48-2021. Issuance of bonds; subsequent bond
issues
A. If a majority of the votes cast at a bond election favors the bonded
indebtedness proposed, bonds of the district for the amount stated shall be issued and
sold.
B. The board of directors, subject to this article, shall prescribe by resolution
the form of the bonds and interest coupons attached thereto. The bonds shall be payable
serially over a period of not more than twenty years from the date thereof at a place
fixed by the board and designated in the bonds, together with the interest thereon from
the date of the bonds until paid, except that if the initial purchaser of the bonds is
the United States of America or any department, division or agency of the United States
of America, the bonds may mature over a period that does not exceed forty years and three
months. Interest shall be payable semiannually at the rate or rates set by the accepted
bid, which shall not exceed the maximum rate of interest set forth in the resolution
calling the election. The bonds may be refunded. The board of directors may provide for
their redemption before maturity on giving such notice as the board determines to be
reasonable and for the payment of a premium at redemption if the board determines the
premium to be reasonable or advisable.
C. The bonds may be issued in such denominations as the board of directors
determines, except that no bond shall be of a denomination less than five hundred nor
more than ten thousand dollars. Each bond shall be signed by the chairman of the board
of directors and countersigned by the auditor of the sanitary district, and the seal of
the district shall be affixed thereto. The interest coupons of the bonds, if any, shall
be numbered consecutively and shall be signed by the chairman of the board of directors
and the auditor of the district by their engraved or lithographed signatures. If any
officer whose signature or countersignature appears on a bond or interest coupon ceases
to be such officer, either before or after delivery of the bond to the purchaser, the
signature or countersignature shall be valid for all purposes as if the officer had
remained in office.
D. The validity of the bonds, after their issuance, shall not be questioned in any
court, except on the ground that a provision of this article authorizing their issuance
is unconstitutional or that proper notice of the bond election was not given.
E. When bonds have been issued by a sanitary district and the proceeds of the sale
thereof have been expended as authorized by this article, the board of directors may, by
resolution passed by a vote of not less than two-thirds of its members, determine that
additional bonds for carrying out the purposes of the district should be
issued. Thereupon the board of directors shall cause another survey and report to be
made. On approval thereof as provided by this article for an original report, the board
shall submit to the qualified electors of the district, in the manner prescribed by
section 48-2020, the question of issuing additional bonds. If a majority of the votes
cast thereon is in favor of issuing the additional bonds, they may be issued and sold and
the proceeds disposed of in the manner prescribed by subsections A, B, C and D of this
section and by section 48-2022.
F. The district may issue refunding bonds to refund all or any portion of an issue
of bonds issued pursuant to this section in the manner prescribed by title 35, chapter 3,
article 4.
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