309.230 - Sale of bonds: Notice and sale; bonds may be used in payment of construction costs; assessments in lieu of bonds.
309.230 Sale of bonds: Notice and sale; bonds may be used in payment of construction costs; assessments in lieu of bonds.
1. The board may sell bonds from time to time in such quantities as may be necessary and most advantageous to raise money for the construction of works and the acquisition of property and rights and to carry out the objects and purposes of this chapter.
2. Before making any sale the board shall by resolution declare its intention to sell a specific number and amount of bonds, and if the bonds can be sold at par with accrued interest, they may be disposed of without advertising. If the bonds cannot be sold at par with accrued interest, notice must be published for 3 weeks in a newspaper in the county in which the office of the district is situated, and in such other newspaper in or outside of the State as the board may deem expedient, that sealed proposals will be received at its office on or before a day and hour set in the notice for the purchase of the bonds.
3. At the time appointed, the board shall publicly open the proposals and sell the bonds to the highest responsible bidder or it may reject all bids. If no bids are received or no award is made, the board thereafter may readvertise the bonds or any part thereof for sale or sell the bonds or any part thereof at private sale, upon any terms not inconsistent with the other provisions of this chapter. In no event may the board sell any of the bonds for less than 90 percent of the par value thereof and accrued interest.
4. The board may use any bonds of the district which have been offered for sale at public sale and remain unsold in payment for the construction of canals, storage reservoirs, or other works of the district, without the necessity of calling for bids for the construction, and may enter into contracts providing for the payment of the construction in bonds, which contracts may provide for the payment of a fixed contract price, or the cost of the construction plus a fixed percentage thereof, or the cost of the construction plus a fixed sum, in the discretion of the board, but 90 percent of their par value and interest accrued thereon is the minimum price at which the bonds may be used in payment for the construction.
5. If for any reason the bonds of a district cannot be sold, or, if at any time it shall be deemed in the best interests of the district to withdraw from sale all or any portion of an authorized bond issue, the board of directors may cancel the bonds and levy an assessment in the amount of the bonds cancelled. The revenue derived from the assessments must be employed for the same purpose as was contemplated by the bond authorization, but no levy may be made to pay for work or material, payment for which was contemplated by bonds which have been authorized, until bonds to the amount of the assessments have been cancelled. Assessments made in lieu of bonds cancelled must be collected in the same manner and have the same effect as other assessments levied pursuant to the provisions of this chapter, except that such an assessment must not during any 1 year exceed 10 percent of the total bond issue authorized by the district, unless a greater assessment is authorized by a majority vote of the qualified electors of the district voting at a special election called for that purpose or district election or primary state election.
[21:24:1928; NCL § 3475]—(NRS A 1959, 100; 1981, 493, 959; 1993, 1057)