Whenever it shall appear, to the satisfaction of the director of ecology, that the
irrigation system of any irrigation district, to which the department of ecology of
the state of Washington under a contract with the district for the purchase of its
bonds, has advanced funds for the purpose of constructing an irrigation system for
the district, has been found incapable of furnishing sufficient water for the successful
irrigation of all of the lands of such district, and that the board of directors of
such district has reduced the boundaries thereof and excluded from the district, as
provided in RCW 87.03.750 through 87.03.760, sufficient lands to render such irrigation system adequate for the successful irrigation
of the lands of the district, and that more than thirty days have elapsed since the
adoption of the resolution by the board of directors reducing the boundaries of the
district and excluding lands therefrom, and no appeal has been taken from the action
of the board, or that the action of the board has been confirmed by the superior court
of the county in which the district is situated and no appeal has been taken to the
supreme court or the court of appeals, or that upon review by the supreme court or
the court of appeals the action of the board of directors of the district has been
confirmed, the director of ecology shall be and he or she is hereby authorized to
cancel and reduce the obligation of the district to the department of ecology, for
the repayment of moneys advanced for the construction of an irrigation system for
the district, to such amount as, in his or her judgment, the district will be able
to pay from revenues derived from assessments upon the remaining lands of the district,
and to accept, in payment of the balance of the obligation of the district, the authorized
bonds of the district, in numerical order beginning with the lowest number, on the
basis of the percentage of the face value thereof fixed in contracts between the district
and the department of ecology, in an amount equal to said balance of the obligation
of the district, in full and complete satisfaction of all claims of the department
of ecology against the district.
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