Source: http://nhmbb.org/index.php/about-us/governance/rsa-35-a
Timestamp: 2019-04-25 22:19:03+00:00

Document:
35-A:1 Declaration of Purpose. – It is hereby declared to be in the public interest and to be the policy of the state to foster and promote by all reasonable means the provision of adequate markets and facilities for borrowing money by governmental units, as defined herein, for the financing of their public improvements and other municipal purposes from proceeds of bonds or notes issued by such governmental units, and to assist such governmental units in fulfilling their needs for such purposes by creation of indebtedness and to the extent possible to encourage continued investor interest in the bonds or notes of such governmental units as sound and preferred securities for investment. It is in the public interest and it is the policy of the state to encourage its governmental units to continue their independent undertakings of public improvements and new municipal purposes and the financing thereof and to assist them therein by making funds available at reduced interest costs for orderly financing of such public improvements and other municipal purposes, particularly for those governmental units not otherwise able readily to borrow for such purposes at reasonable rates of interest. It is further declared that credit and municipal bond market conditions require the exercise of the powers of the state in the interest of its governmental units to further and implement such policies by authorizing a state instrumentality to be created as a body corporate and politic to have full powers to borrow money and to issue its bonds and notes to make funds available through the facilities of such instrumentality at reduced rates and on more favorable terms for borrowing by such governmental units through the purchase by such instrumentality of the bonds or notes of such governmental units in fully marketable form and by granting broad powers to such instrumentality to accomplish and to carry out the aforesaid policies of the state which are in the public interest of the state and of its taxpayers and residents.
1977, 491:1, eff. July 1, 1977.
35-A:2 Citation. – This chapter shall be known as, and may be cited as, the New Hampshire municipal bond bank law.
I. "Chapter'' means this New Hampshire municipal bond bank law.
II. "Bank'' means the New Hampshire municipal bond bank created and established by RSA 35-A:4.
III. "Bonds'' means bonds of the bank issued pursuant to this chapter.
IV. "Fully marketable form'' means a municipal security duly executed and accompanied by an approving legal opinion of a bond counsel of recognized standing in the field of municipal law whose opinions have been and are accepted by purchasers of like municipal bonds, provided that the municipal security so executed need not be printed or lithographed nor be in more than one denomination.
V. "General fund'' means the fund created or established as provided in RSA 35-A:13.
VI. "Governmental unit'' means any county, city, town, school district, village district or other body corporate and politic having the power either to levy taxes, or to provide for rates, charges, or assessments, whether established by general law or by special statute.
VII. "Municipal bond'' means a bond or note or evidence of debt issued by a governmental unit and payable from either taxes, or from rates, charges or assessment, but shall not include any bond or note or evidence of debt issued by any other state or any public body or municipal corporation thereof.
VIII. "Notes'' means any notes of the bank issued pursuant to this chapter.
IX. "Reserve fund'' means any of the New Hampshire municipal bond bank reserve funds created or established as provided in RSA 35-A:11.
X. "Revenues'' means all fees, charges, moneys, profits, payments of principal of or interest on municipal bonds and other investments, gifts, grants, contributions, appropriations and all other income derived or to be derived by the bank under this chapter.
1977, 491:1, eff. July 1, 1977. 2003, 281:7, eff. July 18, 2003.
I. There is hereby established a public body corporate and politic having a distinct legal existence separate from the state and not constituting a department or agency of the state government to be known as the New Hampshire municipal bond bank. The bank is hereby constituted as an instrumentality exercising public and essential governmental functions, and the exercise by the bank of the powers conferred by this chapter shall be deemed and held to be an essential governmental function of the state.
II. The bank shall consist of 5 directors. The state treasurer shall be an ex officio member without further appointment. Four directors shall be appointed by the governor and council for terms of 5 years each. Of these 4 directors, one shall be a designee of the New Hampshire Municipal Association. At least 2 of the appointed directors shall have backgrounds in public finance. Vacancies shall be filled for the unexpired term. Each director shall hold office until his successor has been appointed and qualified.
III. Each member of the board of directors of the bank, before entering upon his duties, shall take an oath to administer the duties of his office as such faithfully and impartially, and such oath shall be filed in the office of the secretary of state. Directors may be removed from office by the governor and council, for cause after a public hearing, and may be suspended by the governor and council pending the completion of such hearing.
IV. The board of directors shall annually elect one of its members as chairman and another as vice chairman. The directors shall elect a secretary and a treasurer who need not be directors, and the same person may be elected to serve both as secretary and as treasurer. The powers of the bank shall be vested in the directors thereof in office from time to time and 3 directors of the bank shall constitute a quorum at any meeting thereof. Action may be taken and motions and resolutions adopted by the bank at any meeting thereof by the affirmative vote of at least 3 directors of the bank. No vacancy in the directorship of the bank shall impair the right of a quorum of the directors to exercise all the powers and perform all the duties of the bank.
