Issuance - Bonds - Water Code - CA

Section § 31425

This section explains what happens if over two-thirds of voters approve a bond proposal in an election. In such cases, the board can decide on the bonds' details, such as their form and how they are executed. Additionally, the board can split the total authorized bond amount into different series with varying dates and times for repayment, as long as they follow specific guidelines.

If from the bond election returns it appears that more than two-thirds of the votes cast at the election are in favor of incurring the indebtedness, the board may, by resolution, at the time or times it deems proper, provide for the following:

(a) The form of the bonds.

(b) The execution of the bonds.

The board may divide the aggregate principal amount of any issue of bonds authorized in accordance with a proposal submitted to and approved by the eligible voters of the district into two or more series and may fix different dates for the bonds of each series. The bonds of any one series may be made payable at different times from those of any other series, provided that the maturity of each series shall comply with this division.

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Section § 31426

This law allows a district's board to decide when and how to sell or handle its issued bonds, as long as it's in the public's interest.

The district may dispose of the bonds so issued at the times or in the manner the board deems to be to the public interest.

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Section § 31427

Bonds issued by districts under this act are treated similarly to municipal bonds. They hold the same value and strength and are exempt from state taxes.

Any bonds issued by any district organized under the provisions of this act are hereby given the same force, value and use as bonds issued by any municipality and shall be exempt from all taxation within the State.

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Section § 31428

This law explains what to do with money from selling bonds. All premiums and interest go into a fund to pay back the bond's principal and interest. The rest of the money from the bond sale goes into a special fund for the project the bond was created for. Once the project is done, any leftover money is used to pay the bond's principal and interest. If there's still money left after paying off all bond costs, it goes into the general fund.

All premiums and accrued interest received on the sale of bonds shall be placed in the fund to be used for the payment of principal and interest on the bonds, and the remainder of the proceeds of the bonds shall be placed in the treasury to the credit of the proper improvement fund and applied exclusively to the purpose and object recited in the resolution provided for in Section 31391. When the purpose and object has been accomplished any moneys remaining in such improvement fund shall be transferred to the fund to be used for payment of principal and interest on the bonds. When the purpose and object has been accomplished and all principal and interest on the bonds have been paid, any balance of money then remaining shall be transferred to the general fund.

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Section § 31429

If the board decides that using funds from sold bonds as originally intended isn't practical or wise, they can hold a special election to ask voters for permission to use the money for a different purpose within the district.

They will follow the same election process used when voters first approved the bond proposal.

When the board determines by resolution that the expenditure of money raised by the sale of bonds for the purpose for which the bonds were voted is impractical or unwise, it may call a special election to obtain the consent of the electors to use the money for some other specified district purpose.

The election procedure shall be the same as when the bond proposition was originally submitted.

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