SECTIONS 40240-40243 - California Statutes

PUBLIC UTILITIES CODE

SECTION 40240-40243

40240. Bonds authorized by this chapter shall mature serially in
amounts to be fixed by the board; except that payment shall begin not
later than 10 years from the date thereof and shall be completed in
not more than 50 years from that date.
The board may divide any issue of bonds authorized pursuant to
this chapter into two or more series, and may fix different dates of
issuance and different maturity dates for the bonds of each series.
The bonds of each series shall mature serially in amounts to be fixed
by the board, and the board shall fix a date not more than 10 years
from the date of issuance of each series for the earliest maturity of
such series, and shall fix a date not more than 50 years from the
date of issuance of each series for the final maturity of such
series.
Pending the actual issuance or delivery of bonds, a district may
issue temporary or interim bonds, certificates, or receipts, of any
denomination whatsoever, with or without coupon, and in such form as
may be prescribed by the board, to be exchanged for definite bonds
when ready for delivery.

40241. The bonds shall be issued in such denominations as the board
determines, except that no bonds shall be issued of a denomination
less than one thousand dollars ($1,000) and shall be payable on the
day and at the place or places fixed in the bond, and with interest
at the rate specified therein, payable semiannually, except that
interest for the first year after the date of the bonds may be made
payable at the end of that year.

40242. The board may at any time prior to the issuance and sale of
any bonds provide for the call and redemption of any or all of the
bonds on any interest payment date prior to their fixed maturity at
not exceeding the par value and accrued interest plus a premium of
not exceeding 5 percent upon the principal amount of the bonds, in
which event the call price fixed by the board shall be set forth on
the face of the bond. Notice of such redemption shall be published.
If there is no newspaper of general circulation printed and published
within the district, then the publication shall be made in a
newspaper of general circulation printed and published within the
county in which the district or any part thereof is situated. The
first publication shall be at least 30 days prior to the date fixed
for the redemption. After the date fixed for such redemption interest
on the bonds thereafter shall cease.

40243. The bonds shall be signed by the chairman of the board or by
such officer of the district as the board shall by resolution
authorize and designate for that purpose. They shall also be signed
by the treasurer, and be countersigned by the auditor. The coupons of
the bonds shall be numbered consecutively and be signed by the
treasurer. All signatures and countersignatures, except one of the
signatures or countersignatures on the bonds, may be printed,
lithographed or engraved. If any officer whose signature or
countersignature appears on the bonds or coupons ceases to be such
officer before the delivery of the bonds to the purchaser, the
signature or countersignature is nevertheless valid and sufficient
for all purposes as if he had remained in office until the delivery
of the bonds.