After appointment and organization proceedings as hereinbefore provided, the commissioners shall develop in conjunction with the United States Secretary of Agriculture, or with the head of such other federal agency as may be involved, plans for works of improvement within the scope of Section 51-7-1, which are to be carried out within or without the area of said master water management district. Whatever federal financial or other assistance is furnished in connection with the planning or construction of the proposed improvements, such plans and specifications shall be detailed only to the extent required by the federal department or agency responsible for furnishing such assistance. In connection with the development of such plans, the said commissioners, with approval of the chancery court, may incur expenses for engineering work, legal services, costs of publication and other administrative expenses, and other necessary preliminary expenses, including acquisition of easements and rights-of-way. For the payment of any such expenses the district may, with the approval of the chancery court, borrow money at a rate of interest not exceeding that allowed in Section 75-17-105, and issue negotiable notes or other evidences of indebtedness therefor, signed by the president and secretary of said board of commissioners, said notes or other evidences of indebtedness to be payable to the lender, or bearer, as said commissioners may elect. None of the said evidence of indebtedness so issued shall run for more than two (2) years, but they shall be subject to renewal for one (1) additional period up to two (2) years, and they shall be nontaxable. The commissioners may pledge all assessments on the land within the district made under provisions of this chapter for the payment of said evidences of indebtedness. Said obligations may be paid out of any general or special fund of the district, if organized, or out of the proceeds of the first assessments levied under this chapter. In the event said district is not organized after said indebtedness has been incurred, then the board of supervisors of the respective county or counties having territory or territories in such proposed district shall, on order of the chancery court, levy an acreage or an ad valorem tax against the lands embraced in said proposed district. If an ad valorem tax be levied, the board of supervisors may use for that purpose the assessments of the land according to the last assessment roll of the county in which said lands are situated; and in case the lands in the proposed district lie in more than one (1) county, then the chancery court shall apportion said indebtedness between the several counties, and the board of supervisors shall thereupon levy such apportioned tax upon the lands of their counties respectively, according to the ruling of the chancery court.

Notwithstanding the foregoing provisions of this section, bonds referred to hereinabove may be issued pursuant to the supplemental powers and authorizations conferred by the provisions of the Registered Bond Act, being Sections 31-21-1 through 31-21-7.