(a) After issuing any bonds and before their sale, exchange, or hypothecation, the board shall petition the chancery or circuit court for an order approving the legality and regularity of all proceedings leading up to the issuance of the bonds. This order shall have the force of a judgment and shall be subject to appeal to the Supreme Court within thirty (30) days by the board or by any owner of real property against which assessments of benefits by the district have been confirmed.
(b) If the order of the court shall specify that the bonds shall be made payable from revenues from the sale or delivery of water, the order shall declare specifically the revenues or portion thereof that shall be pledged to secure the payment of the principal of and interest upon the bonds. The order of the court shall constitute a sufficient pledge to secure all payments of all bonds that may be issued in pursuance thereof, and all revenue so designated shall be applied first to the payment of the bond requirements. No tax shall be levied by or on behalf of the district against any real property within the district to pay any part of the principal or interest of such bonds.
(c) If the order of the court authorizing the issuance of bonds shall specify that they shall be made payable from the proceeds of assessments, then the order shall provide for the levying of a tax against the real property within the district in proportion to the assessment of benefits for the improvement, in the same manner and with the same effect as provided in § 14-117-413.
(d) If the order of the court authorizing the borrowing of money and the issuance of promissory notes shall specify that they shall be payable from the proceeds of assessments, then the order shall provide for the levying of a tax against the real property within the district in proportion to the assessment of benefits for the improvements, in the same manner and with the same effect as provided in § 14-117-413. The indebtedness arising from the issuance of the promissory notes shall be and remain a prior charge against the lands of the district, as provided in § 14-117-402.
Section: Previous 14-117-408 14-117-409 14-117-410 14-117-411 14-117-412 14-117-413 14-117-414 14-117-415 14-117-416 14-117-417 14-117-418 14-117-419 14-117-420 14-117-421 14-117-422 NextLast modified: November 15, 2016