As soon as practicable after the organization of such improvement district, the board of directors shall, by resolution entered on its record, formulate a general plan of proposed operation for the district, in which shall be stated what constructed works or other property is proposed to be purchased and the cost of purchasing the same, and what amount of construction is proposed to be done and the cost of doing the same. For the purpose of ascertaining the cost of any such construction work, the board shall cause such preliminary surveys, examinations, plans and specifications to be made as shall furnish a proper basis for the estimation of the cost of such work. Such estimate of cost shall include the cost of advertising, appraising, engineering, election, and such other expense as is necessary or essential to the completion of the improvements. All such surveys, examinations, maps, plans and estimates shall be made under the direction of a registered professional engineer licensed under the laws of the State of Oklahoma and certified by him and filed with the secretary of the district. Upon the filing of such plans and specifications the board of directors shall proceed to determine the amount of money necessary to be raised and shall immediately thereupon call a special election, at which shall be submitted to the electors of such district the question of whether or not the bonds of said district shall be issued in the amount so determined; provided, such bonds shall not be issued for more than the actual estimated cost of such improvements and construction work as certified by such engineer. Notice of such election must be given by posting notice in three public places in each election precinct in said district, as established by said board, for at least ten (10) days, and also by publication of such notice in some newspaper published in the county once a week for at least two (2) consecutive weeks. Such notice must specify the time of holding the election, the amount of bonds proposed to be issued, and state generally the purpose of the same and the election must be held and the result thereof determined and declared in all respects as nearly as practicable in conformity with the statutory provision governing the holding of elections in cities for the issuance of general obligation bonds; provided, no informalities in conducting such election shall invalidate the same if the elections shall have been otherwise fairly conducted. At such an election the ballots shall contain the words, "Bonds ______ Yes", or "Bonds _____ No", or words equivalent thereto. If a majority of the ballots cast are "Bonds ______ Yes", the board of directors shall pass a resolution providing for the issuance of said bonds. Such bonds shall be payable in lawful money of the United States and shall run for a period of from ten (10) to twenty (20) years as determined by the board of directors. The principal and interest shall be payable at the office of the clerk of the board of directors or at any bank or fiscal agency designated by the board of directors. Such bonds shall be each of the denomination of not less than One Hundred Dollars ($100.00) nor more than One Thousand Dollars ($1,000.00), shall be negotiable in form, executed in the name of the district and signed by the director and the clerk and the seal of the district shall be affixed thereto. Facsimile signatures and seals may be used as provided in the Registered Public Obligations Act of Oklahoma.

In the event the election hereinabove provided for is in favor of the issue of said bonds then the board of directors of said district shall cause final estimates, plans, profiles and specifications to be made for the work included in the preliminary plans and specifications by a registered professional engineer licensed under the laws of the State of Oklahoma in which shall be included the cost of advertising, appraising, engineering and such other expenses as is necessary or essential to the completion of said improvement and shall by resolution adopt the same.

The bonds shall express on their face that they were issued by the authority of Sections 871 et seq. of this title, stating its title and date of approval. The clerk or appointed agent shall keep a record of the bonds. The bonds shall bear interest at a rate of not exceeding six percent (6%) per annum.

Should the election herein provided for result in a failure to authorize the issuance of such bonds, the sewer improvement district shall be automatically dissolved, after the expiration of sixty (60) days from the date of such election; provided, that should the board of directors call a second bond election, within said sixty (60) days period, then the life of said sewer improvement district shall be extended subject to the results of said second election. Should the second election result in a failure to authorize the issuance of said bonds then said district shall be deemed to be automatically dissolved. The county election board shall file a report of all bond elections hereunder with the clerk of said board of directors and with the county clerk of said county.

Added by Laws 1947, p. 223, § 14, emerg. eff. May 16, 1947. Amended by Laws 1949, p. 183, § 6, emerg. eff. May 12, 1949; Laws 1983, c. 170, § 32, eff. July 1, 1983.