[Rev. 11/21/2013 10:55:56 AM--2013]

CHAPTER 349 - STATE OBLIGATIONS

STATE ELECTIONS FOR ISSUANCE OF BONDS

NRS 349.005           “Bond question” defined.

NRS 349.010           Submission of proposal to issue bonds at special, primary or general election; limitation on special elections.

NRS 349.013           Publication of notice of election; Secretary of State to certify proposal to county clerks.

NRS 349.015           Contents of sample ballot and notice of election; consolidation with primary or general election.

NRS 349.017           Notice of registration of electors for special election; hours for registration.

NRS 349.020           Ballots: Form.

NRS 349.030           Ballot boxes; mechanical recording devices for voting.

NRS 349.040           Special election: Appointment and duties of inspectors and clerks; election board and precincts.

NRS 349.050           Qualifications of electors; absent voting.

NRS 349.060           Canvass of votes; certification of results; abstract transmitted by county clerk to Secretary of State.

NRS 349.070           Approval or rejection of bonds: Procedure.

ISSUANCE AND REDEMPTION OF SECURITIES BY STATE BOARD OF FINANCE

NRS 349.071           Powers of State Board of Finance.

NRS 349.072           State Bond Issuance Account: Creation; appropriations.

ISSUANCE OF NOTES BY STATE TREASURER

NRS 349.074           Authority of State Treasurer; issuance, sale, repayment and use of proceeds of notes; investment by Local Government Pooled Investment Fund; pledge of faith and credit of State. [Effective through September 30, 2017.]

INTEREST RATES; DISCOUNTS; LIMITATION ON ISSUANCE

NRS 349.075           Definitions.

NRS 349.076           Maximum rate of interest on securities issued by State.

NRS 349.077           Discounts.

NRS 349.078           Limitation on issuance or sale after date of election.

CONSOLIDATED BOND INTEREST AND REDEMPTION FUND

NRS 349.080           Purpose of NRS 349.080 to 349.140, inclusive.

NRS 349.090           Creation; records of accounting.

NRS 349.100           Deposits of money in Fund.

NRS 349.110           Payment of principal, interest and charges for bonds.

NRS 349.120           Legislative appropriations from State General Fund.

NRS 349.130           Deficiencies in Fund made up from State General Fund.

NRS 349.140           Effect of NRS 349.080 to 349.140, inclusive.

STATE SECURITIES LAW

NRS 349.150           Short title.

NRS 349.152           Purpose; supplemental nature.

NRS 349.154           Definitions.

NRS 349.156           “Acquisition” and “acquire” defined.

NRS 349.158           “Chair” and “Chair of the Commission” defined.

NRS 349.160           “Commercial bank” defined.

NRS 349.162           “Commission” defined.

NRS 349.164           “Condemnation” and “condemn” defined.

NRS 349.166           “Controller” defined.

NRS 349.168           “Cost of any project” defined.

NRS 349.169           “Disposal” and “dispose” defined.

NRS 349.1695         “Equip” and “equipment” defined.

NRS 349.170           “Facilities” defined.

NRS 349.172           “Federal Government” defined.

NRS 349.174           “Federal securities” defined.

NRS 349.176           “Governor” defined.

NRS 349.178           “Gross revenues” and “gross pledged revenues” defined.

NRS 349.180           “Hereby,” “herein,” “hereinabove,” “hereinafter,” “hereinbefore,” “hereof,” “hereto,” “hereunder,” “heretofore” and “hereafter” defined.

NRS 349.182           “Holder” defined.

NRS 349.184           “Improvement” and “improve” defined.

NRS 349.186           “Net revenues” and “net pledged revenues” defined.

NRS 349.188           “Operation and maintenance expenses” defined.

NRS 349.192           “Pledged revenues” defined.

NRS 349.194           “Project” defined.

NRS 349.196           “Secretary” defined.

NRS 349.198           “State securities” and “securities” defined.

NRS 349.200           “State” defined.

NRS 349.202           “Taxation” defined.

NRS 349.204           “Taxes” defined.

NRS 349.206           “Treasurer” defined.

NRS 349.208           “Trust bank” defined.

NRS 349.210           “United States” defined.

NRS 349.212           Powers of State in connection with projects.

NRS 349.213           Power of eminent domain; reimbursement of public utility for removal and relocation.

NRS 349.214           Power of State to become obligated and issue securities for project.

NRS 349.216           Types of securities which may be issued; series.

NRS 349.218           Notes and warrants: Maturity; extension or funding.

NRS 349.220           Temporary bonds: Conditions, terms and provisions; rights and remedies of holder.

NRS 349.222           Resolution authorizing issuance of securities: Description of purposes.

NRS 349.223           Sale of securities as investment to defray anticipated costs of college.

NRS 349.224           General obligations: Types of securities.

NRS 349.225           General obligation bonds subject to review and approval of State Board of Finance; exception.

NRS 349.226           Special obligations: Types of securities.

NRS 349.227           Variable rates of interest for securities; agreement with third party for assurance of payment for securities; reimbursement for advances made pursuant to agreement.

NRS 349.2275         Variable rates of interest: Exemption from limitations; conclusive findings of Commission that procedure for determination of rates is reasonable.

NRS 349.228           Securities issued as general obligations payable from gross revenues: Covenant requiring appropriations to pay expenses of operation and maintenance.

NRS 349.230           Securities issued as general obligations constitute outstanding indebtedness of State; exceptions.

NRS 349.232           Securities issued as special obligations do not constitute outstanding indebtedness of State.

NRS 349.234           Recitals required in state securities.

NRS 349.236           Payment of principal of and interest on general obligation bonds from Consolidated Bond Interest and Redemption Fund.

NRS 349.238           Annual levy of special tax to pay interest on and retire securities issued as general obligations; proceeds of tax kept in two special funds. [Effective through November 24, 2014, and after that date unless the provisions of Senate Joint Resolution No. 15 (2011) are approved and ratified by the voters at the 2014 General Election.]

NRS 349.238           Annual levy of special tax to pay interest on and retire securities issued as general obligations; proceeds of tax kept in two special funds. [Effective November 25, 2014, if the provisions of Senate Joint Resolution No. 15 (2011) are approved and ratified by the voters at the 2014 General Election.]

NRS 349.240           Time and duration of levy of special tax.

NRS 349.242           Payment from State General Fund when taxes insufficient to pay amount due on securities issued as general obligations; reimbursement of State General Fund.

NRS 349.244           Application of other available money to payment of interest on and principal of securities issued as general obligations.

NRS 349.248           Proceeds of taxes specially appropriated to payment of principal and interest.

NRS 349.250           Payment of state securities not to be secured by encumbrance, mortgage or pledge of State’s property; exception.

NRS 349.251           Agreement for exchange of payments based on interest rates for state securities issued or proposed to be issued by Commission: Conditions; rates of interest; term of agreement; agreement does not constitute outstanding indebtedness of State; limitations on rate of interest on state securities inapplicable; money pledged to debt service of state securities may be used to make payments required by agreement.

NRS 349.252           Recourse against members of Commission and state officers and agents: Acceptance of securities constitutes waiver and release.

NRS 349.254           Covenants in resolution authorizing issuance of special obligations impose no liability against State or its general credit.

NRS 349.256           Faith of State pledged against repeal, amendment or modification of State Securities Law.

NRS 349.260           Details of state securities provided by resolution.

NRS 349.262           Issuance of state securities.

NRS 349.270           Securities sold publicly to be sold to responsible bidder making best bid; equal bids.

NRS 349.274           Recital in securities conclusive evidence of validity and regularity of issuance.

NRS 349.276           Denomination, negotiability and maturity of state securities; rate of interest.

NRS 349.278           Payment of principal, interest and premium when due without further order.

NRS 349.280           Interest coupons.

NRS 349.282           Execution, signing, countersigning and authentication of state securities and coupons.

NRS 349.284           Facsimile signatures and seals.

NRS 349.286           Securities not invalid because signatories cease to fill offices.

NRS 349.288           Adoption of facsimile signature of predecessor in office.

NRS 349.290           Redemption before maturity.

NRS 349.292           Repurchase of state securities.

NRS 349.294           Use of money received from issuance of state securities.

NRS 349.296           Disposition of unexpended balance of proceeds after completion of project.

NRS 349.298           Validity of securities not dependent on proceedings relating to project or completion of purpose; purchasers not responsible for application of proceeds.

NRS 349.300           Special funds and accounts: Creation; purposes.

NRS 349.302           Employment of legal and other expert services; contracts for sale and other purposes.

NRS 349.303           Delegation of power of Commission to State Treasurer or designee to sign contracts or accept binding bids for purchase of bonds; establishment of certain requirements and approval of certain terms by Commission for purchase of bonds.

NRS 349.304           Investment and reinvestment of revenues and proceeds of taxes and securities in federal securities or certain money market mutual funds.

NRS 349.306           Covenants and other provisions in state securities.

NRS 349.308           Pledged revenues received or credited subject to immediate lien; priority and validity of lien.

NRS 349.310           Rights and powers of holders of state securities and trustees.

NRS 349.312           Receivers: Appointment; powers and duties.

NRS 349.314           Rights and remedies cumulative.

NRS 349.316           Failure of holder to proceed does not relieve State, Commission and officers, agents and employees of State of liability for nonperformance of duties.

NRS 349.318           Interim debentures: Issuance for general or special obligations.

NRS 349.320           Issuance of state securities constituting debt to fund or refund special obligations not constituting indebtedness: Conditions; restrictions.

NRS 349.322           Interim debentures: Maturity; use of proceeds; issuance.

NRS 349.324           Interim debentures: Security for payment.

NRS 349.326           Interim debentures: Extension and funding.

NRS 349.328           Interim debentures: Funding by reissuance of bonds pledged as collateral security; issuance of other bonds.

NRS 349.330           Refunding of general and special obligation bonds: Resolution; trust indenture.

NRS 349.332           Calls for prior redemption: Limitations.

NRS 349.334           Exchange of outstanding securities held by State or its agencies for funding or refunding.

NRS 349.336           Refunding of outstanding securities evidencing long-term loans.

NRS 349.338           Refunding bonds: Exchange for outstanding bonds or federal securities; public or private sale.

NRS 349.340           Conditions for refunding bonds.

NRS 349.342           Refunding bonds: Disposition of proceeds; accrued interest and premium; costs; escrow; trusts.

NRS 349.344           Proceeds of refunding bonds in escrow or trust: Investment; security; sufficient amount; purchaser not responsible for application of proceeds.

NRS 349.346           Refunding bonds payable from taxes or pledged revenues.

NRS 349.348           Issuance of bonds separately or in combination.

NRS 349.350           Other statutory provisions applicable to refunding bonds.

NRS 349.352           Conclusive determination of Commission that statutory limitations have been met.

NRS 349.354           Bonds and other securities exempt from taxation; exceptions.

NRS 349.356           Securities issued as general obligations are legal investments for state money.

NRS 349.358           Legal investments for other persons.

NRS 349.362           Sufficiency of State Securities Law.

NRS 349.364           Liberal construction.

REVENUE BONDS FOR INDUSTRIAL DEVELOPMENT

NRS 349.400           Definitions.

NRS 349.405           “Biomass” defined.

NRS 349.410           “Board” defined.

NRS 349.420           “Bonds” and “revenue bonds” defined.

NRS 349.425           “Corporation for public benefit” defined.

NRS 349.430           “Cost of a project” defined.

NRS 349.440           “Director” defined.

NRS 349.450           “Expense of operation and maintenance” defined.

NRS 349.460           “Finance” and “financing” defined.

NRS 349.470           “Financing agreement” defined.

NRS 349.475           “Fuel cell” defined.

NRS 349.480           “Health and care facility” defined.

NRS 349.485           “Historic structure” defined.

NRS 349.490           “Mortgage” defined.

NRS 349.500           “Obligor” defined.

NRS 349.510           “Project” defined.

NRS 349.515           “Renewable energy” defined.

NRS 349.517           “Renewable energy generation project” defined.

NRS 349.520           “Revenues” defined.

NRS 349.530           “Supplemental facility for a health and care facility” defined.

NRS 349.540           “Warehousing” defined.

NRS 349.550           Applicability of definitions contained in county and city economic development revenue bond laws.

NRS 349.555           Exercise of powers for general welfare; liberal construction.

NRS 349.560           Legislative declaration.

NRS 349.565           Restrictions on Director’s powers.

NRS 349.570           General power of Director to issue bonds.

NRS 349.580           Prerequisites to financing project: Findings of Director.

NRS 349.585           Prerequisites to financing project: Approval of Office of Economic Development.

NRS 349.590           Prerequisites to financing project: Additional considerations.

NRS 349.595           Prerequisites to financing costs related to equipment for project; establishment of guidelines.

NRS 349.597           Confidentiality of information concerning obligor.

NRS 349.600           Bonds to be special obligations.

NRS 349.610           Form and terms of bonds; sale; employment of financial and legal consultants.

NRS 349.620           Security.

NRS 349.630           Regulations.

NRS 349.640           Refunding.

NRS 349.650           Limitation of actions.

NRS 349.660           Faith of State pledged against repeal, amendment or modification of NRS 349.400 to 349.670, inclusive.

NRS 349.670           Sufficiency of NRS 349.400 to 349.670, inclusive.

REVENUE BONDS FOR FINANCING EXPORTATION OF GOODS

NRS 349.700           Legislative declaration.

NRS 349.710           Definitions.

NRS 349.715           “Bonds” defined.

NRS 349.720           “Director” defined.

NRS 349.725           “Exporter” defined.

NRS 349.730           “Guaranteed funding” defined.

NRS 349.735           “Loss” defined.

NRS 349.740           “Participating financial institution” defined.

NRS 349.745           “Program” defined.

NRS 349.750           Director: Administration of provisions; powers; biennial report to State Board of Finance and Legislative Commission.

NRS 349.755           Director: Delegation of duties.

NRS 349.760           Transactions eligible for guaranteed funding: Criteria.

NRS 349.765           Guaranteed funding provided to participating financial institution: Limitation on amount; finding of Director of necessity for funding; term of and interest on loan to exporter.

NRS 349.770           Investigation of credit available to exporter prerequisite for guaranteed funding.

NRS 349.775           Confidentiality of information concerning exporter.

NRS 349.780           Fees charged to participating financial institution.

NRS 349.785           Agreements excusing payment on guaranteed funding and loan to exporter; fee charged to exporter.

NRS 349.790           Director subrogated to rights of exporter and participating financial institution upon default by exporter.

NRS 349.795           Guarantee: Not general obligation of State; limitation on termination, cancellation or revocation; presumption of validity.

NRS 349.800           Advisory Committee on Financing Exports: Creation; composition; terms of members.

NRS 349.805           Advisory Committee on Financing Exports: Meetings; quorum; officers; rules; compensation and expenses.

NRS 349.810           Advisory Committee on Financing Exports: Powers and duties.

NRS 349.815           Regulations for operation of program.

NRS 349.820           Limitation on personal liability of Director or person acting on his or her behalf.

NRS 349.825           Issuance of revenue bonds: Director required to submit findings to Advisory Committee on Financing Exports and State Board of Finance; approval of State Board of Finance; limitation on amount of bonds.

NRS 349.830           Bonds: Special obligations of State.

NRS 349.835           Bonds: Form and terms; sale.

NRS 349.840           Bonds: Repurchase.

NRS 349.845           Bonds: Refunding.

NRS 349.850           Bonds: Legal investments.

NRS 349.855           Director: Establishment of funds and accounts; investments and deposits.

NRS 349.857           Director: Loans of securities.

NRS 349.860           Insurance.

NRS 349.865           Faith of State pledged against repeal, amendment or modification of NRS 349.700 to 349.870, inclusive.

NRS 349.870           Sufficiency of NRS 349.700 to 349.870, inclusive; construction.

REVENUE BONDS FOR VENTURE CAPITAL

NRS 349.900           Legislative declaration.

NRS 349.901           Definitions.

NRS 349.902           “Account for Venture Capital” defined.

NRS 349.903           “Agreement” defined.

NRS 349.904           “Board” defined.

NRS 349.905           “Bonds” and “revenue bonds” defined.

NRS 349.906           “Director” defined.

NRS 349.907           “Expense of operation and maintenance” defined.

NRS 349.908           “Fund for the Retirement of Bonds” defined.

NRS 349.909           “Management company” defined.

NRS 349.910           General powers of Director; promotion of funds for venture capital; liberal construction.

NRS 349.911           Limitation on personal liability of Director or person acting on his or her behalf.

NRS 349.912           Director: Selection of management company; agreement; regulations; expenses of operation and maintenance; employees, advisers and consultants.

NRS 349.913           Director: Restriction on operation or management of enterprise.

NRS 349.914           Director: Allocation of proceeds of bonds.

NRS 349.915           Contents of agreement.

NRS 349.916           Objective of investments for Account for Venture Capital.

NRS 349.917           Form of investments of management company; management company to be managed by experienced person.

NRS 349.918           Prerequisites for management company.

NRS 349.919           Issuance of revenue bonds: Director required to submit findings to Board; approval of Board; limitation on amount of bonds.

NRS 349.920           Issuance of bonds: Findings of Director and Board.

NRS 349.921           Bonds: Safety as to repayment of principal and interest; Fund for the Retirement of Bonds; investment of money in Fund.

NRS 349.922           Bonds: Special obligations of State.

NRS 349.923           Bonds: Form and terms; sale.

NRS 349.924           Bonds: Regulations for investment and reinvestment of proceeds and management of proceeds by banks or trust companies.

NRS 349.925           Bonds: Refunding.

NRS 349.926           Limitation of actions.

NRS 349.927           Faith of State pledged against repeal, amendment or modification of NRS 349.900 to 349.929, inclusive.

NRS 349.928           Sufficiency of NRS 349.900 to 349.929, inclusive; construction.

NRS 349.929           Account for Venture Capital to be entrusted to management company; proceeds of bonds may be entrusted to another management company.

FINANCING OF WATER PROJECTS

NRS 349.935           Definitions.

NRS 349.936           “Board” defined.

NRS 349.937           “Cost of a water project” defined.

NRS 349.938           “Director” defined.

NRS 349.939           “Expense of operation and maintenance” defined.

NRS 349.940           “Mortgage” defined.

NRS 349.941           “Obligor” defined.

NRS 349.942           “Revenue bonds” defined.

NRS 349.943           “State securities” defined.

NRS 349.944           “Tax” defined.

NRS 349.945           “Water project” defined.

NRS 349.946           General powers of Director; adoption of regulations.

NRS 349.947           Liberal construction.

NRS 349.948           Prerequisites for financing water projects.

NRS 349.949           Forms and terms of bonds; sale; employment of financial and legal consultants.

NRS 349.950           Issuance of state securities or revenue bonds: Limitation on amount; payment; legislative declaration.

NRS 349.951           Director may charge fee against obligor; use of proceeds.

NRS 349.952           Account for the Financing of Water Projects: Deposits; application of revenue; investment of money from revenue bonds.

NRS 349.953           Refunding.

NRS 349.954           Limitation of actions.

NRS 349.955           Faith of State pledged against repeal, amendment or modification of NRS 349.935 to 349.961, inclusive.

NRS 349.956           Exemption of water projects from requirements of other statutes.

NRS 349.957           Board for Financing Water Projects: Creation; members.

NRS 349.958           Board for Financing Water Projects: Compensation of members.

NRS 349.959           Board for Financing Water Projects: Election of Chair; meetings.

NRS 349.960           State Engineer may advise Board; State Engineer and Director may assist in preparation of preliminary plan.

NRS 349.961           Water projects: Preliminary plan; approval.

GRANTS FOR CAPITAL IMPROVEMENTS TO PUBLICLY OWNED WATER SYSTEMS

NRS 349.980           Definitions.

NRS 349.981           Program to provide grants for water conservation and capital improvements to certain water systems; Board for Financing Water Projects to determine recipients of grants; applicability to certain recipients of provisions governing public works.

NRS 349.982           Powers and duties of Board for Financing Water Projects: Administration of program; adoption of regulations; use of money in Fund to defray certain costs and expenses; imposition of administrative fee.

NRS 349.983           Purveyors of water that are eligible to receive grants; preference for smaller systems; matching money from other sources.

NRS 349.984           Fund for Grants for Water Conservation, Capital Improvements to Certain Water Systems and Improvements to Certain Sewage Disposal Systems: Creation; use; payment of claims.

NRS 349.985           Fund for Grants for Water Conservation and Capital Improvements to Certain Water Systems: Deposit of money; interest and income credited to Fund.

NRS 349.986           General obligation bonds.

NRS 349.987           Applicability of State Securities Law and certain provisions governing financing of water projects.

_________

STATE ELECTIONS FOR ISSUANCE OF BONDS

      NRS 349.005  “Bond question” defined.  As used in NRS 349.005 to 349.070, inclusive, “bond question” means any proposal for the issuance of bonds or otherwise for the incurrence of a loan.

      (Added to NRS by 1975, 856; A 1993, 1065)

      NRS 349.010  Submission of proposal to issue bonds at special, primary or general election; limitation on special elections.

      1.  Whenever the State of Nevada proposes to issue bonds or provide for loans in any amount which does not contravene the limit of indebtedness provided by the Constitution of the State of Nevada, the proposal for the bond issue or loan may be submitted to the electors of the State at a special, primary or general election.

      2.  A special election may be held only if the State Board of Finance determines, by a unanimous vote, that an emergency exists. The determination made by the Board is conclusive unless it is shown that the Board acted with fraud or a gross abuse of discretion. An action to challenge the determination made by the Board must be commenced within 15 days after the Board’s determination is final. As used in this subsection, “emergency” means any unexpected occurrence or combination of occurrences which requires immediate action by the State Board of Finance to prevent or mitigate a substantial financial loss to the State or to enable the State to provide an essential service to the residents of the State.

      [Part 2:70:1937; A 1956, 219]—(NRS A 1959, 240; 1969, 1584; 1975, 856; 1993, 1065; 1995, 2236)

      NRS 349.013  Publication of notice of election; Secretary of State to certify proposal to county clerks.

      1.  Whenever the State has ordered a bond election, the clerk of each county in the State shall cause notice of the election to be published in some newspaper printed in and having a general circulation in the county once in each calendar week for 2 successive calendar weeks by two weekly insertions a week apart, the first publication to be not more than 30 days nor less than 22 days next preceding the date of the election.

      2.  If no newspaper is printed in the county, then publication of the notice of election shall be made in some newspaper printed in the State of Nevada and having a general circulation in the county.

      3.  The Secretary of State shall certify to each county clerk the proposal for the bond issue or loan at least 40 days prior to the election.

      (Added to NRS by 1969, 1584)

      NRS 349.015  Contents of sample ballot and notice of election; consolidation with primary or general election.

      1.  Except as otherwise provided in subsection 3, the sample ballot required to be mailed pursuant to NRS 293.565 or 293C.530, and the notice of election must contain:

      (a) The time and places of holding the election.

      (b) The hours during the day in which the polls will be open, which must be the same as provided for general elections.

      (c) The purposes for which the bonds are to be issued.

      (d) A disclosure of any:

             (1) Future increase or decrease in costs which can reasonably be anticipated in relation to the purposes for which the obligations are to be issued and its probable effect on the tax rate; and

             (2) Requirement relating to the bond question which is imposed pursuant to a court order or state or federal statute and the probable consequences which will result if the bond question is not approved by the voters.

      (e) An estimate of the annual cost to operate, maintain and repair any buildings, structures or other facilities or improvements to be constructed or acquired with the proceeds of the bonds.

      (f) The maximum amount of the bonds.

      (g) The maximum rate of interest.

      (h) The maximum number of years which the bonds are to run.

      2.  Any election called pursuant to NRS 349.010 to 349.070, inclusive, may be consolidated with a primary or general election.

      3.  If the election is consolidated with a general election, the notice of election need not set forth the places of holding the election, but may instead state that the places of holding the election will be the same as those provided for the general election.

      (Added to NRS by 1969, 1584; A 1987, 1468; 1993, 1065, 1418; 1995, 554; 1997, 3476)

      NRS 349.017  Notice of registration of electors for special election; hours for registration.

      1.  If the bond question is submitted at a general election, no notice of registration of electors is required other than that required by the laws for a general election.

      2.  If the bond question is submitted at a special election, the clerk of each county shall cause to be published, at least once a week for 2 consecutive weeks by two weekly insertions a week apart, the first publication to be not more than 50 days nor less than 42 days next preceding the election, in a newspaper published within the county, if any is so published, and having a general circulation therein, a notice signed by him or her to the effect that registration for the special election will be closed on a date and time designated therein, as provided in this section.

      3.  Except as otherwise provided in subsection 4, the office of the county clerk in each county of this State must be open for such a special election, from 9 a.m. to 12 m. and 1 p.m. to 5 p.m. on Mondays through Fridays, with Saturdays, Sundays and legal holidays excepted, for the registration of any qualified elector.

      4.  The office of the county clerk must be open during the last days of registration as provided in subsection 2 of NRS 293.560.

      5.  The office of the county clerk must be open for registration of voters for such a special election up to but excluding the 30th day next preceding that election and during regular office hours.

      (Added to NRS by 1969, 1584; A 1971, 91; 1973, 559; 1975, 856; 1997, 3476; 2011, 3075)

      NRS 349.020  Ballots: Form.

      1.  The election officers of the State who are charged with the duty of providing for and conducting the election shall provide printed ballots for the use of the voters entitled to vote at the election. Any bond question may be submitted on the same ballot as otherwise used at the election, if any, or may be submitted by separate ballot, as the commission, board or other agency of the State ordering the submission of the bond question, if any, or otherwise the Secretary of State, may determine.

      2.  There shall be printed on all ballots:

      (a) Instructions respecting the manner of marking the ballots.

      (b) A statement of the proposal to be voted upon. No defect in the statement other than in the statement of the maximum amount of the bonds to be authorized shall invalidate the bonds.

      [Part 3:70:1937; A 1953, 322]—(NRS A 1971, 92)

      NRS 349.030  Ballot boxes; mechanical recording devices for voting.

      1.  The election officers of the State who are charged with the duty of providing for and conducting the election shall provide one ballot box at each polling place for the purpose of the election. If a bond election is held in conjunction with a general election or any other election for other than the submission of the bond question, the same single ballot box must be used at each polling place.

      2.  Notwithstanding any other provision of NRS 349.010 to 349.070, inclusive, at any bond election thereunder, ballots or votes may be cast, registered, recorded and counted by means of a mechanical recording device, as provided in the election laws of this state.

      [Part 3:70:1937; A 1953, 322]—(NRS A 1969, 1585; 1971, 92; 1987, 1378)

      NRS 349.040  Special election: Appointment and duties of inspectors and clerks; election board and precincts.

      1.  When a special election is called, on or before 15 days before the date of the election the several boards of county commissioners of this state shall, subject to the provisions of subsection 3, select and appoint suitable persons, who shall be citizens and qualified voters in the State, county and in the precinct where they are appointed, to act as inspectors and clerks of the election.

      2.  The inspectors and clerks of the election shall:

      (a) Be selected, appointed and paid, if payment is claimed, as provided by law; and

      (b) Perform such duties in holding the election and in making due return thereof as are required by the general election laws of this state, so far as the same are not inconsistent with or in conflict with the provisions of NRS 349.010 to 349.070, inclusive.

      3.  Only one election board shall be appointed for each voting precinct in the State. For the purposes of the special election, the several boards of county commissioners, in providing for and proclaiming the election precincts, shall divide their respective counties into any number of voting precincts as they may deem necessary without regard to the number of qualified voters in any one precinct.

      [4.5:70:1937; added 1956, 219]

      NRS 349.050  Qualifications of electors; absent voting.

      1.  Every citizen of the United States, 18 years of age or over, who has resided in the State and in the county 30 days next preceding such election, is entitled to vote at the election if he or she has complied with the registration laws of this state.