V. Before the issuance of any bonds or notes under the provisions of this chapter, each director of the bank, and the executive director, if one is employed, shall execute a surety bond in the penal sum of $50,000 and the treasurer of the bank shall execute a surety bond in the penal sum of $100,000, or in lieu thereof the chairman of the bank shall execute a blanket bond covering each member, the treasurer and other officers and employees of the bank, each such surety bond to be conditioned upon the faithful performance of the duties of the office covered, to be executed by a surety company authorized to transact business in the state of New Hampshire as surety and to be approved by the attorney general and filed in the office of the secretary of state. All costs of such surety bonds shall be borne by the bank.
VI. The directors of the bank shall serve without compensation, but the bank shall reimburse its directors for actual expenses necessarily incurred in the discharge of their duties. Notwithstanding the provisions of any other law, no officer or employee of the state shall be deemed to have forfeited or shall forfeit his office or employment or any benefits or emoluments thereof by reason of his acceptance of the office of director of the bank or his services therein.
VII. The bank may appoint and employ an executive director, a general counsel, accountants, attorneys, financial advisors or experts and all such other or different officers, agents and employees as it may require and determine their qualifications, terms of office, duties and compensation, all without regard to the provisions of RSA 98.
VIII. Notwithstanding any other provision of law to the contrary, it shall not be nor shall it constitute a conflict of interest for a director, officer or employee of any governmental unit, financial institution, investment banking firm, brokerage firm, commercial bank or trust company, insurance company or any other firm, person or corporation to serve as a member of the bank. If any member of the bank shall be interested either directly or indirectly or shall be a director, officer or employee of or have an ownership interest in any firm or corporation interested directly or indirectly in any contract with the bank, including any loan to any governmental unit, such interest shall be disclosed to the bank and shall be set forth in the minutes of the bank and the member having such interest therein shall not participate on behalf of the bank in any proceedings relating to the authorization of any such contract.
IX. The bank and its corporate existence shall continue until terminated by law, provided, however, that no such law shall take effect so long as the bank shall have bonds, notes and other obligations outstanding, unless adequate provision has been made for the payment thereof. Upon termination of the existence of the bank, all its rights and properties shall pass to and be vested in the state. No net earnings of the bank may inure to the benefit of any person, entity or body other than the state.
1977, 491:1. 1985, 55:23, eff. April 23, 1985; 116:3, eff. May 11, 1985.
I. The bank, for the purposes authorized by this chapter, is hereby authorized and empowered to lend money to governmental units through the purchase by the bank of municipal bonds of governmental units in fully marketable form. The bank, for the purposes authorized by this chapter, is hereby authorized and empowered to authorize and issue its bonds and notes payable solely from the revenues or funds therefor available to the bank, and to otherwise assist governmental units as provided in this chapter.
II. Bonds and notes of the bank issued under the provisions of this chapter shall not be in any way a debt or liability of the state and shall not create or constitute any indebtedness, liability or obligation of the state or be or constitute a pledge of the faith and credit of the state but all such bonds and notes, unless funded or refunded by bonds or notes of the bank, shall be payable solely from revenues or funds pledged or available for their payment as authorized herein. Each bond and note shall contain on its face a statement to the effect that the bank is obligated to pay the principal thereof and the interest thereon only from revenues or funds of the bank and that the state is not obligated to pay such principal or interest and that neither the faith and credit nor the taxing power of the state is pledged to the payment of the principal of or the interest on such bonds or notes.
III. All expenses incurred in carrying out the provisions of this chapter shall be payable solely from revenues or funds provided or to be provided under the provisions of this chapter and nothing in this chapter shall be construed to authorize the bank to incur any indebtedness or liability on behalf of or payable by the state.
XVI. To provide advice, technical information and to conduct research and promote financing of securities of governmental units.
IV. To be or to constitute any bank, banker or dealer in securities within the meaning of or subject to the provisions of any securities, securities exchange, or securities dealers law, of the United States of America or of this state or of any other state.
I. The bank shall have the power and is hereby authorized from time to time to issue its bonds or notes in such principal amounts as it shall deem necessary to provide funds for any purposes authorized by this chapter, including the making of loans, the payment, funding or refunding of the principal of, or interest or redemption premiums on, any bonds or notes issued by it whether the bonds or notes or interest to be funded or refunded have or have not become due, the establishment or increase of such reserves to secure or to pay such bonds or notes or interest thereon and all other costs or expenses of the bank incident to and necessary or convenient to carry out its corporate purposes and powers.
II. Except as may be otherwise expressly provided herein or by the bank in its authorizing resolution, every issue of bonds or notes shall be general obligations payable out of any revenues or funds of the bank, subject only to any agreements with the holders of particular bonds or notes pledging any particular revenues or funds. Any such bonds or notes may be additionally secured by a pledge of any grant or contributions from the United States of America or the state or any governmental unit or any person, firm or corporation or a pledge of any income or revenues, funds or moneys of the bank from any source whatsoever.
III. Any provision of any law to the contrary notwithstanding, any bond or note issued pursuant to this chapter shall be fully negotiable within the meaning and for all purposes of the negotiable instruments law of this state, and each holder or owner of such bond or note, or of any coupon appurtenant thereto, by accepting such a bond or note or coupon shall be conclusively deemed to have agreed that such bond, note or coupon is and shall be fully negotiable within the meaning and for all purposes of said negotiable instruments law of this state, subject only to the provisions of the bonds and notes for registration.
