Section 36May 25, 1973, Sec./Art. 36

Revenue Bonds. - A district may borrow money to raise funds to pay all costs of any public improvements authorized by this Title and may issue revenue bonds to evidence the indebtedness created by such borrowing. Such revenue bonds shall constitute special obligations and evidence of special indebtedness of the district and shall be a charge upon, and payable, as to the principal thereof, any part thereof, solely from such revenues and funds as are specified therein in the proceedings for their issuance. Said bonds may be issued pursuant to the following procedures:

(a) Estimate of Expenses. If a revenue bond issue is contemplated, the board of the district shall adopt by resolution a plan describing the works to be acquired or constructed together with an estimate of all costs thereof, including payment of interest on any bonds of the district, which will become payable before the expiration of one year from completion or acquisition of such works, for which the general funds of the district then in the treasury are inadequate.

(b) Issuance in the District Name: Limitation of Obligations. Revenue bonds shall be issued in the name of the district and shall be obligations of the district; limited, however, to the payment or redemption of the revenue bonds and the payment of interest thereon from the revenue of the district.

(c) Call, Price and Redemption. The Board, by resolution authorizing the issuance of revenue bonds, shall fix the method of giving notice of redemption. Such bonds shall be issued subject to call and redemption prior to maturity and a statement to that effect shall appear on the face of the face of the revenue bonds. No such bond shall be subject to call or redemption prior to its fixed maturity date unless it contains such recital.

(d) Form of Bonds. The face of revenue bonds shall contain a statement that: (1) the payment or redemption of the bond and payment of interest therein is secured solely by a first and direct charge and lien upon all of the revenues received from the sale of water, (2) neither the payment of all or any part of the principal or interest thereon is a general debt, liability or obligation of the district, and (3) the bond is subject to call and redemption prior to maturity, if the board so provides. Each issue of revenue bonds shall be numbered consecutively from lower to higher as they mature and shall bear such date as may be prescribed by the board. The date appearing upon the face of a revenue bond shall be deemed the date of issuance irrespective of subsequent delivery of the bond.

Each bond shall be signed by the chairman and attested by the secretary: Provided, That interest coupons appertaining thereto may be signed by the secretary only. The seal of the district shall be affixed to each revenue bond.

(e) Payment of Maturity. Revenue bonds shall be paid in cash and in full at such time and place as may be designated by the board and shown on the face of each bond, but in no case shall the maturity of any bond be more than 40 years from its date.

(f) Default. In the event of default by the district in the payment of principal or interest on its outstanding revenue bonds, any bondholder shall have the power to bring an action in any court of competent jurisdiction to compel the payment of said amount, and in connection therewith, to require the appointment of a receiver of the property and operations of the district and to assume full jurisdiction over its affairs including the power to increase rates, if necessary, until such time as the default is cured.

Chapter IX

Revenues