Oregon Statutes - Chapter 545 - Irrigation Districts - Section 545.585 - Bonds; issuance; purposes; form; amortization; maturities; negotiability; numbering; interest; denomination; registration; amount maturing annually; retirement.

(1) When the assessments have become final, the board of directors may authorize the issuance of bonds for the construction or acquisition of irrigation works or to refund the indebtedness of the district, including warrant indebtedness, bond indebtedness and interest certificates of indebtedness issued to the state. The bonds may be issued either in serial form or in a form providing for the annual payment of interest and principal in a single amount represented by coupons. However, the amortization of both interest and principal on the refunding bonds must be accomplished within the 50-year period immediately following the date of issue. All refunding bonds issued under ORS 545.565 to 545.621 shall be negotiable in form. If in serial form the bonds issued shall be numbered consecutively, commencing with number 1. The bonds shall mature serially in annual amounts so as to be approximately equal, principal and interest, in not less than five years nor more than 50 years after date of issue, as the board of directors determines. If the board of directors considers it advisable to submit the question of maturities at the bond election, then the bond shall mature as the electors determine.

(2) The bonds shall bear interest at a rate determined by the board of directors, payable semiannually on the first day of January and July of each year. The principal and interest shall be payable at the places designated in the bonds and coupons which may be the office of the county treasurer of the principal county, as defined in ORS 198.705. Except as otherwise provided by ORS 545.565 to 545.621, each of the bonds shall be in a denomination of not less than $100 or more than $1,000; shall be signed by the president and secretary; shall have the seal of the board of directors affixed to the bond; and shall bear on the back the registration certificate of the county treasurer, who shall sign as county treasurer and as ex officio treasurer of the district. Coupons for interest shall be attached to each bond and shall be signed with the engraved facsimile signature of the secretary.

(3) The county treasurer and the secretary of the district shall register the bonds in books kept in their offices for that purpose, and shall note in the books the number, date of issuance and sale, amount of bond, time of payment, rate of interest, number of coupons attached, and any other description proper for future identification of each bond. This section shall not be construed to require that any bond of the district must bear a registration certificate by the secretary.

(4) The total sum of bonds maturing in any one year, together with the interest due, shall not exceed the total of the maximum annual assessment for the retirement of the bonds and the payment of interest. Upon payment of the principal, the board of directors may call for payment and retire before maturity any bond issued in accordance with ORS 545.565 to 545.621. [Formerly 545.260]

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Last modified: August 7, 2008