Proceedings to test validity of contracts and bonds; petition

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48-179. Proceedings to test validity of contracts and bonds; petition

A. After the execution of any contract or agreement contemplated by this article, the governing body of a district may file a petition in the superior court in the county in which the office of the district is located to determine the validity:

1. Of the bonds authorized by the contract or agreement.

2. Of all proceedings taken or had thereunder in connection with the issuance thereof of the levy of any taxes or assessments either for payment of principal and interest on the bonds or for any other purpose provided for or necessitated by the contract or agreement.

3. Of any provisions of the contract limiting or reducing indebtedness, taxes or other charges.

4. Of any and all other covenants of the district contained in the contract or agreement.

B. The action shall be in the nature of a proceeding in rem and jurisdiction of all parties interested shall be acquired by notice given as provided in section 48-180. The petition shall set forth:

1. The fact showing that the district is a district as defined as in this article.

2. The contract or agreement with the federal government.

3. That the contract or agreement has been approved by resolution of the state certification board and by a vote of the majority of the qualified voters of the district in the manner provided in this article.

4. All resolutions adopted by the governing body and copies of any bonds proposed to be issued by the district pursuant to the contract or agreement together with a full statement of all proceedings taken by the district in connection with the authentication and issuance thereof.

5. All proceedings of the district with reference to the levy of taxes and assessments pursuant to the contract or agreement.

6. All other resolutions adopted by the governing body of the district in connection with the contract or agreement.

C. The petition shall pray that the contract or agreement and all proceedings be examined by the court and that if they are found to be in substantial compliance with the provisions of this article they be ratified, confirmed and validated.


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