§ 19-304. Limitations on authority to issue bonds and tax anticipation notes

   (a) Maturity date. --

   (1) A municipality may not issue bonds that mature later than 40 years after the date of issue.

   (2) A municipality may not issue tax anticipation notes that mature later than 18 months after the date of issue.

(b) Consideration. -- A municipality may issue bonds and tax anticipation notes only for cash.

(c) Sale at par value. -- A municipality may not sell bonds or tax anticipation notes at less than par value.

(d) Approval by voters. --

   (1) If the charter of a municipality requires a referendum on the issuance of municipal bonds, the bonds may be issued only if the bonds are approved by a majority of voters voting on the question.

   (2) If the referendum fails, another referendum may not be held on the question of issuing bonds for the same public purpose until 1 year after the election.

(e) Notice. -- A municipality may not sell bonds unless the municipality:

   (1) solicits competitive bids at a public sale; and

   (2) publishes notice of the bond sale:

      (i) in the form required by the resolution or ordinance;

      (ii) in a newspaper of general circulation in the municipality and any other publication that is specified in the resolution or ordinance; and

      (iii) two times over a period of at least 10 days before the date specified for the bond sale.

HISTORY: An. Code 1957, art. 23A, § 34(1)-(4); 2013, ch. 119, § 2.