Taxable Bond Act

The Taxable Bond Act governs the issuance of bonds on a taxable basis — obligations whose interest does not carry the federal tax exemption ordinarily associated with state and local borrowing — and sets out the authority under which a governmental issuer may raise money through them. It establishes the mechanics of that borrowing: the terms the bonds may carry, the manner in which they are sold, the pledging of credit to secure repayment, restrictions on how the proceeds may be applied, and authority to issue refunding bonds to retire earlier obligations. It also supplies the governing definitions, states the purposes the legislature intended the borrowing power to serve, and addresses how the act operates where it meets other law.

Editorial summary generated from the text of this act. It is not part of the statute — read the sections below for the operative language.