§ 36-25. Same—Borrowing money; issuance of bonds.

(1)

In order to provide for the works described by this chapter, the governing board is hereby authorized and empowered to borrow money temporarily, from time to time, for a period not to exceed one (1) year at any one time, not including renewals thereof, and to issue its promissory notes therefor upon such terms and at such rates of interest as the said governing board may deem advisable, payable from the taxes herein levied and imposed, and the increment thereof. Any of such notes may be used in payment of amounts due, or to become due, upon contracts made or to be made by said governing board for carrying on the work authorized and provided for herein, and the said governing board may, to secure the payment of any of such notes, hypothecate bonds herein authorized to be issued, and may thereafter redeem such hypothecated bonds. Any of the notes so issued may be paid out of the proceeds of bonds authorized to be issued by this chapter.

(2)

The governing board is hereby authorized and empowered to borrow money on permanent loans and incur obligations from time to time on such terms and at such rates of interest as it may deem proper, not exceeding six (6) per cent per annum, for the purpose of raising funds to prosecute to final completion the works and all expenses necessary or needful to be incurred in carrying out the purposes of this chapter; and the better to enable the said governing board to borrow the money to carry out the purposes aforesaid, the governing board is hereby authorized and empowered to issue in the corporate name of said governing board, negotiable coupon bonds of said district.

(3)

The bonds to be issued by authority of this chapter shall be in such form as shall be prescribed by the said governing board, shall recite that they are issued under the authority of this chapter, and shall pledge the faith and credit of the governing board of the district for the prompt payment of the interest and principal thereof.

(4)

Said bonds shall have all the qualities of negotiable paper under the law merchant, and shall not be invalid for any irregularity, or defect in the proceedings for the issue and sale thereof except forgery; and shall be incontestable in the hands of bona fide purchasers or holders thereof for value. The provisions of this chapter shall constitute an irrevocable contract between said governing board and the district and the holders of any bonds and the coupons thereof, issued pursuant to the provisions hereof. Any holder of any of said bonds or coupons may either at law or in equity by suit, action or mandamus enforce and compel the performance of the duties required by this chapter of any of the officers or persons mentioned in this chapter in relation to the said bonds, or to the collection, enforcement and application of the taxes for the payment thereof.

(5)

The amount of bonds to be issued in any one year, when added to the amount then outstanding, shall not be greater than can be supported for that year in accordance with the bond schedule out of ninety (90) per cent of the taxes imposed, or to be imposed, for that year, plus other moneys in the hands of the district usable for bond purposes after deducting therefrom amounts estimated to be required for maintenance and operation of the works of the district, cost of administration, and amounts for such other purposes as the governing board may determine, nor shall the governing board levy in any year taxes insufficient to support said bonds for such year on the basis herein described.

(6)

All bonds and coupons not paid at maturity shall bear interest at a rate not to exceed six (6) per cent per annum from maturity until paid, or until sufficient funds have been deposited at the place of payment.

(7)

The bonds to be issued by authority of this chapter shall be in denominations of not less than one hundred dollars ($100.00) bearing interest from date at a rate not to exceed six (6) per cent per annum, payable semiannually, to mature at annual intervals within forty (40) years commencing after a period of not later than ten (10) years, to be determined by said governing board, both principal and interest payable at some convenient place designated by said governing board to be named in said bonds, which said bonds shall be signed by the chairman of the governing board, attested with the seal of said district and by the signature of the secretary of said governing board. In case any of the officers whose signatures, countersignatures and certificates appear upon the said bonds and coupons, shall cease to be such officer before the delivery of such bonds to the purchaser, such signature or countersignature and certificate shall nevertheless be valid and sufficient for all purposes the same as if they had remained in office until the delivery of the bonds.

(8)

Interest coupons shall be attached to the said bonds and the said coupons shall be consecutively numbered, specifying the number of the bond to which they are attached, and shall be attested by the lithographed or engraved facsimile signature of the chairman and secretary of said governing board.

