Other LanguagesA county legislative authority is generally prohibited from entering into contracts that bind the future legislative actions of the county. The application of this principle depends upon a distinction between actions that are legislative in nature and those that are merely administrative or proprietary.
A school district, through its board of directors, may legally contract for fire, theft and liability insurance covering a period of years, the premiums of which are payable in annual installments over the life of the contract.
When a school district purchases fire and extended coverage insurance protection for the property of the district under a three year contract which it may cancel at any time, and consequently recover any unearned portion of the premium, it may pay the full premium due in accordance with the contract at the time of purchase.