IV. Bonds or notes of the bank shall be authorized by resolution of the bank and may be issued in one or more series and shall bear such date or dates, mature at such time or times, not exceeding with respect to notes, 8 years from the date of issue of the original notes and with respect to bonds 50 years from the date of their issue, provide sinking fund payments, bear interest at such rate or rates of interest per annum or within such maximum rate, be in such denomination or denominations, be in such form, either coupon or registered, carry such conversion or registration privileges, have such rank or priority, be executed in such manner, be payable from such sources in such medium of payment at such place or places within or without the state, and be subject to such terms of redemption (with or without premium) as such resolution or resolutions may provide. In case any of the members, executive director or officers of the bank whose signatures appear on any notes or bonds or coupons shall cease to be such members, executive director or officers before the delivery of such notes or bonds, such signatures shall, nevertheless, be valid and sufficient for all purposes, the same as if such members, executive director or officers had remained in office until such delivery.
V. Bonds or notes of the bank may be sold at public or private sale at such time or times and at such price or prices as the bank shall determine.
VI. Bonds or notes may be issued under the provisions of this chapter without obtaining the consent of the governor and council or of any department, division, commission, board, bureau or agency of the state, and without any other proceeding or the happening of any other conditions or things than those proceedings, conditions or things which are specifically required by this chapter.
VII. The bank may from time to time issue its notes as provided under this chapter and pay and retire or fund or refund such notes from proceeds of bonds or of other notes, or from any other funds or moneys of the bank available or to be made available for such purpose in accordance with any contract between the bank and the holders of the notes. Unless provided otherwise in any contract between the bank and the holders of notes, and unless such notes shall have been otherwise paid, funded or refunded, the proceeds of any bonds of the bank issued among other things, to fund such outstanding notes, shall be held, used and applied by the bank to the payment and retirement of the principal of such notes and the interest due and payable thereon.
VIII. The bank is authorized to provide for the issuance of its bonds or notes in such amounts as it may deem necessary for the purpose of refunding any bonds or notes of the bank then outstanding, including the payment of any redemption premium thereon and any interest accrued or to accrue to the earliest or subsequent date of redemption, purchase or maturity of such bonds or notes. The proceeds of any such bonds or notes issued for the purpose of refunding outstanding bonds or notes, may, in the discretion of the bank, be applied to the purchase or retirement at maturity or redemption of such outstanding bonds or notes either on their earliest or any subsequent redemption date, and may, pending such application, be placed in escrow to be applied to such purchase or retirement at maturity or redemption on such date as may be determined by the bank. Any such escrowed proceeds, pending such use, may be invested and reinvested, subject to any agreements with note or bondholders, in such manner as the bank shall determine, maturing at such time or times as shall be appropriate to assure the prompt payment, as to principal, interest and redemption premium, if any, on the outstanding bonds or notes to be so refunded. The interest, income and profits, if any, earned or realized on any such investment may also be applied to the payment of the outstanding bonds or notes to be so refunded. After the terms of the escrow have been fully satisfied and carried out, any balance of such proceeds and interest, income and profits, if any, earned or realized on the investments thereof may be returned to the bank for use by it in any lawful manner.
IX. Bonds or notes issued by the bank may be secured in whole or in part by insurance or by letters or lines of credit or other credit facilities as provided by resolution of the bank authorizing such bonds or notes. Any such insurance, letter or line of credit or credit facility may provide for reimbursement to be made over such period of time, at such rate of interest and upon such other terms, conditions and covenants as shall be approved by resolution of the bank authorizing such bonds or notes.
1977, 491:1. 1988, 52:1, eff. April 4, 1988.
XXIII. To make covenant other than and in addition to the covenants herein expressly authorized, of like or different character, and to make such covenants to do or refrain from doing such acts and things as may be necessary, or convenient and desirable, in order to better secure bonds or notes or which, in the absolute discretion of the bank, will tend to make bonds or notes more marketable, notwithstanding that such covenants, acts or things may not be enumerated herein.
35-A:10 Effect of Pledge. – Any pledge of revenues or other moneys made by the bank shall be valid and binding from the time when the pledge is made; the revenues or other moneys so pledged and thereafter received by the bank shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act, and the lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the bank, irrespective of whether such parties have notice thereof. Neither the resolution, trust indenture nor any other instrument by which a pledge is created need be filed or recorded in order to establish and perfect a lien or security interest in the property so pledged.
I. The bank may create and establish one or more special funds, hereafter referred to as "bond reserve funds'', and shall pay into each such bond reserve fund any monies appropriated and made available by the state for the purpose of such fund; any proceeds of sale of notes or bonds to the extent provided in the resolution or resolutions of the bank authorizing the issuance thereof; and any other monies which may be available to the bank for the purpose of such fund from any other source or sources. All monies held in any bond reserve fund are hereby pledged to, and charged with, the payment of the principal of and the interest on such bonds with respect to which such bond reserve fund may be established, as the same shall become due, and the redemption price or the purchase price of bonds retired by call or purchase as therein provided. Such pledge shall be valid and binding from the time when the pledge is made and the revenues, monies or property so pledged subject to RSA 35-A:10. The use and disposition of monies to the credit of such bond reserve fund shall be subject to the provisions of the resolution authorizing the issuance of such bonds or of such trust agreement. Except as may otherwise be provided in such resolution or such trust agreement, such bond reserve fund shall be a fund for all such bonds issued pursuant to a particular resolution to provide financing for governmental units without distinction or priority of any bond over another.