      2.  The provisions of the election laws of this state relating to absent voting shall apply to all bond elections under NRS 349.010 to 349.070, inclusive.

      3.  Subsection 1 does not exclude the registration of eligible persons whose 18th birthday or the date of whose completion of the required residence occurs on or before the election at which is submitted the proposal for a bond issue or otherwise for the incurrence of a loan under NRS 349.010 to 349.070, inclusive.

      [Part 4:70:1937; A 1953, 322; 1955, 162]—(NRS A 1969, 1585; 1971, 92, 1267; 1975, 856)

      NRS 349.060  Canvass of votes; certification of results; abstract transmitted by county clerk to Secretary of State.

      1.  Immediately after the closing of the polls, the election officers shall proceed to canvass the ballots.

      2.  The results disclosed by the canvass shall be certified by the election officers of each county to the county clerk.

      3.  The board of county commissioners of each county shall open the returns of votes cast, make abstracts of the votes, and cause the county clerk to make a copy of such abstract and to transmit the same to the Secretary of State as provided by the election laws of the State.

      [Part 4:70:1937; A 1953, 322; 1955, 162]—(NRS A 1969, 1586)

      NRS 349.070  Approval or rejection of bonds: Procedure.

      1.  If a majority of the electors voting on the bond question is in favor of the issuance of the bonds, the proposal to issue them shall have been carried, and the proper officers of the State shall, in the manner provided by law or in the manner expressed in the notice of the election, proceed to complete the printing, execution, advertisement and sale of the bonds.

      2.  If the majority of the electors voting on the bond question is against the issuance of the bonds, the proposal to issue them shall have failed, and the proper officers of the State shall proceed no further with the printing, execution, advertisement or sale of the bonds, but they shall certify the result of the election to the proper officers, board or governing board of the State.

      [Part 4:70:1937; A 1953, 322; 1955, 162]—(NRS A 1971, 94)

ISSUANCE AND REDEMPTION OF SECURITIES BY STATE BOARD OF FINANCE

      NRS 349.071  Powers of State Board of Finance.

      1.  The State Board of Finance may issue and redeem securities on behalf of the State, when such issue is authorized by law, in the manner provided by the State Securities Law.

      2.  The State Board of Finance constitutes the successor of the State Board of Examiners, the State General Obligation Bond Commission and any similar commission created before April 25, 1967.

      3.  In connection with any outstanding state securities issued on behalf of the State of Nevada by the State Board of Examiners, the State General Obligation Bond Commission or any such predecessor commission, the State Board of Finance may fund, refund and reissue such securities and may otherwise exercise on behalf of the State the supplemental powers provided in the State Securities Law.

      (Added to NRS by 1967, 1380; A 1973, 1471; 1995, 2237)

      NRS 349.072  State Bond Issuance Account: Creation; appropriations.  There is hereby created in the General Fund in the State Treasury the State Bond Issuance Account to which moneys may be appropriated for the payment of incidental expenses pertaining to state securities and projects relating thereto.

      (Added to NRS by 1967, 1380; A 1971, 373; 1973, 1472)

ISSUANCE OF NOTES BY STATE TREASURER

      NRS 349.074  Authority of State Treasurer; issuance, sale, repayment and use of proceeds of notes; investment by Local Government Pooled Investment Fund; pledge of faith and credit of State. [Effective through September 30, 2017.]

      1.  The State Treasurer may, on or before August 31, 2013, in the name and on behalf of the State of Nevada, borrow money and evidence such borrowing by the issuance of one or more notes in an aggregate principal amount that does not exceed $160 million. Each such note:

      (a) Must be issued upon the order of the State Treasurer and pursuant to the provisions of the State Securities Law, except to the extent that those provisions are inconsistent with the provisions of this section; and

      (b) May be issued without the approval of the State Board of Finance or any other board, commission or agency of this State.

Ê For the purposes of this section and the State Securities Law, the State Treasurer shall be deemed to constitute an agency of the State and any order of the State Treasurer authorizing the issuance of a note pursuant to this section shall be deemed to constitute a resolution authorizing the issuance of the note.

      2.  Each note authorized pursuant to this section must be:

      (a) Issued pursuant to a written contract between the State and the Local Government Pooled Investment Fund, under which the Local Government Pooled Investment Fund agrees to invest in the note or notes issued pursuant to this section. The contract must be executed by the Governor on behalf of the State and by the State Treasurer on behalf of the Local Government Pooled Investment Fund.

      (b) Sold to the Local Government Pooled Investment Fund at a price equal to the principal amount borrowed under the note. The total amount invested by the Local Government Pooled Investment Fund in notes issued pursuant to this section must not exceed:

             (1) Twenty-five percent of the book value of the total investments of the Local Government Pooled Investment Fund on the date of the investment by the Local Government Pooled Investment Fund; or

             (2) One hundred sixty million dollars,

Ê whichever is less. The determination as to whether the requirements of this paragraph are satisfied must be made by the State Treasurer on the date of each investment by the Local Government Pooled Investment Fund in a note issued pursuant to this section. Each such determination shall be deemed to be conclusive and is not affected by any subsequent changes in the book value of the total investments of the Local Government Pooled Investment Fund.

      3.  Except as otherwise provided in subsection 6, the principal amount outstanding on any notes issued pursuant to this section must bear interest, payable monthly on the first business day of each calendar month, at a rate equal to 50 basis points above the average monthly rate of earnings of all the investments, other than any investments in notes issued pursuant to this section, of money in the Local Government Pooled Investment Fund during the immediately preceding calendar month.

      4.  The total principal amount borrowed on or before August 31, 2013, pursuant to this section must be repaid in installments in such a manner that:

      (a) At least 25 percent of each principal amount borrowed pursuant to this section must be repaid by the first day of the calendar month that is 13 months after the month in which that borrowing occurred;

      (b) At least 50 percent of each principal amount borrowed pursuant to this section must be repaid by the first day of the calendar month that is 25 months after the month in which that borrowing occurred;

      (c) At least 75 percent of each principal amount borrowed pursuant to this section must be repaid by the first day of the calendar month that is 37 months after the month in which that borrowing occurred; and

      (d) The entire total principal amount borrowed pursuant to this section must be repaid by the first day of the calendar month that is 49 months after the month in which that borrowing occurred.

Ê The provisions of this subsection do not prohibit the repayment of the principal amount of any note issued pursuant to this section earlier than the periods specified in this subsection.

      5.  Each note issued pursuant to this section constitutes a general obligation of the State, and the full faith and credit of the State is hereby pledged for the payment of the principal of and interest on the note.

      6.  If necessary to provide money to any local governments that have invested in the Local Government Pooled Investment Fund, any note issued pursuant to this section, or any portion thereof, may be sold by the Local Government Pooled Investment Fund upon the direction of the State Treasurer. Each note so sold must:

      (a) Be payable as to principal on or before the periods specified in subsection 4, except that the note may have a fixed maturity date, without option of redemption, so long as the principal amount of all the notes issued pursuant to this section are retired in accordance with subsection 4.

      (b) Bear interest, payable monthly on the first business day of each calendar month, at such a rate or rates as the State Treasurer determines to be sufficient to enable the sale of the note at a price that is not less than the principal amount thereof.

      7.  Notwithstanding any other provision of law to the contrary, any statutory limitation on the rate of interest that would otherwise apply to securities issued by or on behalf of this State shall be deemed not to apply to any rate of interest payable on any notes issued pursuant to this section.

      8.  The proceeds from the sale of any notes pursuant to this section to the Local Government Pooled Investment Fund, net of costs of issuance, must be deposited into the State General Fund and used for the general operation of this State.

      9.  As used in this section, “Local Government Pooled Investment Fund” means the Local Government Pooled Investment Fund created by NRS 355.167.

      (Added to NRS by 2008, 25th Special Session, 2; A 2009, 2123, 2125; 2011, 2170, 2175)

INTEREST RATES; DISCOUNTS; LIMITATION ON ISSUANCE

      NRS 349.075  Definitions.  As used in NRS 349.075 to 349.078, inclusive:

      1.  “Par” means the principal amount of a security plus the accrued interest thereon from the date of the bonds to the date of delivery and full payment.

      2.  “Security” means a bond or other evidence of indebtedness.

      (Added to NRS by 1967, 218)

      NRS 349.076  Maximum rate of interest on securities issued by State.  Except as otherwise provided by a specific statute, including, without limitation, NRS 99.067, the rate or rates of interest on securities issued by the State must not exceed by more than 3 percent:

      1.  For general obligations, the Index of Twenty Bonds; and

      2.  For special obligations, the Index of Revenue Bonds,

Ê which was most recently published before the bids are received or a negotiated offer is accepted.

      (Added to NRS by 1967, 218; A 1969, 1288; 1971, 2110; 1975, 857; 1981, 1399; 1983, 570; 2009, 2659)

      NRS 349.077  Discounts.  Except as otherwise provided by a specific statute, securities issued by the State may be sold at par, above par or below par at a discount of not more than 9 percent of the principal amount, but the effective interest rate must not exceed the limit provided in NRS 349.076.

      (Added to NRS by 1967, 218; A 1969, 1288; 1971, 2110; 1975, 857; 1981, 1399; 1983, 570)

      NRS 349.078  Limitation on issuance or sale after date of election.  No security may be issued or sold by the State after the expiration of 6 years from the date of the election authorizing such issue, if an election is required by any law whenever enacted.

      (Added to NRS by 1967, 219)

CONSOLIDATED BOND INTEREST AND REDEMPTION FUND

      NRS 349.080  Purpose of NRS 349.080 to 349.140, inclusive.  The purpose of NRS 349.080 to 349.140, inclusive, is declared to be for the aid of, and not in limitation of, any act existing on March 28, 1939, or which may be enacted after March 28, 1939, providing for the payment of bonds and interest thereon which may have been or may be issued pursuant to any act of the Legislature of the State of Nevada or for any other purpose authorized by the Legislature.

      [4:197:1939; 1931 NCL § 7056.03]—(NRS A 2010, 26th Special Session, 8)

      NRS 349.090  Creation; records of accounting.  There is hereby created in the State Treasury a debt service fund to be known as the Consolidated Bond Interest and Redemption Fund. The State Treasurer shall maintain records of accounting reflecting the current condition of the Fund.

      [1:197:1939; 1931 NCL § 7056]—(NRS A 1985, 711)

      NRS 349.100  Deposits of money in Fund.  All moneys in the State Treasury on March 28, 1939, credited to the account of any bond issue theretofore created by the State of Nevada, and all funds to be received thereafter on account of and for the purpose of any bond issue the redemption of which is pledged by the faith of the people of the State of Nevada, shall be placed in the Consolidated Bond Interest and Redemption Fund.

      [2:197:1939; 1931 NCL § 7056.01]

      NRS 349.110  Payment of principal, interest and charges for bonds.  After March 28, 1939, so long as there shall be any outstanding bonds in the name of the State of Nevada, the State Treasurer shall make payment for redemption of such bonds, the interest thereon and any bank service charges from the Consolidated Bond Interest and Redemption Fund.

      [3:197:1939; 1931 NCL § 7056.02]—(NRS A 1965, 55; 1967, 158)

      NRS 349.120  Legislative appropriations from State General Fund.

      1.  For each biennium, moneys must be provided by direct legislative appropriation from the State General Fund sufficient in amount to meet the bond interest and redemption requirements of the State of Nevada, as designated by the various issues of bonds for which the faith of the State of Nevada has been or may hereafter be pledged. The amount must be determined by the Legislature from time to time so as to effectuate the purposes of NRS 349.080 to 349.140, inclusive.

      2.  All moneys so appropriated must be placed in the Consolidated Bond Interest and Redemption Fund. All moneys so appropriated and placed are hereby expressly set apart and appropriated to discharge the obligations of the State of Nevada for bond interest and redemption of bonds issued before, on or after March 28, 1939.

      [5:197:1939; 1931 NCL § 7056.04]—(NRS A 1957, 232; 1997, 1610)

      NRS 349.130  Deficiencies in Fund made up from State General Fund.  The moneys provided for by the terms of NRS 349.080 to 349.140, inclusive, to be paid into the Consolidated Bond Interest and Redemption Fund shall, on all occasions, be applied for the purposes of redemption and interest payments on bonds. If any bonds become due for redemption or any interest thereon becomes due when there is an insufficient sum of money in the Consolidated Bond Interest and Redemption Fund, then any such deficiency forthwith shall be appropriated and paid out of the General Fund of the State.

      [6:197:1939; 1931 NCL § 7056.05]—(NRS A 1957, 233)

      NRS 349.140  Effect of NRS 349.080 to 349.140, inclusive.  The provisions of NRS 349.080 to 349.140, inclusive, are not intended to repeal, modify or otherwise affect the obligations of the State of Nevada or the faith thereof, nor the payment of interest and the redemption of bonds which have been issued prior to March 28, 1939, or which may be issued after March 28, 1939, pursuant to any act of the Legislature.

      [7:197:1939; 1931 NCL § 7056.06]

STATE SECURITIES LAW

      NRS 349.150  Short title.  NRS 349.150 to 349.364, inclusive, may be cited as the State Securities Law.

      (Added to NRS by 1967, 771; A 1985, 2088; 1993, 2279; 1995, 2237; 1997, 1291, 3012)

      NRS 349.152  Purpose; supplemental nature.  It is the purpose of the State Securities Law to provide a procedure for financing any projects otherwise authorized by law and for the issuance of securities to evidence or reevidence obligations incurred in connection with any projects. The State Securities Law is supplemental in nature, and nothing herein contained shall be construed as authorizing any particular project nor as authorizing the incurrence of any obligations to defray the cost of any project.

      (Added to NRS by 1967, 771)

      NRS 349.154  Definitions.  The following terms, defined for all purposes of the State Securities Law and of any act amendatory thereof, supplemental thereto, or relating thereto, and of any instrument or document appertaining thereto, unless the context otherwise requires, have the meanings ascribed to them in NRS 349.156 to 349.210, inclusive.

      (Added to NRS by 1967, 771)

      NRS 349.156  “Acquisition” and “acquire” defined.  “Acquisition” or “acquire” includes the opening, laying out, establishment, purchase, construction, securing, installation, reconstruction, lease, gift, grant from the Federal Government, this state, any body corporate and politic therein, or any person, the endowment, bequest, devise, condemnation, transfer, assignment, option to purchase, other contract, or other acquirement, or any combination thereof, of any properties pertaining to a project, or an interest therein.

      (Added to NRS by 1967, 771)

      NRS 349.158  “Chair” and “Chair of the Commission” defined.  “Chair,” or “Chair of the Commission,” or any phrase of similar import, means the de facto or de jure presiding officer of the Commission, or his or her successor in functions, if any.

      (Added to NRS by 1967, 771)

      NRS 349.160  “Commercial bank” defined.  “Commercial bank” means:

      1.  A state or national bank or trust company that is a member of the Federal Deposit Insurance Corporation, including, without limitation, a branch of the Federal Reserve Bank.

      2.  A credit union whose deposits are insured by the National Credit Union Share Insurance Fund or by a private insurer approved pursuant to NRS 678.755.

      (Added to NRS by 1967, 771; A 1999, 1469)

      NRS 349.162  “Commission” defined.  “Commission” means the State Board of Finance, any State General Obligation Bond Commission or any other commission, board or other agency of the State which is authorized by law to issue bonds or other securities in the name and on behalf of the State in accordance with the provisions of the State Securities Law, and means any such successor agency of this state.

      (Added to NRS by 1967, 771; A 1973, 1472; 1995, 2237)

      NRS 349.164  “Condemnation” and “condemn” defined.  “Condemnation” or “condemn” means the acquisition by the exercise of the power of eminent domain of property for any project, or an interest therein, herein designated.

      (Added to NRS by 1967, 771; A 1985, 276)

      NRS 349.166  “Controller” defined.  “Controller” means the de facto or de jure State Controller of the State of Nevada, or his or her successor in functions, if any.

      (Added to NRS by 1967, 772)

      NRS 349.168  “Cost of any project” defined.  “Cost of any project,” or any phrase of similar import, means all or any part designated by the Commission of the cost of any project, or interest therein, which cost at the option of the Commission may include all or any part of the incidental costs pertaining to the project, including without limitation:

      1.  Preliminary expenses advanced by the State from funds available for use therefor, or advanced by the Federal Government, or from any other source, with the approval of the Commission or any board or other agency of the State responsible for the project or defraying the cost thereof, or any combination thereof;

      2.  The costs in the making of surveys, audits, preliminary plans, other plans, specifications, estimates of costs and other preliminaries;

      3.  The costs of premiums on builders’ risk insurance and performance bonds, or a reasonably allocable share thereof;

      4.  The costs of appraising, printing, estimates, advice, services of engineers, architects, financial consultants, attorneys at law, clerical help or other agents or employees;

      5.  The costs of making, publishing, posting, mailing and otherwise giving any notice in connection with a project, the filing or recordation of instruments, the taking of options, the issuance of bonds and other securities, and bank fees and expenses;

      6.  The cost of contingencies;

      7.  The costs of the capitalization with proceeds of bonds or other securities issued hereunder of any operation and maintenance expenses appertaining to any facilities to be acquired as a project and of any interest on bonds or other securities for any period not exceeding the period estimated by the Commission to effect the project plus 1 year, of any discount on bonds or other securities, and of any reserves for the payment of the principal of and interest on the bonds or other securities, or any replacement expenses, and of any other cost of issuance of the bonds or other securities;

      8.  The costs of amending any resolution or other instrument authorizing the issuance of or otherwise appertaining to outstanding bonds or other securities of the State;

      9.  The costs of funding any short-term financing, construction loans and other temporary loans of not exceeding 5 years appertaining to a project and of the incidental expenses incurred in connection with such loans;

      10.  The costs of any properties, rights, easements or other interests in properties, or any licenses, privileges, agreements and franchises;

      11.  The costs of demolishing, removing or relocating any buildings, structures or other facilities on land acquired for any project, and of acquiring lands to which such buildings, structures or other facilities may be moved or relocated; and

      12.  All other expenses necessary or desirable and appertaining to a project, as estimated or otherwise ascertained by the commission.

      (Added to NRS by 1967, 772; A 1975, 857)

      NRS 349.169  “Disposal” and “dispose” defined.  “Disposal” or “dispose” means the sale, destruction, razing, loan, lease, grant, transfer, assignment, option to sell, other contract, or other disposition, or any combination thereof, of facilities, other property, or any interest therein.

      (Added to NRS by 1971, 2109)

      NRS 349.1695  “Equip” and “equipment” defined.  “Equip” or “equipment” means the furnishing of all related or appurtenant machinery, furnishings, apparatus, paraphernalia, and other gear, or any combination thereof, pertaining to any project or other property, or any interest therein.

      (Added to NRS by 1971, 2110)

      NRS 349.170  “Facilities” defined.  “Facilities” means buildings, structures, utilities or other income-producing facilities from the operation of which or in connection with which pledged revenues for the payment of any bonds or other securities issued hereunder are derived, including without limitation any facilities to be acquired with the proceeds of the bonds or securities issued hereunder.

      (Added to NRS by 1967, 773)

      NRS 349.172  “Federal Government” defined.  “Federal Government” means the United States, or any agency, instrumentality or corporation thereof.

      (Added to NRS by 1967, 773)

      NRS 349.174  “Federal securities” defined.  “Federal securities” means bills, certificates of indebtedness, notes, bonds or similar securities which are direct obligations of, or the principal and interest of which securities are unconditionally guaranteed by, the United States.

      (Added to NRS by 1967, 773)

      NRS 349.176  “Governor” defined.  “Governor” means the de facto or de jure Governor of the State of Nevada, or his or her successor in functions, if any.

      (Added to NRS by 1967, 773)

      NRS 349.178  “Gross revenues” and “gross pledged revenues” defined.  “Gross revenues” or “gross pledged revenues” means all pledged revenues received by the State and pledged wholly or in part for the payment of any state securities issued hereunder.

      (Added to NRS by 1967, 773)

      NRS 349.180  “Hereby,” “herein,” “hereinabove,” “hereinafter,” “hereinbefore,” “hereof,” “hereto,” “hereunder,” “heretofore” and “hereafter” defined.  “Hereby,” “herein,” “hereinabove,” “hereinafter,” “hereinbefore,” “hereof,” “hereto,” “hereunder” and any similar term refer to the State Securities Law and not solely to the particular portion thereof in which such word is used; “heretofore” means before the adoption of the State Securities Law; and “hereafter” means after the adoption of the State Securities Law.

      (Added to NRS by 1967, 773)

      NRS 349.182  “Holder” defined.  “Holder,” or any similar term, when used in conjunction with any coupons, any bonds or any other securities, means the person in possession and the apparent owner of the designated item if such obligation is registered for payment to bearer or is not registered, or the term means the registered owner of the designated item if it is at the time registered for payment otherwise than to bearer.

      (Added to NRS by 1967, 773)

      NRS 349.184  “Improvement” and “improve” defined.  “Improvement” or “improve” includes the extension, widening, lengthening, betterment, alteration, reconstruction or other major improvement, or any combination thereof, of any properties pertaining to a project or an interest therein, but does not mean renovation, reconditioning, patching, general maintenance or other minor repair.

      (Added to NRS by 1967, 774)

      NRS 349.186  “Net revenues” and “net pledged revenues” defined.  “Net revenues” or “net pledged revenues” means “gross revenues,” after the deduction of operation and maintenance expenses.

      (Added to NRS by 1967, 774)

      NRS 349.188  “Operation and maintenance expenses” defined.

      1.  “Operation and maintenance expenses,” or any phrase of similar import, means all reasonable and necessary current expenses of the State, paid or accrued, of operating, maintaining and repairing the facilities or of levying, collecting and otherwise administrating any excise taxes pertaining to the pledged revenues for the payment of the bonds or other securities issued hereunder; and the term may include at the Commission’s option (except as limited by contract or otherwise limited by law), without limiting the generality of the foregoing:

      (a) Engineering, auditing, reporting, legal and other overhead expenses of the various state departments directly related and reasonably allocable to the administration of the facilities;

      (b) Fidelity bond and property and liability insurance premiums appertaining to the facilities, or a reasonably allocable share of a premium of any blanket bond or policy pertaining to the facilities;

      (c) Payments to pension, retirement, health and hospitalization funds and other insurance;

      (d) Any taxes, assessments, excise taxes or other charges which may be lawfully imposed on the State, any facilities, revenues therefrom, or any privilege in connection with any facilities or their operation;

      (e) The reasonable charges of any paying agent, or commercial bank, trust bank or other depositary bank appertaining to any securities issued by the State or appertaining to any facilities;

      (f) Contractual services, professional services, salaries, other administrative expenses, and costs of materials, supplies, repairs and labor, appertaining to the issuance of any state securities and to any facilities, including without limitation the expenses and compensation of any trustee, receiver or other fiduciary under the State Securities Law;

      (g) The costs incurred by the Commission in the collection and any refunds of all or any part of the pledged revenues, including without limitation revenues appertaining to any facilities;

      (h) Any costs of utility services furnished to the facilities by the State or otherwise;

      (i) Any lawful refunds of any pledged revenues;

      (j) Reasonable allowances for the depreciation of furniture and equipment for the facilities; and

      (k) All other administrative, general and commercial expenses.

      2.  The term “operation and maintenance expenses” does not include:

      (a) Any allowance for depreciation, except as otherwise provided in paragraph (j) of subsection 1 of this section;

      (b) Any costs of reconstruction, improvements, extensions or betterments;

      (c) Any accumulation of reserves for capital replacements;

      (d) Any reserves for operation, maintenance or repair of any facilities;

      (e) Any allowance for the redemption of any bond or other state security evidencing a loan or other obligation or for the payment of any interest thereon;

      (f) Any liabilities incurred in the acquisition or improvement of any properties comprising any project or any existing facilities, or any combination thereof; and

      (g) Any other ground of legal liability not based on contract.

      (Added to NRS by 1967, 774)

      NRS 349.192  “Pledged revenues” defined.  “Pledged revenues” means the moneys pledged wholly or in part for the payment of bonds or other state securities issued in accordance with the provisions of the State Securities Law, and, subject to any existing pledges or other contractual limitations:

      1.  May include at the Commission’s discretion moneys derived from one, all or any combination of revenue sources appertaining to any facilities, including without limitation use and service charges, rents, fees and any other income derived from the operation or ownership of, from the use or services of, or from the availability of or services appertaining to, the lease of, any sale or other disposal of, any contract or other arrangement, or otherwise derived in connection with any facilities or all or any part of any property appertaining to any facilities;

      2.  May so include all loans, grants or contributions to the State, if any, conditional or unconditional, from the Federal Government for the payment of the principal of, the interest on, and any prior redemption premiums due in connection with any state securities issued hereunder, or any combination thereof; and

      3.  May so include the proceeds of any excise taxes levied and collected by the State and authorized by law (other than the State Securities Law) to be pledged for the payment of state securities issued in accordance with the provisions of the State Securities Law, but excluding the proceeds of any taxes as defined in NRS 349.204.

      (Added to NRS by 1967, 775; A 1971, 2110)

      NRS 349.194  “Project” defined.  “Project” means any undertaking or undertakings which the Commission is authorized by law (other than the State Securities Law) to complete in its name or in the name of the State, the cost of which the Commission is authorized by law (other than the State Securities Law) to defray by the issuance of bonds or other securities of the Commission or the State as provided hereunder.

      (Added to NRS by 1967, 775)

      NRS 349.196  “Secretary” defined.  “Secretary” means the de facto or de jure Secretary of State of the State of Nevada, or his or her successor in functions, if any.

      (Added to NRS by 1967, 775)

      NRS 349.198  “State securities” and “securities” defined.  “State securities” or “securities” means notes, warrants, bonds, temporary bonds and interim debentures authorized to be issued hereunder in the name and on the behalf of the State acting by and through the Commission.

      (Added to NRS by 1967, 775)

      NRS 349.200  “State” defined.  “State” means the State of Nevada, or any board, department or other agency or instrumentality thereof. Where the context so indicates, “State” means the geographical area comprising the State of Nevada. “State” does not include the Nevada rural housing authority.

      (Added to NRS by 1967, 775; A 1971, 2110; 1995, 815)

      NRS 349.202  “Taxation” defined.  “Taxation” means the levy and collection of taxes as defined in NRS 349.204, but in NRS 349.354 “taxation” pertains to any type of tax, including, without limitation, any business, occupation or privilege tax, any other excise tax, and any property tax, except for the tax on estates imposed pursuant to the provisions of chapter 375A of NRS and the tax on generation-skipping transfers imposed pursuant to the provisions of chapter 375B of NRS.

      (Added to NRS by 1967, 775; A 1969, 1586; 1989, 2107; 1991, 1710)

      NRS 349.204  “Taxes” defined.  “Taxes” means general (ad valorem) property taxes.

      (Added to NRS by 1967, 775)

      NRS 349.206  “Treasurer” defined.  “Treasurer” means the de facto or de jure State Treasurer of the State of Nevada, or his or her successor in functions, if any.

      (Added to NRS by 1967, 775)

      NRS 349.208  “Trust bank” defined.  “Trust bank” means:

      1.  A commercial bank as defined in NRS 349.160 that is authorized to exercise and is exercising trust powers.

      2.  A branch of the Federal Reserve Bank.

      3.  A credit union whose deposits are insured by the National Credit Union Share Insurance Fund or by a private insurer approved pursuant to NRS 678.755 that is authorized to exercise and is exercising trust powers.

      (Added to NRS by 1967, 775; A 1999, 1470)

      NRS 349.210  “United States” defined.  “United States” means the United States of America; and where the context so indicates, “United States” means the geographical area comprising the United States of America.

