48-173. District powers under federal contracts

A. Any district which is a party to a contract or agreement with the federal government may enter into and comply with the terms and provisions thereof and shall do and perform all things on its part to be done or performed thereunder, including but not limited to limiting the amount of additional indebtedness which the district may incur and the levying and collecting of such taxes, assessments or other charges as may be necessary both to pay interest and principal on all indebtedness to be incurred by the district pursuant to the contract, and maintaining such reserves either for the future needs of the district or for further assurance of the payment of principal and interest on the indebtedness as may be required by the terms of the contract or agreement.

B. If the proceeds of all or any part of any bonds issued pursuant to the contract are to be used for the purpose of refunding, refinancing or paying any bonds previously issued by the district, and if any owner or owners of lands within its boundaries can show that his or their lands were only subject to payment of a special limited part of the principal and interest falling due on such pre-existing bonds, the maximum amount of taxes or assessments which may be levied against such lands on account of the principal of the portion of such new bonds to be issued for refunding, refinancing or payment of the pre-existing bonds shall not be larger in aggregate amount than the principal amount of the pre-existing bonds chargeable against such lands. This subsection shall not be deemed to limit the obligation of such lands or the owners thereof to pay additional taxes and assessments for the payment of interest on a like principal amount of the new bonds.

C. If, prior to the issuance of any bonds or the advance of any monies by the federal government pursuant to the provisions of such a contract, the governing body of the district adopts a resolution stating that it is in the best interests of the district that the amount of the taxes and assessments that may be assessed, levied or collected by it shall be limited in such manner and for such term or period as may be specified in the resolution, then, after the issuance of any bonds or the advance of any monies by the federal government pursuant to the provisions of such a contract, whichever occurs first, the power of the district to assess, levy or collect taxes and assessments shall be so limited during the term therein specified, and immediately upon the issuance of any such bonds or the advance of any such monies, the power of the district to assess, levy or collect taxes and assessments shall be reduced to the extent specified in the resolution for the period therein described.

D. By any such contract or agreement, the district may agree that the federal government, or any such public or private agency or corporation, may assume or liquidate, compromise, pay or discharge, all or any part of the indebtedness of the district. It may agree that the stock or other evidence of the ownership or interest of the district in any such private corporation or agency, as well as any other properties of the district, may be placed or held in trust irrevocably during the term of the contract or agreement or for such other period as may be prescribed in the contract. The contract or agreement may contain any other term or condition deemed necessary.

E. The district is authorized to do any and all acts and things considered necessary or advisable by the federal government and the district in connection with or additionally to secure any loans or grants of money or issuance or sale of bonds provided for in the contract or agreement.