A. In order to facilitate the preliminary work, the board may borrow money at a rate of interest not exceeding eight (8%) percent per annum, and as evidence of the debt so contracted, may issue and sell or may issue to contractors or others, negotiable evidences of debt (herein called warrants), and may pledge the preliminary assessment for the repayment thereof. If any warrant so issued by the board is presented for payment and is not paid for want of funds in the treasury, that fact, with the date of presentation, shall be endorsed on the back of such warrant, which shall thereafter draw interest at the rate specified in the endorsement, not exceeding eight (8%) percent per annum, until such time as there is money on hand sufficient to pay the amount of said warrant with interest.
B. In case of a district organized under the provisions of Chapter 140 of the Laws of New Mexico, 1923, where money has been borrowed for the preliminary fund, such borrowed money shall be repaid from the construction fund or general fund when available and all assessments made under said Chapter 140 of the Laws of 1923 for the preliminary fund shall be refunded or cancelled; provided, however, that if said construction fund for any cause shall not be available upon the maturity of indebtedness incurred for the preliminary fund, the board of directors of said district shall fix such an ad valorem assessment upon the property within the district as will be sufficient to repay such indebtedness, as a level rate to be used for the purpose of repaying said borrowed money, and not to exceed two (2) mills for every dollar of assessed valuation in addition thereto, and the board of directors may anticipate the collection of such levy by the issuance of warrants for the repayment of money so borrowed; provided, however, that the total amounts permitted to be levied for such preliminary fund and for the repayment of any such indebtedness shall not exceed in the aggregate eight mills for every dollar of assessed valuation. Said assessment shall be levied by resolution of the board; shall be known as preliminary fund - refunding assessment; and said assessment shall be certified to the boards of county commissioners of the various counties in which the district or any portion thereof is located, and by them included in their next annual levy for state and county purposes. The manner of collection by the county treasurers, and the laws applicable to such collections and handling of the same, shall be as heretofore provided in Section 502 [73-16-2 NMSA 1978] hereof.
History: Laws 1927, ch. 45, § 503; C.S. 1929, § 30-503; 1941 Comp., § 77-2903; 1953 Comp., § 75-30-3.
ANNOTATIONSCompiler's notes. — Laws 1923, ch. 140, referred to in this section, was repealed by Laws 1927, ch. 45, § 910, 73-17-23 NMSA 1978.
Cross references. — For preliminary fund, see 73-16-2 NMSA 1978.
Am. Jur. 2d, A.L.R. and C.J.S. references. — 45 Am. Jur. 2d Irrigation § 66.
94 C.J.S. Waters § 321.