      (Added to NRS by 1967, 775; A 1971, 2110)

      NRS 349.212  Powers of State in connection with projects.  In connection with any project, the State, acting by and through the Commission, except as herein otherwise provided, may:

      1.  Sue and be sued;

      2.  Acquire and hold real or personal property, or rights or interests therein, and water rights;

      3.  Dispose of unnecessary or obsolete property, or property obtained for persons or political subdivisions within the State, including without limitation water or water rights, or rights or interests in any such property;

      4.  Make contracts and execute all instruments necessary or convenient, as determined by the Commission;

      5.  Acquire by contract or contracts or by its own agents and employees or otherwise acquire any properties for any project or projects, and operate and maintain such properties; and

      6.  Accept grants of money or materials or property of any kind from the Federal Government, the State, any agency or political subdivision thereof, or any person, upon such terms and conditions as the Federal Government, the State or such agency or political subdivision or person may impose.

      (Added to NRS by 1967, 775)

      NRS 349.213  Power of eminent domain; reimbursement of public utility for removal and relocation.

      1.  The Commission may:

      (a) Exercise on behalf of the State the power of eminent domain in the manner provided in chapter 37 of NRS, except as herein otherwise provided;

      (b) Take any property necessary to carry out any of the objects or purposes concerning such a project, whether the property is already devoted to the same use by any person (but not the Federal Government, the State or any other body corporate and politic); and

      (c) Condemn any existing works or improvements of any such person now or hereafter used.

      2.  The power of eminent domain vested in the Commission includes the power to condemn, in the name of the State, either the fee simple or any lesser estate or interest in any real property which the Commission by resolution determines is necessary for carrying out the purposes hereof. The resolution is prima facie evidence that the taking of the fee simple, easement or other interest, as the case may be, is necessary. The Commission shall not abandon any condemnation proceedings after the date upon which it has taken possession of the property being acquired.

      3.  If the construction or other acquisition of any project, or any part thereof, makes necessary the removal and relocation of any public utilities, whether on private or public right-of-way, or otherwise, the Commission shall reimburse the owner of the public utility facility for the expense of removal and relocation, including the cost of any necessary land or rights in land, except where the cost of removal and relocation is or has been considered a proper element of just compensation in any settlement by negotiation or in any eminent domain proceeding.

      (Added to NRS by 1985, 275)

      NRS 349.214  Power of State to become obligated and issue securities for project.  For the purpose of paying the cost of any project authorized by law (other than the State Securities Law), at any time or from time to time the State may borrow money or otherwise become obligated for the project and may evidence any such obligation by the issuance of state securities in accordance with the provisions of the State Securities Law, to the extent otherwise authorized by law.

      (Added to NRS by 1967, 776)

      NRS 349.216  Types of securities which may be issued; series.  The State may issue, in one series or more, without the state securities being authorized at any election in the absence of an expressed provision to the contrary in the act authorizing the project and the issuance of state securities therefor or in any act supplemental thereto, in anticipation of taxes or pledged revenues, or both, and constituting either general obligations or special obligations of the State, any one or more or all of the following types of state securities:

      1.  Notes, evidencing any amount borrowed by the State;

      2.  Warrants, evidencing the amount due to any person for any services or supplies, equipment or other materials furnished to or for the benefit of the State and appertaining to a project;

      3.  Bonds, evidencing any amount borrowed by the State and constituting long-term financing;

      4.  Temporary bonds, pending the preparation of and exchangeable for definitive bonds of like character and in like principal amount when prepared and issued in compliance with the conditions and limitations herein provided; and

      5.  Interim debentures, evidencing any short-term financing, construction loans, and other temporary loans of not exceeding 5 years, in supplementation of long-term financing and the issuance of bonds, as provided in NRS 349.318 to 349.328, inclusive.

      (Added to NRS by 1967, 776; A 1975, 858)

      NRS 349.218  Notes and warrants: Maturity; extension or funding.  Notes and warrants may mature at such time or times not exceeding 1 year from the date or the respective dates of their issuance as the Commission may determine. They shall not be extended or funded except by the issuance of bonds or interim debentures in compliance with NRS 349.318 to 349.326, inclusive, and other provisions supplemental thereto.

      (Added to NRS by 1967, 776)

      NRS 349.220  Temporary bonds: Conditions, terms and provisions; rights and remedies of holder.  Each temporary bond shall set forth substantially the same conditions, terms and provisions as the definitive bond for which it is exchanged. Each holder of a temporary bond shall have all the rights and remedies which he or she would have as a holder of the definitive bond for which the temporary bond is to be exchanged.

      (Added to NRS by 1967, 776)

      NRS 349.222  Resolution authorizing issuance of securities: Description of purposes.  The resolution authorizing the issuance of any state securities hereunder shall describe the purpose or purposes for which they are issued at least in general terms and may describe any purpose in detail.

      (Added to NRS by 1967, 777)

      NRS 349.223  Sale of securities as investment to defray anticipated costs of college.

      1.  A particular issue of state securities may be sold as an investment for the purpose of accumulating money for the future generally or to defray prospectively the anticipated costs of college if:

      (a) The resolution authorizing its issuance states that purpose and the State Board of Finance approves the sale for that purpose; and

      (b) The resolution for issuance provides for the payment of compound interest on the securities.

      2.  The resolution authorizing the issuance of securities for the purposes described in subsection 1:

      (a) May describe the securities by a designation including the word “saving” or the phrase “saving for college”;

      (b) Must include a disclaimer that the State does not guarantee that the amount received at maturity will be adequate to meet the costs of college or other intended purpose; and

      (c) Must include a disclaimer that the State does not guarantee the price for which a security may be sold before it matures.

      (Added to NRS by 1993, 2279; A 1995, 2237)

      NRS 349.224  General obligations: Types of securities.  The State may issue as general obligations any of the following types of state securities:

      1.  Notes;

      2.  Warrants;

      3.  Interim debentures;

      4.  Bonds; and

      5.  Temporary bonds,

Ê payable from taxes, or payable from taxes and additionally securing such payment by a pledge of net revenues or gross revenues, as the Commission may determine, except as may be otherwise provided in any act supplemental hereto.

      (Added to NRS by 1967, 777)

      NRS 349.225  General obligation bonds subject to review and approval of State Board of Finance; exception.  Except for bonds issued by the Colorado River Commission of Nevada which are additionally supported by pledged revenues of a project, any general obligation bond authorized on the behalf and in the name of the State is subject to the review and approval of the State Board of Finance, unless otherwise provided by statute.

      (Added to NRS by 1995, 2236; A 2001, 2443)

      NRS 349.226  Special obligations: Types of securities.  The State may issue as special obligations any of the following types of state securities:

      1.  Notes;

      2.  Warrants;

      3.  Interim debentures;

      4.  Bonds; and

      5.  Temporary bonds,

Ê in anticipation of net pledged revenues but not under any circumstances under their terms and the proceedings authorizing their issuance in anticipation of taxes nor in anticipation of gross pledged revenues. Such special obligation state securities may be payable from, secured by a pledge of, and constitute a lien on net pledged revenues.

      (Added to NRS by 1967, 777)

      NRS 349.227  Variable rates of interest for securities; agreement with third party for assurance of payment for securities; reimbursement for advances made pursuant to agreement.

      1.  The act or resolution authorizing the issuance of any state securities or any trust indenture or other instrument appertaining thereto may fix a rate or rates of interest or provide for the determination of the rate or rates from time to time by a designated agent according to the procedure specified in that resolution or other instrument. The rate so determined must approximate the rates then being paid for other securities which contain similar provisions and have an equivalent rating. The Commission may contract with or select any person to make that determination.

      2.  The Commission may enter into an agreement with a third party for an assurance of payment of the principal of, the interest on, or premiums, if any, due in connection with any state securities issued by the Commission. The obligation of the Commission to reimburse that third party for any advances made pursuant to that agreement may be provided in that agreement, recited in those securities or evidenced by another instrument as designated in the act or resolution authorizing the issuance of those securities or any other instrument appertaining thereto. The Commission may assign its rights under that agreement.

      (Added to NRS by 1985, 2088)

      NRS 349.2275  Variable rates of interest: Exemption from limitations; conclusive findings of Commission that procedure for determination of rates is reasonable.  In fixing the rate or rates of interest for state securities pursuant to subsection 1 of NRS 349.227 or the rate or rates of interest imposed on the Commission for reimbursement of any advances made under an agreement pursuant to subsection 2 of NRS 349.227, the Commission is not subject to any limitations on rates of interest provided by statute, including NRS 349.076, or provided in the bond question authorizing the issuance of those securities. The act or resolution fixing that rate or rates of interest must contain the findings of the Commission that the procedure specified in the act or resolution for determining that rate or rates is reasonable under existing or anticipated conditions in the market and is necessary and advisable for marketing the securities. These findings are conclusive. This section does not prohibit the Commission from fixing a maximum rate of interest in that act or resolution.

      (Added to NRS by 1985, 2088)

      NRS 349.228  Securities issued as general obligations payable from gross revenues: Covenant requiring appropriations to pay expenses of operation and maintenance.  Any resolution authorizing the issuance of general obligation state securities payable from gross revenues or any indenture or other proceedings appertaining thereto may contain a covenant of the State that to the extent required, as provided therein, the State will pay operation and maintenance expenses by appropriation from its General Fund and that to the extent the moneys accounted for therein are insufficient for that purpose the State shall levy taxes therefor.

      (Added to NRS by 1967, 777)

      NRS 349.230  Securities issued as general obligations constitute outstanding indebtedness of State; exceptions.  Any outstanding general obligation bonds, any temporary general obligation bonds to be exchanged for such definitive bonds, and any general obligation interim debentures constitute outstanding indebtedness of the State and exhaust the debt-incurring power of the state unless issued:

      1.  For the purpose of defraying extraordinary expenses, as mentioned in the last sentence of the first paragraph of Section 3 of Article 9 of the Constitution; or

      2.  For one of the purposes mentioned in the second paragraph of that section.

      (Added to NRS by 1967, 777; A 1977, 795)

      NRS 349.232  Securities issued as special obligations do not constitute outstanding indebtedness of State.  Any other state securities (except general obligation notes and general obligation warrants) constitute special obligations of the State, and all such other securities (including all notes and warrants, general obligations or special obligations, payable within 1 year from date) do not constitute outstanding indebtedness of the State nor exhaust its debt-incurring power under any such debt limitation.

      (Added to NRS by 1967, 777)

      NRS 349.234  Recitals required in state securities.

      1.  State securities issued hereunder and constituting special obligations shall recite in substance that the securities and the interest thereon are payable solely from the net revenues pledged to the payment thereof.

      2.  State securities issued hereunder and constituting general obligations shall pledge the full faith and credit of the State for their payment, shall so state, and shall state that they are payable from taxes.

      3.  General obligation state securities the payment of which is additionally secured by a pledge of revenues shall recite in substance, in addition to the statements required by subsection 2 of this section, that the payment of the securities and the interest thereon is additionally secured by a pledge of the net revenues or the gross revenues, as the case may be, designated in the securities.

      (Added to NRS by 1967, 777)

      NRS 349.236  Payment of principal of and interest on general obligation bonds from Consolidated Bond Interest and Redemption Fund.  Payment of the principal of and the interest on general obligation bonds shall be made from the Consolidated Bond Interest and Redemption Fund of the State of Nevada, under the provisions of NRS 349.080 to 349.140, inclusive, except as herein otherwise provided.

      (Added to NRS by 1967, 778; A 1969, 1587)

      NRS 349.238  Annual levy of special tax to pay interest on and retire securities issued as general obligations; proceeds of tax kept in two special funds. [Effective through November 24, 2014, and after that date unless the provisions of Senate Joint Resolution No. 15 (2011) are approved and ratified by the voters at the 2014 General Election.]

      1.  There must be levied annually a special tax on all property, both real and personal, subject to taxation within the boundaries of the State of Nevada, fully sufficient together with the revenue which will result from application of the rate to the net proceeds of minerals, without regard to any statutory limitations now or hereafter existing, to pay the interest on the general obligation state securities and to pay and retire the securities as provided in the State Securities Law and in any act supplemental hereto. The amount of money to be raised by the tax must be included in the annual estimate or budget for each county in the state for each year for which the tax is hereby required to be levied. The tax must be levied and collected in the same manner and at the same time as other taxes are levied and collected.

      2.  The proceeds thereof levied to pay interest on the securities must be kept by the State Treasurer in a special fund, separate and apart from all other funds, and the proceeds of the tax levied to pay the principal of the securities must be kept by the Treasurer in a special fund, separate and apart from all other funds. The two special funds must be used for no other purpose than the payment of the interest on the securities and the principal thereof, respectively, when due.

      (Added to NRS by 1967, 778; A 1989, 44)

      NRS 349.238  Annual levy of special tax to pay interest on and retire securities issued as general obligations; proceeds of tax kept in two special funds. [Effective November 25, 2014, if the provisions of Senate Joint Resolution No. 15 (2011) are approved and ratified by the voters at the 2014 General Election.]

      1.  There must be levied annually a special tax on all property, both real and personal, subject to taxation within the boundaries of the State of Nevada, that is fully sufficient, together with the revenue which will result from application of the rate to the net proceeds from mineral extraction and royalties subject to the excise tax pursuant to the provisions of NRS 362.100 to 362.240, inclusive, and without regard to any statutory limitations now or hereafter existing, to pay the interest on the general obligation state securities and to pay and retire the securities as provided in the State Securities Law and in any act supplemental hereto. The amount of money to be raised by the tax must be included in the annual estimate or budget for each county in the state for each year for which the tax is hereby required to be levied. The tax must be levied and collected in the same manner and at the same time as other taxes are levied and collected.

      2.  The proceeds thereof levied to pay interest on the securities must be kept by the State Treasurer in a special fund, separate and apart from all other funds, and the proceeds of the tax levied to pay the principal of the securities must be kept by the Treasurer in a special fund, separate and apart from all other funds. The two special funds must be used for no other purpose than the payment of the interest on the securities and the principal thereof, respectively, when due.

      (Added to NRS by 1967, 778; A 1989, 44; 2013, 3135, effective November 25, 2014, if the provisions of Senate Joint Resolution No. 15 (2011) are approved and ratified by the voters at the 2014 General Election)

      NRS 349.240  Time and duration of levy of special tax.  Such tax shall be levied immediately after the issuance of any general obligation securities issued in accordance with the provisions of the State Securities Law, and annually thereafter, at the times and in the manner provided by law, until all of the securities, and the interest thereon, have been fully discharged. Such tax may be first levied after the state, acting by and through the Commission, has contracted to sell any securities but before their issuance.

      (Added to NRS by 1967, 778; A 1975, 858)

      NRS 349.242  Payment from State General Fund when taxes insufficient to pay amount due on securities issued as general obligations; reimbursement of State General Fund.  Any sums coming due on any general obligation state securities at any time when there are not on hand from such tax levy or levies sufficient funds to pay the same shall be promptly paid when due from the General Fund of the State, reimbursement to be made to such General Fund in the sums thus advanced when the taxes herein provided for have been collected.

      (Added to NRS by 1967, 778)

      NRS 349.244  Application of other available money to payment of interest on and principal of securities issued as general obligations.  Nothing contained in the State Securities Law shall be so construed as to prevent the State from applying any funds (other than taxes) that may be available for that purpose to the payment of the interest on or the principal of any general obligation state securities as the same respectively mature, including without limitation the payment of general obligation bonds as provided in NRS 349.236, and regardless of whether the payment of the general obligation state securities is additionally secured by a pledge of revenues, and upon such payments, the levy or levies of taxes provided in the State Securities Law may thereupon to that extent be diminished.

      (Added to NRS by 1967, 778)

      NRS 349.248  Proceeds of taxes specially appropriated to payment of principal and interest.  There is by the State Securities Law, and there shall be by resolution authorizing the issuance of any indebtedness contracted in accordance with the provisions of the State Securities Law, specially appropriated the proceeds of such taxes to the payment of such principal and interest; and such appropriations shall not be repealed nor the taxes postponed or diminished (except as herein otherwise expressly provided) until the principal of and interest on the state securities evidencing such debt have been wholly paid.

      (Added to NRS by 1967, 779)

      NRS 349.250  Payment of state securities not to be secured by encumbrance, mortgage or pledge of State’s property; exception.  The payment of state securities shall not be secured by an encumbrance, mortgage or other pledge of property of the State, except for its pledged revenues, proceeds of taxes and any other moneys pledged for the payment of the securities. No property of the State, subject to such exception, shall be liable to be forfeited or taken in payment of the securities.

      (Added to NRS by 1967, 779)

      NRS 349.251  Agreement for exchange of payments based on interest rates for state securities issued or proposed to be issued by Commission: Conditions; rates of interest; term of agreement; agreement does not constitute outstanding indebtedness of State; limitations on rate of interest on state securities inapplicable; money pledged to debt service of state securities may be used to make payments required by agreement.

      1.  A Commission that has issued or proposes to issue state securities may enter into an agreement for an exchange of payments based on interest rates as provided in this section if it finds that such an agreement would be in the best interest of the State.

      2.  A Commission may enter into an agreement to exchange payments based on interest rates only if:

      (a) The long-term debt obligations of the person with whom the Commission enters the agreement are rated “A” or better by a nationally recognized rating agency; or

      (b) The obligations pursuant to the agreement of the person with whom the Commission enters the agreement are:

             (1) Guaranteed by a person whose long-term debt obligations are rated “A” or better by a nationally recognized rating agency; or

             (2) Collateralized by obligations deposited with the Commission or an agent of the Commission which would be legal investments for the State pursuant to NRS 355.140 and which have a market value at the time agreement is made of not less than the principal amount upon which the exchange of payments based on interest rates is based.

      3.  A Commission may agree, with respect to securities that the Commission has issued or proposes to issue bearing interest at a variable rate, to pay sums equal to interest at a fixed rate or rates or at a different variable rate determined pursuant to a formula set forth in the agreement on an amount not to exceed the principal amount of the state securities with respect to which the agreement is made, in exchange for an agreement to pay sums equal to interest on the same principal amount at a variable rate determined pursuant to a formula set forth in the agreement.

      4.  A Commission may agree, with respect to securities that the Commission has issued or proposes to issue bearing interest at a fixed rate or rates, to pay sums equal to interest at a variable rate determined pursuant to a formula set forth in the agreement on an amount not to exceed the outstanding principal amount of the state securities with respect to which the agreement is made, in exchange for an agreement to pay sums equal to interest on the same principal amount at a fixed rate or rates set forth in the agreement.

      5.  The term of an agreement entered into pursuant to this section must not exceed the term of the state securities with respect to which the agreement was made.

      6.  An agreement entered into pursuant to this section is not a debt or indebtedness of the State for the purposes of any limitation upon the indebtedness of the State or any requirement for an election with regard to the issuance of securities that is applicable to the State.

      7.  Limitations upon the rate of interest on a state security do not apply to interest paid pursuant to an agreement entered into pursuant to this section.

      8.  A Commission which has entered into an agreement pursuant to this section with respect to those securities may treat the amount or rate of interest on the securities as the amount or rate of interest payable after giving effect to the agreement for the purpose of calculating:

      (a) Rates and charges of a revenue-producing enterprise whose revenues are pledged to or used to pay state securities;

      (b) Statutory requirements concerning revenue coverage that are applicable to state securities;

      (c) Tax levies to pay debt service on state securities; and

      (d) Any other amounts which are based upon the rate of interest of state securities.

      9.  Subject to covenants applicable to the securities, any payments required to be made by the Commission under the agreement may be made from money pledged to pay debt service on the securities with respect to which the agreement was made or from any other legally available source.

      (Added to NRS by 1997, 1289)

      NRS 349.252  Recourse against members of Commission and state officers and agents: Acceptance of securities constitutes waiver and release.  No recourse shall be had for the payment of the principal of, any interest on, and any prior redemption premiums due in connection with any bonds or other state securities or for any claim based thereon or otherwise upon the resolution authorizing their issuance or other instrument appertaining thereto, against any individual member of the Commission or any officer or other agent of the State, past, present or future, either directly or indirectly through the Commission or the State, or otherwise, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any penalty or otherwise, all such liability, if any, being by the acceptance of the securities and as a part of the consideration of their issuance specially waived and released.

      (Added to NRS by 1967, 779; A 1975, 858)

      NRS 349.254  Covenants in resolution authorizing issuance of special obligations impose no liability against State or its general credit.  None of the covenants, agreements, representations and warranties contained in any resolution authorizing the issuance of bonds or other state securities issued under the provisions of the State Securities Law and constituting special obligations, or in any other instrument appertaining thereto, in the absence of any breach thereof, shall ever impose or shall be construed as imposing any liability, obligation or charge against the State (except the special funds pledged therefor) or against the general credit of the State, payable out of the General Fund of the State, or out of any funds derived from taxation.

      (Added to NRS by 1967, 779)

      NRS 349.256  Faith of State pledged against repeal, amendment or modification of State Securities Law.  The faith of the State is hereby pledged that the State Securities Law, any law supplemental or otherwise appertaining thereto, and any other act concerning the bonds or other state securities, taxes or the pledged revenues or any combination of such securities, such taxes and such revenues, shall not be repealed nor amended or otherwise directly or indirectly modified in such a manner as to impair adversely any outstanding state securities, until all such securities have been discharged in full or provision for their payment and redemption has been fully made, including without limitation the known minimum yield from the investment or reinvestment of moneys pledged therefor in federal securities.

      (Added to NRS by 1967, 779)

      NRS 349.260  Details of state securities provided by resolution.  Except as otherwise provided in the Constitution of the State and as otherwise provided in the State Securities Law and in any other act the provisions of which are relevant by express reference herein thereto, any state securities issued hereunder must be:

      1.  In such a form;

      2.  Issued in such a manner, at, above or below par at a discount not exceeding 9 percent of the principal amount of the securities, and at a price which will result in an effective interest rate which does not exceed the limit provided in NRS 349.076;

      3.  Issued with such provisions:

      (a) For the application of any accrued interest and any premium from the sale of any bonds or other state securities hereunder as provided in NRS 349.294;

      (b) For the registration of the bonds or other securities for payment as to principal only, or as to both principal and interest, at the option of any holder of a bond or other security, or for registration for payment only in either manner designated;

      (c) For the endorsement of payments of interest on the bonds or other securities or for reconverting the bonds or other securities into coupon bonds or other coupon securities, or both for such endorsement and such reconversion, where any bond or other security is registered for payment as to interest; and where interest accruing on the securities is not represented by interest coupons the securities may provide for the endorsing of payments of interest thereon;

      (d) For the endorsement of payments of principal on the bonds or other securities, where any bond or other securities are registered for payment as to principal;

      (e) For the initial issuance of one or more bonds or other securities aggregating the amount of the entire issue or any portion thereof, and the endorsement of payments of interest or principal, or both interest and principal, on the securities;

      (f) For the manner and circumstances in and under which any such bond or other securities may in the future, at the request of the holder thereof, be converted into bonds or other securities of larger or smaller denominations, which bonds or other securities of larger or smaller denominations may in turn be either coupon bonds or other coupon securities or bonds or other securities registered for payment, or coupon bonds or other coupon securities with provisions for registration for payment;

      (g) For the reissuance of any outstanding bonds or other securities, and the terms and conditions thereof, whether lost, apparently destroyed, wrongfully taken, or for any other reason, as provided in the Uniform Commercial Code—Investment Securities, or otherwise;

      (h) For the deposit of money, federal securities or other securities of the Federal Government, or both money and such securities, with and securing their repayment by a commercial bank or commercial banks within or without or both within and without this state; and

      (i) For the payment of costs or expenses incident to the enforcement of the securities or of the provisions of the resolution or of any covenant or contract with the holders of the securities; and

      4.  Issued otherwise with such recitals, terms, covenants, conditions and other provisions,

Ê as may be provided by the Commission in a resolution authorizing their issuance and in any indenture or other proceedings appertaining thereto.

      (Added to NRS by 1967, 780; A 1969, 1289; 1971, 2111; 1975, 859; 1981, 1399; 1983, 570)

      NRS 349.262  Issuance of state securities.

      1.  Notwithstanding the provisions of any other law, notes or bonds may be issued at public or private sale.

      2.  Warrants may be issued to evidence the amount due to any person furnishing services or materials as provided in the State Securities Law.

      3.  Temporary bonds must be issued to a purchaser of the definitive bonds in anticipation of the exchange of the former for the latter.

      4.  Interim debentures may be issued at public or private sale.

      (Added to NRS by 1967, 781; A 1971, 2112; 1973, 559; 1989, 2182)

      NRS 349.270  Securities sold publicly to be sold to responsible bidder making best bid; equal bids.

      1.  If securities are sold publicly and subject to the right of the Commission to reject any and all bids, the securities must be sold to the responsible bidder making the best bid.

      2.  If there are two or more equal bids for the securities and such equal bids are the best bids received and not less than the principal amount of the securities and accrued interest, except for any permitted discount, the Commission shall determine which bid must be accepted.

      (Added to NRS by 1967, 782; A 1969, 1587; 1997, 3012)

      NRS 349.274  Recital in securities conclusive evidence of validity and regularity of issuance.  A resolution providing for the issuance of bonds or other state securities hereunder or an indenture or other proceedings appertaining thereto may provide that the securities contain a recital that they are issued pursuant to the State Securities Law, which recital shall be conclusive evidence of their validity and the regularity of their issuance.

      (Added to NRS by 1967, 782)

      NRS 349.276  Denomination, negotiability and maturity of state securities; rate of interest.

      1.  As the Commission may determine, any bonds and other state securities issued hereunder, except as otherwise provided in the Constitution of the State, or in the State Securities Law, or in any act supplemental thereto, must:

      (a) Be of a convenient denomination or denominations;

      (b) Be fully negotiable within the meaning of and for all the purposes of the Uniform Commercial Code—Investment Securities;

      (c) Mature at such a time or serially at such times in regular numerical order at annual or other designated intervals in such amounts as designated and fixed by the Commission;

      (d) Be made payable in lawful money of the United States, at the office of the treasurer or any commercial bank or commercial banks within or without or both within and without the State as may be provided by the Commission; and

      (e) Be printed at such a place within or without this state, as the Commission may determine.

      2.  Any such bonds or other state securities must bear interest at a rate or rates which do not exceed the limit provided in NRS 349.076. The interest must be made payable:

      (a) If the security constitutes a debt subject to the limitations stated in the first paragraph of Section 3 of Article 9 of the Constitution of this state, not less often than semiannually.

      (b) If the security does not constitute a debt or is issued for the protection and preservation of the State’s property or natural resources or for the purpose of obtaining the benefits thereof, at intervals which the Commission shall designate, and the first interest payment may be for another period.

      3.  General obligation bonds must mature within 20 years from their date or within 20 years from the date of passage of the act authorizing their issuance or the issuance of any securities funded or refunded thereby, whichever limitation is shorter; but any bonds constituting a debt which is not subject to the limitations stated in the first paragraph of Section 3 of Article 9 of the Constitution of this state must mature within 50 years from their date.

      4.  Special obligation bonds must mature within 50 years from their date.

      (Added to NRS by 1967, 782; A 1969, 1290; 1971, 2113; 1975, 860; 1977, 34, 252; 1981, 1400; 1983, 571; 1985, 276; 2001, 2481)

      NRS 349.278  Payment of principal, interest and premium when due without further order.  The principal of, the interest on and any prior redemption premium due in connection with any state securities shall be paid as the same become due in accordance with the terms of the securities and any resolutions and other proceedings appertaining to their issuance, without any warrant or further order or other preliminaries.

      (Added to NRS by 1967, 783)

      NRS 349.280  Interest coupons.  Any bonds issued hereunder (except temporary bonds) shall have one or two sets of interest coupons, bearing the number of the bond to which they are respectively attached, numbered consecutively in regular numerical order, and attached in such manner that they can be removed upon the payment of the installments of interest without injury to the bonds, except as herein otherwise provided.

