46-271. Corporations or associations; construction or operation of canals or reservoirs; assessments of stock; when authorized; how enforced.
271 words·~1 min read·
/ne/chapter-46/46-271A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Any corporation or association organized under the laws of this state for the purpose of constructing or operating canals, reservoirs or other works for irrigation purposes may, through its board of directors or trustees, assess the shares, stock, or interest of the stockholders thereof for the purpose of obtaining funds to defray the necessary running expenses. Any assessments levied under this section shall become and be a lien upon the stock or interest so assessed. Such assessments shall, if not paid, become delinquent at the expiration of sixty days, and the stock or interest may be sold at public sale to satisfy such lien.
Notice of such sale shall be published for three consecutive weeks prior thereto, in some newspaper published and of general circulation in the county where the office of the company is located. Upon the date mentioned in the advertisement, or upon the date to which the sale may have been adjourned, such stock or interest, or so much thereof as may be necessary to satisfy such lien and costs, shall be sold to the highest bidder for cash.
Sale of stock is only method of collection of delinquent assessments. Thirty Mile Canal Co. v. Carskadon, 160 Neb. 496, 70 N.W.2d 432 (1955).
This section does not apply to annual maintenance charge against party not claiming any interest in canal or ditch. Faught v. Platte Valley P. P. & I. Dist., 155 Neb. 141, 51 N.W.2d 253 (1952).
Legislature cannot amend or change the law so as to make stock bought and fully paid for assessable. Enterprise Ditch Co. v. Moffitt, 58 Neb. 642, 79 N.W. 560 (1899).