The principal of and interest on any bonds issued under the authority of this 1959 act [72-4-2 to 72-4-12 NMSA 1978] shall be secured by a pledge of the revenues out of which such bonds shall be made payable, and may be secured by a mortgage covering all or any part of the system from which the revenues so pledged may be derived.
The resolution and proceedings under which such bonds are authorized to be issued or any such mortgage may contain any agreement and provisions customarily contained in instruments securing bonds, including, without limiting the generality of the foregoing, provisions respecting the fixing and collection of all revenues from any system covered by such proceedings or mortgage, the maintenance and insurance of such system, the creation and maintenance of special funds from the revenues from such system, and the rights and remedies available in event of default to the bondholders or to the trustee under a mortgage, all as the board of county commissioners shall deem advisable and as shall not be in conflict with the provisions of this 1959 act; provided, however, that in making any such agreements or provisions a county shall not have the power to obligate itself except with respect to the project and the application of the revenues therefrom, and shall not have the power to incur a pecuniary liability or a charge upon its general credit or against its taxing powers. The proceedings authorizing any bonds hereunder and any mortgage securing such bonds may provide the procedure and remedies in the event of default in payment of the principal of or the interest on such bonds or in the performance of any agreement. No breach of any such agreement shall impose any pecuniary liability upon a county or any charge upon its general credit or against its taxing powers.
History: 1953 Comp., § 75-4-1.4, enacted by Laws 1959, ch. 286, § 4.
Am. Jur. 2d, A.L.R. and C.J.S. references. — 25 Am. Jur. 2d Drains and Drainage Districts § 36.
94 C.J.S. Waters § 234.
Structure New Mexico Statutes
Article 4 - Surveys, Investigations and Adjudication of Rights
Section 72-4-2 - [Authority to acquire water rights for development of county water supply system.]
Section 72-4-3 - [Authority to establish county water supply system; purpose.]
Section 72-4-4 - Water revenue bonds; limitations; conditions of issuance.
Section 72-4-5 - [Water revenue bonds; security; restrictions and limitations.]
Section 72-4-6 - [Determinations and findings prior to supplying water.]
Section 72-4-7 - [Sale of water revenue bonds; application of proceeds; cost of acquiring system.]
Section 72-4-8 - Water system cost paid from bond proceeds only.
Section 72-4-9 - [Water revenue bonds shall be legal investments.]
Section 72-4-11 - [Election by voters prior to issuance of bonds not required.]
Section 72-4-14 - [Cooperation with federal reclamation service; federal projects.]
Section 72-4-16 - [Reports of hydrographic surveys; filing with state engineer; copies as evidence.]
Section 72-4-18 - [Suits concerning water rights; submission of facts to jury or referee.]
Section 72-4-19 - [Adjudication of rights; decree filed with state engineer; contents of decree.]