§ 19-219. Interest rate limit on bonds

   (a) In general. --

   (1) Except for the provisions of this section, each governmental entity shall comply with the provisions, requirements, and limitations in the enabling act.

   (2) If a governmental entity is unable to sell bonds to pay the bond anticipation notes under this part when due because of an interest rate limitation in the enabling act, the governmental entity may:

      (i) issue bonds in a total principal amount sufficient to pay the principal of and not more than 1 year's interest on the notes; and

      (ii) provide for payment of interest on the bonds at a rate that is higher than the interest rate limitation in the enabling act.

   (3) This section is supplemental authority for a governmental entity to issue bonds free of an interest rate limitation to pay outstanding bond anticipation notes under this part.

(b) Citation of authority. -- The ordinance, resolution, or other form of official action that authorizes the issuance of bonds under subsection (a)(2) of this section shall refer to:

   (1) the enabling act; and

   (2) this section.

HISTORY: An. Code 1957, art. 31, § 12(h); 2013, ch. 119, § 2.