SECTIONS 101220-101223 - California Statutes

PUBLIC UTILITIES CODE

SECTION 101220-101223

101220. The district may borrow money for the purpose of defraying
the expenses of the district lawfully incurred after the commencement
of the fiscal year, but prior to the time moneys from the tax levy
for the fiscal year are received by the district, in a sum which
shall not exceed fifteen cents ($0.15) on each one hundred dollars
($100) of assessed valuation of taxable property in the district at
the time the moneys are borrowed, and may evidence such borrowing by
notes bearing interest at a rate not to exceed 7 percent per annum.
The notes shall be payable from the tax levy from the then current
fiscal year, which levy shall contain a sum sufficient to provide for
the payment of the notes and the interest thereon. The form of the
notes, and the proceedings relating to their issuance and sale, shall
be governed by the applicable provisions contained in Article 7
(commencing with Section 53820), Chapter 4, Part 1, Division 2, Title
5 of the Government Code.

101221. The board may, within a period of two years from and after
the formation of the district, pursuant to a resolution adopted by it
for the purpose, borrow money on certificates of indebtedness,
promissory notes, or other evidences of indebtedness, in anticipation
of the estimated tax revenue for the following fiscal year, to be
repaid within four years from the date of borrowing with interest at
a rate not to exceed 7 percent per annum, in order to enable the
district to meet all of its necessary initial expenses of
organization, construction, acquisition, maintenance, and operation.
The total amount of money borrowed and indebtedness incurred under
this section during this two-year period shall not exceed 50 percent
of the total amount of estimated tax revenue as estimated by the
county auditor for the following fiscal year.
The form of the notes, and the proceedings relating to their
issuance and sale, shall be governed by the applicable provisions
contained in Article 7 (commencing with Section 53820), Chapter 4,
Part 1, Division 2, Title 5 of the Government Code.

101222. The district may accept, without limitation by any other
provisions of this part requiring approval of indebtedness,
contributions or loans from the United States, this state, or any
department, instrumentality, or agency of either thereof, for the
purpose of financing the acquisition, construction, maintenance, and
operation of transit facilities, and may enter into contracts and
cooperate with, and accept cooperation from, the United States, this
state, or any department, instrumentality, or agency of either
thereof, in the acquisition, construction, maintenance, and
operation, and in financing the acquisition, construction,
maintenance, and operation of any such transit facilities in
accordance with any legislation which Congress or the Legislature of
the State of California may have theretofore adopted or may hereafter
adopt, under which aid, assistance, and cooperation may be furnished
by the United States or this state in the acquisition, construction,
maintenance, and operation, or in financing the acquisition,
construction, maintenance, and operation, of any such transit
facilities. The district may do any and all things necessary in order
to avail itself of such aid, assistance, and cooperation under any
federal or state legislation now or hereafter enacted. Any evidence
of indebtedness issued under this section shall constitute a
negotiable instrument.

101223. The authority to incur indebtedness vested in the district
by the provisions of this article shall be in addition to any right
vested in it to receive a temporary transfer of funds pursuant to the
last paragraph of Section 6 of Article XVI of the California
Constitution.