Montana Code Annotated 2019



Part 3. Finance

Procedure In Case Of Insufficient Bond Proceeds

85-1-303. Procedure in case of insufficient bond proceeds. If the proceeds of the bonds, by error of calculation or otherwise, are less than the cost of the works, additional bonds may in like manner be issued to provide the amount of the deficit and, unless otherwise provided in the trust indenture or in the resolution authorizing the bonds, are considered to be of the same issue and are entitled to payment from the same fund, without preference or priority of the bonds first issued for the same works. If the proceeds of bonds issued for the works exceed the cost of the works, the surplus must be paid into the fund provided for the payment of principal and interest of the bonds. Prior to the preparation of definitive bonds, the department may, under like restrictions, issue temporary bonds with or without coupons, exchangeable for definitive bonds when the bonds have been executed and are available for delivery. The bonds may be issued without any other proceedings or the happening of any other conditions or things than those proceedings, conditions, and things that are specified and required by this chapter or by the constitution of the state.

History: En. Sec. 6, Ch. 35, Ex. L. 1933; re-en. Sec. 349.6, R.C.M. 1935; amd. Sec. 11-156, Ch. 264, L. 1963; R.C.M. 1947, 89-109(4); amd. Sec. 424, Ch. 418, L. 1995.