SECTIONS 11760-11762 - California Statutes

WATER CODE

SECTION 11760-11762

11760. The proceeds from the sale of bonds shall be paid to the
Treasurer or the designee of the Treasurer to the credit of the
construction fund.

11761. The proceeds shall be paid out, disbursed, or applied solely
for one or more of the following:
(a) The construction, reconstruction, and repair of the project.
(b) Surveys and the preparation of plans and specifications.
(c) Payment of all other costs and expenses prior to and during
construction.
(d) The acquisition of the necessary water, water rights,
rights-of-way, easements, lands, electric power, power resources and
facilities, other property of every kind and description, and any
appurtenances to that property necessary therefor, including
facilities planned and designed in cooperation with, and among, water
agencies, water districts, and irrigation districts.
(e) The payment of interest becoming due and payable on bonds
prior to and during the period of actual construction and for the
period of one year after the completion of construction.
(f) All costs and expenses during a period of one year after
completion of construction only as the need therefor shall arise.
(g) The establishment of a debt service reserve fund.

11761.5. (a) If the department sells bonds to finance a water
purchase, the bonds, including all refinancing of the bonds, shall be
scheduled to mature within five years of the date of the initial
sale of the bonds.
(b) (1) Subdivision (a) does not apply to bonds sold to finance a
water purchase arrangement which is planned to extend beyond five
years, if the bonds, including all refinancing of the bonds, are
scheduled to mature not later than the date on which the water
purchase arrangement will terminate.
(2) "Water purchase arrangement," for purposes of this
subdivision, means a purchase, exchange, or standby agreement entered
into by the department with one or more persons or entities to
receive water from, or as a result of actions by, those persons or
entities for the duration of the agreement.
(c) Subdivision (a) does not apply to bonds sold to finance a
water purchase for the purpose of long-term carryover storage.

11762. The department may agree with the purchaser of bonds upon
any conditions or limitations restricting the disbursement of the
proceeds that may be deemed advisable for the purpose of assuring the
proper application of the proceeds.