II. Monies in any bond reserve fund shall not be withdrawn therefrom at any time in such amount as would reduce the amount of such fund to less than the bond reserve fund requirement established for such fund, as provided in paragraph IV, except for the purpose of making, with respect to bonds secured in whole or in part by such fund, payment when due, of principal, interest, redemption premiums and the sinking fund payments, if any, with respect to such bonds for the payment of which other moneys of the bank are not available. Any income or interest earned by any bond reserve fund resulting from the investment thereof or any other moneys therein may be transferred by the bank to other funds or accounts of the bank to the extent it does not reduce the amount of that bond reserve fund below the bond reserve fund requirements for such fund.
III. The bank shall not at any time issue bonds, secured in whole or in part by a bond reserve fund, if upon the issuance of such bonds, the amount in such bond reserve fund will be less than the bond reserve fund requirement for such fund, unless the bank at the time of issuance of such bonds shall deposit in such fund from the proceeds of the bonds issued, or from other sources, an amount which, together with the amount then in such fund, will not be less than the bond reserve fund requirement for such fund. The bank may at any time issue its bonds or notes for the purpose of providing any amount necessary to increase the amount in the reserve fund to the required debt service reserve, or to meet such higher or additional reserve as may be fixed by the bank with respect to such fund. In computing the amount of the required debt service reserve, investments held as a part thereof shall be valued in the manner provided in the bond resolution.
IV. As used herein "bond reserve fund requirement'' means, as of any date of computation, the amount or amounts required to be on deposit in the reserve fund as provided by resolution of the bank authorizing such bonds, provided that required bond reserve fund requirement with respect to bonds authorized by resolution of the bank adopted before January 1, 1988, shall be as of any date of computation, an aggregate amount equal to at least the largest amount of money, required by the terms of all contracts between the bank and its bondholders to be raised in the then current or any succeeding calendar year for the payment of interest on and maturing principal of that portion of outstanding bonds the proceeds of which were applied solely to the purchase of municipal securities and sinking fund payments required by the terms of any such contracts to sinking funds established for the payment or redemption of such bonds, all calculated on the assumption that bonds will cease to be outstanding after the date of such computation by reason of the payment of such bonds at their respective maturities and the payments of such required moneys to sinking funds and the application thereof in accordance with the terms of all such contracts to the retirement of bonds.
V. Moneys at any time in the reserve fund may be invested in the same manner as permitted for investment of funds belonging to the state or held in the treasury.
VI. The bank may provide by resolution authorizing an issue of bonds that is secured in whole or in part by a bond reserve fund that, in lieu of the deposit of moneys in a bond reserve fund, the bond reserve fund requirement for such issue may be met in whole or in part by insurance, letter or line of credit or other credit facility that will be available for the purposes of the bond reserve fund as specified in such resolution of the bank. The chairman of the bank shall include in the written request for an appropriation required by RSA 35-A:12, I, the amount, if any, required to reimburse the payor under any insurance policy, letter or line of credit or other credit facility for sums paid by such payor for purposes of the bond reserve fund.
1977, 491:1. 1988, 52:2, 3, eff. April 4, 1988.
I. To assure the continued operation and solvency of the bank for the carrying out of its corporate purposes, the chairperson of the bank shall, not later than 10 days following the failure of a governmental unit to make a scheduled payment of principal of or interest on a municipal bond sold to the bank, which failure causes the amount in the bond reserve fund established under RSA 35-A:11 to fall below the bond reserve fund requirement therefor, submit to the chairperson of the house finance committee a written request for an appropriation for the sum, if any, required to insure that the bond reserve fund established under RSA 35-A:11 equals the bond reserve fund requirement therefor. The chairperson of the house finance committee shall process the request for legislative action. All sums appropriated by the general court, if any, paid to the bank pursuant to this section shall be deposited by the bank in the said bond reserve fund.
II. All amounts paid over to the bank by the state pursuant to this section shall constitute and be accounted for as advances by the state to the bank and, subject to the rights of the holders of any bonds or notes of the bank theretofore or thereafter issued, shall be repaid to the state without interest from all available operating revenues of the bank in excess of amounts required for the payment of obligations of the bank, the bond reserve funds and operating expenses.
1977, 491:1. 1985, 116:4. 1995, 9:14, eff. June 11, 1995. 2013, 107:1, eff. Aug. 23, 2013.
