7-7-4212. Citizen bonds -- procedural requirements prior to issuance. Prior to issuing citizen bonds, a city or town shall make available to interested investors:

(1) a preliminary official statement, a draft-form legal opinion from a recognized bond counsel, and a comparison to taxable yields at various income levels; and

(2) application forms for the purchase of citizen bonds, which must specify at a minimum:

(a) the time, date, and place that applications will be received, the manner in which applications will be processed, and the conditions under which the sale may be canceled if the issue is not fully subscribed during the application period;

(b) the issue date, maturity dates, and the dates on which interest will be earned and paid;

(c) the denominations of the bonds and the maximum amount of bonds that any one buyer may purchase;

(d) the approximate yield on the bonds if held to maturity and the manner in which interest rates have been calculated; and

(e) the provision made for the transfer of ownership of outstanding bonds.