2005 Idaho Code - 42-5233 — POWER TO INCUR INDEBTEDNESS -- ASSESSMENTS TO SECURE REPAYMENT -- WARRANTS

                                  TITLE  42
                       IRRIGATION AND DRAINAGE -- WATER
                            RIGHTS AND RECLAMATION
                                  CHAPTER 52
                            GROUND WATER DISTRICTS
    42-5233.  POWER TO INCUR INDEBTEDNESS -- ASSESSMENTS TO SECURE REPAYMENT
-- WARRANTS. (1) In order to secure funds for the mitigation plan or plans for
the district, the board of directors may, by resolution duly adopted and
entered upon the minutes, incur indebtedness by contract with a money lending
institution; provided however, that the term of such indebtedness shall not
exceed thirty (30) years. To secure the repayment of any indebtedness so
incurred, the board shall levy assessments over the term of the indebtedness
in amounts sufficient to repay the interest and principal as it falls due.
Such assessments shall be levied in the manner and shall be subject to the
limitations set forth in section 42-5232, Idaho Code, and may be levied only
if the indebtedness has been approved at an election pursuant to sections
42-5234 through 42-5238, Idaho Code.
    (2)  Notwithstanding the provisions of subsection (1) of this section, the
board of directors may, before the collection of the first assessment, incur
indebtedness for the purpose of organization, or for any of the purposes of
this chapter, and cause warrants of the district to issue therefor, provided
that the total dollar amount of the warrants authorized to be issued shall not
exceed one dollar ($1.00) for each two-hundredths (.02) of a cubic foot per
second of ground water authorized to be diverted and used upon lands or
facilities located within the district. Following the collection of the first
assessment, the board of directors may at any time issue warrants of the
district for the purpose of paying claims of indebtedness against the
district, including salaries of officers and employees, not to exceed the
district's anticipated revenue.
    (3)  The warrants herein authorized shall be in form and substance the
same as county warrants or as nearly the same as may be practicable and shall
be signed by the chairman and attested by the secretary of said board. All
such warrants shall be presented by the holder thereof to the treasurer of the
district for payment who shall endorse thereon the day of presentation for
payment with the additional endorsement thereon, in case of nonpayment, that
they are not paid for want of funds, and such warrants shall draw interest at
a rate to be established by the board of directors from the date of their
presentation to the treasurer for payment as aforesaid until such warrants are
paid. No warrants shall be issued in payment of any indebtedness of such
district for less than face or par value. It shall be the duty of the
treasurer from time to time when sufficient funds are available for that
purpose to advertise in a newspaper in the county in which the district is
situated requiring the presentation to the treasurer for payment of as many of
the outstanding warrants as are able to be paid. Ten (10) days after the first
publication of said notice by the treasurer calling in any of said outstanding
warrants, said warrants shall cease to bear interest, which shall be stated in
the notice. Said notice shall be published two (2) weeks consecutively and
said warrants shall be called in and paid in the order of their endorsement.