Public Finance

Savings Bond Program

SECTION 35-15-4

§ 35-15-4. Issuance and sales of savings bonds.

In order to provide the people of the state: (1) with access to institutions of higher education; and (2) the financial means to purchase residential housing; there shall be issued with all bonds of the state, authorized by the provisions of the general obligation bond acts, savings bonds in such amounts as determined by the general treasurer with the approval of the governor. Bonds to be issued and sold as savings bonds shall be designated by the governor and the general treasurer as "general obligation savings bonds" in the proceedings authorizing the issuance of the bonds, and shall be subject to all of the terms and provisions of the general obligation bond acts, except as provided in §§ 35-15-5 and 35-15-6 and except that savings bonds may bear interest payable at such time or times, and may be sold in such a manner, and as may be determined by the governor and the general treasurer. Savings bonds may be sold at a negotiated sale if the governor and general treasurer determine that a negotiated sale will result in either a more efficient and economic sale of the savings bonds or greater access to the savings bonds by residents in the state. If any savings bonds are sold at a negotiated sale, the underwriter or underwriters to which the bonds are sold shall, in the judgment of the general treasurer, have sufficient capability to make a broad distribution of the bonds to investors resident in the state. The aggregate original principal amount of the bonds will be the sole and exclusive test for determining whether general obligation bonds have been issued in the amounts approved by the vote of the people in the general obligation bond acts. In making these determinations, the interest component of the savings bonds shall be disregarded.

History of Section.
(P.L. 1988, ch. 426, § 1; P.L. 1990, ch. 54, § 1; P.L. 1992, ch. 209, § 1.)