New Mexico Statutes Chapter 73. Special Districts § 73-7-37. Commissioners may borrow money; notes and bonds; sale

The commissioners [of the drainage district] may borrow an amount necessary to meet the preliminary expenses authorized by this article, and secure the amount by notes not running beyond one year from their date, and may further borrow money, not exceeding the amount of assessment for cost of construction, additional assessment and assessments for repairs, outstanding at the time of borrowing, for the construction or repair of any work which they are authorized to construct or repair or for the payment of any indebtedness they may have lawfully incurred and may secure the same by notes or bonds not running beyond one year after the last installment of the assessment, on the account of which the money is borrowed, shall fall due. The notes or bonds shall be in such form as the commissioners may determine, and which notes or bonds shall not be held to make the commissioners personally liable, but shall constitute a lien upon the assessments for the repayment of the principal and interest of the notes or bonds. The bonds shall not be subject to taxation by the state or any subdivision thereof. All sales are to be approved by the [district] court.

In case any money derived from bonds sold to pay for the original construction of improvements, now or hereafter, remains on hand after the work is completed in original construction, and paid for, and not required to pay damages, the residue may be used for maintenance and repair.