reglab/statecodes huggingface dataset:
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 15. Economic Development Bonds › 17-5-1503. Definitions

17-5-1503. Definitions.
As used in this part, unless the context requires otherwise, the following definitions apply:
(1) "Board" means the board of investments created in 2-15-1808.
(2) "Bond" means any bond, note, debenture, interim certificate, or other evidence of financial indebtedness issued by the board pursuant to this part.
(3) "Department" means the department of commerce provided for in 2-15-1801.
(4) "Finance" means to supply capital and, in the case of agricultural enterprises, to refinance a project and project costs.
(5) "Financial institution" means any bank, savings and loan association, credit union, development credit corporation, insurance company, investment company, trust company, savings institution, or other financial institution approved by the board.
(6) "Local government" means the city in which the project is located, if the project is located within an incorporated municipality, or the county if the project is located within the county but outside the boundaries of an incorporated municipality.
(7) "Major project" means a project whose cost or appraised value exceeds $800,000.
(8) "Project" means a project as defined in 90-5-101.
(9) "Project costs" means the costs of acquiring or improving any project, including the following:
(a) the actual cost of acquiring or improving real estate for any project;
(b) the actual cost of construction of all or any part of a project, including architects' and engineers' fees;
(c) all expenses in connection with the authorization, sale, and issuance of the bonds to finance such acquisition or improvement;
(d) bond reserves and premiums for insurance or guaranty of loan payments or lease rentals pledged to pay the bonds;
(e) the interest on such bonds for a reasonable time prior to construction, during construction, and not exceeding 6 months after completion of construction; and
(f) working capital for agricultural enterprise projects for a period not to exceed 1 year.
History: En. Sec. 1, Ch. 686, and Sec. 3, Ch. 701, L. 1983; amd. Sec. 1, Ch. 94, L. 1987; amd. Sec. 8, Ch. 581, L. 1987; amd. Sec. 1, Ch. 684, L. 1989.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 15. Economic Development Bonds › 17-5-1505. Financing programs of the board

17-5-1505. Financing programs of the board.
(1) The board may:
(a) invest in, purchase or make commitments to purchase, and take assignment from financial institutions of notes, mortgages, loan agreements, and other securities evidencing loans for the acquisition, construction, reconstruction, or improvement of projects located in the state, under terms and conditions determined by the board;
(b) acquire, by construction, purchase, devise, gift, lease, or any combination of methods, from financial institutions, projects located in the state and lease such projects to others for such rentals and upon such terms and conditions as determined by the board;
(c) make loans to financial institutions, under terms and conditions determined by the board, requiring the proceeds to be used by the financial institution for the purpose of financing the acquisition, construction, reconstruction, or improvement of projects located in the state; or
(d) finance projects located in the state upon such terms and conditions as determined by the board.
(2) The board may not operate any project as a business or in any other manner except as the lessor thereof or as may be necessary for a temporary period through the enforcement of its rights under a lease, loan agreement, or other security agreement.
History: En. Sec. 3, Ch. 686, and Sec. 5, Ch. 701, L. 1983; amd. Sec. 1, Ch. 640, L. 1985.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 15. Economic Development Bonds › 17-5-1506. Bonds and notes for projects and major projects

17-5-1506. Bonds and notes for projects and major projects.
(1) The board may by resolution issue negotiable notes and bonds in a principal amount that the board determines necessary to provide sufficient funds for achieving any of its purposes, including the payment of interest on notes and bonds of the board, establishment of reserves to secure the notes and bonds, including the reserve funds created under 17-5-1515, and all other expenditures of the board incident to and necessary or convenient to carry out this part.
(2) The board may by resolution, from time to time, issue notes to renew notes and bonds or to pay notes, including interest, and whenever it considers refunding expedient, refund any bonds by the issuance of new bonds, whether or not the bonds to be refunded have matured, or issue bonds partly to refund bonds outstanding and partly for any of its other purposes.
(3) Except as otherwise expressly provided by resolution of the board, every issue of its bonds is an obligation of the board payable out of any revenue, assets, or money of the board, subject only to agreements with the holders of particular notes or bonds pledging particular revenue, assets, or money.
(4) The notes and bonds must be authorized by resolutions of the board, bear a date, and mature at the times the resolutions provide. A note may not mature more than 5 years from the date of its issue. A bond may not mature more than 40 years from the date of its issue. The bonds may be issued as serial bonds payable in annual installments, as term bonds, or as a combination of serial and term bonds. The notes and bonds must bear interest at a stated rate or rates or at a rate or rate determination as stated, be in denominations, be in a form, either coupon or registered, carry registration privileges, be executed in a manner, be payable in a medium of payment, at places inside or outside the state, and be subject to terms of redemption as provided in resolutions. The notes and bonds of the board may be sold at public or private sale, at prices above or below par, as determined by the board, and in a manner that interest on the bonds is either exempt from or subject to federal income tax. If applicable, the board shall specify whether the bonds are tax credit bonds as provided in 17-5-117.
(5) The bonds issued under this part are exempt from the Montana Securities Act, but copies of all prospectus and disclosure documents must be deposited with the state securities commissioner for public inspection.
(6) The total amount of bonds secured under 17-5-1515 outstanding at any one time, except bonds as to which the board's obligations have been satisfied and discharged by refunding or bonds for which reserves for payment or other means of payment have been provided, may not exceed $100 million.
History: En. Sec. 4, Ch. 686, and Sec. 6, Ch. 701, L. 1983; amd. Sec. 2, Ch. 640, L. 1985; amd. Sec. 1, Ch. 589, L. 1991; amd. Sec. 2, Ch. 609, L. 2003; amd. Sec. 17, Ch. 489, L. 2009.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 15. Economic Development Bonds › 17-5-1508. Provisions of bond resolutions

