§ 8976 State Investment In Drainage Warrants

• •The government can use state money to buy special papers (warrants) from drainage districts.
• •These papers are like promises to pay, backed by taxes on land in that area.
• •The government buys them at their full price, not a discount.

A town has swampy land that needs drainage work, but they don’t have enough money right now.

The government can step in and buy the town’s ‘promise to pay’ papers (warrants) using state money. Later, the town will pay back the government using taxes from the landowners who benefit from the drainage.