206.120. Indebtedness for hospital--election--form of ballot--defeat of proposal, effect--limits--annual tax.

MISSOURI STATUTES AND CODES

206.120. Indebtedness for hospital--election--form of ballot--defeat of proposal, effect--limits--annual tax.

Indebtedness for hospital--election--form of ballot--defeatof proposal, effect--limits--annual tax.

206.120. 1. For the purpose of purchasing hospital sites,erecting hospitals and related facilities and furnishing thesame, building additions to and repairing old buildings, theboard of directors may borrow money and issue bonds for thepayment thereof in the manner provided herein. The question ofthe loan shall be submitted to the voters by an order of theboard of directors of the district.

2. The question shall be submitted in substantially thefollowing form:

Shall the ...... hospital district borrow money in the amountof ....... dollars for the purpose of ........ and issue bonds inpayment thereof?

3. If the then constitutionally required majority of thevotes cast are for the loan, the board shall, subject to therestrictions of subsection 5, be vested with the power to borrowmoney in the name of the district, to the amount and for thepurposes specified on the ballot, and issue the bonds of thedistrict for the payment thereof.

4. If less than the required majority of the votes cast arefor the first loan submitted to the voters following theorganization of the district, a second question for authority toborrow money may be submitted and if unsuccessful a thirdquestion may be submitted. If each of the first three questionssubmitted to the voters for authority to borrow money for thepurposes of this section is defeated, or if no successfulsubmission for such purpose is conducted within five years afterthe establishment of the district, then the district shall beimmediately dissolved by order of the county commissionestablishing it, and any funds remaining on hand and belonging tothe district shall forthwith be paid pro rata to those taxpayersfrom whom they were collected; provided that in any districtwherein a hospital is in operation without having voted bonds,the provisions of this section as relating to dissolution shallnot apply.

5. The loans authorized by this section shall not becontracted for a period longer than twenty years, and the entireamount of the loan shall at no time exceed, including theexisting indebtedness of the district, in the aggregate, tenpercent of the value of taxable tangible property therein, asshown by the last completed assessment for state and countypurposes, the rate of interest to be agreed upon by the parties,but in no case to exceed the highest legal rate allowed bycontract. When effected, it shall be the duty of the directorsto provide for the collection of an annual tax sufficient to paythe interest on the indebtedness as it falls due, and also toconstitute a sinking fund for the payment of the principalthereof within the time the principal becomes due.