§ 61-37-18 — Protection of service during term of guarantee or loan

1. The service provided or made available by an irrigation district through the
construction or acquisition of an improvement, or the improvement revenues, financed
in whole or in part with a guarantee or loan to the irrigation district from the program or
any other state agency or enterprise, may not be curtailed or limited by inclusion of all
or any part of the area served by the irrigation district within the boundaries of any
other irrigation district, or by the granting of any private franchise for similar service
within the area served by the irrigation district during the term of the guarantee or loan.
The irrigation district providing the service may not be required to obtain or secure any
franchise, license, or permit, as a condition of continuing to serve the area if it is
included within the boundaries of another irrigation district during the term of the
guarantee or loan.
2. Under the circumstances described in subsection 1, nothing prevents the two irrigation
districts and the program or other state agency or enterprise from negotiating an
agreement for the right or obligation to provide the service in question, provided that
any agreement is invalid and unenforceable unless the program or other state agency
or enterprise is a party to the agreement and unless the agreement contains adequate
safeguards to ensure the security and timely payment of any outstanding bonds of the
program issued to fund the loan.