      (Added to NRS by 1967, 783)

      NRS 349.282  Execution, signing, countersigning and authentication of state securities and coupons.  Bonds and other state securities issued hereunder shall be executed in the name of the State, shall be signed by the Governor, shall be countersigned by the Chair of the Commission (unless he or she is also the Governor), by the Controller and by the Treasurer, and shall be attested by the Secretary; and the bonds or other securities shall be authenticated by the great seal of the State of Nevada affixed thereto. Any coupons shall be signed by the Treasurer. Facsimile signatures may be used on any coupons.

      (Added to NRS by 1967, 783)

      NRS 349.284  Facsimile signatures and seals.  Any bonds or other securities, including without limitation any certificates endorsed thereon, may be executed with facsimile signatures and seals as provided in chapter 351 of NRS. (A compliance therewith is not a condition precedent to the execution of any coupon with a facsimile signature.)

      (Added to NRS by 1967, 783; A 1985, 277)

      NRS 349.286  Securities not invalid because signatories cease to fill offices.  The bonds, any coupons appertaining thereto and other securities, bearing the signatures of the officers in office at the time of the signing thereof, shall be the valid and binding obligations of the State, notwithstanding that before the delivery thereof and payment therefor any or all of the persons whose signatures appear thereon have ceased to fill their respective offices.

      (Added to NRS by 1967, 783)

      NRS 349.288  Adoption of facsimile signature of predecessor in office.  Any officer authorized or permitted to sign any bonds, any coupons or any other securities, at the time of their execution and of a signature certificate appertaining thereto, may adopt as and for his or her own facsimile signature the facsimile signature of his or her predecessor in office in the event that such facsimile signature appears upon the bonds, coupons and other securities appertaining thereto, or any combination thereof.

      (Added to NRS by 1967, 784)

      NRS 349.290  Redemption before maturity.  The Commission may provide for the redemption of any or all of the bonds or other state securities before maturity, in such order, by lot or otherwise, at such time or times, without or with the payment of such premium or premiums not exceeding 9 percent of the principal amount of each bond or other security so redeemed, and otherwise upon such terms as may be provided by the Commission in the resolution authorizing the issuance of the securities or other instrument appertaining thereto.

      (Added to NRS by 1967, 784; A 1971, 2113; 1975, 860; 1981, 1401)

      NRS 349.292  Repurchase of state securities.  Any bonds or other state securities may be repurchased by the Commission out of any funds available for such purpose at a price of not more than the principal amount thereof and accrued interest, plus the amount of the premium, if any, which might on the next prior redemption date of such securities be paid to the holders thereof if such securities should be called for redemption on such date pursuant to their terms, and all securities so repurchased shall be cancelled; but if the securities may not be called for prior redemption at the State’s option within 1 year from the date of their purchase, they may be repurchased without limitation as to price.

      (Added to NRS by 1967, 784)

      NRS 349.294  Use of money received from issuance of state securities.  All moneys received from the issuance of any securities herein authorized shall be used solely for the purpose or purposes for which issued and to defray wholly or in part the cost of the project thereby delineated. Any accrued interest and any premium shall be applied to the cost of the project or to the payment of the interest on or the principal of the securities, or both interest and principal, or shall be deposited in a reserve therefor, or any combination thereof, as the Commission may determine.

      (Added to NRS by 1967, 784)

      NRS 349.296  Disposition of unexpended balance of proceeds after completion of project.  Any unexpended balance of the proceeds of such securities remaining after the completion of the acquisition or improvement of properties pertaining to the project or otherwise the completion of the purpose or purposes for which such securities were issued shall be credited immediately to the fund or account created for the payment of the interest on or the principal of the securities, or both principal and interest, and shall be used therefor, subject to the provisions as to the times and methods for their payment as stated in the securities and the proceedings authorizing or otherwise appertaining to their issuance, or so paid into a reserve therefor, or any combination thereof, as the commission may determine.

      (Added to NRS by 1967, 784)

      NRS 349.298  Validity of securities not dependent on proceedings relating to project or completion of purpose; purchasers not responsible for application of proceeds.

      1.  The validity of any securities shall not be dependent on nor affected by the validity or regularity of any proceedings relating to a project or the proper completion of any purpose for which the securities are issued.

      2.  The purchaser or purchasers of the securities shall in no manner be responsible for the application of the proceeds of the securities by the State or any of its officers, agents and employees.

      (Added to NRS by 1967, 784)

      NRS 349.300  Special funds and accounts: Creation; purposes.  The Commission in any resolution authorizing the issuance of bonds or other securities hereunder or in any instrument or other proceedings appertaining thereto may create special funds and accounts for the payment of the cost of a project, of operation and maintenance expenses, of the securities, including the accumulation and maintenance of reserves therefor, of improvements, including the accumulation and maintenance of reserves therefor, and of other obligations appertaining to the securities, any project or any facilities.

      (Added to NRS by 1967, 785)

      NRS 349.302  Employment of legal and other expert services; contracts for sale and other purposes.

      1.  The Commission on the behalf of the State may employ legal, fiscal, engineering and other expert services in connection with any project or any facilities, or both such project and facilities, and the authorization, sale and issuance of bonds and other securities hereunder.

      2.  The Commission on the behalf of the State is authorized to enter into any contracts or arrangements, not inconsistent with the provisions hereof, with respect to the sale of bonds or other securities hereunder, the employment of engineers, architects, financial consultants and bond counsel, and other matters as the Commission may determine to be necessary or desirable in accomplishing the purposes hereof.

      (Added to NRS by 1967, 785)

      NRS 349.303  Delegation of power of Commission to State Treasurer or designee to sign contracts or accept binding bids for purchase of bonds; establishment of certain requirements and approval of certain terms by Commission for purchase of bonds.

      1.  The Commission may, before any sale of bonds, delegate to the Treasurer or his or her designee the authority to sign a contract for the purchase of the bonds or to accept a binding bid for the bonds subject to the requirements specified by the Commission concerning:

      (a) The rate of interest on the bonds;

      (b) The dates on which and the prices at which the bonds may be called for redemption before maturity;

      (c) The price at which the bonds will be sold; and

      (d) The principal amount of the bonds and the amount of principal maturing in any particular year.

      2.  All terms of the bonds other than:

      (a) The rate of interest;

      (b) The dates and prices for the redemption of the bonds;

      (c) The price for the sale of the bonds;

      (d) The principal amount of the bonds; and

      (e) The requirements for the principal maturing in particular years,

Ê must be approved by the Commission before the bonds are delivered.

      3.  The final rate of interest, dates and prices of redemption, price for the sale of the bonds, principal amount and the requirements for the principal amount maturing in particular years are not required to be approved by the Commission if each of those terms complies with the requirements specified by the Commission before the contract for the purchase of the bonds is signed or the bid for the bonds is accepted.

      (Added to NRS by 1997, 3011; A 1999, 71)

      NRS 349.304  Investment and reinvestment of revenues and proceeds of taxes and securities in federal securities or certain money market mutual funds.

      1.  The Commission, subject to any contractual limitations from time to time imposed upon the State by any act or resolution authorizing the issuance of the State’s outstanding securities or by any trust indenture or other proceedings appertaining thereto, may cause to be invested and reinvested any proceeds of taxes, any pledged revenues and any proceeds of bonds or other state securities issued hereunder in:

      (a) Federal securities and other securities of the Federal Government.

      (b) Money market mutual funds that:

             (1) Are registered with the Securities and Exchange Commission;

             (2) Are rated by a nationally recognized rating service as “AAA” or its equivalent; and

             (3) Invest only in securities issued or guaranteed as to payment of principal and interest by the Federal Government, or its agencies or instrumentalities, or in repurchase agreements that are fully collateralized by such securities.

Ê The Commission may cause such proceeds of taxes, revenues, state securities, federal securities, other securities of the Federal Government and money market mutual funds to be deposited in any trust bank or trust banks within or without or both within and without this state and secured in such manner and subject to such terms and conditions as the Commission may determine, with or without the payment of any interest on such deposit, including, without limitation, time deposits evidenced by certificates of deposit.

      2.  Any federal securities, other securities of the Federal Government, shares in money market mutual funds and any such certificates of deposit thus held may, from time to time, be sold, and the proceeds may be so reinvested or redeposited as provided in this section.

      3.  Sales and redemptions of any federal securities, other securities of the Federal Government, shares in money market mutual funds and such certificates of deposit thus held must, from time to time, be made in season so that the proceeds may be applied to the purposes for which the money with which such securities, shares in money market mutual funds and certificates of deposit were originally acquired was placed in the State Treasury.

      4.  Any gain from any such investments or reinvestments may be credited to any fund or account pledged for the payment of any state securities issued hereunder, including any reserve therefor, or any other fund or account appertaining to a project or any facilities or the State’s General Fund, subject to any contractual limitations in any proceedings appertaining to outstanding state securities.

      5.  It is lawful for any commercial bank incorporated under the laws of this state which may act as depository of the proceeds of any securities issued hereunder, any federal securities, other securities of the Federal Government and shares in money market mutual funds owned by the State, any proceeds of taxes, any pledged revenues and any money otherwise appertaining to a project or any facilities, or any combination thereof, to furnish such indemnifying bonds or to pledge such federal securities, such other securities issued by the Federal Government, such shares in money market mutual funds and such other securities as may be required by the Commission.

      (Added to NRS by 1967, 785; A 1997, 2865)

      NRS 349.306  Covenants and other provisions in state securities.  Any resolution providing for the issuance of any bonds or other state securities hereunder payable from pledged revenues and any indenture or other instrument or proceedings appertaining thereto may at the discretion of the Commission contain covenants or other provisions, notwithstanding such covenants and provisions may limit the exercise of powers conferred hereby, in order to secure the payment of such securities, in agreement with the holders of such securities, including without limitation covenants or other provisions as to any one or more of the following:

      1.  The pledged revenues and, in the case of general obligations, the taxes to be fixed, charged or levied and the collection, use and disposition thereof, including but not limited to the foreclosure of liens for delinquencies, the discontinuance of services, facilities or use of any properties or facilities, prohibition against free service, the collection of penalties and collection costs, and the use and disposition of any moneys of the State, derived or to be derived, from any source herein designated;

      2.  The acquisition, improvement or equipment of all or any part of properties pertaining to any project or any facilities;

      3.  The creation and maintenance of reserves or sinking funds to secure the payment of the principal of and interest on any securities or of operation and maintenance expenses of any facilities, or part thereof, and the source, custody, security, regulation, use and disposition of any such reserves or funds, including but not limited to the powers and duties of any trustee with regard thereto;

      4.  A fair and reasonable payment by the State from its General Fund or other available moneys to the account of any designated facilities for services rendered thereby to the State;

      5.  The payment of the cost of any project by delineating the purpose or purposes to which the proceeds of the sale of securities may be applied, and the custody, security, use, expenditure, application and disposition thereof;

      6.  The temporary investment and any reinvestment of proceeds of bonds, other securities, any taxes or pledged revenues, or any combination thereof, in federal securities and other securities issued by the Federal Government;

      7.  The pledge of and the creation of a lien upon pledged revenues or the proceeds of bonds or other state securities pending their application to defray the cost of any project, or both such revenues and proceeds of such securities, to secure the payment of bonds or other securities issued hereunder;

      8.  The payment of the principal of and interest on any securities, and any prior redemption premiums due in connection therewith, and the sources and methods thereof, the rank or priority of any securities as to any lien or security for payment, or the acceleration of any maturity of any securities, or the issuance of other or additional securities payable from or constituting a charge against or lien upon any pledged revenues or other moneys pledged for the payment of securities and the creation of future liens and encumbrances thereagainst;

      9.  The use, regulation, inspection, management, operation, maintenance or disposition, or any limitation or regulation of the use, of all or any part of the facilities or any property of the State appertaining thereto;

      10.  The determination or definition of pledged revenues from any facilities or of operation and maintenance expenses of facilities, the use and disposition of such revenues and the manner of and limitations upon paying such expenses;

      11.  The creation of special funds and accounts appertaining to any pledged revenues or to the bonds or other securities issued hereunder;

      12.  The insurance to be carried by the State or any other person in interest and use and disposition of insurance moneys, the acquisition of completion, performance, surety and fidelity bonds appertaining to any project or funds, or both, and the use and disposition of any proceeds of such bonds;

      13.  Books of account, the inspection and audit thereof, and other records appertaining to any project, facilities or pledged revenues;

      14.  The assumption or payment or discharge of any obligation, lien or other claim relating to any part of any project, any facilities or any securities having or which may have a lien on any part of any pledged revenues or other moneys of the state;

      15.  Limitations on the powers of the State to acquire or operate, or permit the acquisition or operation of, any structures, facilities or properties which may compete or tend to compete with any facilities;

      16.  The vesting in a corporate or other trustee or trustees of such property, rights, powers and duties in trust as the Commission may determine, which may include any or all of the rights, powers and duties of the trustee appointed by the holders of securities, and limiting or abrogating the right of such holders to appoint a trustee, or limiting the rights, duties and powers of such trustee;

      17.  Events of default, rights and liabilities arising therefrom, and the rights, liabilities, powers and duties arising upon the breach by the State of any covenants, conditions or obligations;

      18.  The terms and conditions upon which the holders of the securities or any portion, percentage or amount of them may enforce any covenants or provisions made hereunder or duties imposed thereby;

      19.  The terms and conditions upon which the holders of the securities or of a specified portion, percentage or amount thereof, or any trustee therefor, shall be entitled to the appointment of a receiver, which receiver may enter and take possession of any facilities or service, operate and maintain the same, prescribe fees, rates and charges, and collect, receive and apply all revenues thereafter arising therefrom in the same manner as the State itself might do;

      20.  A procedure by which the terms of any resolution authorizing securities, or any other contract with any holders of securities, including but not limited to an indenture of trust or similar instrument, may be amended or abrogated, and as to the proportion, percentage or amount of securities the holders of which must consent thereto, and the manner in which such consent may be given;

      21.  The terms and conditions upon which any or all of the securities shall become or may be declared due before maturity, and as to the terms and conditions upon which such declaration and its consequences may be waived; and

      22.  All such acts and things as may be necessary or convenient or desirable in order to secure the securities, or in the discretion of the Commission tend to make the securities more marketable, notwithstanding that such covenant, act or thing may not be enumerated herein, it being the intention hereof to give the Commission power to do in the name and on behalf of the State all things in the issuance of state securities and for their security except as herein expressly limited.

      (Added to NRS by 1967, 786)

      NRS 349.308  Pledged revenues received or credited subject to immediate lien; priority and validity of lien.

      1.  Revenues pledged for the payment of any securities, as received by or otherwise credited to the State, shall immediately be subject to the lien of each such pledge without any physical delivery thereof, any filing or further act.

      2.  The lien of each such pledge and the obligation to perform the contractual provisions made in the authorizing resolution or other instrument appertaining thereto shall have priority over any or all other obligations and liabilities of the State, except as may be otherwise provided herein or in the resolution or other instrument, and subject to any prior pledges and liens theretofore created.

      3.  The lien of each such pledge shall be valid and binding as against all persons having claims of any kind in tort, contract or otherwise against the State irrespective of whether such persons have notice thereof.

      (Added to NRS by 1967, 788)

      NRS 349.310  Rights and powers of holders of state securities and trustees.  Subject to any contractual limitations binding upon the holders of any issue or series of state securities, or trustee therefor, including but not limited to the restriction of the exercise of any remedy to a specified proportion, percentage or number of such holders, and subject to any prior or superior rights of others, any holder of securities, or trustee therefor, shall have the right and power, for the equal benefit and protection of all holders of securities similarly situated:

      1.  By mandamus or other suit, action or proceeding at law or in equity to enforce his or her rights against the State, the Commission, and any other of the officers, agents and employees of the State, to require and compel the State, the Commission, or any such officers, agents or employees to perform and carry out their respective duties, obligations or other commitments hereunder and their respective covenants and agreements with the holder of any security;

      2.  By action or suit in equity to require the State to account as if it is the trustee of an express trust;

      3.  By action or suit in equity to have appointed a receiver, which receiver may enter and take possession of any facilities and any pledged revenues for the payment of the securities, prescribe sufficient fees derived from the facilities, and collect, receive and apply all pledged revenues or other moneys pledged for the payment of the securities in the same manner as the State itself might do in accordance with the obligations of the State; and

      4.  By action or suit in equity to enjoin any acts or things which may be unlawful or in violation of the rights of the holder of any securities and to bring suit thereupon.

      (Added to NRS by 1967, 788)

      NRS 349.312  Receivers: Appointment; powers and duties.

      1.  If a resolution of the Commission authorizing or providing for the issuance of any securities of any series or any other proceedings appertaining thereto contains a provision authorized by subsection 19 of NRS 349.306 and further provides in substance that any trustee appointed pursuant to subsection 16 of NRS 349.306 shall have the powers provided by that subsection, then such trustee, whether or not all of the bonds or other securities of such series have been declared due and payable, shall be entitled as of right to the appointment of a receiver of the facilities appertaining thereto.

      2.  Any receiver appointed as permitted by subsection 19 of NRS 349.306 may enter upon and take possession of the facilities and property appertaining thereto, and, subject to any pledge or contract with the holders of such securities, shall take possession of all moneys and other property derived from or applicable to the acquisition, operation, maintenance or improvement of the facilities and proceed with such acquisition, operation, maintenance or improvement which the Commission on the behalf of the State is under any obligation to do, and operate, maintain, equip and improve the facilities, and fix, charge, collect, enforce and receive the service charges and all revenues thereafter arising subject to any pledge thereof or contract with the holders of such securities relating thereto and perform the public duties and carry out the contracts and obligations of the State in the same manner as the Commission itself might do and under the direction of the court.

      (Added to NRS by 1967, 789)

      NRS 349.314  Rights and remedies cumulative.  No right or remedy conferred upon any holder of any securities or any coupon appertaining thereto or any trustee for such holder hereby or by any proceedings appertaining to the issuance of such securities or coupon is exclusive of any right or remedy, but each such right or remedy is cumulative and in addition to every other right or remedy and may be exercised without exhausting and without regard to any other remedy conferred hereby or by any other law.

      (Added to NRS by 1967, 789)

      NRS 349.316  Failure of holder to proceed does not relieve State, Commission and officers, agents and employees of State of liability for nonperformance of duties.  The failure of any holder of any state securities or any coupons appertaining thereto so to proceed as herein provided or in such proceedings shall not relieve the State, the Commission or any of the officers, agents and employees of the State of any liability for failure to perform or carry out any duty, obligation or other commitment.

      (Added to NRS by 1967, 789)

      NRS 349.318  Interim debentures: Issuance for general or special obligations.

      1.  Notwithstanding any limitation or other provision herein, whenever the State is authorized to issue general obligation bonds, regardless of whether majorities of the qualified electors of the State voting on a proposal to issue the general obligation bonds have authorized their issuance by the State for any project, the State is authorized to borrow money without any other election in anticipation of the proceeds of taxes, the proceeds of the bonds, the proceeds of pledged revenues, or any other moneys of the State, or any combination thereof, and to issue general obligation interim debentures to evidence the amount so borrowed.

      2.  The State also is authorized to borrow money without any election in anticipation of the proceeds of revenue bonds or any other special obligations of the State and of its pledged revenues, or any combination thereof, but excluding the proceeds of any taxes, and to issue special obligation interim debentures to evidence the amount so borrowed.

      (Added to NRS by 1967, 789)

      NRS 349.320  Issuance of state securities constituting debt to fund or refund special obligations not constituting indebtedness: Conditions; restrictions.

      1.  Except as otherwise provided in subsections 2 to 5, inclusive, this section does not authorize the State to issue any state securities constituting a debt for the purpose of funding or refunding state securities constituting special obligations which do not constitute an indebtedness.

      2.  Any special obligation securities of the State pertaining to any project may be funded or refunded by general obligation securities pertaining to the project only if the State is authorized by law to issue those funding or refunding securities at the time of their issuance, even though the State was not so authorized to issue them at the time of the issuance of any such funded or refunded securities.

      3.  If the issuance of general obligation bonds to defray the cost of the project is conditioned upon their approval by the qualified electors of the State at a special, primary or general election, any general obligation securities pertaining to the project and creating an indebtedness, by funding or refunding special obligation securities or otherwise, may be issued only if the bonds have been so approved at a special, primary or general election in the manner provided by law.

      4.  If a debt limitation pertains to any general obligation bonds or other securities of the State constituting an indebtedness and relating to any project, no general obligation securities pertaining to the project and creating an indebtedness, by funding or refunding special obligation securities or otherwise (in contradistinction to funding or refunding bonds merely reevidencing an indebtedness formerly evidenced by the securities funded or refunded), may be issued in a principal amount exceeding that debt limitation.

      5.  No bonds of the State may be refunded by the issuance of its interim debentures, its notes or its warrants. No interim debentures of the State may be funded by the issuance of its notes or its warrants.

      (Added to NRS by 1967, 790; A 1969, 1587; 1993, 1066)

      NRS 349.322  Interim debentures: Maturity; use of proceeds; issuance.

      1.  Any interim debentures may mature at such time or times not exceeding a period of time equal to the estimated time needed to effect the purpose or purposes for which they are issued or for which the bonds are authorized to be issued, but not exceeding 5 years from the date of the interim debentures, as the Commission may determine.

      2.  The proceeds of interim debentures shall be used to defray the cost of a project.

      3.  Any notes or warrants or both notes and warrants may be funded with the proceeds of interim debentures, as well as bonds authorized by the Commission authorizing the issuance of the funded securities.

      4.  Except as otherwise provided in NRS 349.318 to 349.328, inclusive, interim debentures shall be issued as provided herein for state securities in NRS 349.230 to 349.316, and 349.352 to 349.364, inclusive.

      (Added to NRS by 1967, 790; A 1969, 1587; 1975, 861)

      NRS 349.324  Interim debentures: Security for payment.

      1.  Except as otherwise provided in NRS 349.320, the proceeds of taxes, pledged revenues and other money, including without limitation proceeds of bonds to be issued or reissued after the issuance of interim debentures, and bonds issued to secure the payment of interim debentures, or any combination thereof, may be pledged to secure the payment of interim debentures; but the proceeds of taxes and the proceeds of bonds payable from taxes, or any combination thereof, must not be used to pay any special obligation interim debentures nor may their payment be secured by a pledge of any such general obligation bonds.

      2.  Any bonds pledged as collateral security for the payment of any interim debentures must mature at such time or times as the Commission may determine, except as otherwise provided in subsections 3 and 4 of NRS 349.276.

      3.  Any bonds pledged as collateral security must not be issued in an aggregate principal amount exceeding the aggregate principal amount of the interim debenture or interim debentures secured by a pledge of such bonds, nor shall they bear interest at any time which, with any interest accruing at the same time on the interim debenture or interim debentures so secured, exceeds the rate permitted on the debenture or debentures secured, computed from the appropriate index which was most recently published before the bids are received or a negotiated offer is accepted.

      (Added to NRS by 1967, 790; A 1969, 1290; 1971, 2113; 1975, 861; 1977, 35; 1981, 1401; 1983, 572)

      NRS 349.326  Interim debentures: Extension and funding.  No interim debentures issued pursuant to the provisions of NRS 349.318 to 349.324, inclusive, shall be extended or funded except by the issuance or reissuance of a bond or bonds authorized by the Commission authorizing the issuance of the funded interim debentures in compliance with NRS 349.328.

      (Added to NRS by 1967, 790)

      NRS 349.328  Interim debentures: Funding by reissuance of bonds pledged as collateral security; issuance of other bonds.

      1.  For the purpose of funding any interim debentures, any bonds pledged as collateral security to secure the payment of such interim debentures, upon their surrender as pledged property, may be reissued without an election, and any bonds not previously issued but authorized to be issued, at an election in the case of general obligation bonds required by law so to be authorized, and otherwise merely by the Commission, for a purpose or purposes the same as or encompassing the purpose or purposes for which the interim debentures were issued, may be issued for such a funding.

      2.  Any such bonds shall mature at such time or times as the Commission may determine, except as otherwise provided in subsections 3 and 4 of NRS 349.276.

      3.  Bonds for funding (including but not necessarily limited to any such reissued bonds) and bonds for any other purpose or purposes may be issued separately or issued in combination in one series or more.

      4.  Except as otherwise provided in NRS 349.322 to 349.328, inclusive, any such funding bonds shall be issued as is provided herein for other bonds.

      (Added to NRS by 1967, 790; A 1977, 36)

      NRS 349.330  Refunding of general and special obligation bonds: Resolution; trust indenture.  Subject to the provisions of NRS 349.320, any general obligation bonds or special obligation bonds of the State issued in accordance with the provisions of the State Securities Law or any other act and payable from any pledged revenues and any general obligation bonds of the State so issued but not payable from pledged revenues may be refunded on behalf of the State by the Commission authorizing the issuance of the refunded bonds, without the necessity of the refunding bonds being authorized at an election except as otherwise provided in NRS 349.320, by the adoption of a resolution or resolutions by the Commission and by any trust indenture or other proceedings appertaining thereto, authorizing the issuance of refunding bonds to refund, pay and discharge all or any part of such outstanding bonds of any one or more or all outstanding issues:

      1.  For the acceleration, deceleration or other modification of the payment of such obligations, including any interest thereon in arrears, or about to become due for any period not exceeding 3 years from the date of the refunding bonds, unless the capitalization of interest on bonds constituting an indebtedness increases the state debt in excess of the State’s debt limitation in the State Constitution;

      2.  For the purpose of reducing interest costs or effecting other economies;

      3.  For the purpose of modifying or eliminating restrictive contractual limitations appertaining to the issuance of additional bonds, otherwise concerning the outstanding bonds, or otherwise relating to any facilities appertaining thereto;

      4.  For any combination of the purposes stated in subsections 1, 2 and 3.

      (Added to NRS by 1967, 791; A 1969, 1588)

      NRS 349.332  Calls for prior redemption: Limitations.  Nothing contained in the State Securities Law or in any other law of this state shall be construed to permit the Commission to call on behalf of the State bonds or other securities outstanding now or any time after April 5, 1967, for prior redemption in order to fund or refund such securities or in order to pay them prior to their stated maturities, unless the right to call such securities for prior redemption was specifically reserved and stated in such securities at the time of their issuance, and all conditions with respect to the manner, price and time applicable to such prior redemption as set forth in the proceedings authorizing the outstanding securities are strictly observed. It is the intention of the Legislature in this section to make it certain that the holder of no outstanding bond or other security may be compelled to surrender such security for funding or refunding prior to its stated maturity or optional date of prior redemption expressly reserved therein, even though such funding or refunding might result in financial benefit to the State.

      (Added to NRS by 1967, 791; A 1969, 1588)

      NRS 349.334  Exchange of outstanding securities held by State or its agencies for funding or refunding.  Notwithstanding the provisions of NRS 349.332 or of any other law, this state, acting by and through the State Board of Finance, may agree with the Commission to exchange any outstanding bonds or other securities of the State and held by the State, or any agency, corporation, department or other instrumentality of the State, for funding or refunding bonds or other funding securities of the State authorized on its behalf by the Commission or otherwise to surrender at such price and time and otherwise upon such conditions and other terms and in such manner as may be mutually agreeable such outstanding bonds or other securities to the Commission for funding or refunding at any time prior to their respective maturities or to any date as of which the State has the right and option to call on its behalf such outstanding securities for prior redemption as expressly provided in the outstanding securities and any resolution, trust indenture or other proceedings authorizing their issuance.

      (Added to NRS by 1967, 791; A 1969, 1589)

      NRS 349.336  Refunding of outstanding securities evidencing long-term loans.  Any provision herein concerning the refunding of outstanding bonds includes any outstanding securities evidencing long-term loans to the State regardless of whether such securities are designated as bonds, certificates, single certificates or otherwise.

