§ 156-99. Application of funds; holder's remedy. - North Carolina Statutes

§ 156‑99. Application of funds; holder's remedy.

The commissioners of the district may sell the bonds or notes of thedistrict for not less than par and devote the proceeds to the payment of thework as it progresses and to the payment of the other expenses of the districtprovided for in this Subchapter. The proceeds from the sale of the said bondsor notes shall be for the exclusive use of the levee or drainage districtspecified therein. A copy of said bonds or notes shall be recorded in thedrainage record.  If serial bonds or notes are issued it shall only benecessary to record the first numbered bond or note, with a statement showingthe serial numbers, the amount and the due dates of principal and interest.

There shall be set out specifically in the drainage record of said proceeding, a description of the lands embraced in the district for which thetax or assessment has not been paid in full, and which is subject to the lienof the said obligations. A reference to the tract number on the map of thedistrict as recorded in the drainage proceedings or in the office of theregister of deeds is sufficient description.

If any installment of principal or interest represented by the bondsand notes shall not be paid at the time and in the manner when the same shallbecome due and payable, and such default shall continue for a period of sixmonths, the holders of such bonds or notes upon which default has been made mayhave a right of action against the drainage district or the board of drainagecommissioners of the district, its officers, including the tax collector andtreasurer, directing the levying of a tax or special assessment as hereinprovided, and the collection of same, in such sum as may be necessary to meetany unpaid installments of principal and interest and costs of action; and suchother remedies are hereby vested in the holders of such bonds or notes indefault, as may be authorized by law and the right of action is hereby vestedin the holders of such bonds or notes upon which default has been made,authorizing them to institute suit against any officer on his official bond forfailure to perform any duty imposed by the provisions of this Subchapter.

The official bond for the tax collector and treasurer shall be liablefor the faithful performance of the duties herein assigned them. Such bond maybe increased by the board of county commissioners. (1909, c. 442, s. 34; 1911, c. 67, s. 11; c. 205;C.S., s. 5356; 1923, c. 217, s. 7; 1963, c. 767, s. 8.)