Terms and provisions of revenue bond issues.

A. Revenue bonds issued as provided in Chapter 3, Article 28 NMSA 1978: (1) shall bear interest at such rates as the association may determine payable annually or semiannually except for the first interest payment which may be for any period not to exceed one year from the date of the bonds; (2) may be subject to prior redemption at the association's option at such time and upon such terms and conditions with or without payment of a premium as may be provided by the resolution, indenture or other authorizing instrument; (3) shall be numbered from one upward consecutively; (4) shall be in such form as may be determined by the association; (5) shall mature at any time or times not exceeding thirty-five years from the date of such bonds; (6) may be secured by a bond reserve fund that may be funded by proceeds of the bonds or net revenues of the system or both; (7) may be secured by municipal bond insurance or other credit facilities; (8) may be issued pursuant to an indenture of trust or similar instrument with a corporate or other trustee; and (9) may have such other terms and conditions as the association may provide. B. Such revenue bonds may be sold at either public or private sale, at, above or below par and at any net effective interest rate as the association may determine; provided that such revenue bonds shall not be sold at any net effective interest rate in excess of twelve percent a year unless the state board of finance at any time prior to delivery of the revenue bonds approves such higher net effective interest rate in writing, based upon the determination of the board that the higher rate is reasonable under existing or anticipated bond market conditions. Any approval of any net effective interest rate in excess of twelve percent shall constitute conclusive authority for the association to issue its revenue bonds at the higher net effective interest rate. As used in this subsection "net effective interest rate" means the interest rate based on the actual price to such association, calculated to maturity according to standard tables of bond values.