§ 37-47-118 — Directors bound by financing plan

Colorado § 37-47-118

• Jurisdiction: Colorado
• Title 37: Water and
• Art.: Southwestern Water Conservation District

Text

(1) The board of directors of
said district shall be bound by the plan of financing set forth in the petition for the
organization of the subdistrict and approved by the decree of the district court. The
appointment of appraisers shall not be necessary in the event that the plan adopted
provides that general obligations of the subdistrict are to be issued or provides for
the issuance of revenue warrants which shall be a lien and charge upon the rental
and income from the irrigation works or reservoirs or other improvements to be
constructed under the plan adopted and the rental derived from any such works.
Said warrants shall be payable in such denominations, with interest at a rate not
exceeding six percent per annum which may be fixed by the board of directors of
said district pursuant to the order and decree of the court. The board shall pledge
the income and rentals from said irrigation works or water supplied therethrough,
and the subdistrict shall not be otherwise obligated for the payment thereof.

(2) At the time said revenue warrants are issued, the board of directors of the
district shall make and enter in the minutes of the proceeding a resolution in which
the due dates of said revenue warrants, the amount of interest thereon, which shall
not exceed six percent per annum, the general provisions of said revenue warrants
and a recital that the same are payable out of rental and income only are set forth
and shall require the payment of an assessment or annual rental charge by the
persons who are to use or derive benefit from the water or other service furnished
through said improvements or works, sufficient to meet said payments, and the
resolution shall be irrepealable during the time that any of said revenue warrants
are outstanding and unpaid. Said revenue warrants shall be signed Water Users'
Association No. .... in the Southwestern Water Conservation District, By ....,
President, Attest ...., Secretary, or Special Improvement District No. .... in the
Southwestern Water Conservation District, By ...., President, Attest ...., Secretary.
They shall be countersigned by the treasurer.

(3) General obligation bonds of said subdistrict shall be signed in the same
manner as provided for revenue warrants and shall recite that the same are issued
pursuant to the provisions of this article and are to be payable at the time and in the
manner and with the rate of interest therein specified, and that the same were
issued under and pursuant to a decree of court and a resolution of the board of
directors authorizing the issue of said obligations and referring to the date of said
resolution. Said bonds shall further recite that they are payable from funds to be
derived by assessments and tax levies against the property in said subdistrict and
not otherwise, and that the same are not to be deemed as an obligation of the
southwestern water conservation district but only as an obligation of said
subdistrict, and that the district itself is not to be obligated in any manner for the
payment of said bonds.

Legislative History

Source: L. 41: p. 879, � 14. CSA: C. 173B, � 69. CRS 53: � 149-9-14. C.R.S. 1963: � 150-8-14.