Changes to Existing Law

A municipality may borrow money from any source willing to lend the money by5 issuing a promissory note subject to the limitations set in §§ 9-25-13 to 9-25-16, inclusive. Notes issued pursuant to this section are payable solely from the sources provided in § 9-25- and do not constitute an indebtedness of the municipality within the meaning of any8 constitutional or statutory provisions or limitations, any provisions in the notes set forth or set9 forth in the resolution authorizing the notes to the contrary notwithstanding. The notes shall10 recite the authority under which the notes are issued and shall state that the notes are issued in11 conformity with the provisions, restrictions, and limitations of §§ 9-25-13 to 9-25-16, inclusive, and that the notes and the interest thereon are payable from the sources therein provided. The13 notes shall be authorized, issued, and sold in accordance with chapter 6-8B. No election is14 required and the notes may not be issued for a term in excess of five years. However, notes a 100 copies were printed on recycled paper by the South DakotaLegislative Research Council at a cost of $.167 per page.v Insertions into existing statutes are indicated by underscores.Deletions from existing statutes are indicated by overstrikes. - 2 -HB 1128 note issued for loans any loan authorized by the United States Department of Agriculture may1 be issued for a term of not more than ten years and an unsecured promissory note under the municipal debt limit may be for a term of not more than twenty years.3