A district may borrow money from time to time for the purpose of constructing, reconstructing, replacing, extending or improving its system for supplying the district and its inhabitants with electric energy, and may issue and sell bonds to evidence the indebtedness created by such borrowing. No such money may be used:
(1) For constructing or improving works located outside the district boundaries which exist on the date this Chapter 6.5 is enacted.
(2) For acquiring any property owned by a public utility.
(3) For constructing or improving works for generating electricity.
(4) For constructing or improving works used, or to be used, in whole or in part either for the receipt, transmission and delivery of electric energy for any supplier of electric power or for the exchange of electric power with any person or entity. This provision shall not prevent the district from using such money for the purposes set forth in the initial sentence of this section.
Such bonds shall not be issued for a term in excess of 20 years after the date of such bonds; provided, that this sentence shall not limit the power of a district to refund such bonds.
(Amended by Stats. 1962, 1st Ex. Sess., Ch. 6.)