85-1-308. Provisions for conveyance in trust or mortgage.
85-1-308. Provisions for conveyance in trust or mortgage. In the discretion of the department, any trust indenture executed by it as security for a series of bonds may contain provisions for conveying in trust or mortgaging the works, the project, or any part of the works or project, including all water rights that are a part of the works or project, constructed with the proceeds of the bonds or with the proceeds as supplemented by the proceeds of a grant to aid in financing the construction from the United States or any instrumentality or agency of the United States. The trust indenture may be in a form and with rights, remedies, and provisions as is customary in trust indentures, deeds of trust, and mortgages securing bonds or debentures of corporations. Any purchaser at any sale of any works or project pursuant to a judgment or decree in an action to foreclose a trust indenture conveying in trust or mortgaging any works or project shall obtain title to the works or project free from any trust or other obligation of the department, the state of Montana, or the public as to its operation, maintenance, use, or disposition except the obligation to use all water impounded in the works or project for sale, rental, distribution, or other beneficial use.
History: En. Sec. 4, Ch. 95, L. 1935; re-en. Sec. 349.9, R.C.M. 1935; R.C.M. 1947, 89-112; amd. Sec. 428, Ch. 418, L. 1995.