1. The board of directors may also provide by contract with the United States for the release of mortgages or liens given or reserved to the United States upon district lands, and may provide for the assumption by the district, either as principal or guarantor, of indebtedness to the United States on account of district lands, and apportion to each tract of land so released benefits in the amount of the obligations to the United States so provided to be released.

2. The contract between the district and the United States may provide for the collection and payment of indebtedness so incurred or assumed by the district and the tax or assessment for the same at the same times and in the same amounts or installments provided in the federal reclamation laws. If so provided in the contract, such taxes and assessments shall become delinquent at the same dates provided in the Act of Congress of August 13, 1914, being c. 247, 38 Stat. 686, known as the Reclamation Extension Act. If it is provided in the contract that the United States waives any penalties for delinquency other or greater than those named in the Reclamation Extension Act, then, instead of the penalties otherwise provided in state laws, the penalties for delinquency in the payment of that part of the tax representing the special assessment for payment of the obligations of the district to the United States shall be the penalties named in the Reclamation Extension Act, and the amount required to be paid in case of any redemption from any tax sale or tax judgment shall be determined by figuring the part thereof due to the United States upon the basis of the amount of such special assessment levied for the purpose of paying the United States plus the penalties named in the Reclamation Extension Act.

3. The board shall have full power to do any and all things required by the federal statutes now or hereafter enacted in connection therewith, and all things required by the rules and regulations now or that may hereafter be established by any department of the Federal Government in regard thereto.

[60:64:1919; 1919 RL p. 3290; NCL § 8078]