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NebraskaLB126109th Legislature 1st and 2nd SessionslegislatureWALLET

Change provisions relating to redemption of bonds of political subdivisions

Sponsored By: Rick Holdcroft

Signed by Governor

Government, Military and Veterans Affairs Committee

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 0 benefits, 0 costs, 2 mixed.

Call premiums and notice for local bonds

For single bond issues of $500,000 or more, call premiums are capped: up to 4% of par for most issuers, and up to 2% for districts under Chapter 31 or 39. Those districts have no other redemption limits beyond this section. If a bond has no special call procedure, the governing body must pass a resolution naming the bonds and setting the prepayment date; it may condition the call on refunding or other funding. The issuer must mail notice to each holder at least 30 days before the prepayment date and file a copy of the resolution with the paying agent by the call date. If full funds and interest are on deposit with the paying agent by the call date, the bonds are no longer a liability; if not, the call is revoked and the bonds remain outstanding.

Five-year call rules for local bonds

Most local government bonds issued after September 7, 1947 are callable at the issuer’s option on or after 5 years from issue. The rule does not cover bonds of public power and irrigation districts, metropolitan utilities districts, cities of the metropolitan or primary classes, and housing authorities; revenue bonds over $1,000,000 from first- or second-class cities and villages; school issues over $10,000,000 when the district had at least 1,000 students; university or state college system bonds; and county bonds sold by competitive sale to an underwriter. Those exempt issuers can set their own redemption terms in the bond documents. If a city annexes a district formed under Chapter 31 or 39, it may redeem that district’s bonds after annexation once the bonds are at least 5 years old, and this right must be printed on the bonds.

Sponsors & Cosponsors

Sponsor

  • Rick Holdcroft

    legislature

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 89 • No: 0

legislature vote • 2/21/2025

Final Reading

Yes: 48 • No: 0 • Other: 1

legislature vote • 1/29/2025

Vote

Yes: 41 • No: 0 • Other: 8

Actions Timeline

  1. Approved by Governor on February 25, 2025

    2/26/2025legislature

  2. Passed on Final Reading 48-0-1

    2/21/2025legislature

  3. President/Speaker signed

    2/21/2025legislature

  4. Presented to Governor on February 21, 2025

    2/21/2025legislature

  5. Placed on Final Reading

    2/13/2025legislature

  6. Advanced to Enrollment and Review for Engrossment

    2/7/2025legislature

  7. Placed on Select File

    1/31/2025legislature

  8. Advanced to Enrollment and Review Initial

    1/29/2025legislature

  9. Placed on General File

    1/27/2025legislature

  10. Notice of hearing for January 22, 2025

    1/15/2025legislature

  11. Referred to Government, Military and Veterans Affairs Committee

    1/14/2025legislature

  12. Date of introduction

    1/10/2025legislature

Bill Text

  • Introduced

    2/26/2025

    PDF

  • Enrolled / Slip Law

    PDF

  • Final / Enacted

    PDF

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