§ 5861 Election And Debt Resolution
This law tells a city board how to set up a special election and how to borrow money for a project, including limits on the interest they can charge.
A town wants to hold a vote on building a new park and needs to borrow $1,000,000 to pay for it.
The board must pick an election day at least 130 days away, decide where people will vote, name election workers who live in the area, say why they need the money, and promise not to charge more than 7% interest, paid twice a year.
Interest per payment = Principal × (Maximum Rate ÷ 2)
The town borrows $1,000,000.
Result: Interest per half‑year = 1,000,000 × (0.07 ÷ 2) = 1,000,000 × 0.035 = 35,000 dollars. The town will pay $35,000 in interest every six months.
AI-generated — May contain errors. Not legal advice. Always verify source.
§ 5861 Election And Debt Resolution
Last verified: January 11, 2026