85-7-1971. Contracts with the state of Montana -- loans, sinking fund, and investments. (1) The board of commissioners of any irrigation district, whenever considered advisable and in the interest of the district, may enter into any obligation or contract with the state of Montana for the purpose of obtaining a loan of money from various sources, including the coal severance tax bonding program provided for in Title 17, chapter 5, part 7, to be used by the district for:
(a) the liquidation of any bonded or outstanding indebtedness of the district; or
(b) the provision of any construction, improvement, or repair work necessary to place the irrigation system of the district in good operating condition.
(2) The board shall create, by proper levy and collection of assessments, a sinking fund that must be available for the construction of betterments to the irrigation system of the district as may be necessary during the term of any contract made with the state as provided for in subsection (1). The sinking fund must be designated the "... District Sinking Fund for Betterments" and must be created in such an amount and within such time as may be agreed upon between the district and the state of Montana.
(3) The board shall invest any surplus in the sinking fund in legal investments backed, insured, or guaranteed by the United States or the state of Montana, including federal and state agency obligations.
History: En. Sec. 1, Ch. 301, L. 1987.
Structure Montana Code Annotated
Chapter 7. Irrigation Districts
Part 19. Operation of Districts
85-7-1901. Board plan for acquisition and construction
85-7-1902. Management of district by board
85-7-1903. Entry upon land by board or agent
85-7-1904. Acquisition of water and waterworks by board
85-7-1905. Board agreements for joint operations or cooperation
85-7-1906. Relations with United States
85-7-1907. Board power to provide sufficient water
85-7-1908. Board powers over district property
85-7-1909. Rights-of-way for irrigation works
85-7-1910. Board power to dispose of district property
85-7-1911. Apportionment of water by board
85-7-1912. Exchange of water by board
85-7-1913. Board to maintain records
85-7-1914. Board to file annual report
85-7-1915. through 85-7-1920 reserved
85-7-1921. Distribution system defined
85-7-1922. Regulation, supervision, apportionment, and control of water distribution
85-7-1924. Interference with commissioners or distribution system -- penalty
85-7-1925. Installing and assessing costs of distributing or measuring devices
85-7-1926. through 85-7-1930 reserved
85-7-1931. Use of water for irrigation a public use
85-7-1932. Noninterference with navigation or water rights
85-7-1933. Diversion of waters
85-7-1934. Lands under irrigation -- inclusion in district
85-7-1935. Lands under irrigation -- limits on charges for costs
85-7-1936. through 85-7-1940 reserved
85-7-1942. Competitive bidding
85-7-1943. Exceptions for certain projects
85-7-1944. through 85-7-1950 reserved
85-7-1951. United States contracts -- loans, sinking fund, and investment
85-7-1952. United States contracts -- assessments
85-7-1953. Amount owed United States -- lien and special tax
85-7-1954. Assumption of operations by United States upon default
85-7-1955. Liquidation of indebtedness with federal funds
85-7-1956. Majority vote or petition necessary to contract with United States
85-7-1957. United States contracts -- court approval required
85-7-1958. Power to contract with United States cumulative
85-7-1959. and 85-7-1960 reserved
85-7-1962. through 85-7-1970 reserved
85-7-1971. Contracts with the state of Montana -- loans, sinking fund, and investments
85-7-1972. State contracts -- assessments
85-7-1973. Amount owed state -- lien and special tax
85-7-1974. Majority vote or petition necessary to contract with the state