§ 62-802. Definitions.

As used in the Municipal and County Economic and Community Development Bonds Act:

1.  "Amortization" means the reduction of bonded indebtedness by making annual or fiscal year payments of principal and interest sufficient to pay off bonds by their stated maturity;

2.  "Annual maturing principal plus interest shall be as nearly equal as practicable throughout the term of the issue" means that the total annual or fiscal year debt service, except for short periods, must be approximately equal for every annual or fiscal period, provided each net annual or fiscal year debt service payment in relation to all other net annual or fiscal year payments must be made within a dollar amount range not to exceed twice the stated denomination of the bonds;

3.  "Debt service" means money required, pursuant to the terms of issuance, for payments of principal and interest due on outstanding bonds;

4.  "Level principal debt service payments" means the amount of principal retired annually or during a fiscal year with respect to outstanding bonds shall be equal;

5.  “Qualified economic or community development purpose” means the use of bond proceeds for the acquisition, construction, development and/or equipping of the following projects or programs:

a.              industrial facilities, including manufacturing, maintenance, servicing, warehouse, wholesale distribution, and transportation facilities,

b.              tourism facilities, including recreation or entertainment facilities, theme parks, cultural and historic sites,

c.              sports facilities, including arenas, stadiums, ballparks, and golf courses,

d.              agricultural facilities, including grain elevators, cotton gins, compresses, livestock barns, and other commodity processing facilities,

e.              defense industry facilities, including office facilities, security facilities, and the acquisition of land for clear zones or to implement noise abatement zoning,

f.              redevelopment programs, including the acquisition of real property in a designated blighted area and the rehabilitation of such property, the clearing and preparation of land for redevelopment, the transfer of interests in the property to nongovernmental persons for fair market value, and the relocation of occupants of the real property acquired,

g.              governmental facilities, including city halls, courthouses, administration buildings, and police and fire stations,

h.              community facilities, including parks, senior citizens centers, shelters for homeless or abused persons, and juvenile centers,

i.              public infrastructure facilities, including highways, roads, streets, bridges, sewers, traffic control systems and devices, telecommunications systems, wastewater and water distribution and supply systems, curbing, sidewalks and any similar public improvements, gas and electric production, distribution and transmission facilities, common utility or service facilities, landscaping, parking, and water detention/retention systems, and

j.              economic development programs, including but not limited to job creation payments, low interest and/or forgivable loans;

6.  "Short periods" means the period of time preceding the beginning of full amortization of principal and interest due on bonds;

7.  "True interest cost" means the rate used to discount the amounts payable on the respective principal and interest maturity dates which yields a result equal to the purchase price received for bonds; and

8.  "Ultimate user" means the industry on whose behalf bonds are issued.

Added by Laws 1991, c. 142, § 3, emerg. eff. May 1, 1991.  Amended by Laws 2003, c. 433, § 3, eff. July 1, 2003; Laws 2009, c. 369, § 3, eff. July 1, 2009.