46-1,146.

Water supply contracts and bonds; rescission; when authorized.

If any irrigation district shall have heretofore, or hereafter, purchased a water supply and issued bonds in payment of the same, or shall have purchased an irrigation system, which system included a contract for water supply and issued bonds in payment of the same, the directors of the district may arrange for the surrender and rescission of such contract for water supply upon surrender and cancellation of bonds in an amount equal to the bonds issued in payment for such water supply, and if the water supply was included in the purchase price of an irrigation system the board of directors may arrange for the surrender and rescission of the contract for such water supply on the surrender and cancellation of bonds in an amount equal to the part of the purchase price that was represented by the value of such contract for water supply, such amount to be determined by the directors of the irrigation district. Upon the surrender of such contract and cancellation of bonds as hereinbefore provided, the board of directors of such irrigation district may enter into a new contract for water supply as hereinbefore provided.