SECTIONS 11850-11855 - California Statutes

WATER CODE

SECTION 11850-11855

11850. When any of the works authorized by this part are being
constructed by the department, the department may carry or cause to
be carried such an amount of insurance or indemnity bonds as
protection against loss or damage as the department deems proper.

11851. The department may carry insurance to cover any accident or
destruction in part or in whole to any works until all bonds and
interest thereon have been fully redeemed and paid.

11852. All money collected on any indemnity bond or insurance
policy as the result of any damage or injury to any works shall be
used for the purpose of repairing or rebuilding the works, as long as
there are bonds outstanding.

11853. The department may carry insurance or indemnity bonds
insuring against the loss of revenues to be derived from the project
by reason of any interruption in the use of the project, or any part
thereof, from any cause whatever, and the proceeds of such insurance
or indemnity bonds shall be paid into the fund into which the
revenues are required to be paid and shall be applied to the same
purposes and in the same manner as other moneys in the fund.

11854. Insurance or indemnity bonds against loss of revenues may be
in an amount equal to the probable revenues to be received from the
use and operation of the project during any period of time that is
determined upon and fixed by the department, and shall be paid for
out of the revenue fund.

11855. The department may provide in the proceedings authorizing
the issuance of bonds for the carrying of insurance as authorized by
this part, and the purchase and carrying of such insurance shall
thereupon be obligatory upon the department and be paid for out of
the revenue fund.