2005 Idaho Code - 43-322 — POWER TO INCUR DEBTS -- WARRANTS

                                  TITLE  43
                             IRRIGATION DISTRICTS
                                  CHAPTER 3
                             POWERS AND DUTIES OF
                              BOARD OF DIRECTORS
    43-322.  POWER TO INCUR DEBTS -- WARRANTS. The board of directors, or
other officers of the district, shall have no power to incur any debt or
liability whatever, either by issuing bonds or otherwise, in excess of the
express provisions of this section; and any debt or liability incurred in
excess of such express provisions shall be and remain absolutely void:
provided, that for the purpose of organization, or for any of the purposes of
this title, the board of directors may, before the collection of the first
assessment, incur indebtedness and cause warrants of the district to issue
therefor according to the following limitations: Districts embracing fifty
thousand (50,000) acres, or more, of irrigable land, not in excess of fifteen
thousand dollars ($15,000) of warrants; districts embracing forty thousand
(40,000) acres, or more, and less than fifty thousand (50,000) acres of
irrigable land, up to twelve thousand dollars ($12,000) of warrants; districts
embracing thirty thousand (30,000) acres, or more, and less than forty
thousand (40,000) acres of irrigable land, up to nine thousand dollars
($9,000) of warrants; districts embracing twenty thousand (20,000) acres, or
more, and less than thirty thousand (30,000) acres of irrigable land, up to
six thousand dollars ($6,000) of warrants; districts embracing ten thousand
(10,000) acres, or more, and less than twenty thousand (20,000) acres of
irrigable land, up to four thousand dollars ($4,000) of warrants; districts
embracing more than two thousand (2,000) acres, or more, and less than ten
thousand (10,000) acres of irrigable land up to three thousand dollars
($3,000) of warrants, and districts embracing less than two thousand (2,000)
acres of irrigable land up to two thousand dollars ($2,000) of warrants.
    Provided, further, that for the purpose of defraying the expenses in the
care, operation, repair and improvement of such portion of the irrigation
works of the district as are completed and in use, including salaries of
officers and employees, the board of directors of an irrigation district may
at any time issue warrants of such district in payment of claims of
indebtedness against the district, not to exceed the district's anticipated
revenue.
    The warrants herein authorized shall be in form and substance the same as
county warrants or as near 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 indorse thereon the day of presentation for payment with the
additional indorsement 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 he has sufficient funds in his hands for that purpose to
advertise in some newspaper in the county in which the district is situated
requiring the presentation to him for payment of as many of the outstanding
warrants as he may be able to pay. 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 indorsement.
    Provided, further, after an irrigation district has organized and has no
warrants outstanding, the district may maintain its operation on a cash basis
and pay by check the expenses of operation and maintenance, repair,
improvement, obligations on contractual or bonded indebtedness, and all other
general necessary expenses incurred by the district.
    The board of directors, or other officers of the district, may incur debt
by contracting indebtedness with a money-lending institution, subject to the
election requirements contained in section 43-401, Idaho Code, but the term of
such indebtedness shall not exceed twenty (20) years.