I. The bank shall establish and maintain a fund called the "general fund'' which shall consist of and in which there shall be deposited (1) fees received or charges made by the bank for use of its services or facilities, (2) any moneys which the bank shall transfer thereto from the reserve fund pursuant to RSA 30-A:11, II, (3) moneys received by the bank as payments of principal of or interest on municipal bonds purchased by the bank, or received as proceeds of sale of any municipal bonds or investment obligations of the bank, or received as proceeds of sale of bonds or notes of the bank, and required under the terms of any resolution of the bank or contract with the holders of its bonds or notes to be deposited therein, and (4) any moneys required under the terms of any resolution of the bank or contract with the holders of its bonds or notes to be deposited therein, and (5) any moneys transferred thereto from any other fund or made available for the purpose of the fund by the state or for the operating expenses of the bank. Any such moneys in the general fund may, subject to any contracts between the bank and its bondholders or noteholders, be transferred to the reserve fund, or if not so transferred, shall be used for the payment of the principal of or interest on bonds or notes of the bank when the same shall become due and payable, whether at maturity or upon redemption including payment of any premium upon redemption prior to maturity, and any moneys in the general fund may be used for the purchase of municipal bonds and for all other purposes of the bank including payment of its operating expenses.
II. No amount shall be paid or expended out of the general fund or from any account therein (which account the bank may establish therein for the purpose of payment of its operating expenses) for operating expenses of the bank in any year in excess of the amount provided for the operating expenses of the bank by the annual budget then in effect with respect to such year or any amendment thereof in effect at the time of such payment or expenditure for operating expenses.
III. The bank may at any time use any available moneys in the general fund for the purchase of its bonds or notes or for the redemption thereof, and any such bonds purchased for retirement shall be thereupon cancelled.
IV. The bank is hereby authorized and empowered to create and establish in the general fund such accounts, subaccounts or special accounts which in the opinion of the bank are necessary, desirable or convenient for the purposes of the bank under this chapter.
35-A:14 Additional Accounts. – The bank may establish such additional and further reserves or such other funds or accounts as may be, in its discretion, necessary, desirable or convenient to further the accomplishment of the purposes of the bank or to comply with the provisions of any agreement made by or any resolution of the bank.
I. In the event that the bank shall default in the payment of principal of or interest on any issue of notes or bonds after the same shall become due, whether at maturity or upon call for redemption, and such default shall continue for a period of 30 days, or in the event that the bank shall fail or refuse to comply with the provisions of this chapter or shall default in any agreement made with the holders of any issue of notes or bonds, the holders of 25 percent in aggregate principal amount, or more, of the notes or bonds of such issue then outstanding, by instrument or instruments filed in the office of the secretary of state and executed and acknowledged in the same manner as a deed to be recorded, may, subject to agreement as contained in the resolution of the bank authorizing such bonds or notes, appoint a trustee to represent the holders of such notes or bonds for the purposes herein provided.
(e) Declare all such notes or bonds due and payable, and if all defaults shall be made good, then with the consent of the holders of 25 percent of the principal amount, or more, of such notes or bonds then outstanding, to annul such declaration and its consequences.
III. Such trustee shall in addition to the foregoing have and possess all of the powers necessary or appropriate for the exercise of any functions specifically set forth herein or incident to the general representation of bondholders or noteholders in the enforcement and protection of their rights.
IV. The superior court shall have jurisdiction of any suit, action or proceeding by the trustee on behalf of such noteholders or bondholders. The venue of any such suit, action or proceeding shall be laid in the county of Merrimack.
V. Before declaring the principal of notes or bonds due and payable, the trustee shall first give 30 days' notice in writing to the governor, to the bank, to the state treasurer and to the attorney general of the state.
35-A:16 Directors and Agents not Liable. – Neither the members of the bank nor any person executing bonds or notes issued pursuant to this chapter shall be liable personally on such bonds or notes by reason of the issuance thereof.
35-A:17 Bank Empowered. – The bank shall have power to purchase bonds or notes of the bank out of any funds or money of the bank available therefor. The bank may hold, cancel or resell such bonds or notes subject to and in accordance with agreements with holders of its bonds or notes.
35-A:18 Agreement by State. – The state does pledge to and agree with the holders of the bonds or notes issued pursuant to authority contained in this chapter that the state will not limit or restrict the rights hereby vested in the bank to purchase, acquire, hold, sell or dispose of municipal bonds or other investments or to make loans to governmental units or to establish and collect such fees or other charges as may be convenient or necessary to produce sufficient revenues to meet the expenses of operation of the bank, and to fulfill the term of any agreements made with the holders of its bonds or notes authorized by this chapter or in any way impair the rights or remedies of the holders of such bonds or notes until the bonds and notes, together with interest thereon, and interest on any unpaid installments of interest, and all costs and expenses in connection with any action or proceedings by or on behalf of such holders are fully met, paid and discharged.
35-A:19 Legal Investments. – Notwithstanding any restriction contained in any other law, the state and all public officers, governmental units and agencies thereof, all banks, trust companies, savings banks and institutions, building and loan associations, savings and loan associations, investment companies, and other persons carrying on a banking business, all insurance companies, insurance associations and other persons carrying on an insurance business, and all executors, administrators, guardians, trustees and other fiduciaries, may legally invest any sinking funds, moneys or other funds belonging to them or within their control in any bonds or notes issued pursuant to this chapter, and such bonds or notes shall be authorized security for any and all public deposits.
