(1)For the purpose of
constructing or purchasing or acquiring necessary reservoir sites, reservoirs, water
rights, canals, ditches, and works and of acquiring the necessary property and
rights therefor; for the assumption of indebtedness to the United States or for
entering into a contract with the United States or any agency thereof or water right
owners for district lands; for the purpose of paying the first year's interest upon the
bonds authorized in this article; and for otherwise carrying out the provisions of this
article, the board of directors of any such district, as soon after such district has
been organized as may be practicable, shall estimate and determine the amount of
money necessary to be raised for such purposes and shall forthwith call a special
election, at
Free access — add to your briefcase to read the full text and ask questions with AI
(1) For the purpose of
constructing or purchasing or acquiring necessary reservoir sites, reservoirs, water
rights, canals, ditches, and works and of acquiring the necessary property and
rights therefor; for the assumption of indebtedness to the United States or for
entering into a contract with the United States or any agency thereof or water right
owners for district lands; for the purpose of paying the first year's interest upon the
bonds authorized in this article; and for otherwise carrying out the provisions of this
article, the board of directors of any such district, as soon after such district has
been organized as may be practicable, shall estimate and determine the amount of
money necessary to be raised for such purposes and shall forthwith call a special
election, at which election shall be submitted to the electors of such district
possessing the qualifications prescribed by this article the question of whether or
not the bonds of said district shall be issued in the amount so determined and, if
applicable, whether the contract shall be approved.
(2) A notice of such election must be given by posting notices in three public
places in each election precinct in said district for at least twenty days and also by
publication of such notice in some newspaper published in the county where the
office of the board of directors of such district is required to be kept, once a week
for at least three successive weeks. Such notice shall specify the time of holding
the election, the amount of bonds proposed to be issued, and, if applicable, the
dollar amount of the contract to be entered into, and said election must be held and
the result thereof determined and declared in all respects as nearly as possible in
conformity with the provisions of this article governing the election of officers. No
informalities in conducting such election shall invalidate the same if the election
shall have been otherwise fairly conducted.
(3) At such election the ballots shall contain the words, if applicable, Bonds
- Yes or Bonds - No or, if applicable, Contract - Yes or Contract - No, or words
equivalent thereto. If a majority of the legal electors who are freeholders and
taxpayers or entrymen qualified as provided in this article within said district voting
at said election have voted Bonds - Yes or Contract - Yes, the board of directors
shall immediately cause bonds in such amount to be issued and payable in series
with such rate of interest as may be required to market said bonds as irrigation
district bonds or cause the contract to be executed by the president and the
secretary of the district.
(4) The principal and interest shall be payable at the office of the county
treasurer of the county in which the organization of the district was effected and at
such other place as the board of directors may designate in such bond. Said bonds
shall be in denominations as may be determined by the board of directors and shall
be negotiable in form, executed in the name of the district, and signed by the
president and secretary, and the seal of the district shall be affixed thereto. Bonds
deposited with the United States may call for the payment of such interest not
exceeding the going rate for irrigation district bonds, may be of such denominations
and may call for the repayment of the principal at such times as may be agreed
upon between the district and the secretary of the interior, and, where the contract
provides, may likewise call for the repayment of the principal at such times as may
be agreed upon. Said bonds shall be numbered consecutively as issued and bear
date at the time of their issue. Coupons for the interest shall be attached to each
bond bearing the lithographed signatures of the president and secretary. Said
bonds shall express on their faces that they are issued by the authority of this
article, stating its title and date of approval.
(5) The secretary shall keep a record of the bonds sold, their number, date of
sale, the price received, and the name of the purchaser; but any such district, by a
majority vote of the legal electors of said district voting at said election, may
provide for the issuance of bonds that will mature in any number of years less than
thirty and arrange for the payment thereof in series. When the money provided by
any previous issue of bonds has become exhausted by expenditures authorized
therefrom and it becomes necessary to raise additional money for such purposes,
additional bonds may be issued by submitting the question at a special election to
the qualified voters of said district and otherwise complying with the provisions of
this section in respect to an original issue of such bonds. The lien for taxes, for the
payment of the interest and principal of any bond issue, or for any indebtedness
under any contract with the United States or any agency thereof or another
financial institution shall be a prior lien to that of any subsequent bond issue or
under subsequent contract.
(6) If a contract is proposed to be made with the United States and bonds are
not to be deposited with the United States in connection therewith, the question to
be submitted to the voters at such special election is whether a contract shall be
entered into with the United States or any agency thereof or any financial
institution. The notice of election shall state the maximum amount of money
payable to the United States for construction or other purposes, exclusive of
penalties and interest, and the water rights and other property, if any, to be
conveyed to the United States, any agency thereof, or another financial institution
as provided in section 37-41-113. The ballots for such election shall contain the
words Contract with the United States or agency thereof or financial institution -
Yes, and Contract with the United States or agency thereof or financial institution
- No, or words equivalent thereto.