17-5-1508. Provisions of bond resolutions.
A resolution authorizing notes or bonds or any issue thereof may contain provisions, which must be a part of the contract or contracts with the holders thereof, as to:
(1) pledging all or any part of the revenue or property of the board to secure the payment of the notes or bonds or of any issue thereof, subject to existing agreements with noteholders or bondholders;
(2) pledging all or any part of the assets of the board, including lease agreements, loan agreements, mortgages, and obligations securing them, to secure the payment of the notes or bonds or of any issue thereof, subject to existing agreements with noteholders or bondholders;
(3) the use and disposition of the gross income from lease agreements, loan agreements, and mortgages owned by the board, and the payment of the principal of mortgages owned by the board;
(4) the setting aside of reserves for debt service funds in the hands of trustees, paying agents, and other depositories and the regulation and disposition thereof;
(5) limitations on the purpose for which the proceeds of the sale of notes or bonds may be applied and the pledge of the proceeds to secure the payment of the bonds or of any issue thereof;
(6) limitations on the issuance of additional notes or bonds, the terms upon which additional notes or bonds may be issued and secured, and the refunding of outstanding notes or bonds;
(7) the procedure, if any, by which the terms of any contract with noteholders or bondholders may be amended or abrogated, the amount of notes or bonds the holders of which shall consent thereto, and the manner in which such consent may be given;
(8) a commitment to employ adequate and competent personnel at reasonable compensation; to set salaries, fees, and charges as may be determined by the board in conjunction with the department; and to maintain suitable facilities and services for the purpose of carrying out its programs;
(9) vesting in a trustee such property, rights, powers, and duties in trust as the authority determines to be necessary;
(10) defining the acts or omissions that shall constitute a default in the obligations and duties of the board to the holders of the notes or bonds and providing for the rights and remedies of the holders of the notes or bonds in the event of such default, including as a matter of right the appointment of a receiver; and
(11) any other matters of like or different character that in any way affect the security or protection of the holders of the notes or bonds.
History: En. Sec. 6, Ch. 686, and Sec. 8, Ch. 701, L. 1983; amd. Sec. 48, Ch. 281, L. 1983.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 15. Economic Development Bonds › 17-5-1509. Personal liability

17-5-1509. Personal liability.
The board and employees of the department are not personally liable or accountable by reason of the issuance of or on any bond or note issued by the board.
History: En. Sec. 7, Ch. 686, and Sec. 9, Ch. 701, L. 1983.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 15. Economic Development Bonds › 17-5-1510. Purchase of notes and bonds -- cancellation

17-5-1510. Purchase of notes and bonds -- cancellation.
The board may, subject to existing agreements with noteholders or bondholders and out of any funds available for that purpose, purchase notes or bonds of the board, which shall then be canceled, at a price not exceeding:
(1) the current redemption price plus accrued interest to the next interest payment if the notes or bonds are then redeemable; or
(2) the redemption price applicable on the first date after the purchase on which the notes or bonds become subject to redemption, plus accrued interest to that date, if the notes or bonds are not then redeemable.
History: En. Sec. 8, Ch. 686, and Sec. 10, Ch. 701, L. 1983.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 15. Economic Development Bonds › 17-5-1511. Trust indenture

17-5-1511. Trust indenture.
(1) In the discretion of the board, the bonds may be secured by a trust indenture between the board and a corporate trustee, which may be a trust company or bank having the power of a trust company, either inside or outside the state. A trust indenture may contain provisions for protecting and enforcing bondholders' rights and remedies that are reasonable, proper, and not in violation of law, including covenants setting forth the duties of the authority in relation to the exercise of its powers and the custody, safeguarding, and application of all money. The authority may provide by a trust indenture for the payment of the proceeds of the bonds and revenues to the trustee under the trust indenture of another depository and for the method of disbursement, with the safeguards and restrictions it considers necessary.
(2) All expenditures incurred in carrying out a trust indenture may be treated as part of the operating expenses of the board.
History: En. Sec. 9, Ch. 686, and Sec. 11, Ch. 701, L. 1983.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 15. Economic Development Bonds › 17-5-1512. Negotiability of bonds

