District bonds shall be of such form and shall be redeemed at such times and in such amounts as the board may from time to time prescribe. However, the redemption of the bonds shall begin in not more than 15 years and shall be completed in not more than 75 years from the date of issue.
Chapter 6Bonds
Section § 17001
This law section states that district bonds need to be structured and repaid according to a schedule set by the board. However, the process of paying them off must start within 15 years and must be fully completed within 75 years of when they were issued.
district bonds bond redemption repayment schedule board prescription redeemed issue date form of bonds redemption timeline financial obligations 75-year limit 15-year start bond structure board authority debt management long-term bonds
Section § 17002
This section states that the bonds should be paid back using U.S. currency, covering both the original amount (principal) and interest.
The bonds are payable, principal and interest, in lawful money of the United States.
bonds principal interest payment U.S. currency lawful money financial obligations debt repayment currency requirement bond terms payment method monetary obligations
Section § 17003
This law sets a maximum interest rate of 8% per year for bonds. This limit applies to all types of bonds, including those issued for sewage works.
The interest on the bonds, other than bonds for sewage works, shall not exceed 8 percent a year. The interest on bonds for sewage works shall not exceed 8 percent a year.
bond interest rate maximum interest 8 percent cap sewage works bonds public bonds interest rate limit bond funding municipal bonds investment return limit sewage infrastructure bond interest policy
Section § 17004
This law allows the board to decide the size and timing of issuing bonds. The bonds must be sold for at least their face value plus any interest that has accumulated.
The bonds shall be issued in such denomination or denominations as the board may prescribe and may be sold by the board at such times and in such manner as it determines, but at not less than par and accrued interest.
bond issuance denomination board discretion sale timing manner of sale par value accrued interest face value board authority public bonds pricing of bonds bond pricing rules financial instruments bond sale regulations minimum sale price
Section § 17005
This law states that district bonds are treated the same way as bonds issued by a city or town, meaning they have the same importance and application.
District bonds have the same force, value, and use as bonds issued by a municipality.
district bonds municipality bonds bond equivalence bond force bond value bond use similar treatment financial instruments city bonds town bonds public financing bond administration municipal finance bond equality district financing
Section § 17006
This law explains what should be done with the money earned from the sale of bonds. It states that the money must first be used for the specific projects it was raised for, as outlined in the original plans. Only after these projects are complete can any leftover money be used for other purposes. If there's extra money, and it's more than $5,000, it must be used to help manage the bond debt, like paying interest or reducing the debt. If it's less than $5,000, it can go into the general fund.
The proceeds from the sale of bonds shall be placed in the treasury to the credit of the proper fund, and shall be applied exclusively to the purposes and objects mentioned in the ordinance authorizing their issue until such objects are fully accomplished, after which, if any surplus remains, the surplus may be transferred to the general fund, except that a surplus exceeding five thousand dollars ($5,000) shall be wholly transferred to the appropriate fund to pay interest and maintain the sinking fund, or provide for the retirement of the bonded indebtedness in connection with which the surplus remains.
bond proceeds treasury credit proper fund ordinance authorization surplus funds general fund transfer interest payment sinking fund maintenance retirement of bonded indebtedness surplus exceeding $5000 bond debt management project completion bond issue purposes municipal finance public utility bonds
Section § 17007
This law explains how bonds should be signed and processed in this district. The board's president signs the bonds, and the clerk countersigns them, while the district's seal is attached. Coupons, which are parts of the bond indicating interest payments, should be consecutively numbered and signed by the treasurer, either by hand or with a facsimile signature. These bonds and coupons are payable at the treasurer's office.
The bonds shall be signed by the president of the board and countersigned by the clerk, and shall have the seal of the district attached. The coupons shall be numbered consecutively and signed by the treasurer, by original or facsimile signature, and the bonds and coupons shall be payable at the office of the treasurer.
bonds signing district seal clerk countersignature coupon numbering treasurer's signature facsimile signature bond coupons payable at treasurer's office president of the board public utility bonds treasurer's office payment financial instruments interest payments coupons
Section § 17008
This law states that if an officer who has signed, countersigned, or attested bonds or their coupons leaves their position before the bonds are sold or delivered, those signatures remain valid and effective just as if the officer were still in their role.
Notwithstanding the fact that an officer whose signature, countersignature, or attestation appears on any bonds or coupons thereof ceases to be such officer before the sale or delivery of such bonds, his signature, countersignature, or attestation appearing either on the bonds or the coupons, or on both, is valid and sufficient for all purposes the same as if he had remained in office until the sale or delivery of the bonds.
bonds signatures validity officer resignation bonds sale valid signature signature validity after departure officer signature on bonds bonds delivery coupon signature officer attestation bonds transaction public bonds signature sufficiency signature continuity financial instruments
Section § 17009
This section explains what a legislative body can consider when deciding how many bonds to issue for a project. They can include all related costs, such as those for acquiring, building, and improving the project.
Additionally, they can account for expenses like engineering and legal fees, election costs for issuing bonds, and interest on the bonds during the project's construction and up to 12 months after it finishes.
In determining the amount of bonds to be issued, the legislative body may include:
(a)CA Public Utilities Code § 17009(a) All costs and estimated costs incidental to or connected with the acquisition, construction, improving or financing of the project.
(b)CA Public Utilities Code § 17009(b) All engineering, inspection, legal and fiscal agent’s fees, costs of the bond election and of the issuance of said bonds, bond reserve funds and working capital and bond interest estimated to accrue during the construction period and for a period of not to exceed 12 months after completion of construction.
bond issuance project costs construction financing bond reserve funds engineering fees inspection fees legal fees fiscal agent fees bond election costs working capital bond interest construction period project acquisition improving project legislative body decision
