The board may sell bonds from time to time in such quantities as may be necessary and most advantageous to raise the money for the construction or purchase of canals, reservoir sites, reservoirs, and water rights and works and otherwise to fully carry out the object and purposes of this article. Before making any sale, the board, at a meeting, by resolution, shall declare its intention to sell a specified amount of the bonds and the day and hour and place of such sale and shall cause such resolution to be entered in the minutes and notice of the sale to be given by publication thereof at least twenty days in a daily newspaper published in the city of Denver and in any other newspaper at its discretion. The notice shall state that sealed proposals will be received by the board at its office, for the purchase of the bonds, until the day and hour named in the resolution. At the time appointed, the board shall open the proposals and award the purchase of the bonds to the highest responsible bidder and may reject all bids. The board in no event shall sell any of said bonds for less than ninety-five percent of the face value thereof. In case no bid is made and accepted, the board of directors is hereby authorized to use said bonds for the purchase of canals, reservoir sites, reservoirs, and water rights and works, or for the construction of any canal, reservoir, and works; but such bonds shall not be so disposed of at less than ninety-five percent of the face value thereof.
Source: L. 05: p. 258, § 16. R.S. 08: § 3455. C.L. § 1984. CSA: C. 90, § 392. CRS 53: § 149-1-16. C.R.S. 1963: § 150-1-16.
ANNOTATION
Law reviews. For note, "A Survey of Colorado Water Law", see 47 Den. L.J. 226 (1970).
Bonds create trust relation requiring investment in irrigation. Where a district put forth an issue of bonds payable "to bearer", obviously intended for a negotiable security to be purchased by the investing public, and stating upon their faces that they were "a lien upon all the real property in said district", the clear intention of the parties, acted upon by the bondholders through purchase of the bonds, created a relation of trust, the terms of which were that the district would invest such funds in the irrigation of the lands in the district. Gas Sec. Co. v. Antero & Lost Park Reservoir Co., 259 F. 423 (8th Cir. 1919).
The district shall require sufficient assessment, levy, and collection to actually pay debt. A statutory obligation of a municipal corporation or quasi-municipal corporation to pay its debt, or to fix a rate of levy necessary to provide the amount of money required to pay its debt, is not satisfied by an assessment and rate of levy sufficient to pay the debt if the taxes are collected, but requires that there be a sufficient assessment and levy and collection of the taxes as levied to actually pay the debt. Norris v. Montezuma Valley Irrigation Dist., 248 F. 369 (8th Cir. 1918).
The warrant, bond, and coupon indebtedness is not a lien against any of the lands within the irrigation district. Kiles v. Trinchera Irrigation Dist., 136 F.2d 894 (10th Cir. 1943).