40-1102. SECURITY FOR BONDS. (1) The full faith, credit, and all taxable property within the limits of a highway district, as they exist at the time of the original resolution of the respective highway district for the issuance of bonds, or may subsequently be extended, shall continue pledged, and the proper officers of the district shall continue to assess and collect on all taxable property within the limits of the highway district necessary taxes to pay the bonds and interest as they become due. Should the tax for the payment of interest on or the principal of bonds not be collected in time to meet the payment, the money must be paid out of any moneys in the general fund of the district, and the moneys used for the payment shall be repaid out of the first moneys paid into the fund from which taken, and a sum sufficient to cover the deficit shall be levied and collected in the next, or any succeeding year. Failure of the officers of the district to comply with the provisions of this section shall be deemed guilty of a misdemeanor.
(2) No bond issued shall be invalidated, annulled, or set aside on account of any defect, irregularity, omission, informality, or failure to comply with the provisions of this title, unless it shall appear to the court that a substantial injury has been or is about to be suffered by the property owners and taxpayers of the district. Bond issues shall rest upon the consent of the taxpayers and the credit of the district shall not be injured by the cancellation of securities when issued.
(3) The district may recite in the bonds that all acts requisite to the issue of them have been duly and regularly performed and fully complied with, and that they are duly and regularly issued, and as affecting innocent purchasers, the recital shall be conclusive.
History:
[40-1102, added 1985, ch. 253, sec. 2, p. 643.]