Pending use for the purposes for which any reserve fund or special trust account or any other separate fund established pursuant to this chapter was so established, money set aside and placed therein may, when and to such extent and in such manner as may be directed by the said board and as may be consistent with the provisions of any resolutions of the board constituting a part of the proceedings for the issuance of the issue of bonds in connection with which such fund or account was created, be invested in the same manner as are other moneys of the district. Any such bonds or other evidences of indebtedness acquired through such investment may be resold at any
time.
Electric System ImprovementsInvestments
Section § 13191
This law section allows money in reserve funds, special trust accounts, or any other separate funds, which have been set aside for a specific purpose, to be invested. The investment must follow the directions of the board and comply with any bond-resolutions related to these funds. The funds can be invested similarly to other district money, and any bonds or debt acquired through these investments can be sold at any time.
reserve fund investment special trust account separate fund
Section § 13192
This section explains that if bonds or other securities are bought using a reserve fund, separate fund, or special trust account, they become part of that fund or account. Any earnings or profits from these investments, whether it's interest or gain from resale, must be added back into the same fund or account.
Any bonds or other securities so purchased shall constitute a part of such reserve fund, separate fund or special trust account, and any interest or any increment received by reason of such investment and the proceeds of any such resale shall be placed in, and constitute a part of, such fund or account.
bonds securities purchase reserve fund
Section § 13193
This section allows bonds issued under this chapter to be certified by the State Treasurer following rules similar to those for irrigation district revenue bonds. However, one specific rule (Section 20050 of the Water Code) doesn't apply. Districts can choose to issue more bonds later without needing certification.
Bonds issued under this chapter may be presented to the State Treasurer for certification under Division 10 of the Water Code in like manner and with the same legal effect as in the case of revenue bonds issued by irrigation districts; provided, that Section 20050 of the Water Code shall not be applicable to such bonds and, notwithstanding such certification, any district may issue subsequent series or issues of bonds without certification as the district may elect.
bonds issuance State Treasurer certification
