9-25-1
General bonding power of municipalities.
9-25-1.1, 9-25-1.2. Repealed.
9-25-2
Execution of bonds and coupons--Facsimile signatures.
9-25-3 to 9-25-11. Repealed.
9-25-12
Promissory notes authorized--Sources of repayment--Recitals--Issuance and
sale--Maximum term.
9-25-13
Maximum amount borrowed on promissory note.
9-25-14
Borrowing limit reduced by outstanding warrants and notes.
9-25-15
Interest rate on promissory notes--Signature of notes.
9-25-16
Cash receipts applied to payment of notes until retired.
9-25-17 to 9-25-20. Repealed.
9-25-1. General bonding power of municipalities.
Every municipality shall have power to borrow money on the credit of the municipality for any authorized corporate purpose within the constitutional limitations of municipal indebtedness and to issue its negotiable bonds therefor in such amounts, forms, and upon such conditions as it may lawfully prescribe and after authorization as provided by this title; and to issue its refunding, judgment, courthouse, and revenue bonds in the manner, for the purposes, and after authorization as provided by this title.
Source: PolC 1877, ch 24, § 27; CL 1887, § 1048; SL 1890, ch 37, art V, § 1, subdiv 5, 6; SL 1893, ch 33, § 1; SL 1899, ch 51, § 1; SL 1901, ch 199, § 1; RPolC 1903, § 1229, subdiv 5, 6; RPolC 1903, §§ 1385, 1394, 1446, 1484; SL 1903, ch 81; SL 1905, ch 65, § 1; SL 1905, ch 155; SL 1907, ch 91, § 1; SL 1909, ch 96; SL 1911, ch 99; SL 1913, ch 119, § 53, subdiv 5, 6; RC 1919, §§ 6413, 6419, 6423, 6427; SL 1923, ch 228; SL 1931, ch 194, § 2; SDC 1939, § 45.0201 (6).
9-25-2. Execution of bonds and coupons--Facsimile signatures.
All bonds and coupons issued by the municipality shall be executed as contracts except that the facsimile signature of such officers to the coupons may be lithographed or engraved.
Source: SL 1899, ch 51, § 2; RPolC 1903, § 1386; SL 1905, ch 155, § 3; RC 1919, § 6431; SDC 1939, § 45.2308.
9-25-12. Promissory notes authorized--Sources of repayment--Recitals--Issuance and sale--Maximum term.
A municipality may borrow money from any source willing to lend the money by issuing a promissory note subject to the limitations set in §§ 9-25-13 to 9-25-16, inclusive. Notes issued pursuant to this section are payable solely from the sources provided in § 9-25-13 and do not constitute an indebtedness of the municipality within the meaning of any constitutional or statutory provisions or limitations, any provisions in the notes set forth or set forth in the resolution authorizing the notes to the contrary notwithstanding. The notes shall recite the authority under which the notes are issued and shall state that the notes are issued in conformity with the provisions, restrictions, and limitations of §§ 9-25-13 to 9-25-16, inclusive, and that the notes and the interest thereon are payable from the sources provided. The notes shall be authorized, issued, and sold in accordance with chapter 6-8B. No election is required and the notes may not be issued for a term in excess of five years. However, a note issued for any loan authorized by the United States Department of Agriculture may be issued for a term of not more than ten years and an unsecured promissory note under the municipal debt limit may be issued for a term of not more than twenty years.
Source: SL 1978, ch 63, § 1; SL 1981, ch 70, § 1; SL 1983, ch 62, § 1; SL 1984, ch 43, § 67B; SL 1991, ch 73, § 1; SL 1994, ch 70; SL 2005, ch 52, § 1; SL 2019, ch 54, § 1.
9-25-13. Maximum amount borrowed on promissory note.
The money borrowed pursuant to § 9-25-12 may not exceed the sum of ninety-five percent of the amount of anticipated special assessment bond proceeds or may not exceed the sum of ninety-five percent of the amount of uncollected taxes levied by the municipality for the current fiscal year plus other receivables of the fund, including state or federal grant moneys, which have been earned by the municipality or committed by the state or federal governments but not collected at the date of borrowing.
Source: SL 1978, ch 63, § 2; SL 1981, ch 70, § 2.
9-25-14. Borrowing limit reduced by outstanding warrants and notes.
If any registered warrants or promissory notes are outstanding against the fund for which the money is to be borrowed, the borrowing limit specified in § 9-25-13 shall be reduced by the amount of such outstanding warrants or promissory notes.
Source: SL 1978, ch 63, § 3.
9-25-15. Interest rate on promissory notes--Signature of notes.
The rate of interest shall be stated on the note authorized by § 9-25-12. The notes shall be signed by the chief executive officer of the municipality and by the municipal finance officer.
Source: SL 1978, ch 63, § 4; SL 1981, ch 71.
9-25-16. Cash receipts applied to payment of notes until retired.
If a note authorized by § 9-25-12 has been issued and not paid in full within the term provided in § 9-25-12, then thereafter no cash receipts may be expended for any purpose except the retirement of principal and interest of notes outstanding against that fund, until all such notes are retired.
Source: SL 1978, ch 63, § 5; SL 1983, ch 62, § 2; SL 1991, ch 73, § 3.
