SECTIONS 70245-70246 - California Statutes

PUBLIC UTILITIES CODE

SECTION 70245-70246

70245. The bonds may be issued and sold for not less than their par
value, but otherwise as the board determines. Before selling any
bonds, or any part thereof, the board shall give notice inviting
sealed bids in such manner as the board 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 again give notice
inviting bids or sell the bonds at private sale.

70246. All premiums and accrued interest 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. The remainder of the proceeds
of the bonds shall be placed in the district treasury to the credit
of the proper fund, and shall be used exclusively for the objects or
purposes for which the bonds were voted; provided that when such
objects and purposes have been accomplished any moneys remaining
shall be transferred to the fund to be used for the payment of
principal of and interest on the bonds, and that when all principal
of and interest on the bonds shall have been paid, any balance of
money then remaining shall be transferred to the general fund of the
district.