SECTIONS 11730-11740 - California Statutes

WATER CODE

SECTION 11730-11740

11730. The department shall determine the form, conditions, and
denominations of all bonds and the dates which the bonds shall bear.

11731. The department and the Treasurer shall determine the
interest rate or rates on the bonds. The rate or rates may be fixed
or variable and shall not exceed 12 percent per annum, except that
the rate on any bond may, on any day, exceed 12 percent per annum if
the interest borne by the issue of which the bond is a part from its
date of issuance to, and including, that day does not exceed the
total interest which would have been borne by the issue if all bonds
of the issue had borne interest during that period at the rate of 12
percent per annum.

11732. It is not necessary that all bonds of the same authorized
issue bear the same interest rate.

11733. Principal and interest on bonds shall be payable at such
place or places as may be fixed and determined by the department.

11734. Bonds may contain provisions for registration thereof as to
principal only or as to both principal and interest.

11735. Bonds may be issued in coupon form with interest payable at
such times as determined by the department and shall mature at such
times and in such amounts as the department prescribes.

11736. The department may provide for the retirement of bonds at
any time or times prior to their maturity and in such manner and upon
payment of such premiums as may be fixed and determined in the
proceedings providing for the issuance of the bonds and referred to
therein.

11736.5. The department may enter into banking, insurance,
remarketing, and other financial arrangements as may be necessary or
desirable to provide additional security for the payment of principal
and interest on the bonds or to provide the holders of the bonds the
right to tender bonds to the department or to another party for
purchase at the times, on the notice, and on those other terms as the
department may determine. These arrangements may provide for the
reimbursement by the department, with interest, of moneys advanced by
the provider of additional security, the provider of a tender right,
the provider of moneys to fund a tender right, or anyone performing
a related function, except that the interest rate on the
reimbursement obligation shall not exceed the rate specified in
Section 11731 and the sources of moneys for the reimbursement shall
be only the sources available for the payment of the bonds.

11737. All bonds shall be signed by the director and countersigned
by the Governor.

11738. The signature of the director and the Governor may be by
facsimile.

11739. All interest coupons shall bear the facsimile signature of
the director.

11740. In case 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, his signature or
countersignature shall nevertheless be valid and sufficient for all
purposes the same as if he had remained in the office until the
delivery of the bonds.