us-nm/stat
NMSA 1978, § 7-27-18 — Procedure for sale of bonds
A.
Severance tax bonds and supplemental severance tax bonds shall be sold by the
state board of finance at such times and in such manner as the board may elect,
consistent with the need of the board, commission or agency that is the recipient of the
bond money, to the highest bidder for cash at not less than par and accrued interest.
B.
The state board of finance shall publish a notice of the time and place of sale in a
newspaper of general circulation in the state, and also in a recognized financial journal
outside the state. Such publication shall be made once at least five business days prior
to the date fixed for such sale. Such notice shall specify the amount, denomination,
maturity and description of the bonds to be offered for sale and the place, day and hour
at which bids therefor shall be received and publicly examined. All bids shall be sealed
or sent by facsimile or other electronic transmission to the state board of finance as set
forth in the notice. All bids, except that of the state, shall be accompanied by a deposit
of two percent of the bid price, either in the form of a financial surety bond or in cash or
by cashier's check or treasurer's check of, or by certified check drawn on, a solvent
commercial bank or trust company in the United States. The financial surety bond or the
long-term debt obligations of the issuer or person guarantying the obligations of the
issuer of the financial surety bond shall be rated in one of the top two rating categories
of a nationally recognized rating agency, without regard to any modification of the rating,
and the financial surety bond shall be issued by an insurance company licensed to
issue such a bond in New Mexico. Deposits of unsuccessful bidders shall be returned
upon rejection of the bid.
C.
At the time and place specified in such notice, bids shall be publicly examined
and the bonds, or any part thereof, shall be awarded to the bidder or bidders offering
the best price therefor. Before delivering any bonds sold, the state treasurer shall
detach therefrom and cancel all interest coupons that may have matured prior to the
date of delivery. The state board of finance may reject any or all bids and readvertise.
The state board of finance may sell a severance tax bond or supplemental severance
tax bond issue, or any part thereof, to the state at private sale.
Source: official text