17-5-1512. Negotiability of bonds.
Notes and bonds issued by the board are negotiable instruments under the Uniform Commercial Code, subject only to the provisions for registration of notes and bonds.
History: En. Sec. 10, Ch. 686, and Sec. 12, Ch. 701, L. 1983.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 15. Economic Development Bonds › 17-5-1513. Signatures of board members

17-5-1513. Signatures of board members.
If board members whose signatures appear on notes, bonds, or coupons cease to be members before the delivery of the notes or bonds, their signatures shall nevertheless be valid and sufficient for all purposes the same as if the members had remained in office until delivery.
History: En. Sec. 11, Ch. 686, and Sec. 13, Ch. 701, L. 1983.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 15. Economic Development Bonds › 17-5-1514. Accounts

17-5-1514. Accounts.
The board may create funds and accounts necessary to implement this part. The funds and accounts may include:
(1) a fund into which bond proceeds are deposited;
(2) a common bond fund consisting of:
(a) a common debt service account;
(b) a capital reserve account as provided in 17-5-1515; and
(c) an operating account for defraying the operational costs of the board; and
(3) other funds or accounts.
History: En. Sec. 12, Ch. 686, and Sec. 14, Ch. 701, L. 1983; amd Sec. 48, Ch. 281, L. 1983.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 15. Economic Development Bonds › 17-5-1515. Reserve funds and appropriations

17-5-1515. Reserve funds and appropriations.
(1) The board may establish a capital reserve account and pay into it any:
(a) funds appropriated and made available by the state for the purpose of the account;
(b) proceeds of the sale of notes or bonds to the extent provided in the resolutions or indentures of the board authorizing their issuance; and
(c) other funds which may be available to the board from any other source for the purpose of the account.
(2) All funds held in the capital reserve account must be used solely for the payment of the principal of or interest on the bonds secured in whole or in part by the account or the debt service fund payments with respect to the bonds, the purchase or redemption of the bonds, the payment of interest on the bonds, or the payment of any redemption premium required to be paid when the bonds are redeemed prior to maturity. Funds in the account may not be withdrawn at any time in an amount that reduces the account to an amount less than the sum of minimum capital reserve requirements established in the resolutions or indentures of the board for the account except, with respect to bonds secured in whole or in part by the account, for the purpose of making payment, when due, of principal, interest, redemption premiums, and debt service fund payments for the payment of which other money pledged is not available. Any income or interest earned by or incremental to the capital reserve account due to its investment may be transferred to other accounts of the board to an extent that does not reduce the amount of the capital reserve account below the sum of minimum capital reserve requirements for the account.
History: En. Sec. 13, Ch. 686, and Sec. 15, Ch. 701, L. 1983; amd. Sec. 48, Ch. 281, L. 1983.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 15. Economic Development Bonds › 17-5-1516. Maintenance of capital reserve account

17-5-1516. Maintenance of capital reserve account.
(1) In order to ensure the maintenance of the capital reserve account, the presiding officer of the board shall, on or before September 1 in each year preceding the convening of the legislature, deliver to the governor a certificate stating the sum, if any, required to restore the capital reserve account to the minimum capital reserve requirement. The governor shall include in the executive budget submitted to the legislature the sum required to restore the capital reserve account to the sum of minimum capital reserve requirement. All sums appropriated by the legislature must be deposited in the capital reserve account.
(2) All amounts appropriated to the board under this section constitute advances to the board and, subject to the rights of the holders of any bonds or notes of the board, must be repaid to the state general fund without interest from available operating revenue of the board in excess of amounts required for the payment of bonds, notes, or other obligations of the board, for maintenance of the capital reserve account, and for operating expenses.
History: En. Sec. 14, Ch. 686, and Sec. 16, Ch. 701, L. 1983; amd. Sec. 216, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 15. Economic Development Bonds › 17-5-1517. Refunding obligations

17-5-1517. Refunding obligations.
The board may provide for the issuance of refunding obligations for refunding any obligations then outstanding that have been issued under this part, including the payment of any redemption of the obligations. The issuance of obligations, the maturities and other details, the rights of the holders, and the rights, duties, and obligations of the authority are governed by the appropriate provisions of this part that relate to the issuance of obligations. The proceeds of refunding obligations may be applied to the purchase, redemption, or payment of outstanding obligations. Pending the application of the proceeds of refunding obligations and other available funds to the payment of principal, accrued interests, and any redemption premium on the obligations being refunded and, if permitted in the resolution authorizing the issuance of the refunding obligations or in the trust agreement securing them, to the payment of interest on refunding obligations and expenses in connection with refunding, the proceeds may be invested in such securities as the board considers appropriate.
History: En. Sec. 15, Ch. 686, and Sec. 17, Ch. 701, L. 1983.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 15. Economic Development Bonds › 17-5-1518. Tax exemption of bonds

