Outstanding Bonds Not Affected — Duty Of Directors

TITLE 43 IRRIGATION DISTRICTS CHAPTER 8 REPOSSESSION OF WATER RIGHTS UPON ISSUANCE OF TAX DEED 43-805. Outstanding bonds not affected — Duty of directors. The election of an irrigation district to cancel delinquent taxes in favor of the irrigation district and accept in lieu thereof title to the water right for the payment of which said taxes were levied, shall in nowise impair outstanding bonds or obligations of the irrigation district, and upon such an election by an irrigation district as herein provided, the board of directors shall: 1.  Either set aside in a sinking fund with the state treasurer as the acting treasurer of the irrigation district an amount sufficient to pay the unpaid balance of the taxes to be levied upon the land for which the water right was purchased, based upon the assessments of benefits as confirmed by the court in the proceedings confirming the sale of bonds of said irrigation district; 2.  Or shall provide an equivalent assessment of benefits against other lands of equal value.