The board may sell bonds from time to time in such amounts as may be necessary and most advantageous to raise the money for the construction or purchase of canals, reservoir sites, reservoirs, water rights and works, including necessary drainage works, and to repair, extend, improve and to construct betterments for such works or systems and otherwise to fully carry out the objects and purposes of this act. Before making any sale, except as hereinafter provided, the board shall, at a meeting, by resolution 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, by three insertions in a daily newspaper published in the city of Santa Fe and a like notice in a daily newspaper published in the city of Albuquerque, and any other newspapers, at their direction, the first of which publications shall be not less than twenty (20) days prior and the last not less than five (5) days prior to the date fixed for such sale. The notice shall state that sealed proposals will be received by the board at their office, for the purchase of the bonds, till 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; but said board shall in no event, sell any of said bonds for less than ninety-five percent of the face value thereof. In case no bid is made and accepted as above provided, the board of directors is hereby authorized to use said bonds for the purchase of canals, reservoir sites, reservoirs, water rights and works, or for the construction of any canals, reservoir and works, including drainage works, or for repairs, extensions, improvements or betterments to any of such works or systems, provided such bonds shall not be so disposed of at less than ninety-five percent of the face value thereof. Provided, however, that in the event said board shall negotiate the sale of such bonds to the United States of America, either under the National Industrial Recovery Act, the Reconstruction Finance Corporation Act, the Agricultural Adjustment Act and acts amendatory of such acts and acts supplemental thereto and revisions thereof and any further acts of the congress of the United States, heretofore or which may hereafter be passed, then no notice of sale of said bonds shall be necessary and said board shall be fully authorized to make sale thereof to the United States of America or any agency thereof, on such terms and conditions as may be required by the government of the United States, or any agency thereof, without notice, without competitive bidding and on resolution of the board of directors duly adopted and recorded in the minutes.

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Upon resolution of the board of directors, funding or refunding bonds may be issued and used by any district organized under the laws of this state, for the purpose of retiring any bonds or any other obligations of the district which may have been issued, or incurred, under the provisions of this or any other act: provided, however, that no refunding bonds shall be issued and used by any district for the purpose of retiring obligations incurred other than bonds until after the question of issuing such refunding bonds shall have been submitted to an election as herein provided and shall have received the affirmative vote of a majority of those voting thereon within such district. Such funding or refunding bonds may be payable at such time or times and bear such rate of interest not exceeding six per centum per annum and may be of such denomination as the board of directors may determine and shall be executed in the same manner and have annexed interest coupons as provided herein for an original issue of bonds. The board of directors shall have power to contract for the purchase and exchange of any part or all of the outstanding funding bonds, refunding bonds or other obligations of the district at any price not exceeding par and accrued interest.

Such funding or refunding bonds, if they be not sold to the United States of America or an agency thereof, as hereinafter provided, shall be first deposited with the county treasurer of the county wherein the office of the district is located and shall be delivered only as and when bonds or other obligations so to be funded or refunded are surrendered to such county treasurer for cancellation and they shall be exchanged only on the basis agreed upon between the board of directors and the creditors of the district, acting individually or through an authorized creditors’ committee. Such funding or refunding bonds may also be sold from time to time in such amounts as the board of directors may determine and in the same manner as provided for the sale of the original issue of bonds, at not less than ninety-five percent of their face value, the proceeds to be deposited with the said treasurer, to be paid out by him on order of the board of directors in exchange for any of the outstanding bonds or other obligations that may be so purchased or contracted for by the board of directors, at a price not exceeding the price agreed upon.

The said treasurer shall cancel all bonds of the district as and when the same are paid or refunded, and take full satisfaction of such other obligations as are being funded, and shall cause to be recorded in the office of the county clerk of said county, his certificate [showing] that said bonds and other obligations, giving the dates, serial numbers and amounts thereof, have been paid, canceled and satisfied; and such canceled bonds and other obligations shall be delivered to the board of directors of the district. It shall be the duty of said board of directors to enter upon their records a statement giving the dates, serial numbers and amounts of the bonds so canceled, and to preserve all receipts and satisfactions of other obligations. Provided, however, that in the event such funding or refunding bonds shall be sold to the United States of America or an agency thereof, under the terms of the National Industrial Recovery Act, the Reconstruction Finance Corporation Act, the Agricultural Adjustment Act and acts amendatory of such acts and acts supplemental thereto, and revisions thereof and any further acts of the congress of the United States, heretofore or which may hereafter be passed, the cash so received shall be paid out and exchanged for bonds or other obligations intended to be funded or refunded only on such terms and conditions as may be prescribed by the government of the United States or an agency thereof.