SECTIONS 12841-12844 - California Statutes

PUBLIC UTILITIES CODE

SECTION 12841-12844

12841. A district may borrow money and incur indebtedness, and may
issue bonds or other evidences of indebtedness. No indebtedness shall
be incurred exceeding the ordinary annual income and revenue of the
district without the approval of two-thirds of the voters voting on
the proposition to incur such indebtedness except as follows:
(a) A further vote of the voters is not required for any
indebtedness heretofore or hereafter incurred within the purposes and
not exceeding the available amount of any previously authorized bond
issue, and as to such indebtedness the proceeds of any of the bonds
unexpended in the treasury of the district, or the par value of any
of the bonds which are unsold shall be deemed a part of the ordinary
annual income and revenue of the district.
(b) Any district operating a utility under rules requiring
applicants for extensions to advance the expenses of such extensions
and facilities for serving additional territory may enter into
agreements to refund to the applicants in a subsequent year the whole
or any part of the expenses so advanced, and the refunds may be paid
out of the revenues of subsequent years.

12842. No district shall incur an indebtedness for public works
which in the aggregate exceeds 20 percent of the assessed value of
all the real and personal property within the district.

12843. Indebtedness which has been incurred for the construction
and operation of a public utility, where the revenue from the utility
for three years or more next preceding has been sufficient to pay
the interest and principal due on any bonds issued for its
construction or acquisition, in addition to the cost of operation and
maintenance, shall not be counted and included in ascertaining the
limit of indebtedness, and any indebtedness incurred for the
acquisition, construction or operation of a public utility within any
special district shall be excluded in ascertaining the aggregate
indebtedness specified in Section 12842.

12844. A district may accept, without limitation by any other
provisions of this division requiring approval of indebtedness,
contributions or loans from the United States, or any department,
instrumentality, or agency thereof, for the purpose of financing the
construction, maintenance, and operation of any enterprise in which
the district is authorized to engage, and may enter into contracts
and cooperate with, and accept cooperation from, the United States,
or any department, instrumentality, or agency thereof, in the
construction, maintenance, and operation, and in financing the
construction, maintenance, and operation, of any such enterprise in
accordance with any legislation which Congress may have heretofore
adopted or may hereafter adopt, under which aid, assistance, and
cooperation may be furnished by the United States in the
construction, maintenance, and operation or in financing the
construction, maintenance, and operation of any such enterprise. A
district may do any and all things necessary in order to avail itself
of such aid, assistance, and cooperation under any federal
legislation now or hereafter enacted. Any evidence of indebtedness
issued under this section shall constitute a negotiable instrument.