§ 21-13-703 — Limits on indebtedness

Each school district actually and physically operating within
its boundaries a school shall have a limit on outstanding
indebtedness of ten percent (10%) of the assessed value of the
taxable property therein. Nothing in this section shall be
construed as permitting any combination of school districts
embracing common territory to incur a bonded indebtedness of
more than ten percent (10%) of the assessed value of the taxable
property therein. The amount in any sinking fund available for
the payment of outstanding indebtedness may be deducted for the
purpose of computing the debt-incurring power of such district.
For this purpose, any general assessment for a particular
district shall become effective when the county assessor shall
have received notice from the state board of equalization of its
final approval of the county valuations; provided, however, that
if the county assessor receives such notice after the district
has entered into an enforceable contract for the sale of bonds,
a new lower assessed valuation shall not become effective until
the day following the date of delivery of such bonds.