35-607. Powers of district to consummate plan; issuance of refunding bonds; hearing upon resolution; notice

A. Upon filing a certified copy of the resolution as provided by section 35-606, the taxing district may consummate the plan of readjustment, and in doing so, shall have the following powers and duties:

1. To cancel in whole or in part, or remit or reduce, the monies payable under any bonds, warrants or evidences of indebtedness or other obligations of, or issued by, the taxing district sought to be refunded by the plan of readjustment.

2. To issue refunding bonds to refund obligations specified in subdivision (e) of this paragraph, subject to the following:

(a) Such obligations may be those of, or issued by, the taxing district, as described in the plan of readjustment. The refunding bonds shall have such denominations, rates of interest and maturities, and shall be payable by taxes, special assessment taxes or special assessments, levied or assessed in the manner provided in the plan of readjustment, except that no such refunding bonds shall exceed in amount, or bear a higher rate of interest than, the total obligations sought to be refunded.

(b) If the bonds sought to be refunded were issued pursuant to statute requiring an election as a prerequisite for the issuance of the bonds, it is not necessary to hold an election to authorize the issuance of the refunding bonds, except as may be required by the constitution and laws of this state.

(c) The refunding bonds need not be payable from taxes or special assessments levied or assessed in the manner in which the bonds sought to be refunded were payable. By way of illustration of, but not by way of limitation upon, the powers granted by this article, bonds payable by taxes levied in whole or in part according to the assessed valuation of real or taxable property in a district may be refunded by the issuance of refunding bonds so payable or by the issuance of refunding bonds constituting specific liens upon real property described in the refunding bonds and subject to enforcement, collection and foreclosure pursuant to the plan of readjustment, but anything to the contrary in this article notwithstanding, no refunding bonds shall be payable by the levy of taxes or special assessment taxes upon all taxable property in a district unless the bonds sought to be refunded were payable by the levy of taxes or special assessment taxes upon all such taxable property in a district.

(d) It is sufficient for the purpose of this article that the petition sets forth by reference or authorizes:

(i) The procedure to be followed, respectively, in the levy and collection of taxes, special assessment taxes or special assessment for the payment of the refunding bonds.

(ii) The character, effect of and method of enforcing the liens sought to be created by the issuance of the refunding bonds.

(iii) The rights of the holders of the refunding bonds upon the issuance thereof.

(e) The refunding bonds authorized by this article shall include bonds to refund bonds secured by unpaid assessments already levied upon real property in a district, and shall also include bonds to fund or refund or pay any obligation of the taxing district whether or not reduced to judgment, whether or not represented by any written instrument and whether arising by contract, statute or otherwise.

3. To issue new securities, notes, warrants and obligations, and to enter into contracts, agreements, arrangements and readjustments with creditors or other persons as authorized or contemplated by any law of the state and approved by the court under the provisions of the federal bankruptcy statute.

4. To adopt ordinances necessary to accomplish the purposes of this article or to provide due process of law with respect to any proceedings authorized by this article. The officers of the taxing district, or the officers referred to in section 35-602, are constituted a legislative body of the taxing district for such purpose.

5. To assess, levy and collect taxes, special assessment taxes and special assessments and to enforce the collection thereof by officers as provided by law.

6. To cancel or reduce the taxes or special assessment taxes already levied or assessed by the taxing district or in its behalf upon any taxable or real property within the district, if such levy or assessment was for the purpose of paying the principal or interest on the bonds sought to be refunded by the plan of readjustment, in the manner and as set forth in the plan of readjustment. The powers granted by this article shall include cancellation or reduction of interest, penalties and costs which may be levied as assessed upon the property within the district by reason of any previous delinquency in the payment of the taxes or special assessments.

B. If the plan of readjustment contemplates the issuance of refunding bonds payable by special assessment taxes or by special assessments or reassessments which will constitute liens upon real property, the taxing district may not adopt the resolution provided by section 35-606 unless, before entry of the final decree or order confirming the plan of readjustment, it holds a hearing after notice thereof as provided in this article. In such event before signing of the order or decree of the federal district court approving the plan of readjustment, the taxing district shall give notice, for a reasonable time and in a reasonable manner, of its intention to adopt the resolution provided by section 35-606 after the entry of the final decree or order, of the fact that by the plan of readjustment it is proposed to levy special assessments or reassessments or special assessment taxes upon real property in the amounts and in the manner set forth in the plan of readjustment and of the time and place when and where all persons interested in any such assessments or reassessments or special assessment taxes may be heard by the taxing district.

C. The taxing district shall prescribe by ordinance or resolution the manner of holding the hearing provided by subsection B of this section and of giving notice thereof and the effect to be given to its determination at the hearing.

D. The enumeration of powers in this section shall not be deemed to exclude powers not provided for in this article that may be necessary for or incidental to the accomplishment of the purposes of this article.