SECTIONS 52550-52561 - California Statutes

WATER CODE

SECTION 52550-52561

52550. The board, in lieu of exchanging refunding bonds for
outstanding bonds, may declare by resolution that it will be for the
best interests of the district to sell all or any specific portion of
the refunding bonds.

52551. The board, having adopted a resolution of sale, may declare
by resolution, on or before the February 1st or the August 1st prior
to the date of maturity of the outstanding bonds next maturing and to
be refunded, either in whole or in part, that any portion of the
refunding bonds available for the refunding of the outstanding bonds
next maturing shall be sold.

52552. The resolution shall direct the county treasurer to sell the
refunding bonds on a date not less than five days, nor more than 10
days, prior to the April 1st or October 1st prior to the maturity of
the bonds to be refunded, and shall declare whether the refunding
bonds may be sold for less than the face value thereof, plus accrued
interest. In no event shall refunding bonds be sold for less than 90
percent of their face value plus accrued interest.

52553. The refunding bonds shall be sold by the county treasurer in
the manner provided in Article 3, Chapter 1 of this part for the
sale of bonds and refunding bonds.

52554. A sale by the county treasurer is conclusive evidence in
favor of the purchaser and all subsequent holders of the refunding
bonds that the sale was made upon due authority and notice.

52555. Refunding bonds which are not sold when offered for sale may
again be offered for sale from time to time prior to their fixed
maturity, or may be exchanged for outstanding bonds as provided in
this chapter.

52556. The proceeds of the sale of refunding bonds shall be placed
in the county treasury to the credit of the bond fund, and used only
in payment of the principal of the outstanding bonds to be refunded
by the refunding bonds so sold.

52557. The board shall sell or exchange refunding bonds only of
such maturities as have been declared in the notice of election for
the issuance of refunding bonds to be available for the refunding of
particular maturities of the district's outstanding bonds.

52558. If any district authorized the issuance of refunding bonds
prior to August 14, 1929, and the same or any part thereof are
unsold, the board may call an election in the manner and upon the
notice prescribed for the issuance of refunding bonds, at which
election there shall be submitted the question of whether such
refunding bonds of any maturity shall be sold or exchanged to refund
any maturity of outstanding bonds of the district as the board shall
determine, or as may otherwise be specified in the notice of such
election.

52559. If the board, in its resolution, determines that the
refunding bonds may be sold for an amount less than their aggregate
par value, and that it is necessary or advisable that an amount be
made available for the payment of interest upon the refunding bonds
from the date of the sale thereof to the date of maturity of the
bonds to be refunded out of the proceeds of the sale, the resolution
of sale shall direct that a warrant be forthwith drawn against the
general or maintenance fund of the district in favor of the county
treasurer as trustee of the bond fund and delivered to the county
treasurer.

52560. The warrant shall be drawn for an amount equal to the sum
of:
(a) The excess of the par value of the refunding bonds directed to
be sold over the amount for which the board has determined the
refunding bonds may be sold, which shall not in any event, exceed 10
percent of the par value of the refunding bonds directed to be sold.
(b) An amount sufficient to pay interest at the rate provided in
the refunding bonds from the date of sale thereof to the date of the
maturity of the bonds to be refunded out of the proceeds of the sale.
Items (a) and (b) are incidental expenses of the district as
defined in Section 51336.

52561. When the warrant has been drawn, there shall be included in
the next succeeding assessment call levied for maintenance purposes,
an amount equal to that of the warrant, and that amount shall be
assessed against the several parcels in the same proportion as the
original assessment, or any subsequent reapportionments thereof,
which secures the payment of the refunding bonds, and, when
collected, shall be placed to the credit of the maintenance fund, in
reimbursement of that fund.