17-5-1518. Tax exemption of bonds.
Bonds, notes, or other obligations issued by the board under this part and their transfer and income (including any profits made on their sale) are free from taxation by the state or any political subdivision or other instrumentality of the state, except for estate taxes. The board is not required to pay recording or transfer fees or taxes on instruments recorded by it.
History: En. Sec. 16, Ch. 686, and Sec. 18, Ch. 701, L. 1983; amd. Sec. 11, Ch. 9, Sp. L. May 2000.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 15. Economic Development Bonds › 17-5-1519. Repealed

17-5-1519. Repealed.
Sec. 19, Ch. 589, L. 1991.
History: En. Sec. 17, Ch. 686, and Sec. 19, Ch. 701, L. 1983.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 15. Economic Development Bonds › 17-5-1520. Repealed

17-5-1520. Repealed.
Sec. 19, Ch. 589, L. 1991.
History: En. Sec. 18, Ch. 686, and Sec. 20, Ch. 701, L. 1983.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 15. Economic Development Bonds › 17-5-1521. Adoption of rules

17-5-1521. Adoption of rules.
(1) The board shall adopt rules to establish:
(a) procedures for soliciting and evaluating applications and for notifying the local government of the application for purposes of complying with 17-5-1526 and 17-5-1527; and
(b) a system for evaluating applications, considering the following criteria:
(i) the applicant's net worth;
(ii) the applicant's training and experience in the industry involved in the proposed project;
(iii) the applicant's prospects for succeeding in the proposed project;
(iv) the degree to which the new or increased business resulting from the loan will meet the objectives of 17-5-1502; and
(v) any other factors the board may prescribe.
(2) The board shall adopt rules for the:
(a) organization, approval, standards, and regulation of project applicants;
(b) approval, standards, and regulation of financial institutions under this part;
(c) assessment, collection, and payment of all fees and charges in connection with making, purchasing, and servicing of its bonds and notes, mortgage lending, construction lending, temporary lending, and guaranty programs; and
(d) such other matters as the board considers necessary or desirable.
History: En. Sec. 19, Ch. 686, and Sec. 21, Ch. 701, L. 1983.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 15. Economic Development Bonds › 17-5-1522. Pledge of the state

17-5-1522. Pledge of the state.
In accordance with the constitutions of the United States and the state of Montana, the state pledges that it will not in any way impair the obligations of any agreement between the board and the holders of notes and bonds issued by the board, including but not limited to an agreement to administer a loan program financed by the issuance of bonds and to employ a staff sufficient and competent for this purpose.
History: En. Sec. 20, Ch. 686, and Sec. 22, Ch. 701, L. 1983.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 15. Economic Development Bonds › 17-5-1523. Credit of state not pledged

17-5-1523. Credit of state not pledged.
Obligations issued under the provisions of this part do not constitute a debt, liability, obligation, or pledge of the faith and credit of the state but are payable solely from the revenues or assets of the board. An obligation issued under this part must contain on the face thereof a statement to the effect that the state of Montana is not liable on the obligation, the obligation is not a debt of the state, and neither the faith and credit nor the taxing power of the state is pledged to the payment of the principal or interest on the obligation.
History: En. Sec. 21, Ch. 686, and Sec. 23, Ch. 701, L. 1983.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 15. Economic Development Bonds › 17-5-1524. Taxation of projects

17-5-1524. Taxation of projects.
(1) Notwithstanding the fact that title to a project may be in the board, such projects are subject to taxation to the same extent, in the same manner, and under the same procedures as privately owned property in similar circumstances if such projects are leased to or held by private interests on both the assessment date and the date the levy is made in that year. Such projects are not subject to taxation in any year if they are not leased to or held by private interests on both the assessment date and the date the levy is made in that year.
(2) When personal property owned by the board is taxed under this section and such personal property taxes are delinquent, levy by warrant for distraint for collection of such delinquent taxes may be made only on personal property against which such taxes were levied.
History: En. Sec. 22, Ch. 686, and Sec. 24, Ch. 701, L. 1983.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 15. Economic Development Bonds › 17-5-1525. Bonds as legal investment

17-5-1525. Bonds as legal investment.
(1) Bonds issued by the board under the provisions of this part are securities in which all funds may be legally and properly invested, including capital in the control of or belonging to:
(a) public officers and public bodies of the state and its political subdivisions;
(b) insurance companies;
(c) credit unions, building and loan associations, investment companies, savings banks, banking associations, and trust companies;
(d) executors, administrators, trustees, and other fiduciaries; and
(e) pension, profit-sharing, and retirement funds.
(2) Bonds issued under 17-5-1505 through 17-5-1518 and 17-5-1521 through 17-5-1529 are securities that may properly and legally be deposited with and received by any state or municipal officer or any agency or municipality of the state for any purpose for which the deposit of bonds or obligations of the state is now or may hereafter be authorized by law.
History: En. Sec. 23, Ch. 686, and Sec. 25, Ch. 701, L. 1983; amd. Sec. 2, Ch. 589, L. 1991.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 15. Economic Development Bonds › 17-5-1528. Validity of pledge

