SECTIONS 36360-36368 - California Statutes

WATER CODE

SECTION 36360-36368

36360. Bondholders owning or holding 25 percent or more of any
outstanding and unpaid issue of revenue bonds may, when payments of
principal or interest, or both, have been in default for not less
than one year, institute proceedings in the superior court of the
principal county to compel the district to fix and collect sufficient
charges for the sale of water for the irrigation of land to pay when
due the principal and interest of revenue bonds.

36361. The complaint shall:
(a) Name the district as a defendant.
(b) State that on the date therein named bond principal payments,
interest thereon, or both, were in default for a period of more than
one year.
(c) Pray:
(1) That the district be adjudged in default of payments of its
obligations as they mature.
(2) That a receiver be appointed by the court to manage and
conduct the affairs of the district, fix and collect charges for the
sale of water for the irrigation of the land sufficient to pay all
accumulated and unpaid revenue bond principal and interest charges.
(3) That the receiver be vested with such other duties as the
court may determine to be for the best interests of the district and
the owners and holders of its outstanding and unpaid revenue bonds.

36362. The summons in the proceeding shall be served by publishing
a copy thereof once a week for four weeks in a newspaper of general
circulation published in each affected county.

36363. Within 30 days after publication of the summons has been
completed and proof filed with the court any person may appear and
answer the complaint.

36364. On the expiration of 60 days after the publication of
summons has been completed and proof filed with the court, after
proof to the court that a default exists and continues, the court
shall assume jurisdiction over the affairs of the district and
appoint a receiver for the purposes set forth in the complaint.

36365. The jurisdiction of the court over the affairs of the
district shall continue until the default for which the receiver was
appointed has been discharged.

36366. A receiver has no power to dispose of any part of the
property of the district except in the ordinary course of business.
The authority of a receiver is limited to the operation and
maintenance of the district.

36367. No court has jurisdiction to enter any order or decree
requiring or permitting a receiver to sell, assign, mortgage, or
otherwise dispose of or encumber the district or any part thereof.

36368. Whenever all that is due upon all obligations and interest
thereon which are a charge, lien, or encumbrance on the revenues of
the district has been paid and all defaults have been cured and made
good, the court, after such notice and hearing as it deems reasonable
and proper, shall direct the receiver to surrender jurisdiction over
the affairs of the district.