      (Added to NRS by 1967, 792)

      NRS 349.338  Refunding bonds: Exchange for outstanding bonds or federal securities; public or private sale.

      1.  Any bonds issued for refunding purposes may either be delivered in exchange for the outstanding bonds being refunded or may be publicly or privately sold.

      2.  The refunding bonds, or any part thereof, except as limited by subsection 2 of NRS 349.344, may be exchanged by the State for federal securities and other securities of the Federal Government which have been made available for escrow investment by any purchaser of refunding bonds, upon terms of exchange mutually agreed upon, and any such securities so received by the State shall be placed in escrow as provided in NRS 349.342 and 349.344.

      (Added to NRS by 1967, 792)

      NRS 349.340  Conditions for refunding bonds.

      1.  No bonds may be refunded hereunder unless the holders thereof voluntarily surrender them for exchange or payment, or unless they either mature or are callable for prior redemption under their terms within 25 years from the date of issuance of the refunding bonds. Provision must be made for paying the securities within that period.

      2.  The maturity of any bond refunded may not be extended beyond 25 years, or beyond 1 year next following the date of the last outstanding maturity, whichever limitation is later, nor in any event in the case of any bonds constituting a debt in contravention of any state constitutional debt limitation, nor may any interest on any bond refunded be increased to any rate exceeding the limit provided in NRS 349.076; but any general obligation bonds funding or refunding any securities which constitute a debt and are subject to the limitations stated in the first paragraph of Section 3 of Article 9 of the Constitution of this state, must mature within 20 years from the effective date of the act authorizing the issuance of the securities so funded or refunded thereby, or within 20 years from the date or earliest date of such securities, as the case may be, whichever limitation is shorter.

      3.  The principal amount of the refunding bonds may exceed the principal amount of the refunded bonds, but in the case of any bonds constituting a debt the principal of the bonds may not be increased to any amount in excess of any state debt limitation in the State Constitution pertaining thereto.

      4.  The principal amount of the refunding bonds may also be less than or the same as the principal amount of the bonds being refunded so long as provision is duly and sufficiently made for their payment.

      (Added to NRS by 1967, 792; A 1969, 1291; 1971, 2114; 1975, 861; 1981, 1402; 1983, 573, 1033, 1594)

      NRS 349.342  Refunding bonds: Disposition of proceeds; accrued interest and premium; costs; escrow; trusts.

      1.  Except as herein otherwise provided, the proceeds of refunding bonds shall either be immediately applied to the retirement of the bonds to be refunded or be placed in escrow or trust in any trust bank or trust banks within or without or both within and without this state to be applied to the payment of the refunded bonds or the refunding bonds, or both the refunded bonds and the refunding bonds, upon their presentation therefor to the extent, in such priority and otherwise in the manner which the Commission may determine.

      2.  The incidental costs of refunding bonds may be paid by the purchaser of the refunding bonds or be defrayed from any general fund (subject to appropriations therefor as otherwise provided by law) or other available revenues of the State under the control of the Commission or from the proceeds of the refunding bonds, or from the interest or other yield derived from the investment of any refunding bond proceeds or other moneys in escrow or trust, or from any other sources legally available therefor, or any combination thereof, as the Commission may determine.

      3.  Any accrued interest and any premium appertaining to a sale of refunding bonds may be applied to the payment of the interest thereon or the principal thereof, or to both interest and principal, or may be deposited in a reserve therefor, or may be used to refund bonds by deposit in escrow, trust or otherwise, or may be used to defray any incidental costs appertaining to the refunding, or any combination thereof, as the Commission may determine, but in no event by the incurrence of additional debt in excess of any state debt limitation in the State Constitution.

      (Added to NRS by 1967, 793)

      NRS 349.344  Proceeds of refunding bonds in escrow or trust: Investment; security; sufficient amount; purchaser not responsible for application of proceeds.

      1.  Any such escrow or trust shall not necessarily be limited to proceeds of refunding bonds but may include other moneys available for its purpose.

      2.  Any proceeds in escrow or trust, pending such use, may be invested or reinvested in federal securities, and in the case of an escrow or trust for the refunding of outstanding state special obligation (but not general obligation) securities, in other securities issued by the Federal Government if the resolution authorizing the issuance of such outstanding state securities or any trust indenture or other proceedings appertaining thereto expressly permits any such investment or reinvestment in such securities issued by the Federal Government other than federal securities.

      3.  Any trust bank accounting for federal securities and other securities issued by the Federal Government in such escrow or trust may place them for safekeeping wholly or in part in any trust bank or trust banks within or without or both within and without this state.

      4.  Any trust bank shall continuously secure any moneys placed in escrow or trust and not so invested or reinvested in federal securities and other securities issued by the Federal Government by a pledge in any trust bank or trust banks within or without or both within and without the State of federal securities in an amount at all times at least equal to the total uninvested amount of such moneys accounted for in such escrow or trust.

      5.  Such proceeds and investments in escrow or trust, together with any interest or other gain to be derived from any such investment, shall be in an amount at all times at least sufficient to pay principal, interest, any prior redemption premiums due, and any charges of the escrow agent or trustee and any other incidental expenses payable therefrom, except to the extent provision may have been previously otherwise made therefor, as such obligations become due at their respective maturities or due at designated prior redemption date or dates in connection with which the Commission has exercised or is obligated to exercise a prior redemption option on behalf of the State.

      6.  The computations made in determining such sufficiency shall be verified by a certified public accountant licensed to practice in this state or in any other state.

      7.  Any purchaser of any refunding bond issued hereunder shall in no manner be responsible for the application of the proceeds thereof by the State, the Commission or any of the officers, agents or employees of the State.

      (Added to NRS by 1967, 793)

      NRS 349.346  Refunding bonds payable from taxes or pledged revenues.  Refunding bonds may be made payable from any taxes or pledged revenues, or both taxes and such revenues, which might be legally pledged for the payment of the bonds being refunded at the time of the refunding or at the time of the issuance of the bonds being refunded, as the Commission may determine, notwithstanding the taxes, or the revenue sources, or the pledge of such revenues, or any combination thereof, for the payment of the outstanding bonds being refunded is thereby modified, subject to the provisions of NRS 349.320.

      (Added to NRS by 1967, 794)

      NRS 349.348  Issuance of bonds separately or in combination.  Bonds for refunding and bonds for any other purpose or purposes authorized hereby or by any other law may be issued separately or issued in combination in one series or more by the State in accordance with the provisions of the State Securities Law.

      (Added to NRS by 1967, 794)

      NRS 349.350  Other statutory provisions applicable to refunding bonds.  Except as in NRS 349.330 to 349.348, inclusive, expressly provided or necessarily implied, the relevant provisions elsewhere herein appertaining generally to the issuance of bonds to defray the cost of any project shall be equally applicable in the authorization and issuance of refunding bonds, including their terms and security, the covenants and other provisions of the resolution authorizing the issuance of the bonds, or other instrument or proceedings appertaining thereto, and other aspects of the bonds.

      (Added to NRS by 1967, 794)

      NRS 349.352  Conclusive determination of Commission that statutory limitations have been met.  The determination of the Commission that the limitations in the State Securities Law imposed upon the issuance of bonds or upon the issuance of other securities hereunder, including without limitation any securities for funding or refunding securities, have been met shall be conclusive in the absence of fraud or arbitrary and gross abuse of discretion regardless of whether the authorizing resolution or the securities thereby authorized contain a recital as authorized by NRS 349.274.

      (Added to NRS by 1967, 794; A 1969, 1589)

      NRS 349.354  Bonds and other securities exempt from taxation; exceptions.

      1.  Except as otherwise provided in subsection 2, bonds and other securities issued pursuant to the provisions of the State Securities Law, their transfer and the income therefrom must forever be and remain free and exempt from taxation by this state or any subdivision thereof.

      2.  The provisions of subsection 1 do not apply to the tax on estates imposed pursuant to the provisions of chapter 375A of NRS or the tax on generation-skipping transfers imposed pursuant to the provisions of chapter 375B of NRS.

      (Added to NRS by 1967, 794; A 1989, 2107; 1991, 1710)

      NRS 349.356  Securities issued as general obligations are legal investments for state money.  It is legal for the State Board of Finance to invest any permanent state funds or other state funds available for investment in any of the bonds or other securities authorized to be issued pursuant to the provisions hereof if the securities constitute general obligations payable from taxes.

      (Added to NRS by 1967, 794)

      NRS 349.358  Legal investments for other persons.

      1.  It is legal for any bank, trust company, banker, savings bank or institution, savings and loan association, investment company and any other person carrying on a banking or investment business, any insurance company, insurance association, or any other person carrying on an insurance business, and any executor, administrator, curator, trustee or any other fiduciary, to invest funds or money in his or her custody in any of the bonds or other securities issued in accordance with the provisions of the State Securities Law.

      2.  Nothing contained in this section with regard to legal investments relieves any representative of any corporation or other person of any duty of exercising reasonable care in selecting securities.

      (Added to NRS by 1967, 794; A 1983, 131)

      NRS 349.362  Sufficiency of State Securities Law.

      1.  The State Securities Law, without reference to other statutes of this state, except as herein otherwise expressly provided, shall constitute full authority for the exercise of the incidental powers herein granted concerning the borrowing of money and any other incurrence of obligations to defray wholly or in part the cost of any project appertaining to the State and otherwise authorized by law, or to refinance outstanding loans, or both, and the issuance of bonds or other securities to evidence such loans or other obligations or to fund or refund outstanding securities, or any combination thereof, as the Commission may determine.

      2.  No other act or law with regard to the authorization or issuance of securities or the exercise of any other power herein granted that requires an election or another approval or in any way impedes or restricts the carrying out of the acts herein authorized to be done shall be construed as applying to any proceedings taken hereunder or acts done pursuant hereto, except as otherwise provided in the State Securities Law or in any act supplemental hereto.

      3.  The powers conferred by the State Securities Law shall be in addition and supplemental to, and not in substitution for, and the limitations imposed by the State Securities Law shall not affect the powers conferred by, any other law.

      4.  Nothing contained in the State Securities Law shall be construed as preventing the exercise of any power granted to the State, acting by and through the Commission, or any officer, agent or employee of the State, or otherwise, by any other law.

      5.  No part of the State Securities Law shall repeal or affect any other law or part thereof, it being intended that the State Securities Law shall provide a separate method of accomplishing its objectives and not an exclusive one; and the State Securities Law shall not be construed as repealing, amending or changing any such other law.

      (Added to NRS by 1967, 796)

      NRS 349.364  Liberal construction.  The State Securities Law being necessary to secure the public health, safety, convenience and welfare, shall be liberally construed to effect its purposes.

      (Added to NRS by 1967, 796)

REVENUE BONDS FOR INDUSTRIAL DEVELOPMENT

      NRS 349.400  Definitions.  As used in NRS 349.400 to 349.670, inclusive, unless the context otherwise requires, the words and terms defined in NRS 349.405 to 349.540, inclusive, have the meanings ascribed to them in those sections.

      (Added to NRS by 1981, 1624; A 1985, 2175; 1997, 497; 1999, 3357; 2001, 3256; 2011, 3458)

      NRS 349.405  “Biomass” defined.  “Biomass” means any organic matter that is available on a renewable basis, including, without limitation:

      1.  Agricultural crops and agricultural wastes and residues;

      2.  Wood and wood wastes and residues;

      3.  Animal wastes;

      4.  Municipal wastes; and

      5.  Aquatic plants.

      (Added to NRS by 2001, 3255)

      NRS 349.410  “Board” defined.  “Board” means the State Board of Finance.

      (Added to NRS by 1981, 1624)

      NRS 349.420  “Bonds” and “revenue bonds” defined.  “Bonds” or “revenue bonds” means bonds, notes or other securities evidencing an obligation and issued under NRS 349.400 to 349.670, inclusive.

      (Added to NRS by 1981, 1624)

      NRS 349.425  “Corporation for public benefit” defined.  “Corporation for public benefit” means a corporation that is:

      1.  Recognized as exempt pursuant to section 501(c)(3) of the Internal Revenue Code of 1986, 26 U.S.C. § 501(c)(3), future amendments to that section and the corresponding provisions of future internal revenue laws; or

      2.  Organized for a public or charitable purpose and which, upon dissolution, must distribute its assets to the United States, a state, or a person which is recognized as exempt pursuant to section 501(c)(3) of the Internal Revenue Code of 1986, 26 U.S.C. § 501(c)(3), future amendments to that section and the corresponding provisions of future internal revenue laws.

      (Added to NRS by 1997, 497; A 1999, 3357)

      NRS 349.430  “Cost of a project” defined.  “Cost of a project” means all or a designated part of the cost of any project, including any incidental cost pertaining to the project. The cost of a project may include, among other costs, the costs of:

      1.  Surveys, audits, preliminary plans, other plans, specifications, estimates and other costs of preparations;

      2.  Appraising, printing, estimating, advice, services of engineers, architects, financial consultants, attorneys, clerical personnel and other agents and employees;

      3.  Publishing, posting, mailing and otherwise giving notice, filing or recording instruments, taking options and fees to banks;

      4.  Establishment of a reserve for contingencies;

      5.  Interest on bonds for any time which does not exceed the estimated period of construction plus 1 year, discounts on bonds, reserves for the payment of the principal of and interest on bonds, replacement expenses and other costs of issuing bonds;

      6.  Amending any resolution or other instrument authorizing the issuance of, or otherwise relating to, bonds for the project; and

      7.  Short-term financing,

Ê and the expense of operation and maintenance of the project.

      (Added to NRS by 1981, 1624; A 2001, 3256)

      NRS 349.440  “Director” defined.  “Director” means the Director of the Department of Business and Industry or any person within the Department of Business and Industry designated by the Director to perform duties in connection with a project or the issuance of bonds.

      (Added to NRS by 1981, 1625; A 1993, 1569)

      NRS 349.450  “Expense of operation and maintenance” defined.  “Expense of operation and maintenance” means any reasonable and necessary current expense of the State for the operation, maintenance or administration of a project or of the collection and administration of revenues from a project. The term includes, among other expenses:

      1.  Expenses for engineering, auditing, reporting, legal services and other expenses of the Director which are directly related to the administration of projects.

      2.  Premiums for fidelity bonds and policies of property and liability insurance pertaining to projects, and shares of the premiums of blanket bonds and policies which may be reasonably allocated to the State.

      3.  Payments to pension, retirement, health insurance and other insurance funds.

      4.  Reasonable charges made by any paying agent, commercial bank, credit union, trust company or other depository bank pertaining to any bonds.

      5.  Services rendered under the terms of contracts, services of professionally qualified persons, salaries, administrative expenses and the cost of materials, supplies and labor pertaining to the issuance of any bonds, including the expenses of any trustee, receiver or other fiduciary.

      6.  Costs incurred in the collection and any refund of revenues from the project, including the amount of the refund.

      (Added to NRS by 1981, 1625; A 1999, 1470)

      NRS 349.460  “Finance” and “financing” defined.  “Finance” or “financing” includes the issue of bonds by the Director for the purpose of using substantially all of the proceeds to pay (or to reimburse the obligor or its designee) for the costs of acquiring, improving and equipping a project, whether these costs are incurred by the Director, the obligor or a designee of the obligor.

      (Added to NRS by 1981, 1625)

      NRS 349.470  “Financing agreement” defined.  “Financing agreement” means an agreement by which the Director agrees to issue bonds pursuant to NRS 349.400 to 349.670, inclusive, to finance one or more projects and the obligor agrees to:

      1.  Make payments (directly or through notes, debentures, bonds or other secured or unsecured debt obligations of the obligor executed and delivered by the obligor to the Director or his or her designee or assignee, including a trustee, pursuant to the financing agreement) sufficient to pay the principal of, premium if any, and interest on the bonds;

      2.  Pay other amounts required by NRS 349.400 to 349.670, inclusive; or

      3.  Comply with all other applicable provisions of NRS 349.400 to 349.670, inclusive.

      (Added to NRS by 1981, 1625)

      NRS 349.475  “Fuel cell” defined.  “Fuel cell” means a device or contrivance that, through the chemical process of combining ions of hydrogen and oxygen, produces electricity and water.

      (Added to NRS by 2001, 3255)

      NRS 349.480  “Health and care facility” defined.  “Health and care facility” means a hospital, facility for intermediate care or facility for skilled nursing as those terms are defined in chapter 449 of NRS.

      (Added to NRS by 1981, 1626; A 1985, 1758)

      NRS 349.485  “Historic structure” defined.  “Historic structure” means a building, facility or other structure which is eligible for listing in the State Register of Historic Places under NRS 383.085.

      (Added to NRS by 1985, 2174)

      NRS 349.490  “Mortgage” defined.  “Mortgage” includes a deed of trust and any other security agreement covering real or personal property or both.

      (Added to NRS by 1981, 1626)

      NRS 349.500  “Obligor” defined.  “Obligor” means the natural person, partnership, firm, company, corporation (including a public utility), association, trust, estate, political subdivision, state agency or any other legal entity, or its legal representative, agent or assigns, who agrees to make the payments required by the financing agreement.

      (Added to NRS by 1981, 1626)

      NRS 349.510  “Project” defined.  “Project” means:

      1.  Any land, building or other improvement and all real and personal properties necessary in connection therewith, excluding inventories, raw materials and working capital, whether or not in existence, suitable for new construction, improvement, rehabilitation or redevelopment for:

      (a) Industrial uses, including assembling, fabricating, manufacturing, processing or warehousing;

      (b) Research and development relating to commerce or industry, including professional, administrative and scientific offices and laboratories;

      (c) Commercial enterprises;

      (d) Civic and cultural enterprises open to the general public, including theaters, museums and exhibitions, together with buildings and other structures, machinery, equipment, facilities and appurtenances thereto which the Director deems useful or desirable in connection with the conduct of any such enterprise;

      (e) An educational institution operated by a nonprofit organization not otherwise directly funded by the State which is accredited by a nationally recognized educational accrediting association;

      (f) Health and care facilities and supplemental facilities for health and care;

      (g) The purposes of a corporation for public benefit; or

      (h) A renewable energy generation project.

      2.  Any real or personal property appropriate for addition to a hotel, motel, apartment building, casino or office building to protect it or its occupants from fire.

      3.  The preservation of a historic structure or its restoration for its original or another use, if the plan has been approved by the Office of Historic Preservation of the State Department of Conservation and Natural Resources.

      (Added to NRS by 1981, 1626; A 1985, 2175; 1993, 1569; 1997, 497; 2001, 939, 3256; 2011, 2972)

      NRS 349.515  “Renewable energy” defined.

      1.  “Renewable energy” means a source of energy that occurs naturally or is regenerated naturally, including, without limitation:

      (a) Biomass;

      (b) Fuel cells;

      (c) Geothermal energy;

      (d) Solar energy;

      (e) Waterpower; and

      (f) Wind.

      2.  The term does not include coal, natural gas, oil, propane or any other fossil fuel, or nuclear energy.

      (Added to NRS by 2001, 3255)

      NRS 349.517  “Renewable energy generation project” defined.

      1.  “Renewable energy generation project” means a project involving an electric generating facility or system that uses renewable energy as its primary source of energy to generate electricity.

      2.  The term does not include a project involving an electric generating facility or system that uses nuclear energy, in whole or in part, to generate electricity.

      (Added to NRS by 2001, 3256)

      NRS 349.520  “Revenues” defined.  “Revenues” of a project, or derived from a project, include payments under a lease, agreement of sale or financing agreement, or under notes, debentures, bonds and other secured or unsecured debt obligations of an obligor executed and delivered by the obligor to the Director or his or her designee or assignee (including a trustee) pursuant to such lease, agreement of sale or financing agreement, or under any guarantee of or insurance with respect to any of these.

      (Added to NRS by 1981, 1626)

      NRS 349.530  “Supplemental facility for a health and care facility” defined.  “Supplemental facility for a health and care facility” includes a clinic, facility for outpatients, and any other structure or facility directly related to the operation of a health and care facility.

      (Added to NRS by 1981, 1626)

      NRS 349.540  “Warehousing” defined.  “Warehousing” means the consignment of personal property from outside this state to a private warehouse within this state for temporary storage during the transit of the property to a final destination outside the State.

      (Added to NRS by 1981, 1626)

      NRS 349.550  Applicability of definitions contained in county and city economic development revenue bond laws.  As used in NRS 349.400 to 349.670, inclusive, unless the context otherwise requires, the words and terms defined in:

      1.  NRS 244A.673 to 244A.693, inclusive, have the meanings ascribed to them in those sections for the purpose of issuing bonds to obtain money for the support of an industrial development project within a county, except that if a board makes a request to the Director to issue bonds, all references to the issuance of bonds by a county or the entering into of financial agreements with the county shall be deemed to refer to the bonds issued by the Director and agreements to be executed by the Director; and

      2.  NRS 268.515 to 268.523, inclusive, have the meanings ascribed to them in those sections for the purpose of issuing bonds to obtain money for the support of an industrial development project within a city, except that if a city makes a request to the Director to issue bonds, all references to the issuance of bonds by a city or the entering into of financing agreements with the city shall be deemed to refer to the bonds issued by the Director and agreements to be executed by the Director.

      (Added to NRS by 1981, 1626)

      NRS 349.555  Exercise of powers for general welfare; liberal construction.

      1.  The director has all the powers necessary to accomplish the purposes set forth in NRS 349.560, but these powers must be exercised for the health, safety, convenience, prosperity and welfare of the inhabitants of this state.

      2.  NRS 349.400 to 349.670, inclusive, must be liberally construed in conformity with the purposes set forth in NRS 349.560.

      (Added to NRS by 1985, 2174)

      NRS 349.560  Legislative declaration.  It is the intent of the Legislature to authorize the Director, with the approval of the Office of Economic Development, to finance, acquire, own, lease, improve and dispose of properties to:

      1.  Promote industry and employment and develop trade by inducing manufacturing, industrial, warehousing and commercial enterprises and organizations for research and development to locate, remain or expand in this state to further prosperity throughout the State and to further the use of the agricultural products and the natural resources of this state.

      2.  Enhance public safety by protecting hotels, motels, apartment buildings, casinos, office buildings and their occupants from fire.

      3.  Promote the public health by enabling the acquisition, development, expansion and maintenance of health and care facilities and supplemental facilities for health and care facilities which will provide services of high quality at reasonable rates to the residents of the community in which the facilities are situated.

      4.  Promote the educational, cultural, economic and general welfare of the public by financing civic and cultural enterprises, certain educational institutions and the preservation or restoration of historic structures.

      5.  Promote the social welfare of the residents of this state by enabling a corporation for public benefit to acquire, develop, expand and maintain facilities that provide services for those residents.

      6.  Promote the generation of electricity in this state.

      (Added to NRS by 1981, 1627; A 1985, 2176; 1997, 498; 2001, 3257; 2011, 3458)

      NRS 349.565  Restrictions on Director’s powers.

      1.  The Director may not, under NRS 349.400 to 349.670, inclusive:

      (a) Operate any manufacturing, industrial, warehousing or commercial enterprise or an organization for research and development or any health and care facility to which he or she provided assistance; or

      (b) Except as otherwise provided in subsection 2, assist any manufacturing, industrial, warehousing or commercial enterprise or an organization for research and development to locate in a county or city which would result in the abandonment or closure of an existing facility of a like nature located within that county or city, unless the existing facility is operated by the contemplated lessee, purchaser or other obligor or an affiliate of such a person and the facility is to be abandoned or closed because of obsolescence, lack of available labor or limitations at the site of the facility.

      2.  The provisions of paragraph (b) of subsection 1 do not apply to:

      (a) Health and care facilities and supplemental facilities for a health and care facility;

      (b) Civic and cultural enterprises open to the general public;

      (c) Enterprises located in a redevelopment area created pursuant to chapter 279 of NRS;

      (d) Enterprises located in an area designated as an empowerment zone pursuant to sections 1391 to 1397, inclusive, of the Internal Revenue Code of 1986, 26 U.S.C. §§ 1391-97, future amendments to those sections and the corresponding provisions of future internal revenue laws;

      (e) Facilities established by a corporation for public benefit;

      (f) Enterprises whose products are substantially sold, used or distributed outside this state; and

      (g) Renewable energy generation projects.

      (Added to NRS by 1985, 2175; A 1999, 3358; 2001, 3257)

      NRS 349.570  General power of Director to issue bonds.  When the Director has received requests from one or more cities, counties, lessees, purchasers, other obligors or other enterprises, the Director may issue industrial development revenue bonds to obtain money to fulfill the requests. Title to or in a project may at all times remain in the obligor or the obligor’s designee or assignee and, in that case, the bonds must be secured by a pledge of one or more notes, debentures, bonds or other secured or unsecured debt obligations of the obligor.

      (Added to NRS by 1981, 1627)

      NRS 349.580  Prerequisites to financing project: Findings of Director.  Except as otherwise provided in NRS 349.595 and 349.640, the Director shall not finance a project unless, before financing:

      1.  The Director finds that:

      (a) The project to be financed has been approved for financing pursuant to the requirements of NRS 244A.669 to 244A.763, inclusive, or 268.512 to 268.568, inclusive; and

      (b) There has been a request by a city or county to have the Director issue bonds to finance the project; or

      2.  The Director finds and both the Board and the governing body of the city or county where the project is to be located approve the findings of the Director that:

      (a) The project consists of any land, building or other improvement and all real and personal properties necessary in connection therewith, excluding inventories, raw materials and working capital, whether or not in existence, which is suitable for new construction, improvement, preservation, restoration, rehabilitation or redevelopment:

             (1) For manufacturing, industrial, warehousing, civic, cultural or other commercial enterprises, educational institutions, corporations for public benefit or organizations for research and development;

             (2) For a health and care facility or a supplemental facility for a health and care facility;

             (3) Of real or personal property appropriate for addition to a hotel, motel, apartment building, casino or office building to protect it or its occupants from fire;

             (4) Of a historic structure; or

             (5) For a renewable energy generation project;

      (b) The project will provide a public benefit;

      (c) The contemplated lessee, purchaser or other obligor has sufficient financial resources to place the project in operation and to continue its operation, meeting the obligations of the lease, purchase contract or financing agreement;

      (d) There are sufficient safeguards to assure that all money provided by the Department will be expended solely for the purposes of the project;

      (e) The project would be compatible with existing facilities in the area adjacent to the location of the project;

      (f) Through the advice of counsel or other reliable source, the project has received all approvals by the local, state and federal governments which may be necessary to proceed with construction, improvement, rehabilitation or redevelopment of the project; and

      (g) There has been a request by a city, county, lessee, purchaser, other obligor or other enterprise to have the Director issue revenue bonds for industrial development to finance the project.

      (Added to NRS by 1981, 1628; A 1985, 2085, 2177; 1999, 3358; 2001, 3258; 2011, 3458)

      NRS 349.585  Prerequisites to financing project: Approval of Office of Economic Development.

      1.  Except as otherwise provided in NRS 349.640, the Director shall not finance a project without the approval of the Office of Economic Development. The Office shall approve the financing of a project if it determines that the project is consistent with the State Plan for Economic Development developed by the Executive Director of the Office pursuant to subsection 2 of NRS 231.053.

      2.  The Director shall cooperate with the Office of Economic Development in carrying out the provisions of this section and provide such assistance as the Office determines to be necessary for that purpose.