17-5-1528. Validity of pledge.
Any pledge made by the board is valid and binding from the time the pledge is made. Revenue, money, or property pledged and received by the board is immediately subject to the lien of the pledge without any physical delivery or further act. The lien of any pledge is valid and binding against all parties having claims of any kind, whether in tort, contract, or otherwise, against the board, irrespective of whether such parties have notice thereof. Neither the resolution nor any other instrument by which a pledge is created is required to be recorded.
History: En. Sec. 25, Ch. 686, and Sec. 27, Ch. 701, L. 1983.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 15. Economic Development Bonds › 17-5-1529. Annual audits

17-5-1529. Annual audits.
The board's books and records related to economic development bonds must be audited at least once each fiscal year by or at the direction of the legislative auditor. The actual costs of the audit must be paid from the board's funds.
History: En. Sec. 26, Ch. 686, and Sec. 28, Ch. 701, L. 1983; amd. Sec. 1, Ch. 308, L. 1985; amd. Sec. 43, Ch. 483, L. 2001; amd. Sec. 1, Ch. 487, L. 2001.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 16. Municipal Finance Consolidation Act › 17-5-1601. Short title

17-5-1601. Short title.
This part shall be known and may be cited as the "Municipal Finance Consolidation Act of 1983".
History: En. Sec. 1, Ch. 620, L. 1983.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 16. Municipal Finance Consolidation Act › 17-5-1602. Policy and purpose

17-5-1602. Policy and purpose.
(1) It is the policy of the state of Montana to:
(a) foster and promote, by all reasonable means, the provision of efficient capital markets and facilities for borrowing money by eligible government units to pay for capital improvements and other needs as otherwise authorized by law; and
(b) reduce, to the extent possible, costs of public indebtedness to taxpayers and residents by affording public bodies an appropriate degree of flexibility and choice in the marketing of their debt securities so as to minimize marketing costs and interest rates.
(2) It is the purpose of this part to promote the policies stated in subsection (1) by:
(a) creating a means for eligible government units to pool, in effect, the debt instruments they are otherwise authorized to offer for sale to the investment community in order to obtain economies of scale and reduce marketing and interest costs; and
(b) providing additional security for the payment of bonds and notes held by investors and thereby further reducing interest costs.
History: En. Sec. 2, Ch. 620, L. 1983; amd. Sec. 1, Ch. 208, L. 1995.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 16. Municipal Finance Consolidation Act › 17-5-1603. Liberal construction

17-5-1603. Liberal construction.
This part and the powers granted in this part must be liberally construed to effectuate the policies and purposes stated in this part.
History: En. Sec. 3, Ch. 620, L. 1983.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 16. Municipal Finance Consolidation Act › 17-5-1604. Definitions

17-5-1604. Definitions.
As used in this part, the following definitions apply:
(1) "Board" means the board of investments created in 2-15-1808.
(2) "Department" means the department of commerce created in 2-15-1801.
(3) "Eligible government unit" means:
(a) any municipal corporation or political subdivision of the state, including without limitation any city, town, county, school district, authority as defined in 75-6-304, or other special taxing district or assessment or service district authorized by law to borrow money;
(b) the state, any board, agency, or department of the state, or the board of regents of the Montana university system when authorized by law to borrow money; or
(c) an Indian tribal government, in accordance with 17-1-702.
(4) "Reserve fund" means the municipal finance consolidation act reserve fund created in 17-5-1630.
History: En. Sec. 4, Ch. 620, L. 1983; amd. Sec. 35, Ch. 620, L. 1983; amd. Sec. 9, Ch. 581, L. 1987; amd. Sec. 1, Ch. 593, L. 1991; amd. Sec. 1, Ch. 380, L. 1993; amd. Sec. 2, Ch. 208, L. 1995; amd. Sec. 21, Ch. 498, L. 1999; amd. Sec. 19, Ch. 378, L. 2007; amd. Sec. 3, Ch. 359, L. 2019.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 16. Municipal Finance Consolidation Act › 17-5-1605. Board of investments to implement

17-5-1605. Board of investments to implement.
The board of investments may make and enforce orders, rules, and bylaws that are necessary or desirable for the implementation of this part.
History: En. Sec. 5, Ch. 620, L. 1983; amd. Sec. 35, Ch. 620, L. 1983; amd. Sec. 10, Ch. 581, L. 1987.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 16. Municipal Finance Consolidation Act › 17-5-1606. Bonds, bond anticipation notes, and notes of the board

