The board of directors may, if in their judgment it seems best, issue bonds not to exceed ninety percent (90%) of the total amount of the assessment exclusive of interest, levied under the provisions of this act, in denomination of not less than One Hundred Dollars ($100.00) bearing interest from date at a rate not to exceed eight and one-half percent (8 1/2%), per year, payable semiannually, to mature at annual intervals within thirty (30) years, commencing not later than five (5) years, to be determined by the board of directors, both principal and interest payable at such place as may be designated by the board, but such board of directors shall not issue any such bonds until a special election shall have been called and held throughout the territory comprising said improvement district and said election shall be held under the laws of this state, and it shall be necessary that sixty percent (60%) of the owners of property in said district assessed for the execution of the official plan, voting in said election, shall vote in favor of issuing said bonds. Said bonds shall be signed by the president of the board of directors, attested with the seal of said district and by the signature of the secretary of said board, and shall be approved as to proceedings by the Attorney General as ex officio bond commissioner and registered by the State Treasurer. Facsimile signatures may be used as provided in the Registered Public Obligations Act of Oklahoma. In case any of the officers whose signatures, counter signatures or certificates appearing upon bonds or coupons issued pursuant to this act, shall cease to be such officer before the delivery of such bonds to the purchaser, such signatures, or counter signatures and certificates shall nevertheless be valid and sufficient for all purposes, the same as if they had remained in office until the delivery of the bonds. All of said bonds shall be executed and delivered to the State Treasurer for said district and if said district shall comprise all or part of two or more counties and if said district is elected entirely within one county said bond shall be delivered to the county treasurer of said county, and the board or appointed agent shall sell the same in such quantities and at such dates as the board of directors may deem necessary to meet the payments for the works and improvements of the district. They shall show on their face the purpose for which they are issued and shall be payable out of the money derived from the conservancy bond fund. A sufficient amount of the assessment shall be appropriated by the board of directors for the purpose of paying the principal and interest of bonds and the same shall, when collected, be set apart in a separate fund for that purpose based on an equal percentage of increase of all assessments therefor made, such percentage increase to be approved by the district court having jurisdiction, and no other. All bonds and coupons not paid at maturity shall bear interest at the rate of eight and one-half percent (8 1/2%), per year, from maturity until paid or until sufficient funds have been deposited at the place of payment. Any expenses incurred in paying said bonds and interest thereon and reasonable compensation for the fiscal agent for registering and paying same, shall be paid out of the other funds in the hands of the district treasurer and collected for the purpose of meeting the expenses of the administration. It shall be the duty of said board of directors in making the annual assessment levy, as heretofore provided, to take into account the maturing bonds and interest on all bonds, and to make ample provisions in advance for the payment thereof. In case the proceeds of the original special assessment made under the provisions of this act are not sufficient to pay the principal and interest of all bonds issued, then the board of directors shall make such additional levy or levies as are 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 principal and interest of the same. For such deposits the district shall receive not less than three percent (3%), per year, on daily balances. The funds derived from the sale of said bonds or any of them shall be used for the purpose of paying the cost of the works and improvements and such costs, expenses, fees and salaries as may be authorized by law and shall be used for no other purpose. If at any time after the bonds are ready to be issued, the board shall be of the opinion that such bonds cannot advantageously be issued and sold in whole or in part, the said board may sell parts only of the entire issue. No bonds issued by any conservancy district shall be sold for less than par, and accrued interest to date, and any member of the board of directors or other official of the conservancy district, who shall participate in the sale of said bonds for less than provided above, shall be liable on his official bond for twice the value of the amount lost to the district, by the sale at the suit of the district or any person interested therein. The district may secure the payment of loans from the United States government in the same manner as it may secure the payment of bonds, and the board of directors may make any necessary regulations to provide for such payment. A party who has not sought a remedy against any proceeding under this act until after the bonds or any part thereof have been sold or the work or any part thereof constructed, cannot for any cause have an injunction against the collection of special assessments for the payment of said bonds except as to original jurisdiction. The bonds shall have all the qualities of negotiable paper under the negotiable instrument law of the state, and when executed, sealed, approved and registered in the office of the State Treasurer in conformity with the provisions of this act, and when sold in the manner prescribed herein and the consideration therefor received by the district, shall be incontestable after thirty (30) days from approval by the Attorney General, ex officio bond commissioner. No proceedings in respect to the issuance of such bonds shall be necessary except such as are required by this act. Whenever the owners of any coupon bond issued pursuant to the provisions of this act shall present such bond to the treasurer or appointed agent of the district with a request for the conversion of such bond into a registered bond, the said treasurer or appointed agent shall cut off and cancel the coupons of any such coupon bond so presented and shall stamp, print or write either upon the back or the face of such bonds, as may be convenient, a statement to the effect that the said bond is registered in the name of the new owner and that thereafter the interest and principal of said bond are payable to the registered owner. Thereafter and from time to time, such bonds may be transferred by such registered owner in person or by attorney duly authorized on presentation of such bond to the treasurer of the district and the bond again registered as before, a similar statement being stamped, printed or written thereon, such statement stamped, printed or written upon any such bond may be substantially in the following form: (Date, giving month, year and day) This bond is registered pursuant to the statutes in such case made and provided, in the name of (here insert name and address of owner) and the interest and principal thereof and hereafter is payable to such owner. Treasurer ............ Conservancy District. If any bond shall be registered as aforesaid, the principal and interest of such bond shall be payable to the registered owner. The treasurer or appointed agent of the district shall enter in a register of bonds to be kept by him or in a separate book, the fact of the registration of such bond and the name and address of the registered owner thereof, so that said register or books shall at all times show what bonds are registered and the name and address of the registered owner thereof.
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