The state may borrow money not exceeding the sum of two hundred thousand dollars [($200,000)] in the aggregate to meet casual deficits or failure in revenue, or for necessary expenses. The state may also contract debts to suppress insurrection and to provide for the public defense.

ANNOTATIONS

Bracketed material. — The bracketed material was inserted by the compiler and is not part of the law.

Cross references. — For state indebtedness, see 6-12-1, 6-12-2 and 6-12-6 to 6-12-14, NMSA 1978.

Comparable provisions. — Idaho Const., art. VIII, § 1.

Iowa Const., art. VII, §§ 2, 4.

Montana Const., art. VIII, § 8.

Utah Const., art. XIV, §§ 1, 2.

Wyoming Const., art. XVI, § 1.

Phrase "to provide for the public defense" means to provide a militia of the kind required by N.M. Const., art. XVIII, § 2. State ex rel. Charlton v. French, 1940-NMSC-010, 44 N.M. 169, 99 P.2d 715.

Militia and public defense provisions in pari materia. — Constitutional provisions concerning the organization, discipline and equipment of the militia, the calling out of the militia and contracting debts to provide for public defense are in pari materia. State ex rel. Charlton v. French, 1940-NMSC-010, 44 N.M. 169, 99 P.2d 715. For constitutional provisions relating to the militia, see N.M. Const., art. XVIII.

Territorial debts included. — This section authorizes the issuance and sale of certificates of indebtedness for casual deficits or failure of revenue of the territory, as all debts and liabilities of the territory were assumed by the state. The legislature must be the sole judge of "necessary expenses". State ex rel. Lucero v. Marron, 1912-NMSC-037, 17 N.M. 304, 128 P. 485. For assumption of debts of territory by state, see N.M. Const., art. IX, § 1.

Debentures to anticipate proceeds of gasoline excise tax authorized by Laws 1927, ch. 20 (repealed) did not constitute state borrowing or debt requiring a popular referendum. State v. Graham, 1927-NMSC-066, 32 N.M. 485, 259 P. 623.

State highway bonds issued under Laws 1912, ch. 58 (now executed), were clearly not within the exception specified in this section. Catron v. Marron, 1914-NMSC-048, 19 N.M. 200, 142 P. 380.

Laws 1921, ch. 153 (temporary), authorizing levy of taxes and issuance and sale of state debentures in anticipation of taxes, for construction and improvement of public highways, and to meet, dollar for dollar, allotments to the state of federal funds under Federal Aid Road Act (23 U.S.C. §§ 101 to 158) was validated by adoption of amendment to state constitution adding Section 16 to Article IX. Lopez v. State Hwy. Comm'n, 1921-NMSC-074, 27 N.M. 300, 201 P. 1050.

See also notes to N.M. Const., art. IX, § 8.

Limitation not applicable to debts contracted to suppress insurrection or provide for public defense. — The $200,000 limitation on the state's borrowing to meet "casual deficits or failure in revenue, or for necessary expenses", does not apply to debts contracted to suppress insurrection or to provide for the public defense. 1951 Op. Att'y Gen. No. 51-5438.

The last sentence in this section, to the effect that the state may also contract debts to suppress insurrection and to provide for the public defense, is authority for issuance of certificates of indebtedness for debts contracted without any limitation, dependent only upon the extent and degree of the emergency and the wisdom of the governor and legislature in meeting the same. 1953 Op. Att'y Gen. No. 53-5854.

Where purpose for which an agency proposes to contract a debt is not included in this section, N.M. Const., art. IX, § 8, specifically prohibits the contraction of the debt. 1958 Op. Att'y Gen. No. 58-228.

Debentures for construction of addition to capitol. — Proposed debentures provided for in Laws 1921, ch. 81 (now obsolete), relating to construction of an addition to the capitol building at Santa Fe, were not to pay an indebtedness of the state, but were to be issued in anticipation of the revenues. 1921 Op. Att'y Gen. No. 21-2980.

State highway bonds. — State highway debentures were held general obligations of the state within contemplation of U.S. Rev. Stat. § 5136 (12 U.S.C. § 24). 1937 Op. Att'y Gen. No. 37-1839.

Am. Jur. 2d, A.L.R. and C.J.S. references. — 72 Am. Jur. 2d States, Territories and Dependencies §§ 78, 80.

Power of legislature to add to or make more onerous the conditions or limitations prescribed by constitution upon incurring public debts, 106 A.L.R. 231.

Constitutional or statutory provision limiting state or municipal indebtedness or taxation or regulating issuance of bonds as affecting bonds or other obligations authorized but not delivered prior to adoption or effective date of the provision, 109 A.L.R. 961.

Presumptions and burden of proof as to violation of or compliance with public debt limitation, 16 A.L.R.2d 515.

81A C.J.S. States §§ 213 to 222.