What are the rules governing the issuance of notes and bonds?

In Louisiana, the rules governing the issuance of notes and bonds are outlined in the Louisiana Business Corporation Law. This law states that a corporation may issue notes and bonds for the purpose of borrowing money if the issuance is authorized by a resolution of the board of directors and approved by the shareholders. The notes and bonds must also comply with the laws of the state of Louisiana. When issuing notes and bonds, the corporation must also state the terms of the loan, such as the rate of interest, the date of the loan’s maturity, and the manner of repayment. The rate of interest must be reasonable and the maturity date must not exceed five years from the date of the note or bond’s issuance. The notes and bonds must also be signed by a corporate officer or agent of the corporation. In addition, the corporation must provide a statement of purpose to the public when issuing notes and bonds. This statement must explain why the company is issuing its notes and bonds, and how it plans to use the funds it raises. Finally, the corporation must use the funds obtained from the issuance of notes and bonds only for the purpose stated in the statement of purpose.

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What are the rules governing the issuance of notes and bonds?

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