35-16-401. Corporate indebtedness as lien upon membership lands.
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/mt/title-35/chapter-16/part-4/35-16-401·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
35-16-401 . Corporate indebtedness as lien upon membership lands.
(1)After the date of the inclusion of any land or property as a member in any corporation or district organized under the provisions of this chapter, all mortgage or bonded indebtedness created by such corporation or district is a first lien upon the membership lands to an extent not to exceed 18% of the taxable value thereof if the land is grazing or agricultural and not to exceed 36% of the taxable value thereof if the land is horticultural or vegetable-producing.
(2)The recording of the copy of the articles of incorporation or petition to become a member of such corporation or district is notice to all subsequent lien claimants that the lands are subject to a first lien. However, nothing in this section may be construed as placing a limit upon the indebtedness that may be made a lien against any of the corporate or property assets of the corporation or district, as distinguished from membership lands individually owned.