      (Added to NRS by 2011, 3458)

      NRS 349.590  Prerequisites to financing project: Additional considerations.  Except as otherwise provided in NRS 349.640, before financing a project pursuant to subsection 2 of NRS 349.580, the Director and the Board must also:

      1.  Determine the total amount of money necessary to be provided by the Director for financing the project.

      2.  Except as otherwise provided in this subsection, receive a 5-year operating history from the contemplated lessee, purchaser or other obligor or from any other enterprise that will make or guarantee the payment of the principal, premium, if any, and interest on any bonds issued. An operating history is not required if the bonds:

      (a) Are to be sold only to qualified institutional buyers, as defined in Rule 144A of the Securities and Exchange Commission, 17 C.F.R. § 230.144A, in minimum denominations of at least $100,000; or

      (b) Will receive a rating within one of the top four rating categories of Moody’s Investors Service, Inc., Standard and Poor’s Rating Services or Fitch IBCA, Inc.

      3.  Consider whether the contemplated lessee, purchaser, other obligor or other enterprise that will make or guarantee the payment of the principal, premium, if any, and interest on any bonds issued has received within the 12 months preceding the date of the findings of the Director, or then has or has not in effect, a rating within one of the top four rating categories of Moody’s Investors Service, Inc., Standard and Poor’s Ratings Services or Fitch IBCA, Inc.

      4.  Identify any existing facilities of a like nature within the county or city in which the project will be located and consider the applicability of paragraph (b) of subsection 1 of NRS 349.565.

      5.  Consider the extent to which the project is affected by any federal, state or local governmental action, activity, program or development.

      6.  Consider whether the lessee, purchaser, other obligor or other enterprise of the project has maintained facilities appropriate to the community in this state for 10 years or longer.

      (Added to NRS by 1981, 1628; A 1997, 1610; 1999, 3359)

      NRS 349.595  Prerequisites to financing costs related to equipment for project; establishment of guidelines.

      1.  Except as otherwise provided in NRS 349.585, the Director may provide financing for a project pursuant to this section if:

      (a) The financing is limited in amount and purpose to the payment of the costs associated with:

             (1) The acquisition, refurbishing, replacement and installation of equipment for the project; and

             (2) The issuance of bonds pursuant to this section;

      (b) The total amount of the bonds issued pursuant to this section for a particular project does not exceed $2,500,000;

      (c) The Director determines that the bonds will:

             (1) Be sold only to qualified institutional buyers, as defined in Rule 144A of the Securities and Exchange Commission, 17 C.F.R. § 230.144A, in minimum denominations of at least $100,000; or

             (2) Receive a rating within one of the top four rating categories of Moody’s Investors Service, Inc., Standard and Poor’s Rating Services or Fitch IBCA, Inc.;

      (d) The Director makes the findings set forth in paragraphs (a) to (g), inclusive, of subsection 2 of NRS 349.580, and the governing body of the city or county where the project is to be located approves the findings of the Director; and

      (e) The Director complies with the guidelines established pursuant to subsection 2.

      2.  The Board shall establish guidelines for the provision of financing for a project pursuant to this section.

      (Added to NRS by 1999, 3356; A 2011, 3459)

      NRS 349.597  Confidentiality of information concerning obligor.

      1.  Except as otherwise provided in subsection 2, the Director, the Board and the governing body of the county or city where a project is located shall make available for public inspection, upon request, information furnished by an obligor to obtain the Director’s assistance in financing a project pursuant to NRS 349.400 to 349.670, inclusive.

      2.  Except as ordered by a court of competent jurisdiction or as required by federal law, the Director, the Board and the governing body of the county or city where the project is located shall not, without the prior consent of the obligor, disclose proprietary information or financial statements or records of the obligor or guarantor that are not otherwise available to the public unless the obligor has:

      (a) Requested in writing that the information, statements or records be made public; or

      (b) Furnished the information, statements or records for a purpose other than obtaining the Director’s assistance in financing a project pursuant to NRS 349.400 to 349.670, inclusive.

      3.  As used in this section:

      (a) “Proprietary information” means any trade secret or other information which, if disclosed to members of the general public, may result in a competitive disadvantage to the obligor, including, without limitation:

             (1) Documents concerning the marketing or strategic planning of the obligor;

             (2) Data, studies and reports concerning the development of new products or services; and

             (3) Data that identify the share of the market of the obligor.

      (b) “Trade secret” has the meaning ascribed to it in NRS 600A.030.

      (Added to NRS by 1999, 3357)

      NRS 349.600  Bonds to be special obligations.

      1.  All bonds issued by the Director pursuant to NRS 349.400 to 349.670, inclusive, are special, limited obligations of the State. The principal of and interest on such bonds are payable, subject to the security provisions of NRS 349.400 to 349.670, inclusive, solely out of the revenues derived from the financing, leasing or sale of the project or projects to be financed by the bonds.

      2.  The bonds and interest coupons, if any, which are a part of those bonds do not constitute the debt or indebtedness of the State or any city or county within the meaning of any provision or limitation of the Constitution of the State of Nevada or statutes, and do not constitute or give rise to a pecuniary liability of the State or a charge against its general credit or taxing powers. This limitation must be plainly stated on the face of each bond.

      (Added to NRS by 1981, 1629)

      NRS 349.610  Form and terms of bonds; sale; employment of financial and legal consultants.

      1.  The bonds must be authorized by an order of the Director, and must:

      (a) Be in the denominations;

      (b) Bear the date or dates;

      (c) Mature at the time or times, not exceeding 40 years after their respective dates;

      (d) Bear interest at a rate or rates specified in the order;

      (e) Be in the form;

      (f) Carry the registration privileges;

      (g) Be executed in the manner;

      (h) Be payable at the place or places within or without the State; and

      (i) Be subject to the terms of redemption,

Ê which the order authorizing their issue provides.

      2.  The bonds may be sold in one or more series at par, or below or above par, in the manner and for the price or prices which the Director determines in his or her discretion. As an incidental expense to any project to be financed by the bonds, the Director may employ financial and legal consultants in regard to the financing of the project.

      3.  The bonds are fully negotiable under the terms of the Uniform Commercial Code—Investment Securities.

      (Added to NRS by 1981, 1629)

      NRS 349.620  Security.

      1.  The principal of, the interest on and any prior redemption premiums due in connection with the bonds issued pursuant to NRS 349.400 to 349.670, inclusive, are payable from, secured by a pledge of, and constitute a lien on the revenues out of which the bonds have been made payable. In addition, they may, in the discretion of the Director, be secured by:

      (a) A mortgage or mortgages covering all or part of any project financed with the proceeds of the bonds, or upon any other property of the lessees, purchasers or obligors of those projects, or by a pledge of the lease, the agreement of sale or the financing agreement with respect to one or more of the projects, or both.

      (b) A pledge of one or more notes, debentures, bonds or other secured or unsecured debt obligations of the obligor of one or more of the projects.

      (c) The proceeds of the bonds and income from investment of the proceeds and of revenues.

      2.  The State, a city or a county may pledge only the property of the project or the revenues therefrom.

      (Added to NRS by 1981, 1629)

      NRS 349.630  Regulations.  The Director shall adopt regulations to carry out the provisions of NRS 349.400 to 349.670, inclusive, including, without limitation, regulations for:

      1.  Investment and reinvestment of the proceeds from the sale of bonds, including, but not limited to:

      (a) Bonds or other obligations of the United States of America.

      (b) Bonds or other obligations, the payment of the principal and interest of which is unconditionally guaranteed by the United States of America.

      (c) Obligations issued or guaranteed as to principal and interest by any agency or person controlled or supervised by and acting as an instrumentality of the United States of America pursuant to authority granted by the Congress of the United States of America.

      (d) Obligations issued or guaranteed by any state of the United States of America, or any political subdivision of any state.

      (e) Prime commercial paper.

      (f) Prime finance company paper.

      (g) Bankers’ acceptances drawn on and accepted by commercial banks.

      (h) Repurchase agreements fully secured by obligations issued or guaranteed as to principal and interest by the United States of America or by any person controlled or supervised by and acting as an instrumentality of the United States of America pursuant to authority granted by the Congress of the United States of America.

      (i) Certificates of deposit issued by credit unions or commercial banks, including banks domiciled outside of the United States of America.

      (j) Money market mutual funds that:

             (1) Are registered with the Securities and Exchange Commission;

             (2) Are rated by a nationally recognized rating service as “AAA” or its equivalent; and

             (3) Invest only in securities issued or guaranteed as to payment of principal and interest by the Federal Government, or its agencies or instrumentalities, or in repurchase agreements that are fully collateralized by such securities.

      2.  Receiving, holding and disbursing of proceeds of the sale of bonds by one or more banks, credit unions or trust companies located within or out of this state.

      (Added to NRS by 1981, 1630; A 1997, 2866; 1999, 1470, 3360, 3361)

      NRS 349.640  Refunding.

      1.  Any bonds issued under the provisions of NRS 244A.669 to 244A.763, inclusive, 268.512 to 268.568, inclusive, or 349.400 to 349.670, inclusive, may be refunded by the Director by the issuance of refunding bonds in an amount which the Director deems necessary to refund the principal of the bonds to be so refunded, any unpaid interest thereon and any premiums and incidental expenses necessary to be paid in connection with refunding.

      2.  Refunding may be carried out whether the bonds to be refunded have matured or thereafter mature, either by sale of the refunding bonds and the application of the proceeds to the payment of the bonds to be refunded, or by exchange of the refunding bonds for the bonds to be refunded. The holders of the bonds to be refunded must not be compelled, without their consent, to surrender their bonds for payment or exchange before the date on which they are payable by maturity, option to redeem or otherwise, or if they are called for redemption before the date on which they are by their terms subject to redemption by option or otherwise.

      3.  All refunding bonds issued pursuant to this section must be payable solely from revenues and other money out of which the bonds to be refunded thereby are payable or from revenues out of which bonds of the same character may be made payable under this or any other law then in effect at the time of the refunding.

      4.  The Director shall not issue refunding bonds unless before the refinancing the Director finds that issuance of refunding bonds will provide a lower cost of financing for the obligor or provide some other public benefit, but the findings, determinations and approval required by NRS 349.580 to 349.595, inclusive, are not required with respect to refunding bonds issued pursuant to this section.

      (Added to NRS by 1981, 1630; A 1999, 3361; 2011, 3460)

      NRS 349.650  Limitation of actions.  No action may be brought questioning the legality of any contract, lease, agreement, indenture, mortgage, order or bonds executed, adopted or taken in connection with any project or improvements authorized by NRS 349.400 to 349.670, inclusive, after 30 days from the effective date of the order of the Director authorizing the issuance of those bonds.

      (Added to NRS by 1981, 1631)

      NRS 349.660  Faith of State pledged against repeal, amendment or modification of NRS 349.400 to 349.670, inclusive.  The faith of the State is hereby pledged that NRS 349.400 to 349.670, inclusive, will not be repealed, amended or modified to impair any outstanding bonds or any revenues pledged to their payment, or to impair, limit or alter the rights or powers vested in a city or county to acquire, finance, improve and equip a project in any way that would jeopardize the interest of any lessee, purchaser or other obligor, or to limit or alter the rights or powers vested in the Director to perform any agreement made with any lessee, purchaser or other obligor, until all bonds have been discharged in full or provisions for their payment and redemption have been fully made.

      (Added to NRS by 1981, 1631)

      NRS 349.670  Sufficiency of NRS 349.400 to 349.670, inclusive.

      1.  NRS 349.400 to 349.670, inclusive, without reference to other statutes of the State, constitute full authority for the exercise of powers granted in those sections, including but not limited to the authorization and issuance of bonds.

      2.  No other act or law with regard to the authorization or issuance of bonds that provides for an election, requires an approval, or in any way impedes or restricts the carrying out of the acts authorized in NRS 349.400 to 349.670, inclusive, to be done, applies to any proceedings taken or acts done pursuant to those sections, except for laws to which reference is expressly made in those sections or by necessary implication of those sections.

      3.  The provisions of no other law, either general or local, except as provided in NRS 349.400 to 349.670, inclusive, apply to the doing of the things authorized in those sections to be done, and no board, agency, bureau, commission or official not designated in those sections has any authority or jurisdiction over the doing of any of the acts authorized in those sections to be done, except as otherwise provided in those sections.

      4.  A project is not subject to any requirements relating to public buildings, structures, ground works or improvements imposed by the statutes of this state or any other similar requirements which may be lawfully waived by this section, and any requirement of competitive bidding or other restriction imposed on the procedure for award of contracts for such purpose or the lease, sale or other disposition of property is not applicable to any action taken pursuant to NRS 349.400 to 349.670, inclusive, except that the provisions of NRS 338.010 to 338.090, inclusive, apply to any contract for new construction, repair or reconstruction for which tentative approval for financing is granted on or after January 1, 1992, by the Director for work to be done in a project.

      5.  Any bank or trust company located within or without this state may be appointed and act as a trustee with respect to bonds issued and projects financed pursuant to NRS 349.400 to 349.670, inclusive, without the necessity of associating with any other person or entity as cofiduciary, but such an association is not prohibited.

      6.  The powers conferred by NRS 349.400 to 349.670, inclusive, are in addition and supplemental to, and not in substitution for, and the limitations imposed by those sections do not affect the powers conferred by any other law.

      7.  No part of NRS 349.400 to 349.670, inclusive, repeals or affects any other law or part thereof, except to the extent that those sections are inconsistent with any other law, it being intended that those sections provide a separate method of accomplishing its objectives, and not an exclusive one.

      8.  The Director or a person designated by the Director may take any actions and execute and deliver any instruments, contracts, certificates and other documents, including the bonds, necessary or appropriate for the sale and issuance of the bonds or accomplishing the purposes of NRS 349.400 to 349.670, inclusive, without the assistance or intervention of any other officer.

      (Added to NRS by 1981, 1631; A 1991, 2348)

REVENUE BONDS FOR FINANCING EXPORTATION OF GOODS

      NRS 349.700  Legislative declaration.  It is the purpose of NRS 349.700 to 349.870, inclusive, in the interest of promoting the general welfare of the people of the State, to further prosperity and employment throughout the State by encouraging the production of goods for export, the expansion of exports of goods and the rendering of services abroad by residents of Nevada through the establishment of a program which provides a source of guarantees for credit not otherwise available.

      (Added to NRS by 1985, 2014)

      NRS 349.710  Definitions.  As used in NRS 349.700 to 349.870, inclusive, unless the context otherwise requires, the words and terms defined in NRS 349.715 to 349.745, inclusive, have the meanings ascribed to them in those sections.

      (Added to NRS by 1985, 2014)

      NRS 349.715  “Bonds” defined.  “Bonds” means bonds, notes or other securities evidencing an obligation and issued under NRS 349.700 to 349.870, inclusive.

      (Added to NRS by 1985, 2014)

      NRS 349.720  “Director” defined.  “Director” means the Director of the Department of Business and Industry.

      (Added to NRS by 1985, 2014; A 1993, 1570)

      NRS 349.725  “Exporter” defined.  “Exporter” means any person, the State and its political subdivisions or any agency of either, a legal representative of a trust or an estate, or their agents or assigns which is eligible for guaranteed funding.

      (Added to NRS by 1985, 2014)

      NRS 349.730  “Guaranteed funding” defined.  “Guaranteed funding” means a loan made to a participating financial institution which includes an agreement to excuse its repayment, under specified conditions, made for the purpose of financing an eligible transaction. A guarantee may cover a pool of eligible transactions.

      (Added to NRS by 1985, 2014)

      NRS 349.735  “Loss” defined.  “Loss” means a loss incurred by an exporter on an eligible transaction because of:

      1.  The insolvency of the foreign customer or other failure of the customer to pay to the exporter when due, all or part of the money due from the transaction as denominated in United States currency; or

      2.  War, revolution, the diversion of goods, revocation of licenses, embargoes and other similar political incidents occurring in the customer’s country or any delay in obtaining payment in dollars.

      (Added to NRS by 1985, 2014)

      NRS 349.740  “Participating financial institution” defined.  “Participating financial institution” means:

      1.  Any office or subsidiary of a foreign banking corporation licensed or approved by the Commissioner of Financial Institutions; or

      2.  Any bank, trust company, savings and loan association, credit union, thrift company or other financial institution organized under the laws of this state or organized under the laws of the United States and authorized to do business under the laws of this state,

Ê which has received the approval of the Director to participate in guaranteed funding for any eligible transaction.

      (Added to NRS by 1985, 2014; A 1987, 1876)

      NRS 349.745  “Program” defined.  “Program” means the providing of guaranteed funding pursuant to NRS 349.700 to 349.870, inclusive.

      (Added to NRS by 1985, 2014)

      NRS 349.750  Director: Administration of provisions; powers; biennial report to State Board of Finance and Legislative Commission.

      1.  The Director shall administer the provisions of NRS 349.700 to 349.870, inclusive. The Director may:

      (a) Employ or contract for the services of attorneys, accountants, financial experts, and other advisers, employees, consultants and agents as the Director determines to be necessary.

      (b) Enter into any agreement or other transaction with, or accept any grant from and cooperate with any governmental entity or other source in furtherance of the purposes of NRS 349.700 to 349.870, inclusive.

      (c) Within the financial resources made available to the Director in administering the program:

             (1) Create or cause to be created any nonprofit corporation, pursuant to chapter 82 of NRS, which the Director determines is necessary or convenient for the furtherance of the purposes of NRS 349.700 to 349.870, inclusive. The purposes, powers and operation of the corporation must be consistent with the purposes of NRS 349.700 to 349.870, inclusive.

             (2) Promote and assist the creation of any corporate entity formed under the general corporation laws of this or any other state or nation for the purpose of qualifying as a shared foreign sales corporation or other similar entity pursuant to 26 U.S.C. §§ 922 to 927, inclusive. The State must not have any financial interest in such a corporation.

      2.  If revenue bonds have been issued pursuant to NRS 349.825, the Director shall, before September of each even-numbered year, submit a report of the operations of the Department of Business and Industry in connection with this program for the biennium ending June 30 of that year to the State Board of Finance and the Legislative Commission. This report must include a complete statement of the income, expenses, assets and liabilities of the program.

      (Added to NRS by 1985, 2014; A 1987, 1348; 1991, 1313; 1995, 644)

      NRS 349.755  Director: Delegation of duties.  The Director may delegate the performance of any of the duties required under this program to any person within the Department of Business and Industry whom the Director designates.

      (Added to NRS by 1985, 2015; A 1993, 1570)

      NRS 349.760  Transactions eligible for guaranteed funding: Criteria.  An exporting contract is a transaction eligible for guaranteed funding if, in the judgment of the Director, it will create or maintain employment in Nevada and it:

      1.  Promotes the sale abroad of goods whose final stage of production occurs in Nevada and which constitutes at least 10 percent of the contract price;

      2.  Provides for the rendering of services abroad by a business located in Nevada if at least 10 percent of the contract price consists of wages or other payments made to persons normally residing in this state;

      3.  Promotes the sale abroad of goods distributed by a business located in Nevada if:

      (a) At least 10 percent of the contract price consists of wages or other payments made to persons or businesses normally residing or located in this state, a governmental organization of this state or a combination thereof; or

      (b) The business has a significant relationship with this state based upon:

             (1) The amount of capital investments it has which are located in this state;

             (2) The number of residents of this state who are employed by the business;

             (3) The amount of business transacted in this state; or

             (4) Any combination thereof; or

      4.  Provides both for the sale abroad of goods whose final stage of production occurs in Nevada and for the rendering of services abroad by residents of Nevada, the aggregate value of which is at least 10 percent of the contract price.

      (Added to NRS by 1985, 2015)

      NRS 349.765  Guaranteed funding provided to participating financial institution: Limitation on amount; finding of Director of necessity for funding; term of and interest on loan to exporter.

      1.  The Director may provide guaranteed funding to a participating financial institution that is providing the financing for an eligible transaction, but the amount of this funding is limited to 90 percent of the principal of the loan made to the exporter. The exporter must insure or obtain a guarantee against nonpayment on the loan resulting from a loss. The maximum amount payable under any guarantee must be specifically set forth in a writing signed by the Director.

      2.  The Director shall not agree to provide guaranteed funding unless he or she finds that the guaranteed funding is reasonably necessary to stimulate or facilitate:

      (a) The making of a loan for an eligible transaction; or

      (b) The financing of an eligible transaction by a participating financial institution or other private source that is not otherwise able to finance it.

      3.  The money provided by the Director to the participating financial institution to guarantee the financing of an eligible transaction must be re-lent to the exporter by the participating financial institution for a term no shorter than and at a rate of interest no higher than that fixed by the Director, excluding any usual and customary fees and charges for lending and the fee provided for in subsection 3 of NRS 349.785.

      4.  The Director may condition the allowance of guaranteed funding upon such other terms and conditions as he or she determines to be desirable.

      (Added to NRS by 1985, 2015)

      NRS 349.770  Investigation of credit available to exporter prerequisite for guaranteed funding.  Before any guaranteed funding is provided, the participating financial institution shall investigate the credit or sources of credit available to the exporter in order to determine the economic benefits to be derived from the guarantee, the prospects of repayment, and such other factors as are necessary to determine that the guaranteed funding is consistent with the purposes of the program.

      (Added to NRS by 1985, 2016)

      NRS 349.775  Confidentiality of information concerning exporter.  Except as otherwise provided in NRS 239.0115, or unless the exporter consents to its disclosure, any information submitted to or compiled by the Director regarding the identity, background, finances, marketing plans, trade secrets or any other commercially sensitive affairs of the exporter is confidential.

      (Added to NRS by 1985, 2016; A 2007, 2090)

      NRS 349.780  Fees charged to participating financial institution.  The Director shall by regulation establish fees to be charged a participating financial institution for providing guaranteed funding. The fees must be sufficient to cover the costs of administering the program and any premium the Director pays for insuring the program’s risk.

      (Added to NRS by 1985, 2016)

      NRS 349.785  Agreements excusing payment on guaranteed funding and loan to exporter; fee charged to exporter.

      1.  The Director shall agree that the participating financial institution is excused from the payment to the Director of the principal of or interest on the guaranteed funding to the extent of the exporter’s nonpayment resulting from a loss.

      2.  The institution shall, as a condition of its loan to the exporter, agree that if the exporter incurs a loss, the exporter is excused from payment of the principal of or interest on the loan to the extent of the loss suffered by the exporter or of the amount which that institution is excused from paying to the Director, whichever is less.

      3.  The institution may charge the exporter a fee for the protection provided in subsection 2, but this fee must not exceed the fee charged by the Director for providing guaranteed funding to that institution.

      (Added to NRS by 1985, 2016)

      NRS 349.790  Director subrogated to rights of exporter and participating financial institution upon default by exporter.  If an exporter defaults on the participating financial institution’s loan because of a loss and that institution is excused from repaying the guaranteed funding, the Director is subrogated to the exporter’s rights against the foreign customer for payment and to the participating financial institution’s rights against the exporter to the extent of any payment received by the exporter which reduces his or her loss for which his or her payment to the participating financial institution has previously been excused.

      (Added to NRS by 1985, 2016)

      NRS 349.795  Guarantee: Not general obligation of State; limitation on termination, cancellation or revocation; presumption of validity.  Any guarantee entered into by the Director does not constitute a general obligation of the State of Nevada. A guarantee may not be terminated, cancelled or otherwise revoked except in accordance with its terms. Any guarantee held by a participating financial institution is presumed to be valid.

      (Added to NRS by 1985, 2017)

      NRS 349.800  Advisory Committee on Financing Exports: Creation; composition; terms of members.

      1.  If the Director certifies to the Governor that there is a need to issue revenue bonds to carry out the program and that it is feasible to do so, the Governor may issue an executive order creating an Advisory Committee on Financing Exports, consisting of three members appointed by the Director.

      2.  The Director, in consultation with the Executive Director of the Office of Economic Development and with the approval of the Governor, shall appoint to serve as members of the Committee three persons who have proven experience in international trade and economic development which they acquired while engaged in finance, manufacturing, business administration, municipal finance, economics, law or general business.

      3.  After the initial terms, the term of each member is 3 years.

      (Added to NRS by 1985, 2017; A 2011, 3460)

      NRS 349.805  Advisory Committee on Financing Exports: Meetings; quorum; officers; rules; compensation and expenses.

      1.  If the Advisory Committee on Financing Exports is created, it shall meet when requested by the Director and at such other times as its Chair may designate.

      2.  A majority of the members of the Committee constitutes a quorum.

      3.  The members of the Committee shall elect a Chair and a Secretary.

      4.  The Committee shall adopt rules for its own management.

      5.  Each member of the Committee is entitled to receive a salary of $60 for each day’s attendance at a meeting of the Committee.

      (Added to NRS by 1985, 2017)

      NRS 349.810  Advisory Committee on Financing Exports: Powers and duties.

      1.  If the Advisory Committee on Financing Exports is created, it has only the powers and duties authorized by law.

      2.  If created, the Committee shall review and make recommendations to the Director concerning:

      (a) Any regulations proposed by the Director to carry out the program;

      (b) The findings of the Director pursuant to NRS 349.825; and

      (c) Those long-term financial commitments for more than 1 year, limits on credit, and transactions, concerning any one exporter, which involve $50,000 or more.

      (Added to NRS by 1985, 2017)

      NRS 349.815  Regulations for operation of program.  The Director shall, before the issuance of any bonds, adopt regulations for the operation of the program, which must include provisions concerning the following:

      1.  The maximum aggregate amount of guaranteed funding available to any exporter and the maximum amount of guaranteed funding available for any transaction eligible for guaranteed funding;

      2.  The limits on the interest which may be charged for guaranteed funding or for loans to exporters;

      3.  The fees which a participating financial institution may charge for making loans to exporters;

      4.  The nature and extent of any insurance which an exporter may be required to procure;

      5.  The collateral required on loans to exporters;

      6.  The terms of and the procedures for repayment on the guaranteed funding or on a loan;

      7.  The procedures for:

      (a) Making an application for guaranteed funding;

      (b) Disbursing the guaranteed funding to a participating financial institution;

      (c) Making a claim on the guarantee in the event of a default;

      (d) Collecting a loan in the event of a default; and

      (e) Qualifying as a participating financial institution; and

      8.  The specific standards to be used to determine whether a business has a significant relationship with this state pursuant to paragraph (b) of subsection 3 of NRS 349.760.

      (Added to NRS by 1985, 2017)

      NRS 349.820  Limitation on personal liability of Director or person acting on his or her behalf.  In the absence of fraud, malice or willful misconduct, the Director or any person acting on his or her behalf is not personally liable on any contracts or other agreements entered into by him or her pursuant to the program or for any damage or injury resulting from the performance of his or her duties.

      (Added to NRS by 1985, 2018)

      NRS 349.825  Issuance of revenue bonds: Director required to submit findings to Advisory Committee on Financing Exports and State Board of Finance; approval of State Board of Finance; limitation on amount of bonds.

      1.  Subject to the limitations imposed by subsection 2, the Director may, if he or she finds it feasible, issue revenue bonds to the extent necessary to provide sufficient money for guaranteed funding, pay the interest on the bonds until the proceeds are so used, procure insurance, create reserves to cover guarantees he or she is obligated to honor, and pay all other expenses incurred in providing guaranteed funding and administering the program.

      2.  Before any bonds may be issued pursuant to this section, except those issued for the purpose of refunding outstanding bonds, the Director shall submit to the Advisory Committee on Financing Exports, if created, his or her findings that:

      (a) All of the conditions prerequisite to providing guaranteed funding, as set forth in NRS 349.760 and 349.765, are met;

      (b) A satisfactory plan of repayment or an assurance of repayment by a third party is available so as to make any bonds issued pursuant to this section marketable; and

      (c) The anticipated revenues from the program are sufficient to repay the bonds issued pursuant to this section.

      3.  The Advisory Committee on Financing Exports, if created, shall recommend approval, with or without conditions, or disapproval of the findings of the Director made pursuant to subsection 2. The Director shall submit to the State Board of Finance a copy of his or her findings and the recommendations of the Advisory Committee on Financing Exports, if any. If the Board approves, the Director may proceed to issue the bonds in the amount approved, but the aggregate principal amount of the outstanding bonds issued must not exceed $50,000,000, exclusive of any bonds or obligations which have been refunded.

