Section 73-12-15 - Determining cost; bond election; notice; conduct; bond terms and conditions; subsequent issues.
73-12-15. Determining cost; bond election; notice; conduct; bond terms and conditions; subsequent issues.
For the purpose of constructing or purchasing or acquiring the necessary fuel transmission lines, pipelines, power plants, electrical motors, engines, reservoir sites, reservoirs, water rights, water wells, canals, ditches and works, including the necessary drainage works and the acquiring of the necessary property and rights therefor, and for the purpose of paying the first year's interest on the bonds herein authorized and for the purpose of paying legal expenses incurred in the organization of the district and preliminary expenses incurred under the provisions of Section 73-12-12 NMSA 1978 and otherwise carrying out the provisions of this act [73-12-1 to 73-12-57 NMSA 1978], the board of directors of any such district shall, as soon after the district has been organized as may be practicable, estimate and determine the amount of money necessary to be raised for such purposes and shall, by resolution to be entered in the minutes of the board of directors of the district, fix the amounts and series of the bonds of the district proposed to be issued. Provided, however, that none of the bonds shall run for a longer period than twenty years from the date thereof. The board of directors shall forthwith call a special election, at which election shall be submitted to the electors of the district possessing the qualifications prescribed by this act the question if whether or not the bonds of the district shall be issued in the amount so determined. Notice of the election shall be given by publication in some newspaper published in the county where the office of the board of directors of the district is required to be kept, once a week for at least three successive weeks immediately preceding the date of the election. The notice shall specify the time of holding the election, the amount of bonds proposed to be issued and the series and due dates thereof. The election shall be held and the results thereof determined and declared in all respects as nearly as possible in conformity with the provisions of this act governing the election of directors. Provided that no informalities in conducting the election shall invalidate it if the election has been otherwise fairly conducted. At such election, the ballots shall contain the words "Bonds, Yes" or "Bonds, No" or words equivalent thereto. If a majority of the votes of the qualified electors who are freeholders within the district have been voted "Bonds, Yes," the board of directors shall immediately cause bonds to be issued in amounts and payable in series, as provided in the resolution of the board of directors. Each bond shall bear interest payable semiannually on June 1 and December 1 of each year. The principal and interest shall be payable at the office of the county treasurer of the county in which the organization of the district was effected as aforesaid and at such other place or places, if any, as the board of directors may designate in the bonds. The bonds shall be in such form as the board of directors may determine and, except for bonds issued in book entry or similar form without the delivery of physical securities, shall be executed in the name of the district and signed by the president and secretary, and the seal of the district shall be affixed thereto. The bonds shall be numbered consecutively as issued and bear date at the time of their issue. Any coupons for interest shall be attached to each bond bearing the facsimile signature of the president and the secretary. The bonds shall express on their face that they are issued by authority of this act, stating its title and date of approval. The secretary shall keep a record of the bonds sold, their number, date of sale, the price received and the name of the purchaser. Provided that when the money provided by any previous issue of bonds has become exhausted by expenditures herein authorized therefor and it becomes necessary to raise additional money for such purposes, additional bonds may be issued after submitting the question of issuing the bonds at a special election to the qualified voters of the district and otherwise complying with the provisions of this act in respect to an original issue of bonds. Provided further that the lien for taxes for the payment of the interest and the principal of any bond issue shall be a prior lien to that of any subsequent bond issue.