SECTIONS 54664-54667 - California Statutes

GOVERNMENT CODE

SECTION 54664-54667

54664. When the legislative body deems it in the best interests of
the local agency, it may authorize the issuance of notes, on a
negotiated or a competitive bid basis, maturing within a period not
to exceed two years, in anticipation of the sale of bonds duly
authorized at the time such notes are issued. Such notes and the
resolution providing for the issuance of such notes may contain any
provision, condition or limitation which a bond, or any resolution or
ordinance providing for the issuance of such bond, may contain. The
proceeds from the sale of such notes shall be used only for the
purposes for which the bonds were authorized.

54665. All notes issued pursuant to this article and any renewal
thereof shall be payable at a fixed time, except that in the event
that the sale of the bonds shall not have occurred prior to the
maturity of the notes issued in anticipation of the sale, the
treasurer shall, in order to meet the notes then maturing, issue
renewal notes for such purpose. No renewal of a note shall be issued
after the sale of bonds in anticipation of which the original note
was issued. There shall be only one renewal of any note issued
pursuant to this article, and such renewal note shall mature within a
period not to exceed two years.

54666. The principal of, and interest on, such notes may be paid
from the revenues of the enterprise. If such notes, or any portion
thereof, or the interest thereon, have not been previously paid, they
shall be paid from the proceeds of the next sale of bonds in
anticipation of which the notes were issued. If any of the principal
of such notes is paid from the revenues of the enterprise rather than
the proceeds of the sale of bonds, the amount of bonds the local
agency is authorized to thereafter issue shall be reduced by the
amount so paid from the revenues of the enterprise. The total amount
of such notes or renewals thereof issued and outstanding shall not
exceed the total amount of the unsold bonds.

54667. Notes may be issued pursuant to this article in anticipation
of the sale of bonds authorized either before or after the effective
date of this article.