The bonds may be issued and sold for not less than their par value, but otherwise as the board determines.
BondsIssue and Sale
Section § 13261
The board has the authority to issue and sell bonds, but they cannot sell them for less than their original value.
bond issuance bond sale par value
Section § 13262
When bonds are issued, the money raised from them must go into the district's treasury and be used only for the specific projects or goals that were originally intended when the bonds were approved by voters.
The proceeds of the bonds shall be placed in the district treasury to the credit of the proper fund, and shall be used exclusively for the objects or purposes for which the bonds were voted.
bond proceeds district treasury fund allocation
Section § 13263
This law allows a board to delay immediately collecting taxes needed to pay interest on bonds used for projects like construction or acquisition. Instead, they can estimate the total funds needed and include enough money to cover interest during the project's start, up to five years.
In lieu of the immediate levy of a tax to pay the interest or any part thereof on any bonded indebtedness incurred in accordance with this division, the board may in the estimate of the amount of money necessary to be raised by the bonds include a sum sufficient to pay interest on all of the bonds or part thereof during the period of acquisition, construction, or completion, but for no period in excess of five years.
bonded indebtedness interest payment tax levy
