48-2851

48-2851. List of unpaid assessments; issuance
of bonds; denominations; due date; certificate of
completion

A. After the prescribed time from the date of the warrant has expired and after the
flood protection district has recorded the return, the board shall make and certify a
complete list of all unpaid assessments.

B. If any person, before certification of the list, presents to the board an
affidavit that the person is the owner of a lot, acre or parcel 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 the owner desires no bond to be issued for the
assessment on the lot, acre or parcel, 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 that does not exceed the amount of unpaid assessments as may be shown on the
certified list of unpaid assessments. The resolution shall prescribe the maximum number
and denomination of the bonds and the times when payable, which shall be fixed so that an
approximately equal amount of principal is paid each year or any approximately equal
aggregate amount of principal and interest is paid each year until the whole amount is
paid. The bonds shall mature in a period that does not exceed forty years and three
months from the date of the bonds. 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. The board may issue fully registered bonds and may
issue bonds registered in the nominee name of a depository to provide for a book entry
system to administer registration and payment of principal, premium, if any, and interest
on the bonds.

D. The bonds shall be issued as of the date determined by the district and shall
bear interest from that date at the rate not to exceed that specified in the resolution
of intention. The bonds shall have semiannual interest payments, the first of which is
payable on January 1 or July 1, as the case may be, occurring at least 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 become due, respectively.

F. The district may sell the bonds at public or private sale at a price at, above
or below 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 deemed necessary by the
board of directors, a reserve fund may be established either with proceeds from the sale
of the bonds or by increasing the collections of the annual installments of principal up
to the first ten years the bonds are outstanding, over and above the amounts required to
pay maturing principal on the bonds. The monies in the reserve fund may be used only to
cure deficits in the principal and interest funds or to pay interest and principal on the
final maturity or maturities of the bonds.

G. 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. If the district received sealed proposals for construction
of the flood protection facility, the proceeds from the sale of the bonds shall be used
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 those 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 flood protection facility, in the same manner as the
recording of the assessment. The district shall record the certificate only after the
work has been completed to its satisfaction.

H. If contracting services are procured pursuant to title 34, chapter 6, article 1,
proceeds from the sale of the bonds shall be used to make monthly progress payments to
the contractor as provided in section 34-609, subsection B except that notwithstanding
any provision of title 34, the balance shall be paid after the work is substantially
complete and the district has recorded a certificate of substantial completion of the
flood protection facility in the same manner as the recording of the assessment.

I. The district shall mail a copy of the notice of completion 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 a pooled investment fund established under
section 35-326, except that if bond anticipation notes have been issued, the bond
proceeds or so much as is necessary shall be used to redeem the notes.

J. 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.