SECTIONS 55550-55553 - California Statutes

WATER CODE

SECTION 55550-55553

55550. Whenever the board deems it necessary for the district to
incur a bonded indebtedness in addition to that incurred at the time
of the formation of the district for any of the purposes of the
district, the board shall, by resolution, so declare and state the
proposition to be submitted to the electors, the purpose for which
the proposed debt is to be incurred, the amount of the debt to be
incurred, the maximum term the bonds proposed to be issued shall run
before maturity, which shall not exceed 40 years, and the maximum
rate of interest to be paid, which shall not exceed 8 percent per
year, payable semiannually.

55551. The board shall then fix a date upon which an election shall
be held for the purpose of authorizing the bonded indebtedness to be
incurred, and shall proceed with the election in accordance with
Chapter 4 of Part 2 of this division.

55552. If at the election a majority of the votes cast are in favor
of the incurring of the bonded indebtedness, then the board shall
enter an order to that effect upon its minutes, and shall thereupon
be authorized and empowered to issue the bonds of said district for
the amount voted, payable out of the funds of the district.

55553. The provisions contained in Articles 1 and 5 of Chapter 2 of
this part and Sections 55701, 55703, and 55704, relating to the form
of bonds, the issuance and sale of bonds, the validation thereof,
and the levying of a tax for the principal and interest thereof,
shall apply in like manner to bonds voted and issued as provided in
this article.