in 2-15-1001. See Montana Code 17-5-801
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Printing: means the act of reproducing a design on a surface by any process. See Montana Code 1-1-203
  • State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See Montana Code 1-1-201
  • Statute: A law passed by a legislature.
  • Treasurer: means the ex officio state treasurer, referred to in 2-15-1002. See Montana Code 17-5-801

(2)In all other respects, the board is authorized to prescribe the form and terms of the bonds and do whatever is lawful and necessary for their issuance and payment. Action taken by the board under this part must be by a majority vote of its members. The state treasurer shall keep a record of all bonds issued and sold.

(3)The board is authorized to employ a fiscal agent and a bond registrar and transfer agent to assist in the performance of its duties under this part.

(4)The board, in its discretion, is authorized to pay all costs of issuance of bonds, including without limitation rating agency fees, printing costs, legal fees, bank or trust company fees, costs to employ persons or firms to assist in the sale of the bonds, line of credit fees and charges, and all other amounts related to the costs of issuing the bonds from amounts available for these purposes in the general fund or from the proceeds of the bonds.

(5)Unless otherwise provided in statute authorizing a bond, all proceeds of bonds and notes issued under this part to pay the costs of a project must be deposited in the capital projects account or in a separate general obligation bond or note account created in the state special revenue fund established in 17-2-102, except that:

(a)bond proceeds used to pay interest on the bonds and accrued interest received must be deposited in the debt service account;

(b)any premiums received may be deposited in the debt service account; and

(c)bond proceeds used to pay the costs of issuance may be deposited in a separate account within the state special revenue account.

(6)If applicable, the board shall specify whether the bonds are tax credit bonds as provided in 17-5-117.