SECTIONS 13171-13177 - California Statutes

PUBLIC UTILITIES CODE

SECTION 13171-13177

13171. All sums received as accrued interest on the sale of any
issue of bonds issued pursuant to this chapter shall be applied to
the payment of interest on or principal of bonds of that issue.

13172. All sums received as principal and premiums on the sale of
any issue of bonds shall be applied to the purposes for which such
bonds were issued. The board may provide in the resolution
authorizing the issue of any bonds under this chapter that any
portion of the proceeds of sale of the bonds may be applied to
payment of interest during construction for a period of not to exceed
three years from and after the date of such bonds.

13173. The board may from time to time establish and maintain a
separate fund or funds in the district treasury for the purpose of
insuring the application of such proceeds received as principal on
the sale of any issue of bonds to the purposes for which the same
were issued.

13174. Money set aside and placed in any such separate fund shall
remain therein until from time to time expended for the purposes for
which such bonds were issued, including the reimbursement of other
funds of the district for expenditures therefrom for purposes for
which such bonds were issued, made after the adoption by the board of
the preliminary resolution of intention provided for in Section
13101, and shall not be used for any other purpose whatsoever, except
for temporary investment thereof as provided in this division;
provided, however, that money may be paid or transferred from any
such separate fund, in furtherance of the purpose of its
establishment, to any other such separate fund established for a like
purpose in connection with the same issue of bonds.

13175. Money in any such separate fund shall be drawn therefrom
only upon demands authenticated by the signature of the accountant of
the district.

13176. If the board shall determine by resolution that the
expenditure of the whole or any portion of the said principal sum of
any issue of bonds for the purpose for which such bonds were issued
is impracticable or unwise, the board may--
(1) Apply such money or any part thereof to the purchase of bonds
of that issue, or to the payment of any such bonds, at maturity or on
redemption, or to the payment of interest thereon or of premiums due
on the redemption thereof; or
(2) Apply such money or any part thereof to any new purpose which
is within the purposes for which bonds might be issued under the
terms of this chapter; provided, however, that before applying any of
such money to such new purpose the board shall adopt a resolution
specifying such new purpose, the amount of such money to be applied
thereto, and authorizing such application, which resolution shall be
subject to the same procedures, and take final effect only in the
same manner, as if it were a resolution adopted pursuant to Section
13091, authorizing the issuance of bonds for such new purpose, and
such resolution authorizing such application to such new purpose,
when it shall have taken final effect under such procedures, shall be
sufficient authority for the application of such money to such new
purpose.

13177. If any excess of the principal sum of the proceeds of any
issue of bonds shall remain unexpended after the full accomplishment
of the purpose for which such bonds were issued the board, by
resolution, may direct that the same shall be applied to the purchase
of bonds of that issue, or to the payment of any such bonds, at
maturity or on redemption, or to the payment of interest thereon or
of premiums due on the redemption thereof, or that it shall be
transferred to the revenues pertaining to the electric system in
connection with which such bonds were issued.