2006 Utah Code - 17A-2-532 — Debt limitation.

     17A-2-532.   Debt limitation.
     The board of trustees 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 part. A debt or liability incurred in excess of provisions of this part shall be and remain absolutely void, except that for the purposes of organization or for the purposes of this part the board of trustees may, before the collection of the first annual taxes, cause warrants of the district to issue, bearing interest not exceeding 8% per annum. The limit of the fund for such purposes shall be an amount the equivalent of an average of $1.50 per acre throughout the district, and it shall be the duty of the board of trustees, in the preparation of the first annual budget, to make provision for the payment of all such warrants and the interest thereon. To meet such expenses, or to cover delinquencies in any annual tax, or in anticipation of the collection of taxes, the board of trustees may incur indebtedness by borrowing money or otherwise, not exceeding the taxes for the current year, and as evidence of such indebtedness may issue warrants or negotiable notes of the district payable in not more than one year from date thereof, and bearing interest not exceeding 8% per annum. Any such indebtedness permitted by this section shall in no sense be the personal obligation of the board of trustees, but shall constitute a lien upon the lands embraced within the drainage district until paid.

Amended by Chapter 254, 2000 General Session