70-642.02. Contracts; interest of board member prohibited, when; effect.
No member of the board of directors shall be interested, directly or indirectly, in any contract to which the district, or any one for its benefit, is a party, and any such director who shall have such an interest shall be subject to removal from office therefor by the remaining members of the board, subject to review of such action by the district court of the county in which the district maintains its principal place of business. Such interest in any contract by a director shall void the obligation thereof on the part of the power district. Ownership of less than one percent of the outstanding stock of any one class of any corporation shall not constitute an interest, direct or indirect, within the meaning of this section. The receiving and holding of deposits, cashing of checks, and buying, selling, or holding bonds of indebtedness of a district by a financial institution, or any one or more of such activities, shall not be considered a contract within the meaning of this section.
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