§ 41-9-256 — Notes and bonds generally

(a) The commissioners may borrow money, not exceeding the
amount of assessment for construction, additional assessments
and assessments for repairs, reconstruction, enlargement,
extension and improvement, unpaid at the time of borrowing for
the construction, repair, reconstruction, enlargement, extension
or improvement of a work which they shall be authorized to
construct, repair, reconstruct, enlarge, extend or improve, 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 are
transferable by delivery to the same extent as negotiable paper
of the highest character. The notes or bonds shall not be held
to make the commissioners personally liable, but shall be held
to be the lawful indebtedness of the district and constitute a
lien upon the assessments for the repayment of the principal and
interest of the notes or bonds.
(b) In case any monies derived from bonds sold to pay for
the original construction of said drainage system, or for the
reconstruction, enlargement, extension or improvement thereof,
now or hereafter, remains on hand after such work is completed
and paid for, and not raised for damages unpaid for, such
residue may be used in maintenance and repair work, as in this
act provided before making assessments for such maintenance and
repair.