§ 41-7-809 — Powers; incurring indebtedness; security for loans; limitations; agreements

(a) A district organized hereunder may borrow money and
incur indebtedness for a corporate use or purpose in this act
authorized, provided, every indebtedness, liability or
obligation of the district for the payment of money in whatever
manner entered into or incurred, and whether arising from
contract, implied contract, or otherwise, shall be payable
solely, (i) from revenues, income, receipts and profits derived
by the district from its operation and management of power
plants, systems and irrigation works as in this act provided, or
(ii) from the issuance or sale by the district of its warrants,
notes, revenue bonds, debentures or other evidences of
indebtedness (hereinafter referred to in this section as
"district obligations"), payable solely from such revenues,
income, receipts and profits. The maximum maturity of district
obligations so issued shall be forty (40) years.
(b) Any such district may pledge and put up as collateral
security for a loan any district obligations. Any district
issuing district obligations under the provisions of this act is
hereby specifically authorized and empowered to pledge all or
any part of the revenues which the district may derive from the
sale, conveyance and distribution of water for irrigation,
storage of water, electrical energy, or other service, as
security for the payment of the principal and interest thereon.
Any such pledge of revenues shall be made by the directors of
the district by resolution or by agreement with the purchasers
or holders of such district obligations. Any such resolution or
agreement may specify the particular revenues that are pledged
and the terms and conditions to be performed by the district and
the rights of the holders of such district obligations, and may
provide for priorities of liens in any such revenues as between
the holders of district obligations issued at different times or
under different resolutions or agreements.
(c) Such resolution or agreement may further provide for
the refunding of any such district obligation through the
issuance of other district obligations, entitled to rights and
priorities similar in all respects to those held by the district
obligations that are refunded and for the issuance of such
refunding district obligations, either in exchange for district
obligations then outstanding, or the sale thereof and the
application of the proceeds of such sale to the retirement of
the district obligations then outstanding.
(d) Any such resolution or agreement may provide that all
or any part of the revenues of the district shall be paid into a
special fund and may set forth all the terms and conditions on
which such special fund is to be collected, held and disposed
of, whether partly or wholly for the benefit of the holders of
such district obligations. Provisions may be made that such
special fund shall be held by depositories designated or
described in such resolution or agreement.
(e) The directors of any district organized under the
provisions of this act are authorized to agree with the holders
of any such district obligations as to the maximum or minimum
amounts which such district shall charge and collect for water,
electrical energy, or other service sold by the district.