Ohio Code § 6101.50

§ 6101.50.

(A) The board of directors of a conservancy district may, if in its judgment it seems

best, issue bonds in an amount not to exceed ninety per cent of the total amount of

the unpaid portion of an assessment, exclusive of interest, levied under this chapter,

to mature at annual or semiannual intervals within thirty years.  Whenever the board determines to issue bonds in anticipation of the collection of

the installments of an assessment, it shall adopt a resolution, to be known as the

resolution of necessity, declaring the necessity of the bond issue, its purpose, and

its amount.  Thereafter, prior to and in anticipation of the issuance and sale of those bonds,

the board may borrow money and issue notes.  Whenever the board determines to issue notes, it shall adopt a resolution, to be

known as the note resolution.  The note resolution shall do all of the following: (1) State the principal amount or maximum principal amount of anticipatory notes to be

issued and outstanding, not to exceed the amount of the bond issue; (2) Provide for, or provide the method for, establishing or determining from time to

time the rate or rates of interest or the maximum rate or rates of interest to be

paid on the anticipatory notes; (3) State the date or dates of the anticipatory notes; (4) Establish provisions, if any, for redemption or prepayment of the anticipatory notes,

in whole or in part, before maturity; (5) Provide the maturity date of the anticipatory notes, which shall not be later than

five years from the date of the first issue of the notes. (B) All anticipatory notes issued for less than five years may be renewed from time to

time until the expiration of five years from the date of original issue.  After the expiration of five years from the date of original issue, if any annual

installments of the assessments have been collected or are in process of collection,

the board may renew or continue to renew its anticipatory notes from time to time

until the board by a bonding resolution declares the necessity of issuing bonds. Whenever notes have been issued in anticipation of the issuance of bonds, the proceeds

of the bonds when issued and sold and of the assessment pursuant to which the bonds

are issued shall be applied to the payment of the notes and interest on the notes

until both are fully paid. (C)(1) If the board determines not to issue anticipatory notes, or if anticipatory notes

are issued and they are about to fall due, the board shall adopt a resolution, to

be known as the bonding resolution.  The bonding resolution shall do all of the following: (a) Declare the necessity of the bonds presently to be issued, their purpose, and their

amount, in accordance with the prior resolution of necessity; (b) State or provide for the date of the bonds, and the dates and amounts or maximum

amounts of maturities or principal payments on the bonds; (c) State any provision for a mandatory sinking fund or mandatory sinking fund redemption

or for redemption prior to maturity; (d) Provide for the rate or rates of interest or maximum rate or rates of interest to

be paid on the bonds or, if otherwise authorized, the method for establishing or determining

from time to time the rate or rates of interest to be paid on the bonds; (e) State any provision for a designated officer of the district to determine any of

the specific terms required by this division to be stated in the bonding resolution,

subject to any limitations stated in the bonding resolution. (2) When anticipatory notes are not issued, the resolution of necessity may be incorporated

in and made a part of the bonding resolution. (D)(1) Anticipatory notes and bonds may be sold by competitive bid or at private sale in

a manner determined or authorized by the board, but they shall not be sold for less

than ninety-seven per cent of their principal amount, plus accrued interest.  As used in this division, “ bid ” has the same meaning as in division (C) of section 133.30 of the Revised Code . (2) All moneys from premiums and accrued interest shall be paid into the bond retirement

fund. (3) Bonds and anticipatory notes shall be signed by the president of the board and be

attested by the signature of the secretary of the district.  If any of the officers whose signatures, countersignatures, or certificates appear

upon bonds, notes, or coupons issued pursuant to this chapter ceases to be that officer

before the delivery of the bonds or notes to the purchaser, the signatures, countersignatures,

or certificates shall nevertheless be valid and sufficient for all purposes, as if

the officer had remained in office until the delivery of the bonds or notes. Bonds shall show on their face the purpose for which they are issued, and shall be

payable out of money derived from the bond retirement fund.  All assessments the collection of which has been anticipated by the issuance of

bonds or notes shall, when collected, be paid into the bond retirement fund for the

purpose of paying the principal and interest of bonds and notes and for no other purpose.  The expenses incurred in paying bonds and interest on bonds shall be paid out of

the other funds in the hands of the treasurer of the conservancy district and collected

for the purpose of meeting the expenses of administration. (E) The board may issue anticipatory notes or bonds to fund or refund previously issued

notes or bonds.  These anticipatory notes or bonds shall be issued pursuant to a note resolution

or bonding resolution as described in division (A) or (C) of this section. Moneys derived from the proceeds of anticipatory notes and bonds issued under this

division and any moneys derived from other sources and required for the funding or

refunding of the previously issued notes or bonds shall be placed, under an escrow

agreement or otherwise and to the extent required by the resolution, in an escrow

fund.  The escrow fund may be an account in the bond retirement fund if the previously

issued notes or bonds are payable within ninety days of the issuance of the anticipatory

notes or bonds under this division.  The moneys in the escrow fund shall be pledged and used for the purpose of funding

or refunding the previously issued notes or bonds. (F) Pending their use under division (E) of this section, the moneys in the escrow fund

referred to in that division shall be invested in direct obligations of, or obligations

guaranteed as to payment by, the United States that mature, or are subject to redemption

by and at the option of the holder, not later than the date or dates when the moneys

in the escrow fund, together with interest or other investment income accrued on those

moneys, are required for the payment of debt charges on the previously issued notes

or bonds under division (E) of this section.  Any moneys in the escrow fund that are not needed for the payment of debt charges

on the previously issued notes or bonds shall be transferred to the bond retirement

fund.  For purposes of this division, “direct obligations of, or obligations guaranteed

as to payment by, the United States” includes rights to receive payment or portions

of payments of the principal of, or interest or other investment income on, those

obligations and other obligations fully secured as to payment by those obligations

and the interest or other investment income on those obligations. (G) When the moneys, including the interest or other investment income on the moneys,

in the escrow fund referred to in division (E) of this section are determined by an

independent public accounting firm to be sufficient for the payment of the debt charges

on the previously issued notes or bonds under that division, the following conditions

shall apply: (1) The previously issued notes or bonds shall no longer be considered outstanding. (2) The previously issued notes or bonds shall no longer be considered for purposes of

determining any direct or indirect limitation on the indebtedness or net indebtedness

of the district. (3) The levy of special assessments or other charges for the payment of the debt charges

on the previously issued notes or bonds under this chapter, Chapter 5705. of the Revised

Code, or other provisions of the Revised Code is not required. (H) The board in making the annual assessment levy shall take into account the maturing

bonds and interest on all bonds, and shall make ample provision in advance for the

payment of those bonds and that interest. In case the proceeds of the original assessments made under section 6101.48 of the Revised Code are not sufficient to pay the principal and interest of all bonds issued, the board

shall make additional levies as necessary for this purpose, and under no circumstances

shall any assessment levies be made that will in any manner or to any extent impair

the security of the bonds or the fund available for the payment of the principal and

interest of the bonds.