48-2065

48-2065. List of unpaid assessments; issuance
of bonds; denominations; due date

A. After the prescribed time from the date of the warrant has expired and after the
sanitary district has recorded the return, the board shall make and certify a complete
list of all unpaid assessments that amount to twenty-five dollars or more on any
assessment.

B. If any person, before certification of the list, presents to the board an
affidavit that he is the owner of a lot on the list, accompanied by the certificate of a
searcher of record that the person is the owner of record, and notifies the board, in
writing, that he desires no bond to be issued for the assessment on the lot, the
assessment shall not be included in the list and shall remain collectible as provided in
this article. The failure to file the notice bars any defense against the bonds, except
for the defense that the board did not have authority to issue the bonds.

C. The clerk shall present the list to the district at its next meeting after the
return has been recorded. At any time after awarding a contract for construction or
acquisition, the district by resolution, may direct improvement bonds to be issued in an
amount, which shall not exceed the amount of unpaid assessments exceeding twenty-five
dollars as may be shown on the certified list. The resolution shall prescribe the
maximum number and denomination of the bonds, and the times when payable, which shall be
so fixed that an approximately equal amount of principal shall be paid each year or any
approximately equal aggregate amount of principal and interest shall be paid each year
until the whole amount is paid. The bonds shall mature in a period that does not exceed
twenty-five years and three months from the date of the bonds, 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. The denominations of the bonds shall be fixed by the
district. The district may provide in the form of the bond for redemption before
maturity by giving such notice as the district determines to be reasonable and by the
payment of a premium at redemption if the district determines a premium is
advisable. The resolution shall also fix the place, if any, other than the office of the
treasurer, at which the bonds and the interest are payable.

D. The bonds shall be issued as of the date determined by the district and shall
bear interest from such date at the rate not to exceed that specified in the resolution
of intention. They shall have semiannual interest payments, the first of which is
payable on January 1 or July 1, as the case may be, occurring no earlier than ninety days
after the later of the date of the bond or the expected completion of the work, and shall
be for the interest accrued at that time.

E. The due date of all bonds is January 1 or July 1, as stated on the face of the
bonds, in the years in which they respectively become due.

F. The district may sell the bonds at public sale, or if the district has a
population of more than two thousand persons and has been in existence for ten or more
years at public or private sale, at a price at or above par and accrued interest to the
date of payment, and at an interest rate not exceeding the maximum rate set in the
resolution of intention. If the bonds are not sold by the district they shall be
delivered to the contractor for the amount of the assessments remaining unpaid, and the
bonds shall bear interest at the maximum interest rate set forth in the resolution of
intention.

G. If the bonds are sold before the work or acquisition is completed, the proceeds
from the sale of the bonds shall be placed in a special fund to be held by the treasurer
and to be used to pay incidental expenses and payments for construction or
acquisition. Proceeds from the sale of the bonds shall be used for the acquisition
mentioned in the resolution of intention or to make semimonthly or monthly payments to
the contractor on a basis of ninety per cent of the value of the work actually performed
as estimated by the district or engineer employed for such purposes to and including the
fifteenth or last day of each calendar month. The balance shall be paid after the
district has recorded a certificate of substantial completion of the work described in
the resolution of intention, in the same manner as the recording of the assessment. The
district shall record the certificate after the work has been completed to its
satisfaction. The district shall also cause a copy of the notice of completion to be
mailed to each property owner in the same manner as the notice of hearing on the
assessment. Pending use of the bond proceeds, the treasurer may invest the proceeds in
any investments for which sinking funds of this state may be invested or in the pooled
investment fund established under section 35-326. Notwithstanding the foregoing, if bond
anticipation notes have been issued, the bond proceeds, or so much as are necessary,
shall be used to redeem the notes.

H. Refunding bonds may be issued to refund all or any portion of an issue of bonds
issued and sold pursuant to this section in the manner prescribed by title 35, chapter 3,
article 4.