35-A:20 Exemption From Taxes. – All property of the bank is hereby declared to be public property devoted to an essential public and governmental function and purpose and shall be exempt from all taxes and special assessments of the state or any subdivision thereof. All bonds or notes issued pursuant to this chapter are hereby declared to be issued by a body corporate and public of this state and for an essential public and governmental purpose and such bonds and notes, and the interest thereon and the income therefrom, and all fees, charges, funds, revenues, income and other moneys pledged or available to pay or secure the payment of such bonds or notes, or interest thereon, shall at all times be exempt from taxation except for transfer, inheritance and estate taxes.
35-A:21 Exemption From Levy and Sale. – All property of the bank shall be exempt from levy and sale by virtue of an execution and no execution or other judicial process shall issue against the same nor shall any judgment against the bank be a charge or lien upon its property; provided, that nothing herein contained shall apply to or limit the rights of the holder of any bonds or notes to pursue and remedy for the enforcement of any pledge or lien given by the bank on its revenues or other moneys.
35-A:22 Insurance or Guaranty. – The bank is authorized and empowered to obtain from any department or agency of the United States of America or from any nongovernmental insurer any insurance or guaranty (to the extent now or hereafter available) as to, or of, or for, the payment or repayment of, interest or principal, or both, or any part thereof, on any bonds or notes issued by the bank, or on any municipal bonds of governmental units purchased or held by the bank, pursuant to the provisions of this chapter; and notwithstanding any other provisions of this chapter to enter into any agreement or contract whatsoever with respect to any such insurance or guaranty except to the extent that the same would in any way impair or interfere with the ability of the bank to perform and fulfill the terms of any agreement made with the holders of the bonds or notes of the bank.
35-A:23 Authorization to Accept State Money. – The bank is authorized to accept such moneys as may be appropriated from time to time by the legislature for carrying out its corporate purpose. The bank shall repay the state all sums which are appropriated to the bank for organizational purposes in 5 annual installments, beginning with the fifth year after the receipt of such funds.
I. The state treasurer is hereby authorized to receive from the United States of America or any department or agency thereof any amounts of money as and when appropriated, allocated, granted, turned over, or in any way provided for the purposes of the bank or this chapter, and said amounts shall be paid to the bank and deposited in the reserve fund and be available to the bank.
II. Any funds or moneys in the custody or control of the state treasurer which shall become available by reason of any grant, allocation, or appropriation by the United States of America to assist any governmental unit in payment of its municipal bonds owned or held by the bank, or required by the terms of any other law to be paid to holders or owners of municipal bonds of a governmental unit upon failure or default of a governmental unit to pay the principal of or interest on its municipal bonds as and when due and payable, shall, to the extent that any such funds or moneys be applicable with respect to municipal bonds of a particular governmental unit which are then owned or held by the bank and as to which such governmental unit has failed or defaulted to make payment of principal or interest as and when due, be paid to the bank for deposit in the reserve fund and made available to the bank.
III. Upon any failure by a governmental unit to make a scheduled payment of principal or interest on its municipal bond or municipal bonds held by the bank, the chairman or vice chairman of the bank shall certify the failure of such governmental unit to make such scheduled payment to the state treasurer. The chairman or vice chairman of the bank shall also certify the amount of the overdue payment and the name of the bank's trustee at which such municipal bond is payable, to the state treasurer.
IV. Three days after receipt of the certification from the chairman or vice chairman of the bank, the state treasurer shall pay to the bank's trustee at which such unpaid municipal bond is payable, the amount of such certified overdue payment, to the extent amounts are appropriated from the general fund or the education trust fund and are payable by the state to such governmental unit during the remainder of the fiscal year, together with any amounts payable in accordance with paragraph II hereof. If any portion of such certified overdue payment has not been paid at the close of the fiscal year, the state treasurer shall pay the same as soon as practicable in the next fiscal year to the extent of amounts otherwise then appropriated by the state and payable by the state to such governmental unit during that fiscal year, together with any amounts then payable in accordance with paragraph II.
V. All amounts paid to the bank in accordance with the provisions of this section shall be in trust and shall be exempt from being levied upon, taken, sequestered, or applied for any purpose other than paying principal or interest, or both, on any due but unpaid municipal bond or municipal bonds held by the bank of the governmental unit.
VI. Any amounts paid by the state treasurer under the provisions of this section, together with all costs accruing to the state as a result of actions undertaken pursuant to this section, including administrative costs as well as loss of interest income, shall be charged against the amounts otherwise payable or becoming payable from the state treasury to the governmental unit.
1977, 491:1, eff. July 1, 1977. 2008, 324:1, eff. Aug. 31, 2008.
35-A:25 Conflicts in Statutes. – It is the intent of the legislature that in the event of any conflict or inconsistency in the provisions of this chapter and any other chapters pertaining to matters herein established or provided for or in any rules and regulations adopted under this chapter or said other chapters, to the extent of such conflict or inconsistency, the provisions of this chapter shall be enforced and the provisions of such other chapters and rules and regulations adopted thereunder shall be of no force and effect.
