242.740. Issuance and registration of bonds. - Missouri Statutes

Issuance and registration of bonds.

242.740. 1. The board of supervisors of any such minedrainage district may issue the bonds of such district asprovided in section 242.480, except that in lieu of the basis ofthe issuance thereof as provided in section 242.450, the totalamount of bonds so issued shall not exceed seventy-five percentof the income of such district from all sources for the number ofyears for which such bonds are to be outstanding, such income tobe estimated by the board of supervisors upon the basis of thereport of the chief engineer of the district provided for insection 242.720, and it shall be the duty of said board, inmaking the levy of the pumping tax or royalty and in prescribingthe tax or charge for crushing and cleaning ores or minerals bysuch concentrating plant or plants, to take into account thematuring principal and accruing interest on all bonds of thedistrict at any time outstanding, and to make ample provision forthe payment thereof, and, to that end, it shall be the duty ofthe board of supervisors at any time, and from time to time, whenit becomes apparent that such taxes or charges theretofore fixedwill not produce the sums required for the payment of such bondsand the interest thereon and the operating and maintenanceexpenses of the district, to increase such taxes or charges so asto produce fully the sums required, as aforesaid; provided,however, that such pumping tax shall not exceed the limitationherein provided.

2. The board of supervisors, in order to secure the paymentof such bonds and the interest thereon, shall have power andauthority to pledge, mortgage or convey the property of suchdistrict, both real and personal, the proceeds to be derived fromall such taxes or charges, after deducting therefrom the sum orsums required to pay the operating expenses of the district andto provide an adequate reserve fund for maintenance, depreciationand contingencies.

3. Before such bonds shall be negotiated, they shall bepresented to the state auditor of Missouri for registration asprovided in section 108.240, RSMo, and the board of supervisorsmay sell such bonds as provided in section 242.480, or may sellthe same to any corporation, commission or agency created orauthorized by the Congress of the United States to purchase suchbonds.

(RSMo 1939 § 12394)