bond terms and form; record of bonds; priority of issues.

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For the purpose of constructing or purchasing or acquiring necessary reservoir sites, reservoirs, water rights, canals, ditches and works and acquiring the necessary property and rights therefor, for the assumption of indebtedness to the United States for district lands, for the purpose of paying the first year’s interest upon the bonds herein authorized, and for otherwise carrying out the provisions of this act, the board of directors of any such district shall, as soon after the district has been organized as may be practicable, estimate and determine the amount of money necessary to be raised or amount of indebtedness necessary to be assumed for such purposes and shall forthwith call a special election, at which election shall be submitted to the electors of the district possessing the qualifications prescribed by this act the question of whether or not the bonds of the district shall be issued in the amount so determined or whether or not a contract shall be entered into with the United States as herein provided. A notice of such election must be given by posting notices in three public places in each election precinct in the district for at least twenty days and also by publication of such notice in some newspaper of general circulation published in each county wherein is situate any lands within the district once each week for at least four successive weeks. Such notice shall specify the time of holding the election and the amount of bonds proposed to be issued. The election must be held and the result thereof determined and declared in all respects as nearly as possible in conformity with the provisions of this act; provided that no informalities in conducting the election shall invalidate it if the election has been otherwise fairly conducted. At such election, the ballots shall contain the words “Bonds – Yes” and “Bonds – No,” or “Contract – Yes” and “Contract – No,” or words equivalent thereto. If any such election shall carry in conformity with the provisions of this act, the board of directors shall immediately cause bonds in such amounts to be issued or contract made with the United States. If bonds are not to be deposited with the United States in connection with such contract, bonds need not be issued; or if required for the construction fund in addition to such contract, bonds shall be issued only for the amounts needed in addition to such contract; bonds, other than those deposited with the United States, when required, shall be issued and payable in series as follows.

At the expiration of eleven years, not less than five percent of the whole amount and number of the bonds; at the expiration of twelve years, not less than six percent of the whole amount and number of the bonds; at the expiration of thirteen years, not less than seven percent of the whole amount and number of the bonds; at the expiration of fourteen years, not less than eight percent of the whole amount and number of the bonds; at the expiration of fifteen years, not less than nine percent of the whole amount and number of of the bonds; at the expiration of sixteen years, not less than ten percent of the whole amount and number of the bonds; at the expiration of seventeen years, not less than eleven percent of the whole amount and number of the bonds; at the expiration of eighteen years, not less than thirteen percent of the whole amount and number of the bonds; at the expiration of nineteen years, not less than fifteen percent of the whole amount and number of the bonds; at the expiration of twenty years, a percentage sufficient to pay off the remainder of the bonds, that the several enumerated percentages be of the entire amount of the bond issue; that each bond must be payable at the given time for its entire amount and not for a percentage; that the bonds shall bear interest payable semiannually on June 1 and December 1 of each year. The principal and interest shall be payable at the office of the county treasurer of the county in which the organization of the district was effected as aforesaid and at such other place or places, if any, as the board of directors may designate in the bond. The bonds shall be in such form as the board of directors may determine and, except for bonds issued in book entry or similar form without the delivery of physical securities, shall be executed in the name of the district and signed by the president and secretary, and the seal of the district shall be affixed thereto. Provided that bonds deposited with the United States may be of the denominations and may call for the repayment of the principal at the times agreed upon between the board and the secretary of the interior, and where contract is made and bonds are not deposited with the United States, a contract may likewise call for the repayment of principal at such times as may be agreed upon. The bonds shall be numbered consecutively as issued and bear date at the time of their issue. Any coupons for interest shall be attached to each bond bearing the facsimile signatures of the president and the secretary. The bonds shall express on their face that they are issued by the authority of this act, stating its title and date of approval. The secretary shall keep a record of the bonds sold, their number, date of sale, the price received and the name of the purchaser; provided, any such district may, in the manner whereby the issuance of bonds may be authorized, provide for the issuance of bonds that will mature in any number of years less than twenty and arrange for the payment thereof, in series as above provided; provided further that when the money provided by any previous issue of bonds has become exhausted by expenditures herein authorized therefor and it becomes necessary to raise additional money for such purposes, additional bonds may be issued after submitting the question to the qualified voters of the district, as for an original issue of such bonds. Provided, also, the lien for the bonds of any issue shall be a preferred lien to that of any subsequent issue, and the lien for all payments due or to become due under any contract with the United States, accompanying which bonds of the district have not been deposited with the United States as in Section 73-10-16 N.M. Stat. Ann. provided, shall be a preferred lien to any issue of bonds subsequent to the date of such contract.

If a contract is proposed to be made with the United States and bonds are not to be deposited with the United States in connection therewith, the question to be submitted to the voters at such special election shall be whether a contract shall be entered into with the United States. The notice of election shall state the maximum amount of money payable to the United States for construction purposes exclusive of penalties and interest.