Idaho State Statutes - Idaho Attorney Directory

The
board of directors of any irrigation district organized under the laws of this
state, may, when in the opinion of the board it will improve the credit of the
district, or the marketability of the district bonds, or tend to reduce the
rate of interest necessary to be paid thereon, or in any other way be to the
benefit of the district, provide by the adoption of a suitable resolution of
the board of directors for inserting in the bonds of the district or the
district contract of the United States, an agreement to the effect that a
safety fund will be provided to insure the payment of the district's
obligations under the bonds or contract. Said resolution shall provide that
the safety fund provided for in this section may be funded through either or
both of the following methods:
(a) by making all annual levies for payment of the principal or interest
of such bonds or the obligation of such contract (until a safety fund of at
least ten per cent (10%) of the unpaid bonded indebtedness or contract
indebtedness of the district has been created), fifteen per cent (15%) in
excess of the amount which would be required to meet such obligations if all
district taxes were paid without delinquency,
(b) by depositing in said safety fund from the proceeds of sale of such
bonds an amount equal to at least ten per cent (10%) of the original principal
amount of the issue of bonds.
Said safety fund shall be used to meet any deficiency which might
otherwise occur in the payment of the principal and interest of said bonds or
contract obligations as set forth in the resolution providing for the safety
fund and said safety fund shall be kept intact by initiating or renewing such
fifteen per cent (15%) excess levies whenever such safety fund is reduced
below ten per cent (10%) of the unpaid bonded indebtedness or United States
contract indebtedness of the district and continuing the same until such
safety fund is again brought up to at least ten per cent (10%) of such unpaid
bond or contract indebtedness.
Whenever such agreement shall have been inserted in the bonds or contract
of any irrigation district, all levies thereafter made in such district shall
be made in full compliance with such agreement until such bonds or contracts
have been fully paid.

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