A district may sell any bonds from time to time in such quantities as may be necessary and most advantageous to raise money for the purposes for which they were authorized.
General Bond ProvisionsBond Issuance
Section § 25325
This law allows a district to sell its bonds in whatever quantities are needed to raise money for their intended purposes, whenever it is most beneficial to do so.
district bond sales selling bonds bond quantities
Section § 25326
Before selling any bonds, the board must officially decide and record the decision in their meeting notes. This record needs to include how much they plan to sell and the specific details about when and where the sale will happen.
Before any sale the board shall by resolution entered on its minutes set forth all of the following:
(a)CA Water Code § 25326(a) Its intention to sell a specified amount of the bonds.
(b)CA Water Code § 25326(b) The day, hour, and place of sale.
bond sale board resolution meeting minutes
Section § 25327
This law requires that a board must announce a sale by advertising in a local newspaper for at least three weeks. Additionally, the board can choose to advertise in other newspapers as it sees fit.
The board shall give notice of the sale by publication for at least three weeks in some newspaper published in the office county and in any other newspaper at its discretion.
notice of sale publication requirement three-week advertisement
Section § 25328
This law requires that public notices must clearly indicate when and where sealed bids for purchasing bonds will be accepted at a district office, including the specific day and time set by a resolution.
The notice shall state that sealed proposals will be received by the board at the district office for the purchase of bonds until the day and hour specified in the resolution.
sealed proposals bond purchase public notice
Section § 25329
This law requires the board to review proposals at a set time and sell the bonds to the highest responsible bidders.
At the time specified the board shall open the proposals and award the purchase of the bonds or any portion of them to the highest responsible bidder or bidders.
bond proposals highest responsible bidder board responsibilities
Section § 25330
In this law, when someone wants to bid on bonds, they must include a certified check with their proposal. This check has to be a reasonable amount, but not less than 2% of the bid amount, as determined by the board. If a bidder's proposal is accepted but they refuse to go through with the purchase, they lose their check amount.
No proposal shall be accepted which is not accompanied by a certified check for a reasonable percentage of the amount of the bid as determined by the board, but in no event less than two per cent, to apply on the purchase price of the bonds. The amount of the check shall be forfeited if after the acceptance of his proposal the bidder refuses to complete his purchase on the terms stated in his proposal.
bond purchase bidding process certified check requirement
Section § 25330.1
This law explains the process for selling certain construction bonds in a district. If these bonds are only paid from revenue, the board must announce their sale in a county-wide newspaper at least five days before the sale, detailing where sealed bids will be accepted. Bids are opened at a specified time by the board or their representative. Unlike usual procedures, a bid needs only a 1% deposit via certified or cashier’s check, not the standard 2%, if the board decides.
In the case of any district described in Section 20560.2 with respect to construction bonds issued for purposes of financing the works described in that section, notwithstanding Section 25327, the board shall give notice of sale of any bonds payable solely from revenue which are to be sold at public sale by publication in a newspaper of general circulation in the county not less than five days prior to the date of sale in the manner as the board may prescribe. Notwithstanding Section 25328, the notice shall state that sealed bids for the purchase of the bonds will be received at the place specified for that receipt, which need not be at the district office, until the day and hour specified by the board.
Notwithstanding Section 25329, at the time specified, the bids for the bonds shall be opened by the board or, if so determined by the board, shall be opened by an authorized member or officer of the board and referred to the board.
Notwithstanding Section 25330, a bid for the bonds need not be accompanied by a certified check for at least 2 percent of the amount of the bid if so determined by the board of the district, but no bid shall be accepted which is not accompanied by a certified or cashier’s check for at least 1 percent of the amount of the bid as determined by the board.
construction bonds revenue bonds public sale
Section § 25331
This law allows the board to refuse any or all of the bids they receive. This gives them the discretion to reject proposals they find unsuitable for any reason.
The board may reject any or all bids.
board discretion reject bids proposal rejection
Section § 25332
If no one buys the bonds during the initial offering, the board has two options: they can either advertise the bonds again for sale or sell them directly without advertising.
In case no award is made, the board thereafter may either readvertise the bonds or any part of them for sale or sell them at private sale.
bond sale readvertise bonds private sale
Section § 25333.5
This law allows certain districts in California to sell bonds through direct negotiation if it's determined to be beneficial. It specifically applies to construction bonds or refunding bonds financed by the district's revenue. The decision must be recorded and approved by the district's board.
In the case of any district described in Section 20560.2 with respect to construction bonds issued for purposes of financing the works described in that section or bonds issued to refund those bonds, notwithstanding any other provision of this division, the board may determine by resolution entered upon the minutes that a negotiated sale of any bonds of the district payable solely from revenue will be in the best interest of the district, in which case the bonds may be sold at a negotiated sale on terms as may be approved by the board.
district bonds construction bonds negotiated sale
Section § 25334
This law lets a district trade its construction bonds for property or shares in a company that owns the property, instead of selling the bonds first. The district's board decides the best terms for such exchanges.
A district may exchange its construction bonds for any property or interest in property which the district might acquire with the proceeds of the bonds, if sold, or for the capital stock of any corporation owning the property, upon terms the board deems best.
district bonds exchange construction bonds property acquisition
Section § 25335
This law states that refunding bonds, which are used to refinance existing bonds, can either be sold in the same way as other district bonds or exchanged for other bonds or warrants of the district. The terms of such exchanges must be approved by the commission.
Any refunding bonds may be either:
(a)CA Water Code § 25335(a) Sold from time to time in the same manner as other bonds of the district.
(b)CA Water Code § 25335(b) Exchanged for other bonds or warrants of the district upon terms approved by the commission.
refunding bonds bond refinancing district bonds
