SECTIONS 49160-49181 - California Statutes

PUBLIC RESOURCES CODE

SECTION 49160-49181

49160. No general obligation bonds shall be issued by the district
unless the issuance thereof is approved by the electors of the
district at a special election as provided in this article. If the
district board finds that it is necessary to incur a bonded
indebtedness to obtain funds with which to carry out the purposes of
the district, it may submit the proposition to the voters of the
district. For that purpose, a special election shall be called by
resolution.

49161. The resolution shall state all of the following:
(a) The general objectives and purposes for which it is proposed
to incur an indebtedness.
(b) A general description of all property to be acquired or
damaged and work to be executed through the expenditure of the funds
secured by the issuance and sale of the bonds.
(c) An estimate of the cost of the proposed work.
(d) The amount of the bonds proposed to be issued.
(e) The number of years beyond which the bonds are to run.
(f) The rate of interest or a maximum rate of interest to be paid.
(g) The date of the election.
(h) The election precincts, polling places, and election officers.

49162. For purposes of the bond election, the district board may
consolidate into one precinct several precincts established for
general election purposes and describe the precinct by reference to
the general election precincts.

49163. An election board consisting of one inspector, one judge and
one clerk shall be appointed by the district board for each
precinct.

49164. Only voters registered in the district are eligible to vote
at the bond election.

49165. A resolution calling the election shall be published once a
week for three successive weeks in a newspaper having a general
circulation in the district and designated by the district board. No
other notice of the election is required.

49166. If two-thirds of the votes cast are in favor of incurring
the bonded indebtedness as proposed, bonds of the district for the
amount stated in the resolution calling the election shall be issued
and sold.

49167. The validity of the bonds after their issuance shall not be
questioned in any court except on the ground that the provisions of
this chapter authorizing their issuance are unconstitutional, or that
the required hearing regarding the formation of the district was not
regularly held or proper notice of it was not given.

49168. The district board shall prescribe, by resolution, the form
of the bonds and interest coupons. The bonds shall be payable at the
times and at a place to be fixed by the district board and designated
in the bonds, together with interest on all sums unpaid on that date
until all of the indebtedness has been paid. The term of the bonds
issued shall not exceed 40 years.

49169. The bonds shall be issued in the denominations that the
district board determines, except that no bond shall be of a
denomination less than one hundred dollars ($100) or greater than one
thousand dollars ($1,000).
The bonds shall be payable on the day and at the place fixed in
the bonds, and with interest at the rate specified in the bonds,
which rate shall not be in excess of 8 percent per annum and shall,
after the first year, be payable semiannually.

49170. The bonds shall be signed by the chairperson of the district
board and countersigned by the county auditor, and the seal of the
district board shall be affixed. The interest coupons of the bonds
shall be numbered consecutively and signed by the county auditor by
his or her engraved or lithographed signature.

49171. If any officer whose signature or countersignature appears
on the bonds ceases to be an officer before the delivery of the bonds
to the purchaser, his or her signature or countersignature shall be
as valid as if he or she had remained in office until the delivery of
the bonds.

49172. The district board may issue and sell bonds of the district
at not less than par value, and the proceeds shall be placed in the
treasury of the county.

49173. All premiums and accrued interest received shall be paid
into the fund to be used for the payment of principal of, and
interest on, the bonds and the remainder of the proceeds of the sale
shall be paid into the construction fund of the district. Proper
records of the transactions shall be placed upon the books of the
county treasurer.

49174. (a) The funds in the construction fund shall be applied
exclusively to the purposes and objects mentioned in the resolution
calling the bond election.
(b) Payments from the construction fund shall be made upon demands
authorized by the district board, and shall be prepared, presented,
and audited in the same manner as demands upon funds of the county.

49175. If the proposition of issuing bonds submitted at the bond
election fails to receive the requisite number of votes, the district
board may, after expiration of six months after that election, call
or order another bond election, either for the same objects and
purposes, or for any other object or purpose of the district.

49176. If bonds have been issued by the district and the proceeds
of the sale have been expended and the district board, by resolution
passed by a vote of two-thirds of all its members, determines that
the public interest or necessity of the district demands the issuance
of additional bonds for carrying out any of the objects of the
district, the district board may again submit to the voters the
question of issuing additional bonds in the same manner as for a
first issue. All provisions of this chapter for the issuance and sale
of bonds, and for the expenditure of proceeds, apply to the issuance
of additional bonds.

49177. Bonds and interest thereon shall be paid by revenue derived
from an annual tax upon the property in the district, and all the
property in the district shall be and remain liable to be taxed for
those payments.
The bonds and the interest thereon shall not be taxable in this
state.

49178. (a) An issue of bonds is hereby defined to be the aggregate
principal amount of all of the bonds authorized to be issued in
accordance with a proposal submitted to and approved by the electors
of the district, but no indebtedness is deemed to have been
contracted until bonds have been sold and delivered and then only to
the extent of the principal amount of the bonds so sold and
delivered.
(b) The district board issuing bonds may, in its discretion,
divide the aggregate principal amount of the issue into two or more
divisions or series and fix different dates for the bonds of each
separate division or series. If any authorized issue is divided into
two or more divisions or series, the bonds of each division or series
may be made payable at the time or times fixed by the district
board, separate and distinct from the time or times for the payment
of bonds of any other division or series of the same issue.

49179. Whenever a district has issued bonds, in its annual
statement to the board of supervisors as to the amount of money
needed for district purposes during the next ensuing fiscal year
pursuant to Section 44140, the district board shall include, in
addition thereto, the amount necessary to pay the principal of, and
interest on, those bonds that will become due before the time for
making the next general tax levy.

49180. If the district board fails to furnish to the board of
supervisors a statement of the amount of money necessary to pay the
principal of, and interest on, the bonds as required by Section
49179, the board of supervisors shall ascertain that amount and shall
levy it and cause it to be collected.

49181. The principal of, and interest on, the bonds shall be paid
by the treasurer of the county in the manner prescribed by law for
the principal of, and interest on, the bonds of the county.