Chapter 6-A: State Bonds

This chapter shall apply to all bonds of the state authorized by the legislature at its January, 1967, session and enacted after the passage hereof or at any subsequent session, unless otherwise provided in the authorizing acts.

The bonds shall be issued by the state treasurer when authorized by the governor and council. They may be issued at one time or in a series from time to time. The maturity dates of each series shall be determined by the governor and council, but in no case shall they be later than 20 years from the date of issue. The bonds may be redeemable before maturity at the option of the governor and council at such price or prices and under such terms and conditions as may be fixed by the governor and council prior to the issue of the bonds. The bonds shall be in such form and denominations as the governor and council shall determine and, subject to RSA 6:14 and 6:15 (repealed), may be nonregisterable or registerable as to principal only or registerable as to both principal and interest. Subject to the provisions of RSA 93-A, they shall be signed by the treasurer and countersigned by the governor. They shall be deemed a pledge of the faith and credit of the state.

Pending the issue of bonds, the state treasurer, when authorized by the governor and council, may borrow money on short term notes in anticipation of the bonds. At no time shall the amount due on such short term notes exceed the amount of the appropriation for the same purposes. Each such note shall mature within 5 years from its date, provided that notes issued for a shorter period may be refunded from time to time by the issue of other such notes maturing within 5 years from the date of the original loan being refunded. The notes may also be refunded by the issue of bonds hereunder or may be paid from any cash in the treasury. The notes shall be deemed a pledge of the faith and credit of the state. Any premium received on the sale of notes shall be applied to the payment of the costs of issuing the notes or credited to the general fund, as the state treasurer shall determine.

Pending the issue of bonds or notes hereunder or in lieu of the issue of notes hereunder, the state treasurer may use any cash in the treasury for the purposes for which the bonds were authorized. Such advances shall be repaid without interest from the proceeds of bonds or notes issued hereunder.

Bonds issued hereunder shall be sold by the state treasurer with the approval of the governor and council in such manner as the governor and council deem to be most advantageous to the state.

The proceeds from the sale of bonds and notes hereunder, except accrued interest, and from any advances under RSA 6-A:5 shall be held by the state treasurer and paid out by the treasurer upon warrants drawn by the governor for the purposes for which the bonds were authorized. The governor, with the advice and consent of the council, shall draw a warrant for the payments from such funds of all sums expended or due for such purposes.

The bonds authorized by one or more acts of the legislature may be combined by the state treasurer, and with the approval of the governor and council, upon their issue into one or more consolidated issues. The particular bonds of such consolidated issue issued under each authority may but need not be designated by number or otherwise.

Any bonds or notes issued pursuant to this chapter, if properly executed by the officers of the state in office on the date of the signing or on the date of imprinting of the facsimile signature, as the case may be, shall be valid and binding according to their terms notwithstanding that before delivery thereof and payment therefor any or all such officers shall have for any reason ceased to hold office.

The governor and council may authorize the issuance of refunding bonds in order to pay, at maturity or upon earlier redemption or acceleration, all or part of any issue of bonds then outstanding that were issued by the state or with a direct state guarantee; provided, however, that unless the governor and council specifically provide otherwise no such bonds shall be issued unless the treasurer determines that the present value, discounted at such rate as the treasurer deems appropriate, of the principal and interest payments on the refunding bonds is less than the present value, discounted at the same rate, of the principal and interest payments on the bonds to be refunded. The proceeds of such refunding bonds may be used to pay the principal of the refunded bonds, any redemption premium thereon, all or part of the interest coming due on or prior to the date or dates on which the refunded bonds are paid, and the costs of issuing and marketing the refunding bonds. The issue of refunding bonds shall be subject to the same requirements and provisions of law as would then be applicable to the issue of the bonds being refunded, except as provided in this section. The proceeds of refunding bonds, exclusive of any amounts used to pay costs of issuing and marketing the refunding bonds, shall be held in a separate fund and in trust until they are applied to pay bonds. While such proceeds are held in trust they may be invested in accordance with RSA 6:7 and RSA 6:8 and the income derived from such investment may be expended by the treasurer to pay the principal of, redemption premium if any, and interest on the refunded bonds until they are paid.

The governor and council may authorize the state treasurer to issue revenue bonds in accordance with this section. Revenue bonds may be authorized whenever the proceeds of such bonds are to be used for revenue-producing facilities or to refund bonds, the principal of which was used for revenue-producing facilities, and the revenues from such facilities are expected to be sufficient to pay the principal, premium, if any, and interest on such bonds. As used in this section, revenue-producing facilities means any facility from the operation of which revenues are to be derived by the state. The proceedings authorizing the issuance of revenue bonds shall contain a description of the facilities financed or to be financed and the revenue generated or expected to be generated by said facility. The principal of, premium, if any, and interest on revenue bonds issued pursuant to this section shall be paid solely from the revenue generated by the facility constructed. In authorizing the issuance of such bonds, the governor and council are hereby empowered to pledge and dedicate the revenue from such facility to be used first to pay the principal of, premium, if any, and interest on said bonds as the same become due and the state treasurer shall keep such revenue in a separate account for such purpose and is hereby authorized to expend the same for such purpose. Revenue bonds issued pursuant to this section shall not be considered a pledge of the faith and credit of the state and shall not be deemed debt of the state in determining its borrowing capacity under any applicable law. All provisions of RSA 6-A not inconsistent with the provision of this section shall be applicable to revenue bonds issued hereunder.

For the purpose of determining the amount of bonds issued by the state pursuant to this chapter or any other law, the amount of any issue of bonds shall be equal to the net proceeds thereof, determined by adding to the face amount of the bond issue the premium, if any, related to bonds of that issue and then subtracting the discount, if any, related to bonds of that issue, provided that the state treasurer may apply all or a portion of any premium received on the sale of any such bonds, without appropriation, to the costs of issuing such bonds or to the credit of the general fund, in which case the amount of any premium so applied shall not be included in the net proceeds of the issue. The amount of bonds of any such issue considered outstanding at any time, for the purpose of computing any statutory debt limit, shall be determined by multiplying the face amount of the bonds of that issue then outstanding by a fraction, the numerator of which is the net proceeds of the issue as determined above, and the denominator of which is the face amount of the issue. For the purpose of determining the amount of bond proceeds expended by the state for purposes specified by any law, such proceeds shall be equal to the expenditure of the net proceeds of the issue, as determined above.

The state treasurer may incur bond issuance costs which may be offset with any bond premiums, if applicable, for bonds sold under this chapter as determined by the state treasurer. Any remaining premium shall be included in the calculation of net proceeds of an issue or credited to the general fund as determined by the state treasurer pursuant to RSA 6-A:12. In order to provide funds to pay the cost of issuing bonds, the governor, upon request of the state treasurer, shall draw a warrant for such payments out of any money in the treasury not otherwise appropriated from each fund as appropriate.

If the state treasurer issues any bonds of the state under this chapter or under RSA 237-A as "Build America Bonds," as defined in section 54AA of the Internal Revenue Code of 1986, and elects to receive on behalf of the state the credit provided in section 6431 of the Internal Revenue Code of 1986, the state treasurer shall allocate such credit, when received, to the appropriate accounts pertaining to said bonds of the state, as determined by the state treasurer.