7-2-2730. Establishment of special warrant district or special funding bond district in continuing county. (1) After all warrants have been drawn and issued against the funds of such adjoining county to pay the claims and demands existing against such county on the date when the territory of such abandoned and abolished county was attached to such adjoining county, all money in the funds of such adjoining county shall be used and applied in payment of the warrants drawn against its respective funds. If such money is not sufficient to pay all of such warrants, with the interest thereon, then the board of county commissioners shall make an order creating a special warrant district and shall include within such district all of the territory of such adjoining county but shall not include therein any of the territory of such abandoned and abolished county and shall, thereafter and at the time of making levies for county purposes, levy a special tax against all taxable property in such district to pay the warrants, with interest thereon, outstanding against the funds of said county. The board may in its discretion extend such tax levy over a period of not to exceed 3 years.
     (2) (a) If it shall appear to the board that it will require too large a tax levy to pay such warrant indebtedness, with interest thereon, within 3 years, such board, instead of creating a special warrant district, shall create and establish a special funding bond district and shall include within the boundaries thereof all of the territory within such adjoining county but shall not include therein any of the territory of the abandoned and abolished county attached to such adjoining county. After all money in the several funds of said county applicable thereto has been applied in payment of such outstanding warrants and interest thereon and without submitting the question of doing so to an election, such board may issue bonds in an amount sufficient to pay and redeem all such warrants remaining outstanding, with interest thereon.
     (b) Such bonds shall be issued in the name of said adjoining county and shall contain recitals to the effect that the principal and interest thereof will be paid by millage tax levies against the property situated within the boundaries of said county as the same existed before the territory of such abandoned and abolished county was attached thereto and that none of the property within the territory of such abandoned and abolished county will be subjected to such levies. Except as otherwise provided herein, said bonds shall be issued and sold and tax levies shall be fixed and made to pay the principal and interest thereof as the same becomes due in the manner provided by 7-7-107, 7-7-108, 7-7-123, 7-7-124, 7-7-2104, 7-7-2106, and parts 22 and 23 of chapter 7 and all the provisions thereof, so far as applicable thereto, shall apply to such bonds.

     History: En. Sec. 18, Ch. 105, L. 1937; R.C.M. 1947, 16-4018(a), (b); amd. Sec. 5, Ch. 370, L. 1987.