(1)For the purpose of constructing, purchasing, or
acquiring necessary reservoir sites, reservoirs, canals, ditches, and works and
acquiring the necessary property rights therefor, for the purpose of paying an
amount not to exceed the first five years' interest on the bonds authorized in this
article, and for the purpose of otherwise carrying out the provisions of this article,
the board of directors of any such internal improvement 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 there shall be submitted to the electors of such
district possessing the qualifications prescribed by this article the q
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(1) For the purpose of constructing, purchasing, or
acquiring necessary reservoir sites, reservoirs, canals, ditches, and works and
acquiring the necessary property rights therefor, for the purpose of paying an
amount not to exceed the first five years' interest on the bonds authorized in this
article, and for the purpose of otherwise carrying out the provisions of this article,
the board of directors of any such internal improvement 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 there 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. A notice of such election shall 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 is required to be kept once a week for at least
three successive weeks.
(2) Such notice shall specify the time of holding the election, the amount of
bonds proposed to be issued and the amount and rate of interest on such bonds
proposed to be issued, and the dates when the percentage of principal or series of
said bonds will become due, if serial bonds are contemplated, or the maturity date
of the entire issue, as the case may be. At such election the ballots shall contain the
words, Bonds - Yes or Bonds - No, or words equivalent thereto, and also such
appropriate words as shall enable the electors to indicate whether such bonds shall
be redeemable at the option of the district at any time after their date or payable in
series, and said election must be held and the result determined and declared in all
respects as nearly as possible in conformity with the provisions of this article
governing the election of officers, but no informality in conducting such election
shall invalidate the same if the election has been otherwise fairly conducted. If a
majority of the legal electors who are freeholders and taxpayers who represent a
majority of the land within said district have voted Bonds - Yes, the board of
directors shall immediately cause bonds in such amount to be issued.
(3) If bonds are to be payable in series, each series shall consist of a definite
percentage of the whole amount and number of said bonds. The time of maturity of
the series of bonds and the percentage represented by each series shall be
submitted to and approved by the electors at said election; but the last series shall
mature in not more than fifty years from the date of said bonds, and the first series
or percentage of the principal of said bonds shall become due not more than ten
years from the date of said bonds, and the series shall be so arranged that some
percentage of the principal of said bonds, never less than one percent, shall
become due each year thereafter until the entire principal has been paid. If such
bonds are made redeemable at the option of the district, they shall mature at a
specific date not more than fifty years from their date of issue. If the optional form
of bond is issued, the board of directors of the district, when funds are available for
redemption purposes at any time before maturity, shall call for offerings for
redemption and, out of the redemption fund provided for the payment of said bonds,
shall pay any bonds presented for payment pursuant to such call to any holder
thereof who offers the same for payment and redemption for the lowest amount
below par, including accrued interest, to the extent of the funds available;
otherwise said bonds shall be retired in the order of their issue numerically.
(4) The interest on the bonds is payable semiannually on June 1 and
December 1 of each year. The principal and interest is payable at the location the
board of directors designates in the bond.
(5) Such bonds shall each be of the denomination of not less than one
hundred dollars and nor more than one thousand dollars and shall be negotiable in
form, executed in the name of the internal improvement district, and signed by the
president and secretary, and the seal of the district shall be affixed thereto.
(6) The bonds must be numbered consecutively as issued and bear the date
of their issue. Coupons for the interest shall be attached to each bond bearing the
lithographed signatures of the president and secretary. The bonds shall express on
their faces that they are issued by the authority of this article 44, stating its title
and date of approval. At the time of the issue of the bonds, each bond shall be
registered by the treasurer of the internal improvement district, in a book to be kept
by the district treasurer for this purpose, and the interest on the bond shall begin to
run only from the date of the registry. Coupons evidencing unearned interest must
be detached and canceled. Each registered bond must have endorsed thereon the
treasurer's certificate of the registration, and only bonds certified in this manner
are valid, and the certificate is conclusive evidence that the bond has been duly
issued in full conformity with the provisions of this article 44.
(7) When the money provided by any previous issue of bonds has been
exhausted by expenditures provided for in this article and it becomes necessary to
raise additional money for such purposes, additional bonds may be issued,
submitting the question by special election to the qualified voters of said district
and otherwise complying with the provisions of this article in respect to an original
issue of such bonds, but the lien for assessments for the payment of interest and
principal of any bond issue shall be a prior lien to that of any subsequent bond
issue.