The board of supervisors may, if in their judgment it seems best, issue bonds not
to exceed 90 percent of the total amount of the taxes levied under the provisions
of section 262-63, in denominations of not less than $100.00, bearing interest from date at a rate
not to exceed six percent per annum, payable semiannually, to mature at annual intervals
within 30 years, commencing after a period of years not later than ten years, to be
determined by the board of supervisors, both principal and interest payable at some
convenient banking house or trust company's office to be named in said bonds, which
said bonds shall be signed by the president of the board of supervisors attested with
the seal of said district and by the signature of the secretary of the said board.
All of said bonds shall be executed and delivered to the treasurer of said district,
who shall sell the same in such quantities and at such dates as the board of supervisors
may deem necessary to meet the payments for the works and improvements in the district.
Said bonds shall not be sold for less than $0.95 on the dollar, with accrued interest,
shall show on their face the purpose for which they are issued, and shall be payable
out of money derived from the aforesaid taxes. A sufficient amount of the drainage
tax shall be appropriated by the board of supervisors for the purpose of paying the
principal and interest of the said bonds and the same shall, when collected, be preserved
in a separate fund for that purpose and no other. All bonds and coupons not paid at
maturity shall bear interest at the rate of six percent per annum from maturity until
paid, or until sufficient funds have been deposited at the place of payment, and the
said interest shall be appropriated by the board of supervisors out of the penalties
and interest collected on delinquent taxes or any other available funds of the district.
Any expense incurred in paying said bonds and interest thereon and a reasonable compensation
to the bank or trust company for paying same, shall be paid out of other funds in
the hands of the treasurer and collected for the purpose of meeting the expenses of
administration. It shall be the duty of said board of supervisors in making the annual
tax levy, as heretofore provided, to take into account the maturing bonds and interest
on all bonds, and to make provision in advance for the payment thereof. In case the
proceeds of the original tax levy made under the provisions of section 262-63 are not sufficient to pay the principal and interest on all bonds issued, then the
board of supervisors shall make such additional levy or levies upon benefits assessed
as are necessary for this purpose, and under no circumstances shall any tax levy be
made that will in any manner or to any extent impair the security of said bonds or
the fund available for the payment of the principal and interest of the same. Said
treasurer shall, at the time of the receipt by him of said bonds, execute and deliver
to the president of the board of the said district, a bond with good and sufficient
sureties to be approved by the said board of supervisors, conditioned that he shall
account for and pay over as required by law and as ordered to do by said board of
supervisors any and all money received by him on the sale of such bonds, or any of
them, and that he will only sell and deliver such bonds to the purchaser or purchasers
thereof under and according to the terms herein prescribed, and that he will return
to the board of supervisors when ordered so to do, duly cancelled any and all bonds
not sold, which said bonds shall remain in the custody of the president of said board
of supervisors, who shall produce the same for inspection or for the use as evidence
whenever and wherever legally requested so to do. The said treasurer shall promptly
report all sales of bonds to the board of supervisors, which board shall at reasonable
times thereafter, prepare and issue warrants in substantially the form provided in section 262-71 for the payment of the maturing bonds so sold and the interest payments coming due
on all bonds sold. Each of said warrants shall specify what bonds and accruing interest
it is to pay, and the said treasurer shall place sufficient funds at the place of
payment to pay the maturing bonds and coupons when due as well as a reasonable compensation
to the bank or trust company for paying same. The successor in office of any such
treasurer shall not be entitled to said bonds or the proceeds thereof until he shall
have complied with all the foregoing provisions applicable to his predecessor in office.
The aforesaid bond of said treasurer, may, if the said board shall so direct, be furnished
by a surety or bonding company, which may be approved by said board of supervisors;
provided, if it should be deemed more expedient to the board of supervisors, as to
money derived from the sale of bonds issued, said board may by resolution, select
some suitable bank or banks or other depository, as temporary treasurer or treasurers,
to hold and disburse said moneys on the orders of the board as the work progresses,
until such fund is exhausted or transferred to the treasurer by order of the said
board of supervisors. The funds derived from the sale of said bonds or any of them
shall be used for the purpose of paying the cost of the drainage works, road construction
and other improvements and such costs, expenses, fees and salaries as may be authorized
by law and used for no other purpose.
