7-12-4203. Details relating to special improvement district bonds and warrants -- definitions of bond forms. (1) The bonds and warrants shall be drawn against the special improvement district fund created for the district and shall bear interest from the date of registration until called for redemption or paid in full. The interest shall be payable annually or semiannually, at the discretion of the governing body of the municipality, on the dates the governing body prescribes. The warrants or bonds shall bear the signatures of the mayor and clerk and shall bear the corporate seal of the city. They shall be registered in the office of the clerk and treasurer, and if interest coupons are attached to the warrants or bonds, they shall also be registered and shall bear the signatures of the mayor and clerk.
     (2) The bonds shall be in denominations of $100 or fractions or multiples thereof, may be issued in installments, and may extend over a period not to exceed 20 years or, if refunding bonds are issued pursuant to 7-12-4194, over a period ending not later than 30 years after the date the bonds to be refunded were issued. For the purposes of this subsection, the term of a bond issue commences on July 1 of the fiscal year in which the city first levies assessments to pay principal and interest on the bonds.
     (3) All special improvement district bonds must be amortization bonds unless, in the judgment of the city council, serial bonds will be more advantageous to the district and can be sold at a comparatively reasonable rate or rates of interest.
     (4) As used in part 41 and this part, unless the context clearly indicates otherwise, the following definitions apply:
     (a) "Amortization bonds" means the form of bonds on which:
     (i) a part of the principal must be paid each time interest becomes payable;
     (ii) the part payment of principal increases at each installment in the same amount that the interest decreases;
     (iii) the combined interest and principal due on each due date remains the same until the bonds are paid;
     (iv) the final payment may vary from prior payments in the amount resulting from disregarding fractional costs in prior payments; and
     (v) the initial payment may be larger than subsequent payments if the increase represents interest accrued over an additional period not greater than 6 months.
     (b) "Serial bonds" means a bond issue payable in annual installments commencing not more than 2 years from the date of issue, any one installment consisting of one or more bonds, with the principal amount of bonds maturing in each installment not exceeding five times the principal amount of the bonds maturing in the immediately preceding installment.

     History: En. Sec. 25, Ch. 89, L. 1913; amd. Sec. 8, Ch. 142, L. 1915; re-en. Sec. 5249, R.C.M. 1921; re-en. Sec. 5249, R.C.M. 1935; amd. Sec. 1, Ch. 23, L. 1937; amd. Sec. 1, Ch. 177, L. 1945; amd. Sec. 5, Ch. 260, L. 1959; amd. Sec. 17, Ch. 234, L. 1971; R.C.M. 1947, 11-2231(part); amd. Sec. 4, Ch. 165, L. 1979; amd. Sec. 3, Ch. 527, L. 1981; amd. Sec. 50, Ch. 665, L. 1985; (4)En. Sec. 51, Ch. 665, L. 1985; amd. Sec. 6, Ch. 256, L. 1989; amd. Sec. 10, Ch. 449, L. 1989.