48‑361948-3619.  [Form, issuance and sale of bonds; limitation on bonded
indebtedness; payment of bonds and interest]{.underline}

A.  The bonds authorized pursuant to section 48‑3618 shall be issued for
the general purpose or purposes provided in the voted proposition, which
may be the acquisition by purchase, construction or otherwise of any
facilities designed to further the objects or purposes of the district
or for improving and extending any such facilities, or any combination
of such purposes, and may include the payment of all legal, engineering
and fiscal expenses reasonably incurred in connection with the
authorized purposes of the bonds and with the authorization and issuance
of the bonds as well as expenses incurred in connection with the
original organization of the district.  The bonds shall be fully
negotiable for all purposes and shall never be issued in an amount
which:

1.  Together with all other existing bonded indebtedness of the district
then outstanding, exceeds in total principal amount five per cent of the
assessed valuation of taxable property in the district as computed from
the last assessment roll for county purposes completed before issuing
the bonds.

2.  Together with all other existing bonded indebtedness of a zone then
outstanding for which the property of a zone is subject to tax under
this article, exceeds in total principal amount five per cent of the
assessed valuation of taxable real property in the zone as computed from
the last assessment roll for county purposes completed before issuing
the bonds.

B.  The limitation on bonded indebtedness does not apply in those
districts or zones which embrace portions of two or more irrigation
districts which have water delivery contracts with the United States
pursuant to federal reclamation laws.

C.  The bonds are the general obligations of the district, zone or
zones  and the full faith, credit and resources of the district, zone or
zones shall be pledged for their payment.  The board shall certify to
the board of supervisors to levy annually on all taxable real property
in the district, zone or zones secondary property taxes fully sufficient
without limitations as to rate or amount to pay principal of and
interest on such bonds as principal and interest fall due.

D.  The bonds shall mature at such time or times not more than forty
years from their date, shall bear interest at such rate or rates set by
the accepted bid which shall not exceed the maximum rate of interest
stated in the resolution calling the election, shall be payable at such
place or places within or without this state and generally shall be
issued in such manner and with such details as may be provided in the
resolution.  The bonds may be made callable on any interest payment date
at a premium not to exceed three per cent of their face amount.  If the
district has any source of revenues other than from the proceeds of
taxes, all or such part of the revenues as the board of directors may
deem advisable may, in the discretion of the board, be pledged to the
payment of the bonds.

E.  The board may provide in the resolution authorizing bonds that the
bonds shall recite that they are issued under authority of this
article.  Such recital conclusively imports full compliance with this
article and all bonds issued containing the recital are incontestable
for any cause whatsoever after their delivery for value.

F.  The board may provide for the publication of any resolution or other
proceeding adopted by the board in a newspaper of general circulation in
the area of jurisdiction.  For a period of thirty days after the date of
publication any person in interest may contest the legality of the
resolution or proceedings of any bonds which may be authorized, or the
provisions made for the security and payment of the bonds, and after
such time no person has any cause of action to contest the regularity,
formality, legality or source of payment for any cause whatsoever.

G.  Subject to this section, the board shall declare by resolution its
intention to sell such bonds and shall fix the date, hour and place of
sale and shall give notice of the sale of the bonds by publication for
at least ten days in a newspaper of general circulation in the area of
jurisdiction and in any other newspaper as the board directs.  The
notice shall state that sealed bids only will be received by the board
for the purchase of the bonds, and the bonds will be awarded to the
highest responsible bidder at a price of not less than par and accrued
interest, and that a good faith check equal to two per cent of the
principal amount of bonds to be sold must accompany all sealed
bids.  The board may reject any and all bids.  The bonds may be in
denominations or multiples of one thousand dollars and shall be signed
by such officers of the board as are designated by resolution adopted by
the board.  Any bonds bearing the signature of officers in office at the
date of signing are valid and binding for all purposes, notwithstanding
that before their delivery any such person whose signature appears on
the bonds may no longer be an officer.

H.  Bonds may be issued by the district after the issuance of all of the
first bonds but must be issued pursuant to the making of a supplemental
engineer\'s program and a hearing as prescribed in this section.

I.  Bonds issued under authority of this article do not enjoy a priority
over other bonds issued under this article by reason of time of
authorization or issuance.  Bonds issued under this article are not
taxable by this state or by any county, city, town or other political
subdivision of this state.

J.  All bonds issued under this article are legal investments for all
trust funds, including those under jurisdiction of this state, and for
the funds of all insurance companies, banks and trust companies, for the
investment of state monies and for all sinking funds under the control
of this state and political subdivisions of this state. 48‑3619