      (Added to NRS by 1985, 2018)

      NRS 349.830  Bonds: Special obligations of State.

      1.  All bonds issued by the Director are special, limited obligations of the State. The principal of, the interest on, and premiums, if any, due in connection with the bonds issued are payable from, secured by a pledge of and constitute a lien, subject to the provisions of NRS 349.700 to 349.870, inclusive, for their security, solely on the revenues derived from the payment of principal of and interest on the guaranteed funding, the proceeds of the bonds, the income derived from investment of the proceeds of the bonds and from investment of the revenues and any guarantee or insurance therefor.

      2.  The bonds and interest coupons, if any, which are a part of those bonds do not constitute the debt or indebtedness of the State within the meaning of any provision or limitation of the Constitution or statutes of the State of Nevada, and do not constitute or give rise to a pecuniary liability of the State or a charge against its general credit or taxing powers. This limitation must be plainly stated on the face of each bond.

      (Added to NRS by 1985, 2019)

      NRS 349.835  Bonds: Form and terms; sale.

      1.  The bonds must be authorized by an order of the Director, and must:

      (a) Be in the denominations;

      (b) Bear the date or dates;

      (c) Mature at the time or times;

      (d) Bear interest at a specified rate or rates;

      (e) Be in the form;

      (f) Carry the registration privileges;

      (g) Be executed in the manner;

      (h) Be payable at the place or places within or without the State; and

      (i) Be subject to the terms of redemption,

Ê which the order authorizing their issue provides.

      2.  The bonds must be signed by the Director, who may use a facsimile signature for this purpose. If the Director whose signature appears on any bonds ceases to act in that capacity before the delivery of the bonds, his or her signature is valid and sufficient for all purposes as if he or she had remained in office until their delivery.

      3.  The bonds may be sold in one or more series above, at or below par and at public or private sale at such prices, at such times and in such manner as the Director determines.

      4.  The bonds are fully negotiable under the terms of the Uniform Commercial Code—Investment Securities.

      (Added to NRS by 1985, 2019)

      NRS 349.840  Bonds: Repurchase.  The Director, subject to such agreements with holders of bonds as may then exist, may, out of any money available therefor, purchase the bonds at a price not exceeding:

      1.  The redemption price then applicable plus accrued interest to the date of the next interest payment thereon if the bonds are then redeemable; or

      2.  The redemption price applicable on the first date after the purchase upon which the bonds become subject to redemption, plus accrued interest to that date, if the bonds are not redeemable.

      (Added to NRS by 1985, 2019)

      NRS 349.845  Bonds: Refunding.

      1.  Any bonds issued may be refunded by the Director by the issuance of refunding bonds in an amount which the Director considers necessary to refund the principal of the bonds to be refunded, any unpaid interest thereon and any premiums and incidental expenses necessary to be paid in connection with refunding.

      2.  Refunding may be carried out whether the bonds to be refunded have matured or thereafter mature, either by sale of the refunding bonds and the application of the proceeds to the payment of the bonds to be refunded, or by exchange of the refunding bonds for the bonds to be refunded. The holders of the bonds to be refunded must not be compelled, without their consent, to surrender their bonds for payment or exchange before the date on which they are payable by maturity, option to redeem or otherwise, or if they are called for redemption before the date on which they are by their terms subject to redemption by option or otherwise.

      3.  All refunding bonds issued pursuant to this section must be payable solely from revenues and other money out of which the bonds to be refunded thereby are payable.

      (Added to NRS by 1985, 2020)

      NRS 349.850  Bonds: Legal investments.  The bonds are legal investments in which all public officers and public bodies of the State, its political subdivisions, all municipalities and municipal subdivisions, all insurance companies and associations and other persons carrying on an insurance business, all banks, savings and loan associations and trust companies, all administrators, guardians, executors, trustees and other fiduciaries, and all other persons who are authorized on or after July 1, 1985, to invest in bonds or in other obligations of this state, may properly and legally invest funds, including capital, in their control or belonging to them. The bonds are securities which may properly and legally be deposited with and received by all public officers and public bodies of the State or any agency or political subdivision of the State and all municipalities and public corporations for any purpose for which the deposit of bonds or other obligations of this state is authorized by law on and after July 1, 1985, and may be used as collateral to secure any deposit of public money.

      (Added to NRS by 1985, 2020)

      NRS 349.855  Director: Establishment of funds and accounts; investments and deposits.  The Director may:

      1.  Establish such funds or accounts as may be necessary or desirable for carrying out the provisions of NRS 349.700 to 349.870, inclusive.

      2.  Subject to any agreement with the holders of the bonds, invest or deposit any money received or held by the Director pursuant to NRS 349.700 to 349.870, inclusive. The Director is not required to deposit this money in the State Treasury and the provisions of chapters 355 and 356 of NRS do not apply to any investments or deposits made pursuant to this subsection.

      (Added to NRS by 1985, 2020)

      NRS 349.857  Director: Loans of securities.

      1.  The Director may lend any securities in which he or she invests pursuant to NRS 349.855 if he or she receives collateral from the borrower in the form of cash or marketable securities that are:

      (a) Acceptable to the Director; and

      (b) At least 102 percent of the value of the securities borrowed.

      2.  The Director may enter into such contracts as are necessary to extend and manage loans pursuant to this section.

      (Added to NRS by 1999, 928)

      NRS 349.860  Insurance.  The Director may use money from the fund for financing exports to:

      1.  Insure against the program’s risk of loss resulting from the failure of the exporter to repay the loan provided by a participating financial institution; and

      2.  Purchase insurance to secure the payment of the principal of, interest on, and premium, if any, due in connection with any bonds issued.

      (Added to NRS by 1985, 2020)

      NRS 349.865  Faith of State pledged against repeal, amendment or modification of NRS 349.700 to 349.870, inclusive.  The faith of the State is hereby pledged that NRS 349.700 to 349.870, inclusive, will not be repealed, amended or modified to impair any outstanding bonds or any revenues pledged to their payment or to limit or alter the rights or powers vested in the Director to fulfill the terms of any agreements made with the holders of any bonds issued or in any way to impair the rights or remedies of the holders until all bonds have been paid in full or provisions for their payment and redemption have been fully made.

      (Added to NRS by 1985, 2021)

      NRS 349.870  Sufficiency of NRS 349.700 to 349.870, inclusive; construction.

      1.  The provisions of NRS 349.700 to 349.870, inclusive, without reference to other statutes of the State, constitute full authority for the exercise of powers granted in those sections, including but not limited to the authorization and issuance of bonds.

      2.  No other act or law with regard to the authorization or issuance of bonds that provides for an election, requires an approval, or in any way impedes or restricts the carrying out of the acts authorized in NRS 349.700 to 349.870, inclusive, to be done, apply to any proceedings taken under those sections, or acts done pursuant to those sections, except for laws to which reference is expressly made in those sections or by necessary implication of those sections.

      3.  The provisions of no other law, either general or local, except as provided in NRS 349.700 to 349.870, inclusive, apply to the doing of the things authorized in those sections to be done, and no board, agency, bureau, commission or official not designated in those sections has any authority or jurisdiction over the doing of any of the acts authorized in those sections to be done, except as otherwise provided in those sections.

      4.  Any bank or trust company located within or without this state may be appointed and act as a trustee with respect to bonds issued pursuant to NRS 349.700 to 349.870, inclusive, without the necessity of associating with any other person or entity as cofiduciary, but such an association is not prohibited.

      5.  The powers conferred by NRS 349.700 to 349.870, inclusive, are in addition and supplemental to, and not in substitution for, and the limitations imposed by those sections do not affect the powers conferred by any other law.

      6.  No part of NRS 349.700 to 349.870, inclusive, repeals or affects any other law or part thereof, except to the extent that those sections are inconsistent with any other law, it being intended that those sections provide a separate method of accomplishing its objectives, and not an exclusive one.

      7.  The Director or a person designated by the Director may take any actions and execute and deliver any instruments, contracts, certificates and other documents, including the bonds, necessary or appropriate for the sale and issuance of the bonds or accomplishing the purposes of NRS 349.700 to 349.870, inclusive, without the assistance or intervention of any other officer.

      8.  NRS 349.700 to 349.870, inclusive, must be liberally construed to effectuate the purposes of this act.

      (Added to NRS by 1985, 2021)

REVENUE BONDS FOR VENTURE CAPITAL

      NRS 349.900  Legislative declaration.  It is the intent of the Legislature to:

      1.  Promote in the broadest sense the economic diversification and safe growth of the economy of the State;

      2.  Provide an attractive opportunity for the investment of venture capital within the State;

      3.  Correct the serious shortage of venture capital available or dedicated to development of new enterprises within the State;

      4.  Ensure that the investment strategies pursued pursuant to NRS 349.900 to 349.929, inclusive, emphasize enterprises in the early stages of development that exhibit the potential for high growth and the capability to use equity capital efficiently so that the ratio of its revenues will be relatively high in comparison to its capital; and

      5.  Ensure that the enterprises funded with the money developed for venture capital pursuant to NRS 349.900 to 349.929, inclusive, are compatible with the plan of the State for economic diversification and development or for the marketing and development of tourism and any modifications thereto, and are of the type that will not cause significant injury to the environment of the State.

      (Added to NRS by 1987, 1404)

      NRS 349.901  Definitions.  As used in NRS 349.900 to 349.929, inclusive, unless the context otherwise requires, the words and terms defined in NRS 349.902 to 349.909, inclusive, have the meanings ascribed to them in those sections.

      (Added to NRS by 1987, 1405)

      NRS 349.902  “Account for Venture Capital” defined.  “Account for Venture Capital” means the special fund which contains that portion of the proceeds from the sale of the bonds allocated for venture capital by the Director or his or her representative.

      (Added to NRS by 1987, 1405)

      NRS 349.903  “Agreement” defined.  “Agreement” means the contract between the Director and the management company authorizing the management company to manage the assets of the Account for Venture Capital.

      (Added to NRS by 1987, 1405)

      NRS 349.904  “Board” defined.  “Board” means the State Board of Finance.

      (Added to NRS by 1987, 1405; A 1995, 2238)

      NRS 349.905  “Bonds” and “revenue bonds” defined.  “Bonds” or “revenue bonds” means bonds, notes or other securities evidencing an obligation and issued pursuant to NRS 349.900 to 349.929, inclusive.

      (Added to NRS by 1987, 1405)

      NRS 349.906  “Director” defined.  “Director” means the Director of the Department of Business and Industry or any person within the Department of Business and Industry designated by the Director to perform duties in connection with a financing or the issuance of bonds.

      (Added to NRS by 1987, 1405; A 1993, 1570)

      NRS 349.907  “Expense of operation and maintenance” defined.  “Expense of operation and maintenance” means any reasonable and necessary current expense of the State for the operation, maintenance or administration of the financing or of the collection and administration of revenues from the financing, and includes, but is not limited to:

      1.  Expenses for engineering, auditing, reporting or legal services and any other expense incurred by the Director which are directly related to the administration of the financing;

      2.  Premiums for fidelity bonds and policies of property and liability insurance pertaining to the financing;

      3.  Premiums for blanket bonds and policies, or any portion thereof, which may be reasonably allocated to the State;

      4.  Payments to pension, retirement and health insurance and other insurance funds;

      5.  Reasonable charges by any paying agent, commercial bank, credit union, trust company or other depository bank pertaining to any bonds;

      6.  Salaries or fees paid pursuant to any contract for professional services;

      7.  Cost of materials, supplies and labor pertaining to the issuance of any bonds, including the expenses of any trustee, receiver or other fiduciary; and

      8.  Costs incurred in the collection and any refund of revenues pursuant to the financing.

      (Added to NRS by 1987, 1405; A 1999, 1471)

      NRS 349.908  “Fund for the Retirement of Bonds” defined.  “Fund for the Retirement of Bonds” means the fund established pursuant to the indenture and held by the trustee and which secures payment of the principal amount of the bonds at maturity.

      (Added to NRS by 1987, 1406)

      NRS 349.909  “Management company” defined.  “Management company” means the company which manages and administers the Account for Venture Capital pursuant to the agreement.

      (Added to NRS by 1987, 1406)

      NRS 349.910  General powers of Director; promotion of funds for venture capital; liberal construction.

      1.  The Director has all the powers necessary to accomplish the purposes set forth in NRS 349.900 to 349.929, inclusive, but these powers must be exercised for the health, safety, convenience, prosperity and welfare of the inhabitants of this state and for the economic diversification and development of the State and the marketing and development of tourism.

      2.  Within the limits of the financial resources available to the Director, and without issuing bonds, the Director may promote the establishment of any privately financed fund for venture capital designed to accomplish the legislative goals set forth in NRS 349.900 or to assist the Director in achieving the purposes of NRS 349.900 to 349.929, inclusive. The State must not have a financial interest in the fund and must not be obligated to pay any money or assume any liability in connection with it.

      3.  The Legislature intends that NRS 349.900 to 349.929, inclusive, be liberally construed in conformity with the purposes set forth in NRS 349.900.

      (Added to NRS by 1987, 1406; A 1989, 1668)

      NRS 349.911  Limitation on personal liability of Director or person acting on his or her behalf.  In the absence of fraud, malice or willful misconduct, the Director or any person acting on his or her behalf is not personally liable on any contracts or other agreements entered into by the Director pursuant to NRS 349.900 to 349.929, inclusive, or for any damage or injury resulting from the performance of those duties.

      (Added to NRS by 1987, 1406)

      NRS 349.912  Director: Selection of management company; agreement; regulations; expenses of operation and maintenance; employees, advisers and consultants.  The Director may, upon approval of the Board:

      1.  Select the management company;

      2.  Enter into an agreement;

      3.  Adopt regulations necessary to carry out the provisions of NRS 349.900 to 349.929, inclusive;

      4.  Charge the Account for Venture Capital for the expenses of operation and maintenance; and

      5.  Employ or contract for the services of attorneys, accountants, financial experts and any other advisers, employees, consultants and agents as the Director determines to be necessary to carry out the provisions of NRS 349.900 to 349.929, inclusive.

      (Added to NRS by 1987, 1406)

      NRS 349.913  Director: Restriction on operation or management of enterprise.  The Director may not operate or manage any enterprise in which an investment has been made by a management company for the Account for Venture Capital.

      (Added to NRS by 1987, 1406)

      NRS 349.914  Director: Allocation of proceeds of bonds.  A portion of the proceeds of the bonds, after the allocation to the Fund for the Retirement of Bonds, must be placed by the Director in a special Account for Venture Capital.

      (Added to NRS by 1987, 1406)

      NRS 349.915  Contents of agreement.  In the agreement the management company shall agree to invest the money and other assets in the Account for Venture Capital consistent with the purposes of NRS 349.900 to 349.929, inclusive. In addition, the agreement must:

      1.  Specify the length of the term of the agreement, the compensation to be paid the management company and the method by which the agreement may be terminated before the expiration of its term.

      2.  Impose a fiduciary duty on the management company in the administration of the Account for Venture Capital, including the preservation and protection of the money and other assets in the Account for Venture Capital before their investment.

      3.  Prohibit the Director from participating in the decisions regarding the investment of the money and other assets in the Account for Venture Capital.

      4.  Specify the grounds for terminating the agreement for cause other than the poor performance of certain enterprises in which the money is invested.

      5.  Authorize the Director or the management company to terminate the agreement without cause upon written notice to the other party. The amount of time necessary for notice may be negotiated between the Director and the management company.

      6.  Authorize the Director to require the management company to adhere to certain objectives and policies for investment applicable to the Account for Venture Capital to ensure the achievement of the goals prescribed in NRS 349.900, and to terminate the contract if the management company fails to adhere to those objectives and policies.

      7.  Prohibit the management company, upon termination of the agreement for any reason, from making any additional investment for the Account for Venture Capital after the date of notice of the termination, unless the investment is authorized in writing by the Director.

      (Added to NRS by 1987, 1406)

      NRS 349.916  Objective of investments for Account for Venture Capital.  The objective of the investments for the Account for Venture Capital is to seek the appreciation of long-term capital by investing venture capital in new developing enterprises which the management company believes offers the possibility of significant long-term growth consistent with the protection of the environment of the State.

      (Added to NRS by 1987, 1407)

      NRS 349.917  Form of investments of management company; management company to be managed by experienced person.

      1.  The investments of the management company for the Account for Venture Capital may take the form of an equity investment, a loan or a purchase of warrants or options to purchase stock.

      2.  The management company must be managed by a person who is experienced in various aspects of the development of new enterprises.

      (Added to NRS by 1987, 1407)

      NRS 349.918  Prerequisites for management company.  The management company must be:

      1.  Aware of and responsive to local issues;

      2.  Capable of supervising and financing an enterprise throughout its development;

      3.  Familiar with and able to cooperate with any agency or program of the United States for the development or promotion of small enterprises; and

      4.  Willing to locate branch offices in Nevada restricted to Nevada financing.

      (Added to NRS by 1987, 1407)

      NRS 349.919  Issuance of revenue bonds: Director required to submit findings to Board; approval of Board; limitation on amount of bonds.

      1.  The Director may, if he or she finds it feasible, issue revenue bonds to the extent necessary to provide sufficient money for the Account for Venture Capital and sufficient to pay the interest on the bonds until the proceeds are so used and to pay all other expenses incurred in providing the financing.

      2.  The Director shall submit to the Board a copy of his or her findings relevant to the issuance of the bonds. If the Board approves, the Director may proceed to issue the bonds in the amount approved, but the aggregate principal amount of outstanding bonds issued, based upon the face value of the initial issue, must not exceed $100,000,000. The Director may issue bonds the interest on which is not exempt from federal income tax or excluded from gross revenue for the purposes of federal income tax.

      (Added to NRS by 1987, 1407)

      NRS 349.920  Issuance of bonds: Findings of Director and Board.  Before issuing bonds, the Director and the Board shall find that:

      1.  The financing will provide a public benefit.

      2.  There are sufficient safeguards to ensure that all money provided pursuant to NRS 349.900 to 349.929, inclusive, will be expended solely for the purposes stated in NRS 349.900 to 349.929, inclusive.

      3.  There are existing and projected needs for venture capital and the money would alleviate an existing shortage of venture capital in the State.

      4.  The financing is compatible with the investment objectives as stated in the agreement.

      5.  The financing is compatible with the plan of the State for economic diversification and development or for the marketing and development of tourism in this state, and any modifications thereto.

      6.  The total amount of money to be provided by the Director is adequate to create the Account for Venture Capital.

      7.  The agreement is consistent with the provisions of NRS 349.900 to 349.929, inclusive, and adequately provides for optimum investment of the money and other assets of the Account for Venture Capital.

      8.  The management company has the experience, reputation, capital, and personnel to be able to accomplish its obligations as specified in the agreement.

      (Added to NRS by 1987, 1408)

      NRS 349.921  Bonds: Safety as to repayment of principal and interest; Fund for the Retirement of Bonds; investment of money in Fund.

      1.  The bonds issued pursuant to NRS 349.900 to 349.929, inclusive, must be structured to provide a significant degree of safety as to repayment of principal and interest upon their maturity.

      2.  A portion of the proceeds of the bonds must be placed in a Fund for the Retirement of Bonds. The money in this Fund must be invested in:

      (a) Direct obligations of, or obligations the payment of the principal of and the interest of which are unconditionally guaranteed by the United States;

      (b) Obligations issued or guaranteed as to principal and interest by any agency or instrumentality of the United States; or

      (c) Money market mutual funds that:

             (1) Are registered with the Securities and Exchange Commission;

             (2) Are rated by a nationally recognized rating service as “AAA” or its equivalent; and

             (3) Invest only in securities issued or guaranteed as to payment of principal and interest by the Federal Government, or its agencies or instrumentalities, or in repurchase agreements that are fully collateralized by such securities.

      3.  The amount of the deposit in the Fund for the Retirement of Bonds must be determined on the basis of the yields available from the securities in which that money may be invested on the date of the deposit and calculated so as to produce, without reinvestment, a balance in the Fund sufficient to pay the principal amount due on the bonds at maturity.

      (Added to NRS by 1987, 1408; A 1997, 2867)

      NRS 349.922  Bonds: Special obligations of State.

      1.  All bonds issued by the Director pursuant to NRS 349.900 to 349.929, inclusive, are special, limited obligations of the State.

      2.  The bonds and interest coupons, if any, which are a part of those bonds do not constitute the debt or indebtedness of the State or any city or county within the meaning of any provision or limitation of the Constitution of the State of Nevada or of a statute, and do not constitute or give rise to a pecuniary liability of the State or a charge against its general credit or taxing powers. This limitation must be plainly stated on the face of each bond.

      (Added to NRS by 1987, 1408)

      NRS 349.923  Bonds: Form and terms; sale.

      1.  The bonds must be authorized by an order of the Director, and must:

      (a) Be in the denominations;

      (b) Bear the date or dates;

      (c) Mature at the time or times, not exceeding 40 years after their respective dates;

      (d) Be in the form;

      (e) Be executed in the manner;

      (f) Carry the registration privileges;

      (g) Be payable at the place or places within or without the State; and

      (h) Be subject to the terms of redemption,

Ê which the order authorizing their issue provides.

      2.  The bonds may be sold in one or more series at par, or below or above par, in the manner and for the price or prices which the Director determines in his or her discretion. As an incidental expense to any investment to be financed by the bonds, the Director may employ financial and legal consultants in regard to the financing.

      3.  The bonds are fully negotiable under the terms of the Uniform Commercial Code—Investment Securities.

      (Added to NRS by 1987, 1409)

      NRS 349.924  Bonds: Regulations for investment and reinvestment of proceeds and management of proceeds by banks or trust companies.  The Director shall adopt regulations for:

      1.  Investment and reinvestment of the proceeds designated for the Account for Venture Capital from the sale of bonds, including, but not limited to:

      (a) Bonds or other obligations of the United States.

      (b) Bonds or other obligations, the payment of the principal and interest of which is unconditionally guaranteed by the United States.

      (c) Obligations issued or guaranteed as to principal and interest by any agency or person controlled or supervised by and acting as an instrumentality of the United States pursuant to authority granted by the Congress of the United States.

      (d) Obligations issued or guaranteed by any state of the United States, or any political subdivision of any state.

      (e) Prime commercial paper.

      (f) Prime finance company paper.

      (g) Bankers’ acceptances drawn on and accepted by commercial banks.

      (h) Repurchase agreements fully secured by obligations issued or guaranteed as to principal and interest by the United States or by any person controlled or supervised by and acting as an instrumentality of the United States pursuant to authority granted by the Congress of the United States.

      (i) Certificates of deposit issued by credit unions or commercial banks, including banks domiciled outside of the United States.

      (j) Money market mutual funds that:

             (1) Are registered with the Securities and Exchange Commission;

             (2) Are rated by a nationally recognized rating service as “AAA” or its equivalent; and

             (3) Invest only in securities issued or guaranteed as to payment of principal and interest by the Federal Government, or its agencies or instrumentalities, or in repurchase agreements that are fully collateralized by such securities.

      2.  Receiving, holding and disbursing of proceeds of the sale of bonds by one or more banks or trust companies located within or outside of this state.

Ê This section does not expand the authority for investing the proceeds of bonds placed in the Fund for the Retirement of Bonds.

      (Added to NRS by 1987, 1409; A 1997, 2867; 1999, 1471)

      NRS 349.925  Bonds: Refunding.

      1.  Any bonds issued under the provisions of NRS 349.900 to 349.929, inclusive, may be refunded by the Director by the issuance of refunding bonds in an amount which the Director deems necessary to refund the principal of the bonds to be so refunded, any unpaid interest thereon and any premiums and incidental expenses necessary to be paid in connection with refunding.

      2.  Refunding may be carried out whether the bonds to be refunded have matured or thereafter mature, either by sale of the refunding bonds and the application of the proceeds to the payment of the bonds to be refunded, or by exchange of the refunding bonds for the bonds to be refunded. The holders of the bonds to be refunded must not be compelled, without their consent, to surrender their bonds for payment or exchange before the date on which they are payable by maturity, option to redeem or otherwise, or if they are called for redemption before the date on which they are by their terms subject to redemption by option or otherwise.

      3.  All refunding bonds issued pursuant to this section must be payable solely from revenues and other money out of which the bonds to be refunded thereby are payable or from revenues out of which bonds of the same character may be made payable under this or any other law in effect at the time of the refunding.

      (Added to NRS by 1987, 1410)

      NRS 349.926  Limitation of actions.  No action may be brought questioning the legality of any contract, lease, agreement, indenture, mortgage, order or bonds executed, adopted or taken in connection with any investment authorized by NRS 349.900 to 349.929, inclusive, more than 30 days after the effective date of the order of the Director authorizing the issuance of these bonds.

      (Added to NRS by 1987, 1410)

      NRS 349.927  Faith of State pledged against repeal, amendment or modification of NRS 349.900 to 349.929, inclusive.  The faith of the State is hereby pledged that NRS 349.900 to 349.929, inclusive, will not be repealed, amended or modified to impair any outstanding bonds or any revenues pledged to their payment or to limit or alter the rights of powers vested in the Director to fulfill the terms of any agreement made with any management company, until all bonds have been discharged in full or provisions for their payment and redemption have been fully made.

      (Added to NRS by 1987, 1410)

      NRS 349.928  Sufficiency of NRS 349.900 to 349.929, inclusive; construction.

      1.  NRS 349.900 to 349.929, inclusive, without reference to other statutes of the State, constitute full authority for the exercise of powers granted in those sections, including but not limited to the authorization and issuance of bonds.

      2.  No other act or law with regard to the authorization or issuance of bonds that provides for an election, requires an approval, or in any way impedes or restricts the carrying out of the acts authorized in NRS 349.900 to 349.929, inclusive, to be done, apply to any proceedings taken under those sections, or acts done pursuant to those sections, except for laws to which reference is expressly made in those sections or by necessary implication of those sections.

      3.  The provisions of no other law, either general or local, except as otherwise provided in NRS 349.900 to 349.929, inclusive, apply to the doing of the things authorized in those sections to be done, and no board, agency, bureau, commission or officer not designated in those sections has any authority or jurisdiction over the doing of any of the acts authorized in those sections to be done, except as otherwise provided in those sections.

      4.  Any bank or trust company located within or without this state may be appointed and act as a trustee or custodian with respect to bonds issued pursuant to NRS 349.900 to 349.929, inclusive, without the necessity of associating with any other person or entity as cofiduciary, but such an association is not prohibited.

      5.  The powers conferred by NRS 349.900 to 349.929, inclusive, are in addition and supplemental to, and not in substitution for, and the limitations imposed by those sections do not affect the powers conferred by any other law.

      6.  No part of NRS 349.900 to 349.929, inclusive, repeals or affects any other law or part thereof, except to the extent that those sections are inconsistent with any other law, it being intended that those sections provide a separate method of accomplishing its objectives, and not an exclusive one.

      7.  The Director or a person designated by the Director may take any actions and execute and deliver any instrument, contract, certificate and other document, including the bonds, necessary or appropriate for the sale and issuance of the bonds or accomplishing the purposes of NRS 349.900 to 349.929, inclusive, without the assistance or intervention of any other officer.

      (Added to NRS by 1987, 1410)

      NRS 349.929  Account for Venture Capital to be entrusted to management company; proceeds of bonds may be entrusted to another management company.  The Account for Venture Capital is to be entrusted to a management company with the qualifications specified in those sections. Subject to the limitation on the maximum of the aggregate principal amount of outstanding bonds that may be issued, proceeds from bonds issued at a subsequent time may be entrusted to another management company with the same qualifications.

