A. Bonds authorized by Section 73-20-13 N.M. Stat. Ann. shall not be issued until proposed by order or resolution of the board of directors, specifying the purpose for which the funds are to be used, and the proposed undertaking, the amount of bonds to be issued, the rate of interest they are to bear and the amount of any necessary assessment levy in excess of the maximum authorized in Section 73-20-17 N.M. Stat. Ann. to establish a sinking fund for the liquidation of bonds as provided in Section 73-20-17 N.M. Stat. Ann.. A copy of the order or resolution shall be certified to the board of supervisors.

B. The board of supervisors shall conduct a hearing on the proposal after notice given pursuant to Section 73-20-8 N.M. Stat. Ann.. If it appears that the proposal is within the scope and purpose of the Watershed District Act [73-20-1 N.M. Stat. Ann. et seq.] and meets all other requirements of the law, the proposal shall be submitted to the qualified electors of the district at an election held pursuant to the Local Election Act [N.M. Stat. Ann. Chapter 1, Article 22].

C. If two-thirds of the qualified electors voting on the ballot question favor the proposal, the bonds may be issued.