2006 New Mexico Statutes - Section 73-21-40 — Rates; bondholders\' remedy and taxpayer elector.

73-21-40. Rates; bondholders' remedy and taxpayer elector.

It is made mandatory upon boards of directors of water and sanitation districts issuing water and sewer revenue bonds under the provisions of the Water and Sanitation District Act [ 73-21-1 to 73-21-54 NMSA 1978] to establish such rates for services rendered by the water or sewer system, or joint water and sewer system, as will create an income sufficient to pay all reasonable expenses of operation and create a net revenue which shall be sufficient to pay interest coupons on the revenue bonds, as they mature, and to provide a sinking fund which shall be adequate to discharge the bonds as and when they mature. It is their duty to maintain the rates continuously until the bond issue has been fully liquidated. In the event of their failure or refusal so to do, all the members of the boards of directors are liable to the penalties provided in Section 73-21-42 NMSA 1978, and any bondholder or a number of taxpayer electors of the district amounting to twenty-five persons or five percent of the electors, whichever is less, has the right to apply to the district court of the county where a water and sanitation district is located for a mandatory order requiring the establishment by a board of directors of rates which shall be adequate to meet the requirements of that act.