The commissioners [of the drainage district] may borrow an amount necessary to meet the preliminary expenses authorized by this article, and secure the amount by notes not running beyond one year from their date, and may further borrow money, not exceeding the amount of assessment for cost of construction, additional assessment and assessments for repairs, outstanding at the time of borrowing, for the construction or repair of any work which they are authorized to construct or repair or for the payment of any indebtedness they may have lawfully incurred and may secure the same by notes or bonds not running beyond one year after the last installment of the assessment, on the account of which the money is borrowed, shall fall due. The notes or bonds shall be in such form as the commissioners may determine, and which notes or bonds shall not be held to make the commissioners personally liable, but shall constitute a lien upon the assessments for the repayment of the principal and interest of the notes or bonds. The bonds shall not be subject to taxation by the state or any subdivision thereof. All sales are to be approved by the [district] court.
In case any money derived from bonds sold to pay for the original construction of improvements, now or hereafter, remains on hand after the work is completed in original construction, and paid for, and not required to pay damages, the residue may be used for maintenance and repair.
History: Laws 1912, ch. 84, § 64; Code 1915, § 1940; C.S. 1929, § 40-169; 1941 Comp., § 77-1937; 1953 Comp., § 75-20-37; Laws 1983, ch. 265, § 54.
ANNOTATIONSBracketed material. — The bracketed material was inserted by the compiler and is not part of the law.
The reference to "commissioners" throughout this section apparently refers to the commissioners of the drainage district. See 73-6-17 NMSA 1978. The reference to "court" in the last sentence of the first paragraph apparently refers to the district court. See 73-6-1 NMSA 1978.
Compiler's notes. — The 1915 Code compilers substituted "this article" for "this act." Both phrases presumably refer to the provisions of Laws 1912, ch. 84 (codified as Code 1915, ch. 31, art. 1), the operative sections of which are presently compiled as 73-6-1 to 73-6-17, 73-6-25 to 73-6-44, 73-7-1 to 73-7-24, 73-7-37, 73-7-38 and 73-7-40 to 73-7-56 NMSA 1978.
The 1983 amendment added the section heading, and, in the first paragraph, divided the former first sentence into the present first two sentences, deleted "as is" preceding "necessary" in the first sentence and "bearing interest at a rate not to exceed eight percent per annum, and" in two places in the first sentence, following "secure the amount by notes" and following "secure the same by notes or bonds," substituted "The notes or bonds shall be in such form as the commissioners may determine" for "which said notes or bonds shall not be sold at less than ninety percent of their face value, which said bonds shall be transferable by delivery to the same extent as negotiable papers" at the beginning of the second sentence and "The" for "No commission other than the discount hereinabove provided shall be allowed for the sale of such bonds and such" at the beginning of the third sentence and inserted "are" in the last sentence.
Interest coupons bearing interest after maturity. — Each negotiable interest coupon attached to drainage district bond constituted obligation independent from the bond and bore interest after maturity at rate determinable by law of state where contract was to be performed. Roswell Drainage Dist. v. Parker, 53 F.2d 793 (10th Cir. 1931).
Drainage district may be sued in ordinary action at law on bonds and interest coupons. Roswell Drainage Dist. v. Parker, 53 F.2d 793 (10th Cir. 1931).
Action on bonds and interest coupons was within federal court jurisdiction since there was requisite amount involved and requisite diversity of citizenship, notwithstanding pendency of drainage district proceedings. Roswell Drainage Dist. v. Parker, 53 F.2d 793 (10th Cir. 1931).
Am. Jur. 2d, A.L.R. and C.J.S. references. — 28 C.J.S. Drains § 15 et seq.; 94 C.J.S. Waters §§ 324, 345.