Montana Code 85-7-1417. Use of revenue from undertaking
85-7-1417. Use of revenue from undertaking. (1) An issuer of bonds pursuant to this part for the acquisition, construction, or improvement of any undertaking may apply the revenue of the undertaking for the following purposes:
Terms Used In Montana Code 85-7-1417
- Irrigation district: means a district created pursuant to Title 85, chapter 7, part 1. See Montana Code 85-7-1402
- Issuer: means the board of commissioners of an irrigation district or a board of control created pursuant to Title 85, chapter 7, part 16. See Montana Code 85-7-1402
- Lien: A claim against real or personal property in satisfaction of a debt.
- Undertaking: means any one or a combination of the following:
(a)water sources, water rights, irrigation canals, irrigation systems, including pumping facilities or gravity measure systems, reservoirs, reservoir sites, or small power production facilities that are:
(i)certified as such by the federal energy regulatory commission; and
(ii)are associated with federal reclamation projects;
(b)any real or personal property or water rights related to or necessary to provide, operate, and maintain an undertaking listed in subsection (4)(a). See Montana Code 85-7-1402
(a)to pay when due all bonds and interest thereon for which the revenue is pledged, including reserves;
(b)to provide for all expenses of operation and maintenance of the undertaking, including reserves;
(c)to pay and discharge notes, bonds, or other obligations and interest thereon not issued under this part for which the revenue of the undertaking is pledged;
(d)to pay and discharge notes, bonds, or other obligations and interest thereon that do not constitute a lien or encumbrance on the revenue of the undertaking and which were issued for the purpose of financing the acquisition, construction, or improvement of the undertaking; and
(e)to provide a reserve for improvements to the undertaking.
(2)Unless adequate provision has been made for the purposes listed in subsection (1), no irrigation district may transfer the revenue of the undertaking to its general fund.