Release Of First Mortgages Held By State Upon Dissolution Of Districts

TITLE 43 IRRIGATION DISTRICTS CHAPTER 20 PROVISIONS APPLICABLE TO IRRIGATION DISTRICTS AND DRAINAGE DISTRICTS 43-2001. Release of first mortgages held by state upon dissolution of districts. The state board of land commissioners is hereby empowered, whenever in its judgment the necessity requires, to release first mortgages on farm lands within the state of Idaho, held as security for loans made by said state, and accept in lieu thereof and as security for the payment of said loans, second mortgages in the full amount due, owing and unpaid on said released mortgages, subject to the following terms and conditions: (a)  The lien prior to said second mortgage shall represent only retired general obligation bonds and warrant indebtedness and the interest due thereon of the irrigation or drainage districts within which said lands are located. (b)  Said prior lien shall constitute only the pro rata acreage proportion of the total amount necessary to retire said general obligation bonds and warrant indebtedness and the interest due thereon. (c)  Said prior lien shall not exceed an amount equal to 75 per cent of the pro rata acreage proportion of the face value of the outstanding general obligation bonds and warrant indebtedness and interest due thereon retired. (d)  The interest rate on said prior lien shall not exceed the rate of 6 per cent per annum. (e)  The release and acceptance of a second mortgage shall be for the purpose of winding up the affairs and dissolution of the district.