MO SB705

Repeal sections 108.140 and 108.170, RSMo, and enact three new sections (108.140, 108.170, and 108.171) relating to political subdivision indebtedness.

Political subdivisions (counties, cities, school districts) with a credit rating of "A" or higher must sell general obligation refunding bonds at public sale after reasonable notice, at not less than 95% of par value, and may bear interest not exceeding 14% per annum.

Financial advisors involved with any sale of bonds for entities with "A" or higher credit ratings shall not underwrite the issue.

State treasurer may provide technical and advisory assistance to political corporations and subdivisions regarding bond issuance, including advice on structuring and marketing bonds, debt management training, and promotion of sound financial management practices.

Treasurer may promulgate rules and regulations to implement the provisions, subject to chapter 536 review procedures and effective only if compliant with those provisions.