To carry out the purposes of this part 12, the board, with the approval of the municipality if the board is appointed pursuant to section 3125-1209 (1)(b) or (1)(c), is hereby authorized to issue bonds of the district. Such bonds shall bear interest at a rate such that the net effective interest rate of the issue of bonds does not exceed the maximum net effective interest rate authorized, payable at such times as determined by the board, and shall be due and payable in installments at such times as determined by the board extending not more than twenty years from the date of issuance. The form and terms of said bonds, including provisions for their sale, payment, and redemption, shall be determined by the board. If such bonds are payable from the general ad valorem taxes of the district, such bonds shall not be issued unless first approved at an election held pursuant to section 31-25-1222. Bonds payable solely from revenues derived from sources other than the district's general ad valorem tax may be issued without an election. If the board so determines, such bonds may be redeemable prior to maturity, with or without payment of a premium, but no premium shall exceed three percent of the principal thereof. The bonds shall be executed in the name of and on behalf of the district and signed by the presiding officer of the board with the seal of the district affixed thereto and attested by the secretary of the board. Such bonds shall be in such denominations as the board shall determine. Interest coupons, if any, shall bear the original or facsimile signature of the presiding officer of the board. Under no circumstances shall any of said bonds be held to be an indebtedness, an obligation, or a liability of the municipality in which the district is located, and bonds issued pursuant to the provisions of this part 12 shall contain a statement to that effect.
Source: L. 88: Entire part added, p. 1140, § 1, effective May 6.