1. A. Whenever an improvement district has been created and bonds or assignable certificates have been issued to finance the improvement, a municipality shall:

   1. (1) act as agent for the collection of the assessments;
   2. (2) collect the assessments when due;
   3. (3) act as trustee for the benefit of the holders of the bonds or assignable certificates;

   4. (4) annually prepare a statement that shall:

      1. (a) be available for inspection in the office of the municipal treasurer;
      2. (b) reflect the financial condition of the improvement district; and
      3. (c) list all the delinquencies existing at that time; and
   5. (5) institute proceedings to foreclose the assessment lien against any tract or parcel of land that is delinquent in the payment of the assessment or installment of an assessment for a period of more than one year.
2. B. If more than one improvement district is created, the money from assessments in each district shall be kept in a separate fund and used for the payment of principal and interest of the bonds or assignable certificates outstanding against that improvement district.

History: 1953 Comp., § 14-32-19, enacted by Laws 1965, ch. 300; 1991, ch. 199, § 17.

ANNOTATIONS

The 1991 amendment, effective April 4, 1991, deleted "negotiable coupon" preceding "bonds" in three places and, in Subsection A, substituted "when due" for "annually or semiannually" at the end of Paragraph (2), designated former Subparagraph (d) of Paragraph (4) as Paragraph (5), and made minor stylistic changes.

Ordinance cumulative of statute. — The promise of the city in paving ordinance to enforce collection of assessments is only promising to perform the very services which the statute pursuant to which the ordinances were passed says the municipality should perform and is cumulative only. Munro v. City of Albuquerque, 1943-NMSC-050, 48 N.M. 306, 150 P.2d 733.

Absent specific directions in the applicable statutes, ordinances or bonds for the application of collected funds to interest and principal, in the event of insufficiency to pay both at maturity, the city incurs no obligation with respect thereto except to apply the available funds in accordance with the provisions of the ordinances creating the obligation. Gray v. City of Santa Fe, 135 F.2d 374 (10th Cir. 1943).

The city's only obligation to sewer certificate holders is to handle the fund created by sewer assessments according to the contract and its liability under the contract is measured by the statutes which authorized it. Purcell v. City of Carlsbad, 126 F.2d 748 (10th Cir. 1942).

Liability of city. — A city which agrees to collect improvement assessments, and to apply the proceeds in payment of bonds, which are payable exclusively out of such assessments, is not liable primarily for the bonds. Gray v. City of Santa Fe, 89 F.2d 406 (10th Cir. 1937).