85-7-1417. Use of revenue from undertaking. (1) An issuer of bonds pursuant to this part for the acquisition, construction, or improvement of any undertaking may apply the revenue of the undertaking for the following purposes:
(a) to pay when due all bonds and interest thereon for which the revenue is pledged, including reserves;
(b) to provide for all expenses of operation and maintenance of the undertaking, including reserves;
(c) to pay and discharge notes, bonds, or other obligations and interest thereon not issued under this part for which the revenue of the undertaking is pledged;
(d) to pay and discharge notes, bonds, or other obligations and interest thereon that do not constitute a lien or encumbrance on the revenue of the undertaking and which were issued for the purpose of financing the acquisition, construction, or improvement of the undertaking; and
(e) to provide a reserve for improvements to the undertaking.
(2) Unless adequate provision has been made for the purposes listed in subsection (1), no irrigation district may transfer the revenue of the undertaking to its general fund.
History: En. Sec. 10, Ch. 193, L. 1987.
Structure Montana Code Annotated
Chapter 7. Irrigation Districts
Part 14. Irrigation District Revenue Bond Act
85-7-1404. through 85-7-1410 reserved
85-7-1411. Authority to acquire, construct, maintain, operate, and lease various undertakings
85-7-1413. Authority to issue revenue bonds
85-7-1414. Determination of cost
85-7-1415. Nature of revenue bonds
85-7-1416. Undertakings to be self-supporting
85-7-1417. Use of revenue from undertaking
85-7-1418. Authorization for undertaking and issuance of bonds
85-7-1419. Covenants in resolution authorizing issuance of bonds
85-7-1420. through 85-7-1430 reserved
85-7-1432. Presumptions of validity of bonds
85-7-1433. Liens arising from bonds
85-7-1434. Security interest in undertaking
85-7-1435. Details relating to revenue bonds