§ 14-120-333 — Use of revenues for bond payment - Lien

(a) To secure the due and prompt payment of both principal and interest of any bonds or notes issued under the provisions of this subchapter, the entire revenue of the district or such fractional part thereof as the board of directors may deem expedient and necessary is pledged. (b) The board of directors of the district is required to set aside annually from the first revenue collected a sum sufficient in amount to secure and pay the interest on the bonds or notes and the principal, as the interest and principal may become due. Its duty to do so may be enforced by mandamus proceedings. (c) The principal and interest of the bonds or notes shall be secured by a lien on all the lands, town lots, suburban lots, rural lots, industrial tracts, blocks, railroads, tramroads, telegraph, telephone, and electric power lines and underground cables, pipelines, and all other real property and interests in real property in the district. (d) The board of directors may pledge all or any part of the assessment of benefits and its revenues as security for the payment of the principal and interest of the bonds or notes. (e) In the event the board of directors fails or refuses to levy and collect the tax in any year in which there are bonds or notes or interest coupons outstanding when the proceeds of the tax are required for the payment of the bonds, notes, or interest coupons, this duty may be enforced by a mandamus or by a mandatory injunction in equity at the instance of any landowner in the district, the trustee in any deed of trust securing the bonds of the district, the holder of any bond, note, or interest coupon as to which the district has defaulted in the payment, or any other creditor of the district.

Legislative History

Acts 1961, No. 20, § 15; A.S.A. 1947, § 21-853.