Section 249.790

Title XV LANDS, LEVEES, DRAINAGE, SEWERS AND PUBLIC WATER SUPPLY

Chapter 249

Effective - 28 Aug 1990   

  249.790.  Debt may be incurred, procedure. — 1.  The board of supervisors of a sewer district organized under the provisions of sections 249.760 to 249.810 may borrow money either through the issuance of bonds or through other arrangements.  In this event the board of supervisors shall proceed as follows:  The board shall adopt a resolution indicating the reasons for borrowing money, the amount needed, the purpose for which it is to be used, and the arrangements for the loan or the amount and type of bonds to be issued.

  2.  The resolution may submit at the election a proposal to borrow money or to issue general obligation bonds, but the board of supervisors shall not have authority to borrow money or to issue bonds unless the constitutionally required percentage of the voters in the district voting on the question vote in the affirmative.

  3.  General obligation bonds shall be issued within the limits imposed by Section 26, Article VI, of the Constitution.  Before, or at the time of, issuing general obligation bonds, the board of supervisors shall provide for the collection of an annual tax, levied on all taxable real property in the district, sufficient to pay the interest on the bonds as it falls due, and also to constitute a sinking fund for the payment of the principal within twenty years from the date of issuance, except that the net income and revenues arising from the operation of the sewer system after payment for costs of operation, maintenance, depreciation and necessary extensions and enlargements shall be transferred to the interest and sinking fund and applicable to the general obligation bonds issued under the provisions of sections 249.760 to 249.810.

  4.  All bonds issued under the provisions of this section shall be executed by the chairman of the board of supervisors, attested by the secretary of the board, and shall be of such denomination, contain such terms and be payable in such medium as the board of supervisors may determine.

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(L. 1961 p. 451 § 13, A.L. 1978 H.B. 971, A.L. 1990 H.B. 1621)