(A) The chief of the division of soil and water resources before selling bonds as provided in section 1523.02 of the Revised Code or before receiving bids for the construction of improvements as authorized by section 1523.03 of the Revised Code may enter into tentative agreements for the sale or lease of water or power to:
(1) Ascertain whether the public interest and welfare reasonably require the proposed improvements in the proposed locality;
(2) Determine whether the revenues which the state may derive from the lease of lands and the lease and sale of the waters which are estimated will be conserved, impounded, and stored, or from the sale or lease of the power generated by such improvements, will be sufficient:
(a) To pay the interest on bonds issued under section 1523.02 of the Revised Code;
(b) To create a sinking fund to retire the bonds at their maturity;
(c) To maintain and keep the improvements in repair.
(B) The performance and carrying out of such tentative agreements shall be conditioned upon the ability of such chief to:
(1) Sell the proposed bonds at not less than par and accrued interest;
(2) Secure bids for the furnishing of all the labor and material necessary in the construction of such improvements, including all real estate required and damages incurred, at such a price that the rentals or compensation to be paid will provide during the terms of such contracts or leases a sum sufficient to pay the interest, retire the bonds, and maintain and keep the improvements in repair.
Amended by 128th General AssemblyFile No.9,HB 1, §101.01, eff. 7/17/2009.
Effective Date: 10-01-1953