17-5-1606. Bonds, bond anticipation notes, and notes of the board.
(1) The board may by resolution, from time to time, issue negotiable notes and bonds to finance loans or refinance its loans to eligible government units and its purchases of eligible government unit bonds, registered warrants, and tax or revenue anticipation notes and other notes, to establish or replenish reserves securing the payment of its bonds and notes, and to finance all other expenditures of the board incident to and necessary or convenient to carry out this part.
(2) The board may by resolution, from time to time:
(a) issue notes to renew notes and bonds to pay notes, including interest;
(b) whenever it considers refunding expedient, refund any bonds by the issuance of new bonds, whether the bonds to be refunded have or have not matured; and
(c) issue bonds partly to refund bonds outstanding and partly for any of its other purposes.
(3) The board may by resolution, from time to time, in anticipation of the sale of its securities under this part, issue temporary notes and renewal notes.
(4) Except as otherwise expressly provided by resolution of the board, every issue of its notes and bonds is an obligation of the board payable out of any revenue, assets, or money of the board, subject only to agreements with the holders of particular notes or bonds pledging particular revenue, assets, or money.
(5) (a) The notes and bonds must be authorized by resolutions of the board, must bear a date, and must mature at times as provided in the resolutions. The bonds may be issued as serial bonds payable in annual installments, as term bonds, or as a combination of serial and term bonds. The notes and bonds must:
(i) bear interest at a rate or rates;
(ii) be in denominations;
(iii) be in a form, either coupon or registered;
(iv) carry registration privileges;
(v) be executed in a manner;
(vi) be payable in a medium of payment, at places inside or outside the state; and
(vii) be subject to terms of redemption as provided in resolutions of the board.
(b) The notes and bonds of the board may be sold at public or private sale at prices, which may be above or below par, that are determined by the board.
History: En. Sec. 6, Ch. 620, L. 1983; amd. Sec. 9, Ch. 481, L. 1985; amd. Sec. 3, Ch. 208, L. 1995.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 16. Municipal Finance Consolidation Act › 17-5-1607. Participation voluntary

17-5-1607. Participation voluntary.
Use of the financing mechanism created by this part is entirely voluntary, and an eligible government unit is not required to sell its bonds, bond anticipation notes, or notes to the board.
History: En. Sec. 7, Ch. 620, L. 1983; amd. Sec. 4, Ch. 208, L. 1995.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 16. Municipal Finance Consolidation Act › 17-5-1608. Limitations on amounts

17-5-1608. Limitations on amounts.
The board may not issue any bonds or notes that cause the total outstanding indebtedness of the board under this part, except for bonds or notes issued to fund or refund other outstanding bonds or notes or to purchase registered warrants or tax or revenue anticipation notes of a local government as defined in 7-6-1101, to exceed $190 million.
History: En. Sec. 8, Ch. 620, L. 1983; amd. Sec. 10, Ch. 481, L. 1985; amd. Sec. 2, Ch. 94, L. 1987; amd. Sec. 1, Ch. 483, L. 1997; amd. Sec. 1, Ch. 394, L. 2001; amd. Sec. 1, Ch. 562, L. 2003; amd. Sec. 3, Ch. 597, L. 2003; amd. Sec. 1, Ch. 50, L. 2007; amd. Sec. 20, Ch. 378, L. 2007.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 16. Municipal Finance Consolidation Act › 17-5-1609. Purchase of anticipation notes

17-5-1609. Purchase of anticipation notes.
Notwithstanding any other provision of law, an eligible government unit may issue and the board may purchase notes in anticipation of an otherwise authorized sale of eligible government unit securities. In connection with any purchase of anticipation notes, the board may by agreement with the eligible government unit impose terms, conditions, and limitations that in the board's opinion are proper under the circumstances and for the purposes and security of the board and the holders of its bonds or notes.
History: En. Sec. 9, Ch. 620, L. 1983; amd. Sec. 5, Ch. 208, L. 1995.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 16. Municipal Finance Consolidation Act › 17-5-1610. Refunding obligations

17-5-1610. Refunding obligations.
(1) The board may provide for the issuance of refunding obligations for refunding any obligations then outstanding that have been issued under this part, including the payment of any redemption premium and any interest accrued to or to accrue to the date of redemption of the obligations. The issuance of obligations, the maturities and other details, the rights of the holders, and the rights, duties, and obligations of the board are governed by the appropriate provisions of this part that relate to the issuance of obligations.
(2) Refunding obligations issued as provided in subsection (1) may be sold or exchanged for outstanding obligations issued under this part. The proceeds of refunding obligations may be applied to the purchase, redemption, or payment of outstanding obligations. Pending the application of the proceeds of refunding obligations, with other available funds, to the payment of principal, accrued interest, and any redemption premium on the obligations being refunded and, if permitted in the resolution authorizing the issuance of the refunding obligations or in the trust agreement securing them, to the payment of interest on refunding obligations and expenses in connection with refunding, the proceeds of refunding obligations may be invested as provided in Title 17, chapter 6.
History: En. Sec. 10, Ch. 620, L. 1983.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 16. Municipal Finance Consolidation Act › 17-5-1612. Specific loan authorization

