85-7-2157. Purchase of lands by district -- revolving fund, credits, and expenditures. (1) At all sales of all lands for delinquent taxes where all or a portion of such delinquent taxes are taxes and assessments levied and assessed by any irrigation district against the lands to be sold, the commissioners of such irrigation district, if there be no other bidder for such land at such tax sale, may bid therefor the total amount of all delinquent taxes and assessments, penalty, and interest against such land, and thereupon the county treasurer shall strike off said lands to such irrigation district and issue certificates of tax sale to said irrigation district the same as such certificates of tax sales are issued to other purchasers. For the purpose of paying such taxes, assessments, interest, and penalties, the commissioners of such irrigation district shall have the power and authority to create by resolution a fund to be known and designated as the revolving fund for the purchase of tax certificates and titles and to provide funds for such revolving fund by levy, bond issue, or otherwise. The district may pay such taxes, assessments, interest, and penalties by issuing a warrant to the county treasurer against such revolving fund, provided that there shall be sufficient money in such fund to pay same in full upon demand.
     (2) When taxes are paid by the district as provided in this part, the county treasurer shall distribute that portion of said tax belonging to the irrigation district to the several funds as designated in the tax levy and assessment. However, if the board of commissioners of the irrigation district shall file with the county treasurer a certified copy of resolution passed by such commissioners requesting nondistribution by the county treasurer of the portion of the tax belonging to the district, the county treasurer shall not distribute that portion of said tax belonging to the irrigation district to the several funds as designated in the tax levy and assessment, but the total amount due the irrigation district shall be credited by him to the revolving fund above specified. In such event, at the time of the sale by the district of the tax sale certificate or of the property obtained through such certificate, such funds as are realized from such sale must be deposited with the county treasurer, together with the rentals received from the property, and he shall credit the proceeds of such redemption sale or rental pro rata to the several funds of the district in accordance with the original levy or assessment.
     (3) At the time of redemption or of the sale by the district of the tax sale certificate or of the property obtained through such certificate, such funds as are realized must be deposited with the county treasurer, together with rentals received from the property. He shall credit the proceeds of such redemption, sale, or rentals to the above specified revolving fund to such extent as may be required, with the credit provided for above, to reimburse said revolving fund in full, if the sum realized permits, the overplus, if any, to be credited to the several funds of the district in accordance with the original levy and assessment. No expenditures shall be made from the revolving fund except for the purpose as herein specified, and when, by resolution of the board of irrigation district commissioners, such fund shall be deemed inactive, the balance remaining in said fund shall be transferred to a sinking fund to be applied upon any indebtedness which may have been incurred by the district by reason of the creation of such revolving fund, if any there may be.

     History: En. Sec. 1, Ch. 89, L. 1925; amd. Sec. 1, Ch. 57, L. 1929; re-en. Sec. 7248.1, R.C.M. 1935; R.C.M. 1947, 89-1822.