§ 31-778 — Board of trustees or administrator; negotiate indebtedness; issue new bonds or warrants; procedure

The board of trustees or the administrator shall have the power to negotiate a scaling, discounting, reduction in interest rate, or any other compromise of any or all of the bonds, warrants, or other indebtedness of the district with the owners or holders of such indebtedness. In order to carry out any compromise agreements made, the board of trustees or the administrator shall have the power to issue new bonds or warrants which may be delivered to the holders or owners of the indebtedness being compromised or may be sold on such terms as the board of trustees or administrator shall determine to provide cash to carry out the compromise settlement. Before any new bonds or warrants are issued, the terms of the compromise settlement and the issuance of such new bonds or warrants shall be approved by the district court for the county in which the district or the greater portion of the district is situated, following the procedure set forth in sections 31-756 to 31-759 . Such review by the district court shall be limited to the legality and validity of the new bonds or warrants to be issued and the decree of the district court determining the issuance of the new bonds or warrants to be legal and valid shall be conclusive against the district and all other persons having or claiming any interest in the district. Notwithstanding any other provision of law, the treasurer of the district shall disburse funds of the district in accordance with the compromise settlement approved by the district court.

Legislative History

Source: Laws 1982, LB 868, § 40.