48-1771. Expenses of organizing district;
issuance of time warrants
A. All preliminary expenses incurred in the organization of the district, including
necessary engineering and legal services, and all necessary and reasonable services
rendered before the district is authorized to contract for such services, materials or
valuable things, are lawful obligations of the district, and after the board of directors
has qualified shall be paid in such amounts as the board allows.
B. As soon as the board of directors has qualified, it may issue warrants to pay
district obligations and deliver them to persons having claims against the district. The
board may issue time warrants and sell them for the purpose of obtaining funds to conduct
the business of the district. The amount of time warrants issued to provide for
administration expenses shall be made payable at such time as it appears reasonably
probable they can be redeemed by funds derived from the levy of taxes against the
property of the district.
C. The amount of warrants issued to provide for the general indebtedness of the
district, and for expenses incurred in the organization of the district, shall be made
due and payable at such time as it is reasonably probable that funds to redeem them will
be realized from proceeds of the first sale of bonds.
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