A district may sell or otherwise dispose of all or any part of its water facilities, sewer facilities or both, including both real and personal property, without an election. A sale or other disposition of district facilities shall be authorized by resolution adopted by the affirmative vote of not less than a majority of all members of the board. A district may immediately apply the proceeds derived from the sale or other disposition of its facilities to the retirement of outstanding bonds or place the proceeds in escrow in a commercial bank or trust company, either a state or national banking institution that possesses and is exercising trust powers, that is located within New Mexico and that is a member of the federal deposit insurance corporation, to be applied to the payment of any outstanding bonds upon their presentation for payment. Any escrow is not necessarily limited to proceeds of the sale or other disposal, but may include other money available for its purpose. Any proceeds in escrow, pending use pursuant to the provisions of this section, may be invested or reinvested in bills, certificates of indebtedness, notes or bonds that are direct obligations of, or the principal and interest of which obligations are unconditionally guaranteed by, the United States or any other legal investment. The proceeds and investments in escrow, together with any interest to be derived from the investment, shall be used only to pay charges of the escrow agent, which are expressly made payable from the escrow, and to pay as many bonds as possible as they become due at their respective maturities or due at a designated prior redemption date in connection with which the board shall exercise a prior redemption option. A purchaser of any facilities that may be sold or otherwise disposed of shall in no manner be responsible for the application of the proceeds by the district or any of its officers, agents or employees. Nothing in this section shall be construed as changing or modifying any contractual agreement or covenant concerning any outstanding bonds as may be provided in the proceedings authorizing any outstanding bonds or otherwise appertaining to them.
History: 1953 Comp., § 75-18-41, enacted by Laws 1967, ch. 187, § 2; 1978 Comp., § 73-21-44; 2009, ch. 241, § 13.
The 2009 amendment, effective June 19, 2009, in the first sentence, after "other disposition", added "of district facilities"; and in the fourth sentence, after "pending use", added "pursuant to the provisions of this section".
Structure New Mexico Statutes
Chapter 73 - Special Districts
Article 21 - Water and Sanitation Districts
Section 73-21-1 - [Declaration of purpose.]
Section 73-21-2 - Short title.
Section 73-21-3 - Purpose of water and sanitation districts.
Section 73-21-4 - Definitions.
Section 73-21-5 - Organization of district.
Section 73-21-7 - Bond of petitioners.
Section 73-21-8 - Notice of hearing on petition.
Section 73-21-9 - Hearing on petitions; election for organization and officers.
Section 73-21-10 - Filing decree.
Section 73-21-11 - [Board of directors; qualification; bond.]
Section 73-21-15 - Board increase; appointed members.
Section 73-21-15.1 - Appointment of first board.
Section 73-21-16 - General powers.
Section 73-21-18 - Levy and collection of taxes.
Section 73-21-19 - Levies to cover defaults and deficiencies.
Section 73-21-20 - Officers levy and collect taxes.
Section 73-21-21 - Sale for delinquencies; purchase by district.
Section 73-21-22 - Sinking fund.
Section 73-21-23 - Inclusion [of additional property].
Section 73-21-24 - Exclusion [from district].
Section 73-21-25 - Liability of property included or excluded.
Section 73-21-26 - Bonds; interest; form.
Section 73-21-27 - Community Service District Act provisions apply.
Section 73-21-28 - Board resolution; indebtedness; election.
Section 73-21-31 - Effect of election; subsequent elections.
Section 73-21-32 - Correction of faulty notices.
Section 73-21-33 - Early hearings.
Section 73-21-34 - Liberal construction.
Section 73-21-35 - Character of act.
Section 73-21-36 - Acquisition, construction or improvement of systems; joint revenue bonds.
Section 73-21-37 - Interest; maturity; form; method of sale.
Section 73-21-38 - Revenue bond issuance.
Section 73-21-39 - Bonds collectible from operating revenues.
Section 73-21-40 - Rates; bondholders' remedy and taxpayer elector.
Section 73-21-41 - Restricted use of bond funds.
Section 73-21-42 - Violations; penalties.
Section 73-21-43 - Validation; existing districts.
Section 73-21-44 - Sale of system; escrow of proceeds.
Section 73-21-45 - Refunding bonds.
Section 73-21-46 - Limitations upon issuance.
Section 73-21-47 - Proceeds of refunding bonds.
Section 73-21-48 - Refunding bonds; detail; form.
Section 73-21-49 - Combination of issues.
Section 73-21-50 - Tax levy for general obligation refunding bonds.
Section 73-21-51 - Applicability of other bond provisions.
Section 73-21-52 - Duties of local government division.
Section 73-21-53 - Use of bond proceeds restricted.
Section 73-21-54 - Board's determination final.
Section 73-21-55 - Districts not subject to utility laws; option to submit to regulation.