PUBLIC UTILITY BOND FINANCING
374-C:14 Limitations Not Applicable; Contracts of Public Utilities; Terms of Bonds.
Notwithstanding the provisions of any law or statute applicable to or constituting any limitation on the maximum rate of interest per annum payable on bonds or notes, or as to annual interest cost to maturity of money borrowed or received upon issuance of bonds or notes, every public utility is hereby authorized and empowered to contract to pay interest on, or an interest cost per annum for, money borrowed from the bank and evidenced by their utility bonds purchased by the bank notwithstanding any statutory limitation as to rate of interest per annum payable or as to annual interest cost to maturity of money borrowed by such public utility. Every public utility is hereby authorized and empowered to contract with the bank with respect to such loan or purchase and such contract shall contain the terms and conditions of such loan or purchase. Every public utility is hereby authorized and empowered to pay fees and charges required to be paid to the bank for its services. Notwithstanding the provisions of any law or statute applicable to or constituting any limitation on the sale of bonds or notes, any public utility may sell bonds or notes to the bank without limitation as to denomination and such bonds or notes may be fully registered, registrable as to principal or in bearer form, may bear interest at such rate or rates all in accordance with the foregoing provisions of this section, may be evidenced in such manner and may contain other provisions not inconsistent herewith, and may be sold to the bank without advertisement at a price of par and accrued interest, all as shall be provided in respect of the foregoing or other matters in the proceedings of the public utility pursuant to which the bonds or notes are authorized to be issued. The board of directors of the public utility may provide for the exchange of coupon bonds for fully registered bonds and of fully registered bonds for coupon bonds and for the exchange of any such bonds after issuance for bonds of larger or smaller denominations, all in such manner as may be provided in the proceedings authorizing their issuance, provided the bonds in changed form or denominations shall be exchanged for the surrendered bonds in the same aggregate principal amounts and in such manner that no overlapping interest is paid, and such bonds in changed form or denominations shall bear interest at the same rate or rates and shall mature on the same date or dates as the bonds for which they are exchanged. When any exchange is made under this section, the bonds surrendered by the holders at the time of the exchange shall be cancelled. The exchange shall be made only at the request of the holders of the bonds to be surrendered. The public utility may require all expenses incurred in connection with the exchange to be paid by the holders. In case any of the officers whose signatures appear on the bonds or coupons shall cease to be officers before the delivery of such bonds, such signatures shall be valid or sufficient for all purposes, the same as if they had remained in office.
Source. 1979, 498:2. 1981, 315:15, eff. Aug. 16, 1981.