SCHOOLS - LIABILITY OF DISTRICT FOR INTEREST OR PENALTIES ON ASSESSMENTS LEVIED BY L.I.D. OF A WATER DISTRICT (1)  A school district is liable for the payment of interest in an assessment payable in installments and levied against its real property by utility L.I.D. created by a water district.(2)  A school district is not liable for interest or penalties for failure to pay the assessment or any installment when due.