Purchaser rights; power of directors respecting contracts and instruments relating to transfer

(1) A sale of excess storage or carrying capacity or a sale of surplus water or water rights by the board shall not give the purchaser any prior or superior right in the water rights, water supplies, reservoir or irrigation works of the district over the rights retained by the district for lands within the district. (2) If the contracts or instruments are considered advantageous to the district, the board may enter into contracts and execute instruments as may be necessary: (a) To transfer property, including excess storage and carrying capacity and surplus water and water rights; (b) To transfer the right to the use of the quantity of water sold; (c) To transfer an interest in the reservoir and other irrigation works of the district; or (d) For the joint management and operation of any or all of the works of the district. (3) Property of the district that is the subject of a contract or instrument executed under this section must be released from the lien of outstanding bonds of the district prior to the execution of the contract or instrument. [Formerly 545.152] (Generally)