TITLE 43

IRRIGATION DISTRICTS

CHAPTER 21

DEBT READJUSTMENT PLANS FOR IRRIGATION DISTRICTS, DRAINAGE DISTRICTS, AND HIGHWAY DISTRICTS

43-2105.  Majority of creditors consenting — Nonconsenting creditors — Constructive consent proceedings. If the written consent of all creditors directly affected by the proposed plan is not obtained within the time specified in the plan for the approval thereof by the creditors, but if a majority in amount of each class of creditors has approved such plan, the board of directors shall then proceed without delay to obtain the constructive consent of all holders of bonds, coupons and warrants and of other creditors of the district that will be directly affected by such plan, but who have not theretofore filed their consent in writing as hereinbefore provided. For the purpose of obtaining such constructive consent the district shall commence a proceeding in rem in the district court of the county in which the office of the district is situated, by filing a petition in writing which shall be duly verified by the oath of the president or secretary of the district, and shall set forth, among other things:

(a)  The nature and amount of the indebtedness of the district and of each kind or class thereof.

(b)  A brief statement of the financial condition of the district. One (1) of the certified copies filed with the secretary of the district, of the report of the certified public accountant, showing the financial condition of the district, shall be filed with the clerk of the court as an exhibit to said petition for the information of the court and the creditors of the district.

(c)  A brief statement of the plan approved by the board for rehabilitating the financial condition of the district and for readjusting the indebtedness then outstanding. A full, true and correct copy of such plan, certified by the secretary of the district, shall be filed as an exhibit to said petition for the information of the court and the creditors of the district.

(d)  A statement showing approximately by what percentage, in amount, said plan has been approved in writing by the holders of the indebtedness of the district and of each class and kind of such indebtedness.

(e)  A statement of the steps that have been taken by the district to obtain the consent of all creditors of the district to the plan so approved and submitted by the board.

(f)  A prayer that all proceedings had and taken under this act by the district may be examined, approved and confirmed by the court, and that the district may be authorized to publish a notice under this act to all creditors of the district that have not approved in writing said plan of settlement, and for such other relief as the court may be authorized to grant under this act.

History:

[43-2105, added 1933, ch. 174, sec. 5, p. 316.]