SECTIONS 105200-105213 - California Statutes

PUBLIC UTILITIES CODE

SECTION 105200-105213

105200. Whenever the board deems it necessary for the district to
incur a bonded indebtedness for the acquisition or improvement of
real property authorized by this part or necessary or convenient for
the carrying out of the powers of the district, the board shall, by
ordinance, adopted by a vote of two-thirds of all members of the
board, so declare and call an election to be held in the district for
the purpose of submitting to the qualified voters thereof the
proposition of incurring indebtedness by the issuance of bonds of the
district, provided the total amount of bonds issued and outstanding
pursuant to this article shall not exceed 15 percent of the assessed
value of the taxable property of the district as shown by the last
equalized assessment roll of the counties within the district. The
ordinance shall state:
(a) The purposes for which the proposed debt is to be incurred,
which may include all costs and estimated costs incidental to or
connected with the accomplishment of those purposes, including,
without limitation, engineering, inspection, legal, fiscal agents,
financial consultant, and other fees; bond and other reserve funds;
working capital; bond interest estimated to accrue during the
construction period and for a period not to exceed three years
thereafter; and expenses of all proceedings for the authorization,
issuance, and sale of the bonds.
(b) The estimated cost of accomplishing those purposes.
(c) The amount of the principal of the indebtedness.
(d) The maximum term the bonds proposed to be issued shall run
before maturity, which shall not exceed 50 years from the date
thereof or the date of each series thereof.
(e) The maximum rate of interest to be paid, which shall not
exceed 7 percent per annum.
(f) The proposition to be submitted to the voters, which may
include one or more purposes.
(g) The date of the election.
(h) The manner of holding the election and the procedure for
voting for or against the measure.
(i) The ordinance may also contain any other matters authorized by
this part or any other law.

105201. Notice of holding of the election shall be given by
publishing, pursuant to Section 6066 of the Government Code, the
ordinance calling the election in at least one newspaper published in
the district. No other notice of the election need be given. Except
as otherwise provided in the ordinance, the election shall be
conducted as other district elections.

105202. If any proposition is defeated by the electors, the board
shall not call another election on a substantially similar
proposition to be held within six months after the prior election. If
a petition requesting submission of this type of a proposition,
signed by 15 percent of the district electors, as shown by the votes
cast for all candidates for governor within the district at the last
gubernatorial election, is filed with the board, the board may call
an election before the expiration of six months.

105203. If two-thirds of the electors voting on the proposition
vote for it, then the board may, by resolution, at the time or times
it deems proper, issue bonds of the district for the whole or any
part of the amount of the indebtedness so authorized and may from
time to time, by resolution, provide for the issuance of any
necessary amounts, until the full amount of the bonds authorized
shall have been issued. The full amount of bonds may be divided into
two or more series and different dates and different dates of payment
fixed for the bonds of each series. A bond need not mature on an
anniversary of its date. The maximum term the bonds of any series
shall run before maturity shall not exceed 50 years from the date of
each series respectively. In the resolution or resolutions, the board
shall prescribe the form of the bonds (including, without
limitation, registered bonds and coupon bonds) and the form of any
coupons to be attached thereto, the registration, conversion, and
exchange privileges, if any, pertaining thereto, and fix the time
when the whole or any part of the principal shall become due and
payable.

105204. The bonds shall bear interest at a rate or rates not
exceeding 7 percent per annum, payable semiannually, except that the
first interest payable on the bonds or any series thereof may be for
any period not exceeding one year as determined by the board. In the
resolution or resolutions providing for the issuance of the bonds,
the board may also provide for call and redemption of the bonds prior
to maturity at the times and prices and upon any other terms it may
specify, but no bond shall be subject to call or redemption prior to
maturity unless it contains a recital to that effect or unless a
statement to that effect is printed thereon. The denomination or
denominations of the bonds shall be stated in the resolution
providing for their issuance, but shall not be less than one thousand
dollars ($1,000). The principal of and interest on the bonds shall
be payable in lawful money of the United States at the office of the
treasurer of the district or at any other place or places that may be
designated, or at either place or places at the option of the
holders of the bonds. The bonds, or series thereof, shall be dated
and numbered consecutively and shall be signed by the chairperson of
the board and the treasurer, countersigned by the secretary and the
official seal of the district attached. The interest coupons of the
bonds shall be signed by the treasurer. All signatures,
countersignatures, and seal may be printed, lithographed, or
mechanically reproduced, except that one of the signatures or
countersignatures on the bonds shall be manually affixed. If any
officer whose signature or countersignature appears on bonds or
coupons ceases to be an officer before the delivery of the bonds, his
or her signature is as effective as if he or she had remained in
office.