      (Added to NRS by 1987, 1411)

FINANCING OF WATER PROJECTS

      NRS 349.935  Definitions.  As used in NRS 349.935 to 349.961, inclusive, unless the context otherwise requires, the words and terms defined in NRS 349.936 to 349.945, inclusive, have the meanings ascribed to them in those sections.

      (Added to NRS by 1987, 2273)

      NRS 349.936  “Board” defined.  “Board” means the Board for Financing Water Projects.

      (Added to NRS by 1987, 2273)

      NRS 349.937  “Cost of a water project” defined.  “Cost of a water project” means all or a designated part of the cost of any water project, including any incidental cost pertaining to the water project. The cost of a water project may include, among other costs, the costs of:

      1.  Surveys, audits, preliminary plans, other plans, specifications, estimates and other costs of preparations;

      2.  Appraising, printing, estimating, advice, services of engineers, architects, financial consultants, attorneys, clerical personnel and other agents and employees;

      3.  Publishing, posting, mailing and otherwise giving notice, filing or recording instruments, taking options and fees to banks;

      4.  Establishment of a reserve for contingencies;

      5.  Interest on bonds for any time which does not exceed the estimated period of construction plus 1 year, discounts on bonds, reserves for the payment of the principal of and interest on bonds, replacement expenses and other costs of issuing bonds;

      6.  Amending any resolution or other instrument authorizing the issuance of, or otherwise relating to, bonds for the water project; and

      7.  Short-term financing,

Ê and the expense of operation and maintenance of the water project.

      (Added to NRS by 1987, 2273)

      NRS 349.938  “Director” defined.  “Director” means the Director of the Department of Business and Industry or any person within the Department of Business and Industry designated by the Director to perform duties in connection with a water project or the issuance of bonds.

      (Added to NRS by 1987, 2274; A 1993, 1570)

      NRS 349.939  “Expense of operation and maintenance” defined.  “Expense of operation and maintenance” means any reasonable and necessary current expense of the State for the operation, maintenance or administration of a water project or of the collection and administration of revenues from a water project. The term includes, among other expenses:

      1.  Expenses for engineering, auditing, reporting, legal services and other expenses of the Director which are directly related to the administration of water projects.

      2.  Premiums for fidelity bonds and policies of property and liability insurance pertaining to water projects, and shares of the premiums of blanket bonds and policies which may be reasonably allocated to the State.

      3.  Payments to pension, retirement, health insurance and other insurance funds.

      4.  Reasonable charges made by any paying agent, commercial bank, credit union, trust company or other depository bank pertaining to any bonds.

      5.  Services rendered under the terms of contracts, services of professionally qualified persons, salaries, administrative expenses and the cost of materials, supplies and labor pertaining to the issuance of any bonds, including the expenses of any trustee, receiver or other fiduciary.

      6.  Costs incurred in the collection and any refund of revenues from the water project, including the amount of the refund.

      (Added to NRS by 1987, 2274; A 1999, 1472)

      NRS 349.940  “Mortgage” defined.  “Mortgage” includes a deed of trust and any other security agreement covering real or personal property, or both.

      (Added to NRS by 1987, 2274)

      NRS 349.941  “Obligor” defined.  “Obligor” means the natural person, partnership, firm, company, public utility, corporation, association, trust, estate, political subdivision, state agency or any other legal entity, or its legal representative, who agrees to make the payments sufficient to pay the principal of, premium, if any, and interest on the state securities or revenue bonds issued pursuant to NRS 349.935 to 349.961, inclusive.

      (Added to NRS by 1987, 2274)

      NRS 349.942  “Revenue bonds” defined.  “Revenue bonds” means bonds, notes or other securities evidencing a special limited obligation of the State, the principal and interest of which are payable solely out of revenues derived from the financing, leasing or sale of the water project to be financed.

      (Added to NRS by 1987, 2274)

      NRS 349.943  “State securities” defined.  “State securities” means notes, warrants, interim debentures, bonds and temporary bonds issued as general obligations by the Director for any water project or for a refunding which are payable from taxes, whether or not additionally secured by a pledge of all or any designated revenues of one or more water projects.

      (Added to NRS by 1987, 2275)

      NRS 349.944  “Tax” defined.  “Tax” means a general tax upon property.

      (Added to NRS by 1987, 2275)

      NRS 349.945  “Water project” defined.  “Water project” means a project for the management, control, delivery, use or distribution of water.

      (Added to NRS by 1987, 2275)

      NRS 349.946  General powers of Director; adoption of regulations.  The Director has all the powers necessary to accomplish the purposes set forth in NRS 349.935 to 349.961, inclusive. These powers must be exercised for the health, safety, convenience, prosperity and welfare of the inhabitants of this state. The Director may adopt such regulations as are necessary to carry out the provisions of NRS 349.935 to 349.961, inclusive.

      (Added to NRS by 1987, 2275)

      NRS 349.947  Liberal construction.  NRS 349.935 to 349.961, inclusive, must be liberally construed to effectuate the purposes of those sections.

      (Added to NRS by 1987, 2275)

      NRS 349.948  Prerequisites for financing water projects.  The Director shall not finance a water project unless, before financing:

      1.  The water project has been finally approved by the Board after a public hearing on the matter.

      2.  The Director finds and the State Board of Finance approves the findings of the Director that:

      (a) The contemplated lessee, purchaser or other obligor has sufficient financial resources to place the water project in operation and to continue its operation, meeting the obligations of the lease, purchase contract or financing agreement;

      (b) There are sufficient safeguards to assure that all money provided by the Director will be expended solely for the purposes of the water project; and

      (c) The total amount of money necessary to be provided by the Director for financing the water project has been determined in writing by the Board on a form acceptable to the Director.

      3.  For the issuance of state securities, the Director and the State Board of Finance have received and approved the authorizing documents showing the legal authority for the obligor to borrow and repay the proceeds of the state securities.

      4.  For the issuance of revenue bonds, the Director and the State Board of Finance have received and approved:

      (a) The financial plan showing that the revenues to be derived from the water project are adequate to pay the principal and interest on such bonds;

      (b) A 5-year operating history from the contemplated lessee, purchaser or other obligor or from a parent or other guarantor, who guarantees the payments of principal and interest on any bonds issued; and

      (c) A written statement from the obligor affirming that the obligor does not undertake to commit the State, and any political subdivision or municipality thereof to incur any pecuniary liability in connection with the issuance of the bonds.

      (Added to NRS by 1987, 2275; A 1995, 2238)

      NRS 349.949  Forms and terms of bonds; sale; employment of financial and legal consultants.

      1.  The bonds must be authorized by an order of the Director, and must:

      (a) Be in the denominations;

      (b) Bear the date or dates;

      (c) Mature at the time or times, not exceeding 30 years after their respective dates;

      (d) Bear interest at a rate or rates specified in the order;

      (e) Be in the form;

      (f) Carry the registration privileges;

      (g) Be executed in the manner;

      (h) Be payable at the place or places within or without the State; and

      (i) Be subject to the terms of redemption,

Ê which the order authorizing their issue provides.

      2.  The bonds may be sold in one or more series at par, or below or above par, in the manner and for the price or prices which the Director determines in his or her discretion.

      3.  State securities must be authorized by resolution of the Board of Finance at the request of the Director.

      4.  As an incidental expense to any water project to be financed by the bonds, the Director may employ:

      (a) Financial and legal consultants in regard to the financing of the water project; and

      (b) A person whose business is in Nevada or elsewhere to act as a trustee for the water project.

      5.  The bonds are fully negotiable under the terms of the Uniform Commercial Code—Investment Securities.

      (Added to NRS by 1987, 2276; A 1995, 2238)

      NRS 349.950  Issuance of state securities or revenue bonds: Limitation on amount; payment; legislative declaration.

      1.  The Director may, to pay the cost of any water project, borrow money or otherwise become obligated, and may provide evidence of those obligations by issuing, except as otherwise provided in this subsection, state securities or revenue bonds. If the obligor is not a governmental entity, the Director shall issue only revenue bonds to fulfill the obligation.

      2.  Except as otherwise provided in this subsection, state obligations may be outstanding pursuant to this section in an aggregate principal amount of not more than $200,000,000. No state obligations, other than refunding obligations, may be issued pursuant to this section after August 1, 2003.

      3.  State securities must be payable from taxes and may be additionally secured by all or any designated revenues from one or more water projects. Any governmental entity statutorily authorized to levy taxes for the payment of bonded indebtedness may use the proceeds of those taxes to pay the principal of, interest on and redemption premiums due in connection with state securities issued pursuant to this section. Any such state securities may be issued without an election or other preliminaries. No state securities may be issued to refund any municipal securities issued to finance a water project before July 1, 1987.

      4.  Provisions of NRS 349.150 to 349.364, inclusive, which are not inconsistent with the provisions of NRS 349.935 to 349.961, inclusive, apply to the issuance of state securities under this section. Provisions of NRS 349.400 to 349.670, inclusive, which are not inconsistent with the provisions of NRS 349.935 to 349.961, inclusive, apply to the issuance of revenue bonds under this section.

      5.  The Legislature finds and declares that the issuance of state securities pursuant to NRS 349.935 to 349.961, inclusive, is necessary for the protection and preservation of the natural resources of this state and for the purpose of obtaining the benefits thereof, and constitutes an exercise of the authority conferred by the second paragraph of Section 3 of Article 9 of the Constitution of the State of Nevada.

      (Added to NRS by 1987, 2276; A 2003, 20th Special Session, 289)

      NRS 349.951  Director may charge fee against obligor; use of proceeds.

      1.  The Director may charge the obligor a fee not to exceed 2 percent of the principal amount of the financing, including a nonrefundable application fee not to exceed 0.25 percent of the principal amount or $7,500, whichever is less, payable either in advance or at the time the bonds are issued. The Director shall deposit all money received pursuant to this section, except money received from application fees, with the State Treasurer for credit to the Account for the Financing of Water Projects.

      2.  Money received from application fees collected pursuant to this section must be:

      (a) Accounted for separately in the State General Fund.

      (b) Used by the Director to support the operations of his or her office in administering the provisions of NRS 349.935 to 349.961, inclusive.

      3.  Whether or not bonds are issued, the Director shall use money received pursuant to this section, except money received from application fees, to reimburse his or her office for the expenses and costs incurred in financing the water project and, within the limits of money available for this purpose, to reimburse a municipality pursuant to the provisions of NRS 349.961. Any portion of the money so received, except money received from application fees, which exceeds the Director’s expenses and costs must be refunded to the obligor.

      (Added to NRS by 1987, 2277; A 1991, 2251; 1993, 638)

      NRS 349.952  Account for the Financing of Water Projects: Deposits; application of revenue; investment of money from revenue bonds.

      1.  Except as otherwise provided in subsection 3 and NRS 349.951, all amounts received by the Director from an obligor in connection with any financing undertaken pursuant to NRS 349.935 to 349.961, inclusive, must be deposited with the State Treasurer for credit to the Account for the Financing of Water Projects which is hereby created in the Fund for Natural Resources, which is hereby created as a special revenue fund.

      2.  Any revenue from water projects financed with state securities which is in the Account must be applied in the following order of priority:

      (a) Deposited into the Consolidated Bond Interest and Redemption Fund in amounts necessary to pay the principal of, interest on and redemption premiums due in connection with state securities issued for water projects.

      (b) Deposited into any reserve account created for the payment of the principal of, interest on and redemption premiums due in connection with state securities issued for water projects, in amounts and at times determined to be necessary.

      (c) Paid out for expenses of operation and maintenance.

      3.  Any revenue from water projects financed with revenue bonds may:

      (a) Be deposited in the Account for the Financing of Water Projects and subject to the provisions of subsection 2; or

      (b) Subject to any agreement with the holders of the bonds, be invested, deposited or held by the Director in such funds or accounts as the Director deems necessary or desirable. If the Director is acting pursuant to this subsection, he or she need not deposit the money in the State Treasury and the provisions of chapters 355 and 356 of NRS do not apply to any investments or deposits made pursuant to this subsection.

      (Added to NRS by 1987, 2277; A 1991, 2251; 1993, 639; 2001, 2750)

      NRS 349.953  Refunding.

      1.  Any bonds issued under the provisions of NRS 349.935 to 349.961, inclusive, may be refunded by the Director by the issuance of refunding bonds in an amount which the Director deems necessary to refund the principal of the bonds to be so refunded, any unpaid interest thereon and any premiums and incidental expenses necessary to be paid in connection with refunding.

      2.  Refunding may be carried out whether the bonds to be refunded have matured or thereafter mature, either by sale of the refunding bonds and the application of the proceeds to the payment of the bonds to be refunded, or by exchange of the refunding bonds for the bonds to be refunded. The holders of the bonds to be refunded must not be compelled, without their consent, to surrender their bonds for payment or exchange before the date on which they are payable by maturity, option to redeem or otherwise, or if they are called for redemption before the date on which they are by their terms subject to redemption by option or otherwise.

      3.  All refunding bonds issued pursuant to this section must be payable solely from revenues and other money out of which the bonds to be refunded thereby are payable or from revenues out of which bonds of the same character may be made payable under this or any other law then in effect at the time of the refunding.

      (Added to NRS by 1987, 2277)

      NRS 349.954  Limitation of actions.  No action may be brought questioning the legality of any contract, lease, agreement, indenture, mortgage, order or bonds executed, adopted or taken in connection with any water project or improvements authorized by NRS 349.935 to 349.961, inclusive, after 30 days after the effective date of the order of the director authorizing the issuance of those bonds.

      (Added to NRS by 1987, 2278)

      NRS 349.955  Faith of State pledged against repeal, amendment or modification of NRS 349.935 to 349.961, inclusive.  The faith of the State is hereby pledged that NRS 349.935 to 349.961, inclusive, will not be repealed, amended or modified to impair any outstanding bonds or any revenues pledged to their payment, or to impair, limit or alter the rights or powers vested in a city or county to acquire, finance, improve and equip a water project in any way that would jeopardize the interest of any lessee, purchaser or other obligor, or to limit or alter the rights or powers vested in the Director to perform any agreement made with any lessee, purchaser or other obligor, until all bonds have been discharged in full or provisions for their payment and redemption have been fully made.

      (Added to NRS by 1987, 2278)

      NRS 349.956  Exemption of water projects from requirements of other statutes.  A water project is not subject to any requirements relating to public buildings, structures, ground works or improvements imposed by the statutes of this state or any other similar requirements which may be lawfully waived by this section, and any requirement of competitive bidding or other restriction imposed on the procedure for award of contracts for such purpose or the lease, sale or other disposition of property is not applicable to any action taken pursuant to NRS 349.935 to 349.961, inclusive, except that the provisions of NRS 338.010 to 338.090, inclusive, apply to any contract for new construction, repair or reconstruction for which tentative approval for financing is granted on or after January 1, 1992, by the Director or a municipality for work to be done in a water project.

      (Added to NRS by 1987, 2278; A 1991, 2349)

      NRS 349.957  Board for Financing Water Projects: Creation; members.

      1.  The Board for Financing Water Projects is hereby created. The Board consists of one ex officio member and five members appointed by the Governor.

      2.  The Governor shall appoint to the Board:

      (a) One member who is a representative of the county with the largest population in the State;

      (b) One member who is a representative of the county with the second largest population in the State; and

      (c) Three members who are representatives of counties in the State whose populations are less than 100,000,

Ê of whom one member is knowledgeable in the field of municipal finance and the remaining members are knowledgeable in the fields of planning and the development and reclamation of water resources.

      3.  The Administrator of the Division of Environmental Protection of the State Department of Conservation and Natural Resources, or a person he or she designates, shall serve ex officio as a nonvoting member of the Board.

      4.  Not more than three voting members of the Board may be members of the same political party, and not more than two may be residents of the same county.

      (Added to NRS by 1987, 2278; A 1991, 532; 1995, 2502; 2005, 561)

      NRS 349.958  Board for Financing Water Projects: Compensation of members.

      1.  Each voting member of the Board is entitled to receive a salary of not more than $80 per day, as fixed by the Board, for his or her services while actually engaged in the performance of his or her duties as a member of the Board.

      2.  While engaged in the business of the Board, each voting member and employee of the Board is entitled to receive the per diem allowance and travel expenses provided for state officers and employees generally.

      (Added to NRS by 1987, 2279; A 1989, 1712; 1991, 533)

      NRS 349.959  Board for Financing Water Projects: Election of Chair; meetings.  The Board shall:

      1.  At its first meeting and annually thereafter elect a Chair from among its voting members.

      2.  Meet regularly at least once in each calendar quarter and at other times upon the call of the Chair.

      (Added to NRS by 1987, 2279; A 1991, 533)

      NRS 349.960  State Engineer may advise Board; State Engineer and Director may assist in preparation of preliminary plan.

      1.  The State Engineer shall advise the Board, upon its request, of the existence and status of any water rights which affect a water project under consideration by the Board.

      2.  Upon the Board’s request and within the limits of available resources and staff, the State Engineer and the Director may on a case by case basis assist persons in the preparation of a preliminary plan for a water project.

      (Added to NRS by 1987, 2279)

      NRS 349.961  Water projects: Preliminary plan; approval.

      1.  When any municipality or other obligor desires to undertake a water project, it may present its preliminary plan to the Board for approval. If the proposed water project affects drinking water, the Board shall request that the Administrator of the Division of Environmental Protection of the State Department of Conservation and Natural Resources submit comments and recommendations regarding the project. The Board shall analyze the potential yield of the water project, and may tentatively approve it if it will preserve or increase the water available for beneficial use in this State.

      2.  If the Board, after a public hearing on the issue, tentatively approves the water project, the municipality or other obligor may proceed to prepare a final plan and submit it for final approval. If the Board finally approves the water project, the cost of the final plan may be included in the cost of the water project. If the Board does not finally approve the water project, the Director may, within the limits of money available for this purpose in the Account for the Financing of Water Projects, reimburse a municipality for the costs incurred after the tentative approval.

      (Added to NRS by 1987, 2279; A 1991, 533; 1993, 639; 2005, 561)

GRANTS FOR CAPITAL IMPROVEMENTS TO PUBLICLY OWNED WATER SYSTEMS

      NRS 349.980  Definitions.  As used in NRS 349.980 to 349.987, inclusive, unless the context otherwise requires:

      1.  “Board” means the Board for Financing Water Projects created pursuant to NRS 349.957.

      2.  “Community sewage disposal system” means a public system of sewage disposal which is operated for the benefit of a county, city, district or other political subdivision of this State.

      3.  “Community water system” means a public water system which:

      (a) Has 15 or more service connections; or

      (b) Serves 25 or more persons,

Ê at places which are intended for year-round occupancy.

      4.  “Costs of capital improvements to community water systems and nontransient water systems” means the costs traditionally associated with capital improvements to such systems and includes costs associated with the:

      (a) Consolidation of existing systems; and

      (b) Transfer and connection of a public water system to a system owned by a purveyor of water or a public utility.

      5.  “Division of Environmental Protection” means the Division of Environmental Protection of the State Department of Conservation and Natural Resources.

      6.  “Fund” means the Fund for Grants for Water Conservation, Capital Improvements to Certain Water Systems and Improvements to Certain Sewage Disposal Systems.

      7.  “Individual sewage disposal system” means a single system of sewage treatment tanks and effluent disposal facilities that serves:

      (a) A single-family dwelling; or

      (b) One or more buildings that are used exclusively for commercial purposes and are not used as single-family dwellings.

      8.  “Nontransient water system” means a public water system that regularly serves 25 or more of the same persons for more than 6 months per year, but which is not a community water system.

      9.  “Public water system” has the meaning ascribed to it in NRS 445A.840.

      10.  “Purveyor of water” means a political subdivision of this State engaged in the business of furnishing water, for compensation, to persons within the political subdivision.

      (Added to NRS by 1991, 1833; A 1999, 2121; 2003, 2501)

      NRS 349.981  Program to provide grants for water conservation and capital improvements to certain water systems; Board for Financing Water Projects to determine recipients of grants; applicability to certain recipients of provisions governing public works.

      1.  There is hereby established a program to provide grants of money to:

      (a) A purveyor of water to pay for costs of capital improvements to publicly owned community water systems and publicly owned nontransient water systems required or made necessary by the State Environmental Commission pursuant to NRS 445A.800 to 445A.955, inclusive, or made necessary by the Safe Drinking Water Act, 42 U.S.C. §§ 300f et seq., and the regulations adopted pursuant thereto.

      (b) An eligible recipient to pay for the cost of improvements to conserve water, including, without limitation:

             (1) Piping or lining of an irrigation canal;

             (2) Recovery or recycling of wastewater or tailwater;

             (3) Scheduling of irrigation;

             (4) Measurement or metering of the use of water;

             (5) Improving the efficiency of irrigation operations; and

             (6) Improving the efficiency of the operation of a facility for the storage of water, including, without limitation, efficiency in diverting water to such a facility.

      (c) An eligible recipient to pay the following costs associated with connecting a domestic well or well with a temporary permit to a municipal water system, if the well was in existence on or before October 1, 1999, and the well is located in an area designated by the State Engineer pursuant to NRS 534.120 as an area where the groundwater basin is being depleted:

             (1) Any local or regional fee for connection to the municipal water system.

             (2) The cost of any capital improvement that is required to comply with a decision or regulation of the State Engineer.

      (d) An eligible recipient to pay the following costs associated with abandoning an individual sewage disposal system and connecting the property formerly served by the abandoned individual sewage disposal system to a community sewage disposal system, if the Division of Environmental Protection requires the individual sewage disposal system to be abandoned and the property upon which the individual sewage disposal system was located to be connected to a community sewage disposal system pursuant to the provisions of NRS 445A.300 to 445A.730, inclusive, or any regulations adopted pursuant thereto:

             (1) Any local or regional fee for connection to the community sewage disposal system.

             (2) The cost of any capital improvement that is required to comply with a statute of this State or a decision, directive, order or regulation of the Division of Environmental Protection.

      (e) An eligible recipient to pay the following costs associated with connecting a well to a municipal water system, if the quality of the water of the well fails to comply with the standards of the Safe Drinking Water Act, 42 U.S.C. §§ 300f et seq., and the regulations adopted pursuant thereto:

             (1) Any local or regional fee for connection to the municipal water system.

             (2) The cost of any capital improvement that is required for the water quality in the area where the well is located to comply with the standards of the Safe Drinking Water Act, 42 U.S.C. §§ 300f et seq., and the regulations adopted pursuant thereto.

      2.  Except as otherwise provided in NRS 349.983, the determination of who is to receive a grant is solely within the discretion of the Board.

      3.  For any construction work paid for in whole or in part by a grant provided pursuant to this section to a nonprofit association or nonprofit cooperative corporation that is an eligible recipient, the provisions of NRS 338.013 to 338.090, inclusive, apply to:

      (a) Require the nonprofit association or nonprofit cooperative corporation to include in the contract for the construction work the contractual provisions and stipulations that are required to be included in a contract for a public work pursuant to those statutory provisions.

      (b) Require the nonprofit association or nonprofit cooperative corporation to comply with those statutory provisions in the same manner as if it was a public body that had undertaken the project or had awarded the contract.

      (c) Require the contractor who is awarded the contract for the construction work, or a subcontractor on the project, to comply with those statutory provisions in the same manner as if he or she was a contractor or subcontractor, as applicable, engaged on a public work.

      4.  As used in this section, “eligible recipient” means:

      (a) A political subdivision of this State, including, without limitation, a city, county, unincorporated town, water authority, conservation district, irrigation district, water district or water conservancy district.

      (b) A nonprofit association or nonprofit cooperative corporation that provides water service only to its members.

      (Added to NRS by 1991, 1833; A 1999, 2121; 2003, 2502; 2005, 561, 969; 2009, 564)

      NRS 349.982  Powers and duties of Board for Financing Water Projects: Administration of program; adoption of regulations; use of money in Fund to defray certain costs and expenses; imposition of administrative fee.

      1.  The Board shall administer the program and shall adopt regulations necessary for that purpose.

      2.  The regulations must provide such requirements for participation in the program as the Board deems necessary.

      3.  The money in the Fund may be used to defray, in whole or in part, the costs of administering the Fund and the expenses of the Board in administering the program.

      4.  The Board may, by regulation, impose an administrative fee which must be collected from each recipient of a grant from the Fund. If such a fee is imposed, all revenue derived from the fee must be used to defray, in whole or in part, the costs of administering the Fund and the expenses of the Board in administering the program.

      (Added to NRS by 1991, 1833; A 1999, 2122)

      NRS 349.983  Purveyors of water that are eligible to receive grants; preference for smaller systems; matching money from other sources.

      1.  Grants may be made pursuant to paragraph (a) of subsection 1 of NRS 349.981 only for the Lincoln County Water District and those community and nontransient water systems that:

      (a) Were in existence on January 1, 1995; and

      (b) Are currently publicly owned.

      2.  In making its determination of which purveyors of water are to receive grants pursuant to paragraph (a) of subsection 1 of NRS 349.981, the Board shall give preference to those purveyors of water whose public water systems regularly serve fewer than 6,000 persons.

      3.  Each recipient of a grant pursuant to paragraph (a) of subsection 1 of NRS 349.981 shall provide an amount of money for the same purpose. The Board shall develop a scale to be used to determine that amount, but the recipient must not be required to provide an amount less than 15 percent or more than 75 percent of the total cost of the project for which the grant is awarded. The scale must be based upon the average household income of the customers of the recipient, and provide adjustments for the demonstrated economic hardship of those customers, the existence of an imminent risk to public health and any other factor that the Board determines to be relevant.

      (Added to NRS by 1991, 1834; A 1993, 1236; 1995, 321; 1999, 2122; 2003, 2984; 2009, 669)

      NRS 349.984  Fund for Grants for Water Conservation, Capital Improvements to Certain Water Systems and Improvements to Certain Sewage Disposal Systems: Creation; use; payment of claims.

      1.  The Fund for Grants for Water Conservation, Capital Improvements to Certain Water Systems and Improvements to Certain Sewage Disposal Systems is hereby created.

      2.  Except as otherwise provided by subsections 3 and 4 of NRS 349.982, the money in the Fund must be used only to make grants in furtherance of the program.

      3.  All claims against the Fund must be paid as other claims against the State are paid.

      (Added to NRS by 1991, 1834; A 1999, 2123; 2003, 2503)

      NRS 349.985  Fund for Grants for Water Conservation and Capital Improvements to Certain Water Systems: Deposit of money; interest and income credited to Fund.  All money received for the Fund from:

      1.  The issuance of bonds pursuant to NRS 349.986; or

      2.  Any other source,

Ê must be deposited with the State Treasurer to the credit of the Fund. The interest and income earned on the money in the Fund, after deducting any applicable charges, must be credited to the Fund.

      (Added to NRS by 1991, 1834)

      NRS 349.986  General obligation bonds.

      1.  The State Board of Finance shall issue general obligation bonds of the State of Nevada to support the purposes of the program established by NRS 349.981. The aggregate principal amount of such bonds outstanding at any one time may not exceed $125,000,000.

      2.  The net proceeds from the sale of the bonds must be deposited in the Fund.

      3.  The bonds must be redeemed through the Consolidated Bond Interest and Redemption Fund.

      (Added to NRS by 1991, 1834; A 1995, 2239; 1997, 1826; 1999, 2123; 2001, 692; 2003, 2503, 2649; 2003, 20th Special Session, 264, 265; 2005, 201)

      NRS 349.987  Applicability of State Securities Law and certain provisions governing financing of water projects.

      1.  The provisions of NRS 349.150 to 349.364, inclusive, which are not inconsistent with the provisions of NRS 349.980 to 349.987, inclusive, apply to the bonds issued pursuant to NRS 349.986.

      2.  The provisions of NRS 349.935 to 349.956, inclusive, and 349.961 do not apply to the program or to any grants made or bonds issued pursuant to NRS 349.986.

      (Added to NRS by 1991, 1834)