43-2302. ISSUANCE OF BONDS — TERMS AND CONDITIONS. The board of directors is authorized to issue the bonds of the district in the manner for which provision is made in this chapter, which bonds shall be fully negotiable for all purposes of the uniform commercial code of the state of Idaho as the same may be in force from time to time.

Bonds issued hereunder shall be authorized by resolution or resolutions of the board. They shall be in coupon form but may be made registrable as to principal only or as to both principal and interest. Such bonds shall be in denominations of one hundred dollars ($100) or a multiple thereof, shall bear interest at such rate or rates, payable annually or semiannually as the board shall elect, shall mature serially or otherwise at any time or times, shall be payable at such place or places within or without the state, may be made redeemable prior to maturity in such manner and at such premiums, shall be executed in such manner, and shall be sold in such manner and at such price or prices as may be determined by the board.

Bonds may be issued hereunder at one time or from time to time. If more than one issue or series of bonds is delivered hereunder the bonds or the respective issues or series shall have such priorities of payment as may be provided in the proceedings authorizing the bonds.

Any resolution or indenture providing for the issuance of bonds hereunder shall provide for the creation of a sinking fund into which shall be paid from the revenues pledged to such payment sums fully sufficient to pay the principal of and interest on the bonds and to create such reserves as may be required therein. Any resolution or indenture may contain such covenants with the future holders of the bonds as to the disposition of such revenues, the issuance of future bonds and the creation of future liens and encumbrances against the revenues and other pertinent matters deemed necessary or proper by the board to assure the merchantability of the bonds, provided such covenants and agreements are not inconsistent with the provisions of this chapter.

It may be provided in any such resolution or indenture that any holder of the bonds or of any of the coupons thereto attached may by appropriate legal action compel performance of all duties required of the board and the officials of the district by the provisions of title 43, Idaho Code, and the provisions of the resolution or indenture. If any bond issued hereunder is permitted to go into default, as to principal or interest, any court of competent jurisdiction may, pursuant to the application of the holder of any bond, or if applicable the trustee pursuant to a trust indenture, appoint a receiver to collect and distribute the revenues pledged to the repayment of the bonds pursuant to the provisions and requirements of the resolution or indenture and of this act and as the court may direct.

The board of any district which shall have issued any bonds under the provisions of this chapter may authorize the issuance of bonds hereunder for the purpose of refunding all or any part of such outstanding bonds. Refunding bonds may be either sold and the proceeds thereof applied to or deposited in an escrow for the retirement of the outstanding bonds or may be delivered in exchange for the outstanding bonds. The refunding bonds shall be authorized and secured in the manner herein provided for the issuance and securing of other bonds and may but shall not be required to have the same source of security and payment as the bonds refunded.

History:

[43-2302, added 1978, ch. 367, sec. 1, p. 961.]