105205. The bonds may be sold as the board determines by resolution
but for not less than par. Before selling the bonds or any part
thereof, the board shall give notice inviting sealed bids in a manner
as it may prescribe. If satisfactory bids are received, the bonds
offered for sale shall be awarded to the highest responsible bidder.
If no bids are received or if the board determines that the bids
received are not satisfactory as to price or responsibility of the
bidders, the board may reject all bids received, if any, and either
readvertise or sell the bonds at private sale.

105206. Delivery of any bonds may be made at any place either
inside or outside the state, and the purchase price may be received
in cash or bank credits.

105207. All accrued interest and premiums received on the sale of
bonds shall be placed in the fund to be used for the payment of
principal of and interest on the bonds and the remainder of the
proceeds of the bonds shall be placed in the treasury to the credit
of the proper improvement fund and applied exclusively to the
purposes for which the debt was incurred; provided, however, that
when those purposes have been accomplished any moneys remaining in
the improvement fund (a) shall be transferred to the fund to be used
for the payment of principal of and interest on the bonds, or (b)
shall be placed in a fund to be used for the purchase of outstanding
bonds of the district from time to time in the open market at the
prices and in the manner, either at public or private sale or
otherwise, as the board may determine. Bonds so purchased shall be
canceled immediately.

105208. After the expiration of three years after a bond election
the board may determine, by ordinance adopted by a vote of two-thirds
of all the members of the board, that any or all of the bonds
authorized at the election remaining unsold shall not be issued or
sold. When the ordinance takes effect, the authorization to issue
these bonds shall become void.

105209. Whenever the board deems that the expenditure of money for
the purposes for which the bonds were authorized by the voters is
impractical or unwise, it may, by ordinance adopted by a vote of
two-thirds of all members of the board, so declare and call an
election to be held in the district for the purpose of submitting to
the qualified voters thereof the proposition of incurring
indebtedness by the issuance of these bonds for some other purposes
or, in the case where bonds have been sold, the proposition to use
the proceeds for some other purposes. The procedure, so far as
applicable, shall be the same as when a bond proposition is
originally submitted.

105210. The board may provide for the issuance, sale, or exchange
of refunding bonds to redeem or retire any bonds issued by the
district upon the terms, at the times, and in the manner which it
determines. Refunding bonds may be issued in a principal amount
sufficient to pay all or any part of the principal of the outstanding
bonds, the interest thereon, and the premiums, if any, due upon call
and redemption thereof prior to maturity and all expenses of the
refunding. The provisions of this article for issuance and sale of
bonds apply to the issuance and sale of the refunding bonds, except
that (a) no election need be called or held for the purpose of
authorizing the issuance of refunding bonds, and (b) when refunding
bonds are to be exchanged for outstanding bonds, the method of
exchange shall be determined by the board.

105211. The provisions of Article 4 (commencing with Section 53500)
of Chapter 3 of Part 1 of Division 2 of Title 5 of the Government
Code are applicable to the district.

105212. Any bonds that are issued under the provisions of this
article shall be legal investment for all trust funds; for the funds
of insurance companies, banks, both commercial and savings, and trust
companies; and for state school funds. Whenever any money or funds
may, by any law now or hereafter enacted, be invested in bonds of
cities, cities and counties, counties, school districts, or other
districts within the state, the money or funds may be invested in the
bonds issued under this part. Whenever bonds of cities, cities and
counties, counties, school districts, or other districts within this
state may, by any law now or hereafter enacted, be used as security
for the performance of any act or the deposit of any public moneys,
the bonds issued under this part may be so used. The provisions of
this article shall be in addition to all other laws relating to legal
investments and shall be controlling as the latest expression of the
Legislature with respect thereto.

105213. The board may enter into any covenants deemed proper to
provide for issuance of additional parity bonds and the priority and
pledge of special taxes; and any other covenants that are customary
or desirable in the issuance of any bonds payable out of special
funds or that are necessary, convenient, or desirable to secure the
bonds or tending to make them more marketable, subject to the
provisions of the ordinance calling the bond election.