Section 73-8-23 - Elections on bond issues and federal contracts; conduct; terms of bonds.
73-8-23. [Elections on bond issues and federal contracts; conduct; terms of bonds.]
For the purpose of constructing or purchasing or otherwise acquiring necessary rights-of-way, franchises, canals, ditches and other water conduits, or other property necessary for the use of the district, or for the maintenance, repair or improvement of its canals, ditches or other conduits or drainage works, or for the enlargement or extension thereof, or for the assumption of indebtedness to the United States for drainage district lands, or for the purpose of paying the first year's interest, if any, upon bonds, if any shall be issued, for and under the purposes of this act [73-8-1 to 73-8-60 NMSA 1978] as herein authorized, and otherwise carrying out the provisions of this act, the board of directors of any such district shall, as soon after such district has been organized as may be practicable, estimate and determine the amount of money necessary to be raised, or amount of indebtedness necessary to be assumed for such purposes, and shall forthwith call a special election, under and in accordance with the provisions of this act, at which election there shall be submitted in the manner by this act prescribed, the question of whether or not bonds of the district shall be issued in the amount determined upon to be necessary, if any, for deposit with the United States, in connection with contract to be entered into with the United States, or whether or not contract shall be entered into with the United States, with or without the deposit of bonds as aforesaid, as herein provided or any other of the questions for the purposes aforesaid. Notice of such election shall be given as hereinbefore specified, and shall clearly set forth the question or questions to be voted upon, the amount of bonds, if any, proposed to be issued for the purpose aforesaid, or the amount of indebtedness proposed to be assumed for the purposes aforesaid and the substance of any contract proposed to be entered into with the United States as aforesaid. Such election and all similar elections which may be held under the provisions of this act, shall be held and the result thereof determined and declared as nearly as possible in conformity with the provisions of this act. No informalities in conducting such election shall invalidate same, if the election shall have been fairly conducted.
At the first election provided for in this section the ballots shall contain the words "Bonds - Yes" and "Bonds - No," or "Contract - Yes" and "Contract - No," or appropriate words equivalent thereto, or descriptive of the question to be voted upon. The same rule shall be followed at any other elections which may be held under the provisions of this act [73-8-1 to 73-8-60 NMSA 1978] at which similar questions are submitted to a vote.
If any such election shall carry in conformity with the provisions of this act in favor of the issuance of bonds for the purposes of this act or for the assumption of the indebtedness to the United States for drainage district lands, or in favor of contract being entered into with the United States as herein provided, the directors shall immediately cause to be issued bonds as authorized by such election, or contract to be entered into with the United States as aforesaid. If bonds are not to be deposited with the United States in connection with such contract, bonds need not be issued.
Bonds, the issuance of which is authorized by the provisions of this act for deposit with the United States may be of such denominations, may call for the repayment of the principal at such times as may be agreed upon between the board and the secretary of the interior, and provide for the payment of such rate of interest not exceeding six percent per annum as may be agreed upon by said parties; and where contract is made and bonds are not deposited with the United States in connection therewith, the contract may call for the repayment of principal at such times as may be agreed upon by such parties. Such bonds, if issued, shall be numbered consecutively as issued, and shall bear date of the time of their issue. Coupons for the interest shall be attached to each bond, bearing the lithographed signature of the president and the secretary. Such bonds shall express upon their face that they are issued by authority of this act, stating its title, and date of approval.
The secretary of the district shall keep a record of all bonds deposited as aforesaid, showing their number, date of issue, the date when same are deposited with the United States and the rate of interest required to be paid thereon.
If contract is proposed to be made with the United States in connection with which bonds are not to be deposited with the United States, the question to be submitted to the voters at such special election shall be whether contract shall be entered into with the United States. In such event the notice of election shall include a statement as to the maximum amount of money payable to the United States for construction purposes, exclusive of penalties and interest.