(9)

In the discretion of said governing board, it may be provided that at any time, after such date as shall be fixed by the said governing board, said bonds may be redeemed before maturity at the option of said governing board, or its successors in office. If any bond so issued subject to redemption before maturity shall not be presented when called for redemption, it shall cease to bear interest from and after the date so fixed for redemption.

(10)

The governing board shall have authority to issue refunding bonds to take up any outstanding bonds of said district falling due and becoming payable, when, in the judgment of said governing board, it shall be for the best interests of said district so to do. The said governing board is hereby authorized and empowered to issue refunding bonds to take up and refund all bonds of said district outstanding that are subject to call and termination, and all bonds of said district that are not subject to call or redemption, where the surrender of said bonds can be procured from the holder thereof at prices satisfactory to the governing board. Such refunding bonds may be issued at any time when in the judgment of said governing board it will be to the interest of the district financially or economically by securing a lower rate of interest on said bonds or by extending the time of maturity of said bonds, or for any other reason in the judgment of said governing board advantageous to said district.

(11)

When required by the state constitution, the governing board shall call an election of the electors and of the freeholders in said district, in which said election the matter of whether or not said bonds shall be issued shall be decided as provided by law with respect to bond elections. (Sp. Acts, Ch. 74-446, § 3)

(12)

Whenever the governing board shall have authorized the issuance of bonds under the provisions of this chapter, the said governing board may, if it shall so elect, have said bonds validated in the manner provided by Chapter 75, F.S. and to that end the said governing board may adopt a suitable resolution for the issuance of said bonds.

(13)

All of said bonds shall be executed and delivered to the treasurer of said district, who shall sell the same in such quantities and at such rates as the governing board may deem necessary to meet the payments for the works and improvements in the district. Said bonds shall not be sold for less than ninety-five cents ($0.95) on the dollar, with accrued interest.

(14)

It shall be the duty of the treasurer as custodian of the funds belonging to the said governing board and to the district, out of the proceeds of the taxes levied and imposed by this chapter and out of any other moneys in his possession belonging to the district, which moneys so far as necessary shall be set apart and appropriated for the purpose, to apply said moneys and to pay the interest upon the said bonds as the same shall fall due and at the maturity of the said bonds to pay the principal thereof.

(15)

Whenever the owner of any coupon bond issued pursuant to the provisions of this chapter shall present such bond and all unpaid coupons thereof to the treasurer of the district with request for the conversion of such bond into a registered bond, such treasurer shall cut off and cancel the coupons of any such coupon bond so presented, and shall stamp, print or write upon such coupon bond so presented either upon the back or the face thereof as may be convenient, a statement to the effect that said bond is registered in the name of the owner and that thereafter the interest and principal of said bond are payable to the registered owner. Thereafter and from time to time any such bond may be transferred by such registered owner in person or by attorney duly authorized on presentation of such bond to the treasurer, and the bond again registered as before, a similar statement being stamped or written thereon.

(16)

Such statement stamped, printed or written upon any such bond may be in substantially the following form:

(Date, giving month, year and day.)

This bond is to be registered pursuant to the statutes in such case made and provided in the name of (here insert name of owner), and the interest and principal thereof are hereafter payable to such owner.

_____
Treasurer

(17)

If any bond shall have been registered as aforesaid, the principal and interest of said bond shall be payable to the registered owner. The treasurer shall enter in the register of said bonds to be kept by him, or in a separate book, the fact of the registration of such bonds, and in whose names respectively, so that said register or book shall at all times show what bonds are registered and the name of the registered owner thereof.

(18)

Any warrant issued under this chapter that is not paid when presented to the treasurer of the district because of lack of funds in the treasury, such fact shall be endorsed on the back of such warrant, and such warrant shall draw interest thereafter at a rate not exceeding six (6) per cent per annum, until such time as there is money on hand to pay the amount of such warrant and the interest then accumulated; but no interest shall be allowed on warrants after notice to the holder or holders thereof that sufficient funds are in the treasury to pay said endorsed warrants and interest.

(Sp. Acts, Ch. 61-1969, § 25; Sp. Acts, Ch. 73-420, § 6)