SECTIONS 52850-52862 - California Statutes

WATER CODE

SECTION 52850-52862

52850. When there is an agreement between a district and the United
States of America, or any department or agency thereof, which
provides for the issuance of refunding bonds of the district
aggregating in principal amount a sum less than the principal amount
of the bonds to be refunded and for the creation of a reserve fund to
pay installments of principal or interest of the refunding bonds
when the amount in the bond fund is insufficient to pay the
installments, and when the unpaid principal amount of the assessment
securing the bonds to be refunded is, or upon the carrying out of the
plan for refunding provided in the agreement will be, in excess of
the principal amount of bonds secured by the assessment, the board
may declare by resolution that all or part of the excess of the
assessment shall be called from time to time for the purpose of
creating a reserve fund.

52851. The money in the reserve fund shall be used to pay the
installments of principal and interest of any outstanding bonds
secured by the assessment when the amount in the bond fund is
insufficient to meet such installments on any January 1st or July
1st, as the case may be.

52852. If the bond fund contains a sum derived from an assessment
securing the bonds to be refunded pursuant to the agreement which is
in excess of the amount required to pay all installments of principal
and interest due or to become due within six months upon all
outstanding bonds secured by the assessment, the board may by
resolution direct that the excess, or such part thereof as they deem
advisable, be set apart for the purpose of creating a reserve fund.

52853. The county treasurer shall call such part of the principal
of the assessment securing the refunding bonds, not exceeding the
amount by which the unpaid principal amount of the assessment exceeds
the principal amount of bonds secured thereby, as is necessary to
restore the amount of depletion of the reserve fund caused by
authorized payments therefrom.

52854. The call shall be made at the time prescribed by Section
51420 for making the next call for the payment of principal or
interest of the bonds after the reserve fund has been depleted.

52855. The board may direct that the restoration of the reserve
fund be effected over a period not exceeding three years next after
the reserve fund was depleted, in which case not less than one-third
of the amount of the depletion shall be restored during each of the
three years.

52856. No call for the purpose of creating a reserve fund shall be
made until the United States, or department or agency thereof, has
accepted 50 percent or more of the refunding bonds proposed to be
issued under the plan.

52857. The county treasurer may invest any money in the reserve
fund in bonds of the United States or of the State of California, and
bonds so purchased and held in the reserve fund may be sold by the
county treasurer and the proceeds temporarily reinvested in such
bonds.

52858. Sales of bonds of the United States or of the State of
California purchased with reserve fund money shall be made by the
county treasurer in sufficient time that the proceeds may be applied
to the purposes for which the reserve fund was created.

52859. The board of a district which has entered into an agreement
pursuant to Section 52850, may, by resolution, direct that any money
on deposit in the county treasury to the credit of any bond fund or
bond reserve fund of the district, which was derived from an
assessment against district lands securing said bonds and which is in
excess of the amount required to pay principal and interest then due
or to become due within six months thereafter upon bonds secured by
the assessment, be applied to either or both of the following
purposes:
(a) The purchase of bonds secured by the assessment.
(b) Deposit with the Federal Reserve Bank in San Francisco,
California, subject to withdrawal therefrom only upon written orders
of the district and the United States of America, or the department
or agency thereof, including Reconstruction Finance Corporation,
interested in the creation and maintenance of the fund, or by the
district with the written consent of the United States of America, or
the department or agency thereof, including Reconstruction Finance
Corporation, interested in the creation and maintenance of the
reserve fund.

52860. The county treasurer shall forthwith cancel all bonds
purchased pursuant to subsection (a) of Section 52859.

52861. No purchase of bonds shall be made pursuant to subdivision
(a) of Section 52859 unless the unpaid principal amount of the
assessment securing such bonds is in excess of the principal amount
of outstanding and authorized bonds secured by such assessment.

52862. No funds deposited pursuant to subdivision (b) of Section
52859 may be withdrawn except to pay the principal or interests upon
any bonds of the district held by Reconstruction Finance Corporation,
or its successors in interest, or for repayment to the treasurer of
the district for the purposes and uses of the district.