SECTIONS 55520-55534 - California Statutes

WATER CODE

SECTION 55520-55534

55520. The board may issue and sell the bonds of the district, when
authorized, at not less than par value, and the proceeds of the sale
shall be placed in the county treasury or other depository for the
district's fund to the credit of the proper district fund and shall
be applied exclusively to the purposes and objects mentioned in the
ordinance or resolution ordering the holding of the bond election;
provided, however, that when said purposes and objects have been
accomplished any moneys remaining in said fund shall be transferred
to the general fund of the district and may be used by the board for
any lawful purpose of the district.

55521. The board by an order entered upon its minutes, shall,
subject to the provisions of this division, prescribe the form of
bonds issued and of the interest coupons attached thereto.

55522. The board shall designate an amount, not less than
one-fortieth of the principal amount of the indebtedness, or series
thereof, which shall be paid annually at a fixed time and place,
together with the interest on all sums unpaid. The rate of interest
shall be designated in the bonds and shall be paid semiannually at a
rate not in excess of 8 percent per year; except that interest for
the first year after the date of the bonds may be made payable at the
end of said year.

55523. The board may determine and fix a date for the earliest
maturity of the principal of the bonds, or series thereof, not more
than 10 years from the date of issue of bonds. The principal amount
of the indebtedness, or series thereof, must be made payable in not
to exceed 40 years from the time of contracting the same; and
beginning with the date of earliest maturity of the bonds, or series
thereof, not less than one-fortieth of the principal amount of the
indebtedness, or series thereof, shall be paid annually.

55524. The bonds shall be issued in such denomination or
denominations as the board may determine.

55525. The bonds shall be signed by the chairman of the board and
countersigned by the auditor of the district, or if one has not been
appointed, the auditor of the county and the seal of the district
shall be affixed thereto. All such signatures and countersignatures,
except one, may be printed, lithographed, engraved, or otherwise
mechanically reproduced. Any such signature may be affixed in
accordance with the provisions of the Uniform Facsimile Signatures of
Public Officials Act, Chapter 6 (commencing with Section 5500) of
Title 1 of the Government Code.

55526. The interest coupons of the bonds shall be numbered
consecutively and signed by the auditor of the county by his engraved
or lithographed signature.

55527. In case any officer whose signature or countersignature
appears on the bonds or coupons shall cease to be an officer before
the delivery of the bonds to the purchaser, the signature or
countersignature shall be valid and sufficient for all purposes the
same as if the officer remained in office until the delivery of the
bonds.

55528. The principal and interest on the bonds shall be paid by the
district treasurer, or if one has not been appointed, the county
treasurer, in the manner provided by law for the payment of principal
and interest on bonds of the county.

55529. The board may divide the principal amount of any issue into
two or more series and fix different dates for the bonds of each
series. The bonds of one series may be made payable at different
times from those of any other series. The maturity of each series
shall comply with this article.

55530. Notwithstanding any other provision of the law, the board
may determine that the public economy so requires, and order that
less than one-fortieth of the whole amount of the indebtedness, or a
series thereof, shall be payable annually.

55531. District or zone bonds may be made payable on July 1st
subsequent to the time fixed for the collection of the second
installment of general district taxes with which the first levy of
taxes for the payment of the principal or interest of the bonds is to
be collected. In such event, the first interest coupons shall be for
interest from the date of the bonds of such issue or series to
January 1st next prior thereto.

55532. The proceeds of such bonds may be used for the following
purposes:
(a) All costs or estimated costs incidental to or connected with
the acquisition, construction, improving and financing of the
improvements for which they are issued.
(b) All engineering, inspection, legal and fiscal agent's fees,
costs of the bond election and of the issuance of the bonds.

55533. Any bonds issued by the district may be subject to call and
redemption prior to maturity at such times and prices and upon such
other terms as the board may specify.

55534. When bonds are made callable, a statement to that effect
shall be set forth on the face of the bond.