§ 114-86. Depositories; borrowing by district; limitation on debt, exception.

(a)

The revenue and funds of the district shall be deposited in the name of the district in a bank or banks authorized to receive deposits of county funds, which bank or banks shall be designated by resolution of the board of commissioners. The designation of such bank or banks and the deposit of funds therein shall be by the exercise of due care and diligence on the part of the board of commissioners for the safekeeping of said funds. No funds of the district shall be paid out or disbursed except by check.

(b)  (1) The board of commissioners shall have the power and authority to borrow money for the purposes of the district, not to exceed 50 percent of the total ad valorem tax roll, and may pledge as security for the payment of such loan collections on said roll and pursuant thereto shall have the power and authority to give tax anticipation notes, which shall be the sole security for any such loan, except where real property is purchased and a mortgage is given, subject to referendum approval where required by the constitution, to secure the purchase.

(2)

Neither the district nor the commissioners shall be collectively or individually liable for any such loan, or any part thereof; and in the event of such pledge, it shall be the duty of the commissioners, upon collection of the ad valorem tax roll so pledged, to apply the first proceeds thereof to the payment of the loan for which such ad valorem tax roll or lien was pledged until full payment of the loan is made.

(3)

Except as provided in paragraph (b)(1) [of this section], the commissioners shall not create indebtedness or incur obligations for any sum or amount which the board is unable to pay out of district funds then in its hands; provided, however, that this paragraph shall not be construed to prohibit the purchasing of essential equipment and apparatus under rental-purchase or retain title contracts in which the equipment or apparatus, and/or tax anticipation certificates, constitute the sole security for the remaining balance due on the purchase price thereof.

(Laws of Fla. ch. 61-2661, § 9; Laws of Fla. ch. 82-369, § 1; Laws of Fla. ch. 88-477, § 4)