SECTIONS 71810-71814 - California Statutes

WATER CODE

SECTION 71810-71814

71810. A district may issue negotiable promissory notes pursuant to
Sections 71811 and 71812. Such promissory notes shall bear interest
at a rate not to exceed 12 percent per year. They shall be payable
from revenues and taxes levied for purposes of the district other
than the payment of principal and interest on any bonded debt of the
district or of an improvement district therein.

71810.5. Notwithstanding the provisions of Section 71810 which
limit the rate of interest which promissory notes issued by a
district may bear, the Otay Municipal Water District may issue
promissory notes which bear interest at a rate not exceeding 15
percent per year. All other provisions of Section 71810 shall be
applicable to the issuance of such notes. No promissory notes shall
be issued by the Otay Municipal Water District pursuant to this
section after five years following the effective date of this
section, provided that this provision shall not affect the validity
of any such notes issued prior to such date.

71811. A district may issue negotiable promissory notes pursuant to
this section to acquire funds for any district purposes. The
maturity of the promissory notes shall not be later than five years
from the date thereof. The total aggregate amount of the notes
outstanding, at any one time, may be at least equal to seventy-five
thousand dollars ($75,000) in any district but shall not exceed the
lesser of either five million dollars ($5,000,000) or 3 percent of
the assessed valuation of the taxable property in the district or, if
the assessed valuation is not obtainable, 3 percent of the county
auditor's estimate of the assessed valuation of the taxable property
in the district evidenced by his certificate . Promissory notes
issued pursuant to Section 71812 may be disregarded in computing the
aggregate amount of notes that may be issued pursuant to this
section.

71812. A district may issue negotiable promissory notes pursuant to
this section for the purpose of acquiring funds to finance the
construction or acquisition of administrative offices, construction
headquarters, commercial offices, or facilities for similar district
purposes and for the acquisition of land for district purposes. The
maturity of such promissory notes shall not be later than 10 years
from the date thereof. The total aggregate amount of such notes
outstanding at any one time may be at least equal to fifty thousand
dollars ($50,000) in any district, but shall not exceed the lesser of
either three million dollars ($3,000,000) or 1 percent of the
assessed valuation of the taxable property in the district, or, if
the assessed valuation is not obtainable, 1 percent of the county
auditor's estimate of the assessed valuation of the taxable property
in the district evidenced by his certificate. Promissory notes issued
pursuant to Section 71811 may be disregarded in computing the
aggregate amount of notes that may be issued pursuant to this
section.

71813. A district may borrow money in anticipation of the sale of,
but not in excess of the principal amount of, authorized bonds of an
improvement district formed pursuant to Chapter 3 (commencing with
Section 71870) or Chapter 4 (commencing with Section 71920) of Part 7
of this division which have not yet been sold and delivered, and for
that purpose may issue and sell negotiable bond anticipation notes,
and may refund such notes as provided in this section. Such notes may
be issued in anticipation of the sale of all or any portion of the
bonds which are duly authorized at the time the notes are issued.
Such notes shall mature within a period not to exceed five years from
the date of issuance. In the event that the sale of bonds shall not
have occurred prior to the maturity of such notes, the district may
issue renewal notes to meet the notes then maturing. There shall be
only one renewal of any note issued pursuant to this section and such
renewal note shall mature within a period not to exceed three years
from the date of issuance. The notes shall be sold in such manner as
the board may determine, and such notes and the resolution providing
for the issuance of such notes may contain any provision, condition
or limitation which a bond, or any resolution or ordinance providing
for the issuance of bonds, may contain. The interest on bond
anticipation notes shall be payable at the time or times provided in
such notes and may be represented by interest coupons attached to the
notes and shall be payable from the same funds from which the
interest on bonds of the improvement district are payable. The
principal of such notes may be paid from any moneys of the
improvement district available for such purpose. If such notes, or
any portion thereof, have not been previously paid, they shall be
paid from the proceeds of the next sale of bonds in anticipation of
which the notes were issued. The resolution providing for the
issuance of bond anticipation notes may contain a provision that, if
for any reason bonds of the improvement district are not sold in time
to provide funds to pay any unpaid note, and, if other funds of the
improvement district are not available for such payment, taxes shall
be levied upon the taxable property in the improvement district for
such payment in the same manner provided for the payment of bonds in
such amount each year for such period of years as may be set forth in
such resolution. To the extent bond anticipation notes are paid from
a tax levy, authorized bonds in a corresponding amount shall be
canceled and not issued thereafter. When bonds of the improvement
district are issued and any portion of the proceeds of the sale are
to be used to pay bond anticipation notes, such bond shall mature not
later than the maximum permissible years for such bonds under
Section 71951 from the date of such notes as originally issued.

71814. A district may borrow money in anticipation of the sale of,
but not in excess of the principal amount of, authorized bonds of the
district which have not yet been sold and delivered, and for that
purpose may issue and sell negotiable bond anticipation notes, and
may refund such notes from time to time, but the maximum maturity of
any such notes, as originally issued or as refunded, shall not exceed
five years from the date of the original notes. The notes shall be
sold in such manner as the board may determine, and such notes and
the resolution providing for the issuance of such notes may contain
any provision, condition or limitation which a bond, or any
resolution or ordinance providing for the issuance of bonds, may
contain. The interest on bond anticipation notes shall be payable at
the time or times provided in such notes and may be represented by
interest coupons attached to the notes and shall be payable from the
same funds from which the interest on bonds of the district are
payable. The principal of such notes may be paid from any moneys of
the district available for such purpose. If such notes, or any
portion thereof, have not been previously paid, they shall be paid
from the proceeds of the next sale of bonds in anticipation of which
the notes were issued. The resolution providing for the issuance of
bond anticipation notes may contain a provision that, if for any
reason bonds of the district are not sold in time to provide funds to
pay any unpaid note, and, if other funds of the district are not
available for such payment, taxes shall be levied upon the taxable
property in the district for such payment in the same manner provided
for the payment of bonds in such amount each year for such period of
years as may be set forth in such resolution. To the extent bond
anticipation notes are paid from a tax levy, authorized bonds in a
corresponding amount shall be canceled and not issued thereafter.
When bonds of the district are issued and any portion of the proceeds
of the sale are to be used to pay bond anticipation notes, such
bonds shall mature not later than the maximum permissible years for
such bonds under Section 71951 from the date of such notes as
originally issued.