Montana Code 7-6-1103. Issuance and sale of gross proceeds obligations and short-term obligations — procedure
7-6-1103. Issuance and sale of gross proceeds obligations and short-term obligations — procedure. (1) The issuance of gross proceeds obligations or short-term obligations must be authorized by an ordinance of the governing body that fixes the maximum amount of the obligations to be issued or, if applicable, the maximum amount that may be outstanding at any time, the maximum term and interest rate or rates to be borne by the obligations, the manner of sale, the maximum price, the form including bearer or registered as provided in Title 17, chapter 5, part 11, the terms, the conditions, and the covenants of the obligations. Gross proceeds obligations or short-term obligations issued under this section must bear fixed or variable rate or rates of interest that the governing body considers to be in the best interests of the local government. Variable rates of interest may be fixed in relationship to the standard or index that the governing body designates.
Terms Used In Montana Code 7-6-1103
- Governing body: means the legislative authority of a local government, by whatever name designated. See Montana Code 7-6-1101
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
- Local government: means any city, town, county, consolidated city-county, or school district. See Montana Code 7-6-1101
- Ordinance: means an ordinance or resolution of the local government. See Montana Code 7-6-1101
- Person: includes a corporation or other entity as well as a natural person. See Montana Code 1-1-201
- Variable Rate: Having a "variable" rate means that the APR changes from time to time based on fluctuations in an external rate, normally the Prime Rate. This external rate is known as the "index." If the index changes, the variable rate normally changes. Also see Fixed Rate.
(2)The governing body may sell the gross proceeds obligations or short-term obligations at par or at a discount:
(a)at private negotiated sale to the board of investments as provided in Title 17, chapter 5, part 16; or
(b)at public sale to any other person. Any public sale must be noticed as provided in 7-7-4434.