A. A district may issue one or more series of bonds to provide money for renewable energy improvements to property in the district, and the bonds may be payable from the special assessments levied pursuant to one or more assessment resolutions. B. For any bonds issued pursuant to the Renewable Energy Financing District Act, the district board shall prescribe the denominations of the bonds, the principal amount of each issue and the form of the bonds and shall establish the maturities, which shall not exceed twenty years, interest payment dates and interest rates, whether fixed or variable, not exceeding the maximum rate stated in the resolution of the district board. The bonds may be sold by competitive bid or negotiated sale for public or private offering at, below or above par. The proceeds of the bonds shall be deposited with the treasurer, or with a trustee or agent designated by the district board, to the credit of the district to be withdrawn for the purposes provided by the Renewable Energy Financing District Act. Pending that use, the proceeds may be invested as determined by the district. The bonds shall be made payable as to both principal and interest solely from revenues of the district, and shall specify the revenues pledged for such purposes, and shall contain such other terms, conditions, covenants and agreements as the district board deems proper. C. No holder of special assessment bonds issued pursuant to the Renewable Energy Financing District Act may compel any exercise of the taxing power of the district, municipality or county to pay the bonds or the interest on the bonds. Special assessment bonds issued pursuant to that act are not a debt or general obligation of the county or the municipality in which the district is located, nor is the payment of special assessment bonds enforceable out of any money other than the revenue pledged to the payment of the bonds. D. Pursuant to this section, the district may issue and sell refunding bonds to refund any special assessment bonds of the district authorized by the Renewable Energy Financing District Act. Refunding bonds issued pursuant to this section shall have a final maturity date no later than the final maturity date of the bonds being refunded. History: Laws 2009, ch. 180, § 8. Effective dates. — Laws 2009, ch. 180 contained no effective date provision, but, pursuant to N.M. Const., art. IV, § 23, was effective June 19, 2009, 90 days after the adjournment of the legislature. The Renewable Energy Financing District Act does not contemplate the use of direct to property owner loans as a financing procedure. — The Renewable Energy Financing District Act (REFD Act), 5-18-1 to 5-18-13 NMSA 1978, enacted by the New Mexico legislature to enable alternative financing for renewable energy improvements, authorizes a governing body of a municipality or county to form a district for the purpose of encouraging, accommodating and financing renewable energy improvements on property within the municipality or county; upon formation of a district, the REFD Act authorizes the district board to impose a special assessment on property within the district to facilitate the financing of renewable energy improvements to the property and to issue one or more series of bonds, payable from the special assessments levied, to provide money for renewable energy improvements to property in the district. Such bonds shall be made payable as to both principal and interest solely from revenues of the district. The REFD Act does not authorize a county to implement or administer direct lending as between property owners and financing institutions for the purpose of financing renewable energy improvements. Administration of Residential Property Assessed Clean Energy (PACE) financing loans (10/21/19), Att'y Gen. Adv. Ltr. 2019-04. The Renewable Energy Financing District Act does not violate the anti-donation clause. — An anti-donation clause violation occurs when there has been an outright gift of money or property to a private entity with no exchange of adequate consideration. Under the program established by the Renewable Energy Financing District Act (REFD Act), neither a county nor a municipality would be lending or pledging the county's credit or making a donation to a property owner or a financing institution; special assessment bonds issued pursuant to the REFD Act are not a debt or general obligation of the county or the municipality in which the district is located, nor is the payment of special assessment bonds enforceable out of any money other than the revenue pledged to the payment of the bonds. The REFD Act therefore does not violate the anti-donation clause. Administration of Residential Property Assessed Clean Energy (PACE) financing loans (10/21/19), Att'y Gen. Adv. Ltr. 2019-04. The renewable energy special assessment constitutes a lien on the property. — The Renewable Energy Financing District Act (REFD Act) provides that a renewable energy special assessment shall constitute a lien on the property, which lien shall have priority over all other liens except liens for ad valorem property taxes. Thus, under the REFD Act, liens created by the renewable energy special assessments would assume priority over first mortgages, secondary home lines of credit, or other traditional residential financing mechanisms. Administration of Residential Property Assessed Clean Energy (PACE) financing loans (10/21/19), Att'y Gen. Adv. Ltr. 2019-04.
‹ Prev All New Mexico sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.