70-631. Power to borrow; repayment of indebtedness; source of funds; security for indebtedness.

313 words·~1 min read·/ne/chapter-70/70-631

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Any district organized under or subject to Chapter 70, article 6, shall have the power to borrow money and incur indebtedness for any corporate use or purpose upon such terms and in such manner as such district shall determine. Any and every indebtedness, liability, or obligation of such district for the payment of money, in whatever manner entered into or incurred, and whether arising from contract, implied contract, or otherwise, shall be payable solely

(1)from revenue, income, receipts, and profits derived by the district from its operation and management of power plants, systems, irrigation works, hydrogen producing systems, ethanol producing systems, and from the exercise of its rights and powers with respect to utilization of radioactive material or the energy therefrom or

(2)from the issuance or sale by the district of its warrants, notes, debentures, bonds, or other evidences of indebtedness, payable solely from such revenue, income, receipts, and profits, or from the proceeds and avails of the sale of property of the district. Any such district may pledge and put up as collateral security for a loan any revenue debentures, notes, warrants, bonds, or other evidences of indebtedness, issued by it. Any district may arrange for, or put up as security for notes or other evidences of indebtedness of such district, the credit of any bank or other financial institution which has been approved by the directors of such district.

That the statute restricts funds out of which a district may pay its liabilities to revenues derived from operation does not render unconstitutional the grant of power to condemn property prior to commencement of operations. Johnson v. Platte Valley Public Power and Irrigation Dist., 133 Neb. 97, 274 N.W. 386 (1937).

District is not exempt from payment of charges under Federal Power Act. Central Neb. P. P. & I. Dist. v. Federal Power Commission, 160 F.2d 782 (8th Cir. 1947).