Ask NASCA › District Law power to borrow money
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Steve Cauthen
Do you have any districts that have borrowed money?
Marc CribbWe have one district that has a mortgage loan on their office building.
Louise LawrenceIn Maryland , a few districts have borrowed money to construct service centers to house local offices of ag agencies.
Thayne MickelsonNone to my knowledge.
Shana JoyA few districts in Alaska have lines of credit that they use to cover expenses until grant reimbursements are received but no mortgages or other loans of that type that I’m aware of.
Robert BaldwinAll three of our Districts borrow from an established State Revolving Loan fund for the purchase of equipment, usually earthmoving equipment, but they have used it purchase pickup trucks and computers servers, etc.
Leonard LordIn NH the Rockingham Conservation District recently purchased a 2007 F150. Having no credit history we were required by the bank to put aside a CD to cover the principal on the loan.
Jim GillespieNot that we are aware of in Iowa. They are subdivisions of state government and I am not sure how they would go about securing any loan?
Greg FoleyKansas Conservation Districts do not have the authority to create indebtedness.
Brad SpicerOur districts are not authorized to go into debt or to borrow money for any purpose.
Mel DavisWe have had some districts borrow to purchase equipment and real property
(office buildings).
Our district law provides:(1) A conservation district may execute notes on the faith and credit of the conservation district for the purpose of making repairs, additions, or improvements to any property or equipment owned by the conservation district. The notes may be issued payable from current funds or reasonably contemplated revenues, but the conservation district may not issue notes payable from funds derived from the state.
(2) Any note issued by a conservation district may be secured by a lien on the property or equipment to which the repairs, additions, or improvements are to be made if the property or equipment was not acquired from the state or with funds derived from the state. A note executed in connection with the purchase of real property may be secured only by the purchased real property.
(3) Debts incurred by a conservation district may not create a lien on the land of owners or occupiers of land in the district.
Laurie ZellerYes, Montana’s conservation districts have borrowed money for buildings or equipment purchases. They can also lend money.
Doug ThomasSteve:
No specific statutory power in MN’s SWCD law pertaining to borrowing.
Lisa Knauf OwenOur Conservation Districts do not have the authority to borrow money from banks, savings and loan associations, credit unions or similar institutions. They may borrow money from another district, local industiral development authority or municipal trust authority.
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