§ 9013 District Bond Compensation Payments

• •If a special water or land district (like for floods or farming) has debts or owes money, any payments they get must go straight to the district.
• •The district must use that money to pay off its debts, like bonds or warrants, as the law says.
• •This rule was added in 1943 to make sure districts don’t misuse the money.

A small town has a special district to prevent floods. The district borrowed money by selling bonds to build levees. Later, the government gives the district money for land they needed to use.

Instead of the district spending that money on something else, like new offices, they must use it to pay back the bonds they sold earlier. This makes sure the district doesn’t ignore its debts.