LOCAL IMPROVEMENT DISTRICT CODE — GUARANTEE FUND
50-1722. Bonds — Registered warrants — Interim warrants. If the council determines to make assessments payable in instalments as is provided in section 50-1715, Idaho Code, it shall be [by] ordinance issued in the name of the municipality improvement bonds of the improvement district payable from assessments levied against the property within the district. Such bonds shall be payable each year from and after the date of the bonds and shall be of such denomination and bear interest, payable annually, at such rate as is determined by the council, but in no event shall such rate of interest be greater than the rate of interest borne by the unpaid assessments.
The bonds shall be in such form and denomination as may be provided by the council and they shall mature serially over a period not exceeding thirty (30) years. The council may reserve the right to redeem any of the bonds at its option on any interest payment at such price or prices as determined by the council. The bonds shall be signed by the mayor of the city, the chairman of the board of county commissioners, the president of the highway district, or the chairman of the board of directors of a water and/or sewer district, as the case may be, and shall be countersigned by the treasurer and attested by the clerk of the municipality. No bond or coupon shall be invalid because an officer whose manual or facsimile signature thereon has ceased to hold office at the time of the delivery of the bonds so long as he held the office at the time such signature was placed on the bond or coupon. The coupons attached thereto shall bear the facsimile signatures of said officers and each bond shall have the seal of the municipality affixed thereto. Each bond shall provide that the principal thereof and the interest thereon are payable solely from the principal of an [and] interest on the unpaid assessments levied in the district to pay the total cost and expenses of the project concerned.
In lieu of bonds, registered warrants may be issued under the same circumstances and in the same manner as bonds, such warrants to be issued in payment of any or all costs or expenses of the improvements to the amount said costs or expenses were set out in the engineer’s report. The warrants shall be redeemable in numerical order and further shall be subject to all provisions of this code relating to local improvement bonds so far as the same may be applicable, including, but not limited to, the provisions of sections 50-1762 to 50-1769, Idaho Code.
If the council shall determine to issue and sell bonds, it may for the purpose of meeting any cost and expenses of making the improvements, as the same are installed prior to the sale of the bonds, issue interim warrants of the district payable to the contractor, other proper person, upon estimates of the engineer, bearing interest at a rate provided by the council, which interim warrants together with the interest due thereon at the date of the issue of the bonds, shall be redeemed and retired from the proceeds of the sale of the bonds or prepayment of assessments.
Bonds issued hereunder shall have all the requisites of negotiable paper under the Uniform Commercial Code, and shall not be invalid for irregularity or defect in the proceedings for their issuance, sale or delivery, and shall be incontestable in the hands of bona fide purchasers or holders for value thereof. Nothing herein contained shall prohibit any municipality from issuing bonds or warrants in the denomination of one hundred dollars ($100), or an even multiple thereof, except that bond number 1 of any issue may be of a denomination other than one hundred dollars ($100).
[50-1722, added 1976, ch. 160, sec. 2, p. 584.]