§ 41-7-408 — Borrowing money; bonds as security; indebtedness as lien on assessments

The commissioners may borrow money, not exceeding the amount of
"assessment for construction," as herein provided, unpaid at the
time of borrowing for such purposes, or for the payment of
indebtedness they may have lawfully incurred, and may secure the
same by notes or bonds bearing interest and not running beyond
one (1) year after the last installment of the assessment, on
the account of which the money is borrowed, shall fall due,
which notes or bonds shall not be sold at less than ninety
percent (90%) of their face value, which bonds shall be
transferable by delivery to the same extent as negotiable paper
of the highest character, and may deliver notes or bonds to the
United States to be held and when deemed desirable or when the
appraised value of the land in the district is double the bonded
indebtedness, sold by it, and the net proceeds received from the
notes or bonds applied to the liquidation of contract
indebtedness of the district to the United States. Notes or
bonds shall be in a form, terms and denominations as may be
fixed by the secretary of the interior in carrying out the
provisions of the act of congress of June 17, 1902 (32 Stat.
388) and all acts amendatory thereof or supplementary thereto,
or that may be hereafter enacted as amendatory thereof or
supplementary thereto, or other acts of congress heretofore or
hereafter enacted providing for or permitting the acceptance of
the bonds, and which notes or bonds shall not be held to make
the commissioners personally liable, but constitute a lien upon
the assessments for the repayment of the principal and interest
of the notes or bonds. In case any monies derived from bonds
sold to pay for the construction, as herein provided, now or
hereafter, remains on hand after the work is completed and paid
for, and not raised for damages unpaid for, the residue may be
used in the maintenance and repair, as in this chapter provided,
before making assessment for maintenance and repair.