17-5-1612. Specific loan authorization.
The legislature intends that individual state agencies may borrow from the program established in this part, as specifically authorized by the legislature under the following conditions:
(1) A loan for which the security is an enterprise or internal service fund source may be approved by a simple majority vote of the legislature.
(2) A loan for which the security is a general fund appropriation, a general fund revenue source, or any type of tax or fee imposed by the legislature must be approved by a two-thirds vote of the members of each house of the legislature and must include language authorizing the creation of a state debt under Article VIII, section 8, of the Montana constitution.
History: En. Sec. 1, Ch. 399, L. 2005.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 16. Municipal Finance Consolidation Act › 17-5-1621. Provisions of bond resolutions

17-5-1621. Provisions of bond resolutions.
A resolution authorizing notes or bonds or any issue thereof may contain provisions that must be a part of the contract or contracts with the holders thereof as to:
(1) pledging all or any part of the revenue or funds of the board to secure the payment of the notes or bonds or of any issue thereof, subject to existing agreements with noteholders or bondholders;
(2) the setting aside of reserves for debt service funds in the possession of trustees, paying agents, and other depositories and the regulation and disposition thereof;
(3) limitations on the purpose for which the proceeds of the sale of notes or bonds may be applied and the pledge of the proceeds to secure the payment of the notes or bonds or of any issue thereof;
(4) limitations on the issuance of additional notes or bonds, the terms upon which additional notes or bonds may be issued and secured, and the refunding of outstanding notes or bonds;
(5) the procedure, if any, by which the terms of any contract with noteholders or bondholders may be amended or abrogated, the amount of notes or bonds the holders of which must consent thereto, and the manner in which such consent may be given;
(6) a commitment to employ adequate and competent personnel at reasonable compensation, salaries, fees, and charges as may be determined by the board in conjunction with the department and to maintain suitable facilities and services for the purpose of carrying out its programs;
(7) vesting in a trustee such property, rights, powers, and duties in trust as the board determines; and
(8) defining the acts or omissions that constitute a default in the obligations and duties of the board to the holders of the notes or bonds and providing for the rights and remedies of the holders of the notes or bonds in the event of such default, including as a matter of right the appointment of a receiver. Rights and remedies may not be inconsistent with the laws of this state and the other provisions of this part.
History: En. Sec. 12, Ch. 620, L. 1983; amd. Sec. 48, Ch. 281, L. 1983.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 16. Municipal Finance Consolidation Act › 17-5-1622. Validity of pledge

17-5-1622. Validity of pledge.
A pledge by the board is valid and binding from the time the pledge is made. The revenues, money, or property pledged and thereafter received by the board is immediately subject to the lien of the pledge without any physical delivery thereof or further act. The lien of any pledge is valid and binding against all parties having claims of any kind in tort, contract, or otherwise against the board, irrespective of whether such parties have notice thereof. Neither the resolution nor any other instrument by which a pledge is created need be recorded.
History: En. Sec. 13, Ch. 620, L. 1983.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 16. Municipal Finance Consolidation Act › 17-5-1623. Nonimpairment by state

17-5-1623. Nonimpairment by state.
In accordance with the constitutions of the United States and the state of Montana, the state pledges that it will not in any way impair the obligations of any agreement between the board and an eligible government unit or between the board and the holders of notes and bonds issued by the board, including but not limited to an agreement to administer a loan program financed by the issuance of bonds and to employ a staff sufficient and competent for this purpose.
History: En. Sec. 14, Ch. 620, L. 1983; amd. Sec. 7, Ch. 208, L. 1995.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 16. Municipal Finance Consolidation Act › 17-5-1624. Trust indenture

17-5-1624. Trust indenture.
(1) In the discretion of the board, the bonds or notes of the board may be secured by a trust indenture between the board and a corporate trustee, which may be a trust company or bank having the power of a trust company inside or outside the state. A trust indenture may contain provisions for protecting and enforcing bondholders' rights and remedies that are reasonable and proper and not in violation of law, including covenants setting forth the duties of the board in relation to the exercise of its powers and the custody, safeguarding, and application of all money. The board may provide by a trust indenture for the payment of the proceeds of the bonds or notes and the revenues to the trustee under the trust indenture of another depository and for the method of disbursement, with safeguards and restrictions it considers necessary.
(2) All expenditures incurred in carrying out a trust indenture may be treated as part of the general overhead cost of the board.
History: En. Sec. 15, Ch. 620, L. 1983.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 16. Municipal Finance Consolidation Act › 17-5-1625. Presumption of validity