35-A:26 Report; Audits. – The bank shall, promptly following the close of each fiscal year, submit an annual report of its activities for the preceding year to the governor and council. Each such report shall set forth a complete operating and financial statement of the bank during such year. The bank shall cause an audit of its books and accounts to be made at least once in each fiscal year either by the commissioner of administrative services or his designated representative or by independent public accountants.
1977, 491:1. 1985, 399:3, I, eff. July 1, 1985.
IX. To make, enter into, carry out and enforce all contracts or agreements with respect to obtaining or maintaining insurance, letters or lines of credit or other credit facilities for the purpose of providing security for any bonds or notes issued by the bank or for the purpose of meeting any bond reserve fund requirement, and to pay all reimbursements, premiums, commitment fees and other fees and expenses necessary, convenient or desirable to the obtaining or maintaining of said insurance, letters or lines of credit or other credit facilities.
1977, 491:1. 1988, 52:4, eff. April 4, 1988.
35-A:28 Undertakings of Financial Institutions. – All banks, trust companies, savings banks, investment companies and other persons carrying on a banking business are hereby authorized to give to the bank a good and sufficient undertaking with such securities as shall be approved by the bank to the effect that such bank or banking institution as hereinbefore described shall faithfully keep and pay over to the order of or upon the warrant of the bank or its authorized agent all such funds as may be deposited with it by the bank and agreed interest thereon under or by reason of this chapter, at such times or upon such demands as may be agreed with the bank or in lieu of such sureties, deposit with the bank or its authorized agent or any trustee therefor or for the holders of any bonds, as collateral, such securities as the bank may approve. The deposits of the bank may be evidenced by an agreement in such form and upon such terms and conditions as may be agreed upon by the bank and such bank or banking institution.
IV. Applied in any combination of the foregoing.
1977, 491:1. 1988, 52:5, eff. April 4, 1988. 2013, 107:2, eff. Aug. 23, 2013.
35-A:30 Waiver of Defenses; Rights of Holders. – Upon the sale and issuance of any municipal bonds to the bank by any governmental unit, such governmental unit shall be held and be deemed to have agreed that in the event of the failure of such governmental unit to pay the interest on or the principal of any of such municipal bonds owned or held by the bank as and when due and payable, such governmental unit shall have waived all and any defenses to such nonpayment, and upon such nonpayment and demand upon such governmental unit for payment, if funds are not available in its treasury to pay the same, the governing body of such governmental unit shall forthwith assess a tax upon the assessment roll of the governmental unit, sufficient to pay the same with 12 percent interest thereon, and cause the same to be collected within 60 days, and further, notwithstanding the provisions of any other law, including particularly any law pursuant to which such municipal bonds were issued by such governmental unit, the bank upon such nonpayment shall thereupon constitute a holder or owner of such municipal bonds as being in default, and that notwithstanding the provisions of any other law as to time or duration of default or percentage of holders or owners of bonds entitled to exercise rights of such holders or owners of bonds in default, or to invoke any remedies or powers thereof or of any trustee in connection therewith or of any board, body, agency or commission of the state having jurisdiction in such matter or circumstance, the bank may then and thereupon avail itself of all other remedies, rights and provisions of law applicable in such circumstance, and that the failure to exercise or exert any such rights or remedies within any time or period provided by law shall not be raised as a defense by such governmental unit, and that all of the bonds of the issue of bonds of such governmental unit as to which there has been such nonpayment, shall for all of the purposes of this section be held and be deemed to have become due and payable and to be unpaid. The bank is hereby authorized and empowered to carry out the provisions of this section and to exercise all of the rights and remedies and provisions of law herein provided or referred to.
35-A:31 Cooperation by State Agencies. – All officers, departments, boards, agencies, divisions and commissions of the state are hereby authorized and empowered to render any and all of such services to the bank as may be within the area of their respective governmental functions as fixed or established by law and as may be requested by the bank. All of such officers, departments, boards, agencies, divisions and commissions are authorized and directed to comply promptly with any such reasonable request by the bank as to the making of any study or review as to desirability, need, cost or expense with respect to any such public project, purpose or improvement, or the financial feasibility thereof or the financial or fiscal responsibility or ability in connection therewith of any governmental unit making application for loan to the bank and for the purchase by the bank of municipal bonds to be issued by such governmental unit. The cost and expense of any services requested by the bank shall, at the request of the officer, department, board, agency, division or commission rendering such service, be met and provided for by the bank.
35-A:32 Agreements With Financial Institutions. – The bank is hereby authorized and empowered to enter into such agreements or contracts with any banks, trust companies, banking or financial institutions, within or without the state, as may be necessary, desirable or convenient in the opinion of the bank for rendering services to the bank in connection with the care, custody or safekeeping of municipal bonds or other investments held or owned by the bank and services in connection with the payment or collection of amounts due and payable as to principal or interest, and for services in connection with the delivery to the bank of municipal bonds or other investments purchased by it or sold by it, and to pay the cost of such services. The bank is further authorized and empowered in connection with any of such services to be rendered by any such banks, trust companies or banking or financial institutions as to the custody and safekeeping of any of its municipal bonds or investments, to require security in the way of collateral bonds, surety agreements or security agreements in such form and in such amount as, in the opinion of the bank, is necessary or desirable for the purpose of the bank.
