TITLE 43

IRRIGATION DISTRICTS

CHAPTER 4

BONDS — ISSUANCE, CONFIRMATION, AND SALE

43-414.  Interim notes. In addition to the permanent financing contemplated in this chapter, the board of any district may borrow money and issue interim notes in evidence thereof whenever it is deemed advisable and in the interests of the district to borrow funds temporarily for any of the purposes herein provided in advance of permanent financing. No election shall be required on the issuance of interim notes. The board may, from time to time and pursuant to appropriate resolution, borrow money and issue interim notes to evidence borrowing for the purpose of obtaining funds for any of the purposes authorized in this chapter. Any resolution authorizing the issuance of interim notes shall describe generally the purpose for which such notes are to be issued and shall specify the principal amount, rate of interest and maturity date, which shall be the same for all interim notes and which shall be not to exceed five (5) years from the date of issue of such notes, and such other pertinent terms as may be specified in such resolution. The interim notes shall be issued from time to time by the board as funds are borrowed in the manner the board may determine. Interest on the interim notes may be made payable semiannually, annually or at maturity. The interim notes may be made redeemable prior to maturity at the option of the board in the manner and upon the terms fixed by the resolution authorizing their issuance. Such interim notes shall be sold at such price or prices as may be determined by resolution of the board. All such interim notes and the interest thereon may be secured by a pledge of the proceeds of assessments to be levied and collected by the board pursuant to the provisions of section 43-404, Idaho Code, representing the amount of benefits which will accrue to each tract or legal subdivision of land in the district based upon the allocation of the cost of the project for which permanent financing has been authorized to each such tract or legal subdivision of land, but only when there shall have been held, in said district, an election on the right of the district to issue bonds for said project, which bonds shall have been approved at said election, and which election shall have been called, held and conducted in the manner now or hereafter provided in this chapter. Said interim notes and the interest thereon shall be payable solely from such assessments and from the proceeds to be derived from the sale of any bonds for permanent financing authorized to be issued pursuant to this chapter, provided, however, that none of the provisions of this title requiring the filing of a petition for confirmation of proceedings taken in connection with a bond issue of any district shall apply to interim notes of said district. Contemporaneously, with the issuance of the bonds as provided by this chapter, all interim notes, even though they may not have then matured, shall be paid, both principal and interest and applicable premium, if any, to date of payment, from the funds derived from the sale of bonds authorized hereunder for the permanent financing, and such interim notes shall thereupon be surrendered and canceled.

History:

[43-414, added 1979, ch. 37, sec. 1, p. 57.]