(a) Capital outlay notes authorized under § 9-21-608 may be sold either at a competitive public sale or by an informal bid process in which, whenever possible, at least three (3) financial institutions are contacted by telephone or letter and asked to provide a rate or rates of interest for the term or terms of such notes. If the informal bid process is used, the local government shall comply with the provisions outlined in subsection (c).

(b) If the capital outlay notes will be sold at competitive public sale, then the local government shall publish a notice of sale at least five (5) days prior to the date on which the capital outlay notes are to be sold, either in a financial newspaper having national circulation, or via an electronic communication system that is generally available to the financial community. The notice of sale shall set forth the time, date and place of sale, the maximum amount of capital outlay notes to be sold, the maximum interest rate, the maximum discount, if any that will be permitted, in dollars or as a percentage of par value, and the basis upon which the capital outlay notes will be awarded. If the principal amount of capital outlay notes to be sold is not greater than five million dollars ($5,000,000), then the notice of sale may be published either as set forth in this subsection (b), or solely in a newspaper having general circulation in the local government.

(c) If the capital outlay notes will be sold through the informal bid process described in subsection (a), then the local government shall first submit to the comptroller of the treasury or the comptroller's designee for approval a copy of the proposed resolution authorizing the notes, a copy of the proposed disclosure statement, if any, a statement showing the estimated annual principal and interest requirements for the notes, and a detailed statement showing the estimated cost of issuance which shall include at least the following, if applicable:

(1) Fiscal agent and/or financial advisor fees;

(2) Bond counsel fees;

(3) Other legal charges, if any;

(4) Credit enhancement fees;

(5) Trustee fees;

(6) Registration fees;

(7) Paying agent fees;

(8) Rating agency fees;

(9) Underwriters' discount or charges;

(10) Remarketing agent fees;

(11) Printing, advertising and other expenses; and

(12) The number of financial institutions contacted and if only one (1) institution was contacted, a statement as to why only one (1) institution was contacted;

(d) Based upon the information submitted and any additional information deemed pertinent by the local government, the local government shall state and demonstrate in its request for approval to the comptroller of the treasury or the comptroller's designee that the proposed sale is feasible, that the proposed sale is in the best interests of the local government, and that the local government should be able to amortize the proposed indebtedness, together with all other obligations then outstanding. The state funding board may establish guidelines to assist the comptroller of the treasury or the comptroller's designee in reviewing applications so submitted by the local government. The guidelines, if any, will be made available to the local government upon request to the comptroller of the treasury or the comptroller's designee. The comptroller of the treasury or the comptroller's designee shall notify the governing body of the local government of the comptroller of the treasury's or the comptroller's designee's approval or disapproval within ten (10) days from the date that all required information is received by the comptroller of the treasury or the comptroller's designee. If the comptroller of the treasury or the comptroller's designee approves a sale for the capital outlay notes or if the comptroller of the treasury or the comptroller's designee fails to act within such time, then the local government may proceed to sell the notes in that manner. If the comptroller of the treasury or the comptroller's designee does not approve the proposed negotiated sale, then the local government may proceed to sell the notes at a competitive public sale in the manner provided by subsection (b).