35-A:33 Application of Funds. – Money or investments in any fund or account of the bank established or held for any bonds, notes, indebtedness or liability to be paid, funded or refunded by issuance of bonds or notes shall, unless the resolution authorizing such bonds or notes provides otherwise, be applied to the payment or retirement of any such bonds, notes, indebtedness or liability, and to no other purpose. In the event that there shall be in any such fund or account any moneys in excess of the amount required for such payment, funding or refunding, such moneys may be removed from such fund or account but only to the extent that the moneys or investments thereafter remaining in such fund or account shall be not less than the outstanding bonds, notes, indebtedness or liability of the bank to be paid, funded or refunded and for which such fund or account was established or held.
35-A:34 Effectuation of Purposes. – In order to effectively carry out its purpose under this chapter of making loans to governmental units, by purchase of the municipal bonds of such governmental units, and by receipt of its income from service charges and from payments of interest on and the maturing principal of municipal bonds purchased and held by it, and in order to produce revenues or income to the bank sufficient at all times to meet its costs and expenses of operation under this chapter and to pay the principal of and interest on its outstanding bonds and notes when due, the bank shall at all times, and to the greatest extent possible, so plan to issue its bonds and notes and so lend money to governmental units by the purchase of municipal bonds of governmental units so that the aforesaid intention and purpose is achieved without in any manner or respect jeopardizing any rights of the holders of bonds or notes of the bank or affecting other matters provided for in or pursuant to this chapter.
35-A:35 Form of Investments. – All municipal bonds or other investments of moneys of the bank permitted or provided for under the chapter shall at all times be purchased and held in fully marketable form (subject to provision for any registration in the name of the bank). All municipal bonds at any time purchased, held or owned by the bank shall upon delivery to the bank be accompanied by all documentation customary in the municipal bond market, including approving bond opinion, certification and guaranty as to signatures, and certification as to absence of litigation, and such other or further documentation as shall from time to time be required in the municipal bond market.
35-A:36 Authorization Conclusively Approved. – After issuance, all bonds or notes of the bank shall be conclusively presumed to be fully authorized and issued by all the laws of this state, and any person or governmental unit shall be stopped from questioning their authorization, sale, issuance, execution or delivery by the bank.
35-A:37 Liberal Construction. – This chapter shall be construed liberally to effectuate the legislative intent and the purposes of the chapter as complete and independent authority for the performance of each and every act and thing herein authorized and all powers herein granted shall be broadly interpreted to effectuate such intent and purposes and not as a limitation of powers.
35-A:38 Separability Clause. – If any section, subsection, paragraph, clause or provision of this chapter shall be adjudged unconstitutional or ineffective in whole or in part, to the extent that it is not adjudged unconstitutional or is not ineffective, it shall be valid and effective and no other section, subsection, paragraph, clause or provision of this chapter shall on account thereof be deemed invalid or ineffective, and the inapplicability or invalidity of any section, subsection, paragraph, clause or provision of this chapter in any one or more instances or under any one or more circumstances shall not be taken to affect or prejudice in any way its applicability or validity in any other instance or under any other circumstance.
35-A:39 Exemption for Bank Rules. – The bank shall be exempt from RSA 541-A and may issue rules in accordance with its own procedures.
35-A:40 Public Utility Bonding. – The bank shall have the authority to purchase, sell and hold public utility bonds subject to the terms pursuant to RSA 374-C. Such purchase and sale of public utility bonds shall be separate from the purchase and sale of municipal bonds under this chapter. All proceeds derived pursuant to RSA 374-C shall be maintained separately from the general fund and bond reserve fund established under this chapter. The bank's authority created under this chapter shall extend, wherever applicable, to the effective implementation of RSA 374-C.
1979, 498:3, eff. Sept. 4, 1979.
35-A:41 Educational Institution Bonding. – The bank shall have the authority to purchase, sell and hold educational institution bonds subject to the terms pursuant to RSA 195-F. Such purchase and sale of educational institution bonds shall be separate from the purchase and sale of municipal bonds under this chapter. All proceeds derived pursuant to RSA 195-F shall be maintained separately from the general fund and bond reserve fund established under this chapter. The bank's authority created under this chapter shall extend, wherever applicable, to the effective implementation of RSA 195-F.
1982, 5:2, eff. Feb. 19, 1982.
I. Any number of towns or cities may join collectively to exercise any rights available to a governmental unit under the provisions of this chapter, provided that such collective effort is limited to the raising of funds for economic development projects. For the purposes of this section "economic development projects'' means existing or proposed projects designed in part to create, retain, or improve jobs within one or more of the towns or cities which collectively exercise any rights of a governmental unit under this chapter.
II. Once any number of towns or cities join together for the purposes described in paragraph I, such combination shall be known as a multi-governmental unit. Any multi-governmental unit may enter into such written agreements as the respective governing bodies of the various towns and cities involved shall approve concerning valuation and distribution of the benefits intended by the economic development project.
1993, 328:4, eff. Aug. 23, 1993.

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