123B.12 INSUFFICIENT FUNDS TO PAY ORDERS.
(a) In the event that a district or a cooperative unit defined in section
123A.24, subdivision 2
has insufficient funds to pay its usual lawful current obligations, subject to section
board may enter into agreements with banks or any person to take its orders. Any order drawn,
after having been presented to the treasurer for payment and not paid for want of funds shall
be endorsed by the treasurer by putting on the back thereof the words "not paid for want of
funds," giving the date of endorsement and signed by the treasurer. A record of such presentment,
nonpayment and endorsement shall be made by the treasurer. The treasurer shall serve a written
notice upon the payee or the payee's assignee, personally, or by mail, when the treasurer is
prepared to pay such orders. The notice may be directed to the payee or the payee's assignee at
the address given in writing by such payee or assignee to such treasurer, at any time prior to the
service of such notice. No order shall draw any interest if such address is not given when the same
is unknown to the treasurer, and no order shall draw any interest after the service of such notice.
(b) A district may enter, subject to section
, into a line of credit agreement with
a financial institution. The amount of credit available must not exceed 95 percent of average
expenditure per month of operating expenditures in the previous fiscal year. Any amount advanced
must be repaid no later than 45 days after the day of advancement.
History: Ex1959 c 71 art 5 s 6; 1965 c 69 s 2; 1967 c 761 s 1; 1986 c 444; 1Sp1995 c 3 art
1 s 6; 1998 c 397 art 6 s 114,124; art 11 s 3