17-5-403. Form, principal and interest, fiscal agent, and deposit of proceeds. (1) Each series of long-range building program bonds must be issued by the board upon request of the department, in 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 notes in anticipation of the execution and delivery of definitive bonds, bearing interest at the rate or rates, maturing at times not exceeding 30 years from date of issue, subject to redemption at earlier times and prices and upon notice, and payable at the office of the fiscal agency of the state as the board shall determine, subject to the limitations contained in 17-5-402 and this section.
     (2) In the issuance of each series of bonds, the amount, maturities, and interest rates must be fixed in a manner that the maximum amount of principal and interest to become due in any subsequent fiscal year on all outstanding bonds and on the series to be issued will not exceed 50% of the average annual amount collected during the 3 preceding fiscal years from the taxes pledged by law to the debt service account at the time of issuance. This provision may not constitute a covenant of the state for the security of the bonds issued pursuant to this part after January 1, 1973, and the state reserves the right to amend this subsection in any manner after all bonds issued prior to that date and the interest on the bonds have been fully paid or the state's liability has been otherwise fully discharged.
     (3) In all other respects, the board is authorized to prescribe the form and terms of the bonds and shall do whatever is lawful and necessary for their issuance and payment. The bonds and any interest coupons appurtenant to the bonds must be signed by the members of the board, and the bonds must be issued under the great seal of the state of Montana. The bonds and coupons may be executed with facsimile signatures and seal in the manner and subject to the limitations prescribed by law. The state treasurer shall keep a record of all long-range building bonds issued and sold.
     (4) The board may employ a fiscal agent to assist in the performance of its duties under this part.
     (5) All proceeds of bonds issued under this part must be deposited in the capital projects fund, except that any premiums and accrued interest received must be deposited in the debt service account.

     History: En. Sec. 2, Ch. 276, L. 1965; amd. Sec. 2, Ch. 318, L. 1967; amd. Sec. 1, Ch. 146, L. 1969; amd. Sec. 1, Ch. 222, L. 1971; amd. Sec. 2, Ch. 510, L. 1973; R.C.M. 1947, 79-2202(part); amd. Sec. 2, Ch. 298, L. 1983; amd. Sec. 20, Ch. 422, L. 1997.