17-5-1625. Presumption of validity.
After issuance, all bonds or notes of the board are conclusively presumed to be fully authorized by and issued under all the laws of this state and any person or governmental unit is estopped from questioning their proper authorization, sale, issuance, execution, or delivery by the board.
History: En. Sec. 16, Ch. 620, L. 1983.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 16. Municipal Finance Consolidation Act › 17-5-1626. Signatures of board members

17-5-1626. Signatures of board members.
If any of the board members whose signatures appear on notes or bonds or coupons cease to be members before the delivery of the notes or bonds, their signatures shall nevertheless be valid and sufficient for all purposes as if the members had remained in office until delivery.
History: En. Sec. 17, Ch. 620, L. 1983.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 16. Municipal Finance Consolidation Act › 17-5-1627. Negotiability of bonds or notes

17-5-1627. Negotiability of bonds or notes.
Notwithstanding any other provisions of law, a bond or note issued under this part is fully negotiable for all purposes of the Uniform Commercial Code, Title 30, chapters 1 through 9A, and a holder or owner of a bond or note or of a coupon appurtenant to it, by accepting the bond, note, or coupon, is conclusively presumed to have agreed that the bond, note, or coupon is fully negotiable for all purposes of the Uniform Commercial Code.
History: En. Sec. 18, Ch. 620, L. 1983.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 16. Municipal Finance Consolidation Act › 17-5-1628. Bonds or notes as legal investments

17-5-1628. Bonds or notes as legal investments.
Notwithstanding the restrictions of any other law, 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 debt service funds, money, or other funds belonging to them or within their control in bonds or notes issued under this part.
History: En. Sec. 19, Ch. 620, L. 1983; amd. Sec. 48, Ch. 281, L. 1983.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 16. Municipal Finance Consolidation Act › 17-5-1629. Tax exemption of bonds

17-5-1629. Tax exemption of bonds.
Bonds, notes, or other obligations issued by the board under this part, their transfer, and their income (including any profits made on their sale) are free from taxation by the state or any political subdivision or other instrumentality of the state, except for estate taxes. The board is not required to pay recording or transfer fees or taxes on instruments recorded by it.
History: En. Sec. 20, Ch. 620, L. 1983; amd. Sec. 12, Ch. 9, Sp. L. May 2000.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 16. Municipal Finance Consolidation Act › 17-5-1630. Reserve fund

17-5-1630. Reserve fund.
(1) The board shall establish and maintain a municipal finance consolidation act reserve fund, to which there shall be deposited or transferred:
(a) all money appropriated by the legislature for the purposes of the fund in accordance with the provisions of subsection (4);
(b) all proceeds of bonds required to be deposited in the fund by terms of a contract between the board and its bondholders or a resolution of the board with respect to the proceeds of bonds;
(c) the proceeds of any bond issue of the state that is authorized for such purpose;
(d) all other money appropriated by the legislature to the reserve fund; and
(e) any other money or funds of the board that it decides to deposit in the fund.
(2) All money held in the reserve fund shall be used solely for the payment of the principal of or interest on the bonds or notes secured in whole or in part by the fund or the debt service fund payments with respect to the bonds or notes, the purchase or redemption of the bonds or notes, the payment of interest on the bonds or notes, or the payment of any redemption premium required to be paid when the bonds or notes are redeemed prior to maturity. Money in the reserve fund may not be withdrawn at any time in an amount that reduces the fund to an amount less than the sum of minimum reserve requirements established in the resolutions or indentures of the board for the fund except, with respect to bonds or notes secured in whole or in part by the fund, for the purpose of making payment when due of principal, interest, redemption premiums, and debt service fund payments for the payment of which other money pledged is not available.
(3) Money in the reserve fund in excess of the required reserve may be withdrawn at any time by the board and transferred to another fund or account of the board established for purposes of this part, but not to any other fund or account.
(4) Nothing in this section creates a debt or liability of the state.
(5) Notwithstanding any provision of Title 17, chapter 6, the board may lend money for deposit to the reserve fund in an amount equal to any deficiency in the required debt service reserve. The loans shall be made on such reasonable terms and conditions as the board considers proper, including without limitation terms and conditions providing that the loans need not be repaid until the obligations of the board secured and to be secured by the reserve fund are no longer outstanding.
History: En. Sec. 21, Ch. 620, L. 1983; amd. Sec. 48, Ch. 281, L. 1983; amd. Sec. 11, Ch. 581, L. 1987.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 16. Municipal Finance Consolidation Act › 17-5-1631. Additional funds and accounts

17-5-1631. Additional funds and accounts.
The board may in its discretion establish additional reserves or other funds or accounts necessary, desirable, or convenient to further the accomplishment of the purposes of this part or to comply with the provisions of any of its agreements or resolutions.
History: En. Sec. 22, Ch. 620, L. 1983.