All provisions of Chapter 1 of this part are applicable to bonds issued pursuant to this article.
BondsIssuance
Section § 52200
This law section specifies that all rules and regulations from Chapter 1 of this part apply to bonds that are issued under this specific article.
bonds Chapter 1 provisions issuance of bonds
Section § 52201
If a district has unpaid assessments (except for operation and maintenance fees) and needs funds for things like land reclamation or debt repayment, the board can decide it's beneficial to issue bonds to raise money. If over half of the landowners request it in writing, the board must hold a special election within the district to make a decision.
When any assessment, except an operation and maintenance assessment, levied and assessed upon district lands remains unpaid in whole or in part and, in the judgment of the board it would be for the best interest of the district or the landowners therein to issue bonds to obtain money to pay the cost of reclamation, the indebtedness of the district, or any other legal charge, or when a petition signed by the owners of more than one-half of the land in the district is filed with the secretary, the board, by order entered upon its records, shall order a special election to be held at some place in the district to be designated by the board.
unpaid assessments district lands special election
Section § 52202
In a special election, the board will ask landowners to vote on whether to issue bonds. These bonds would cover the total amount of an assessment or the remaining unpaid portion of it. The board is required to record this amount and include it in the special election order.
At the special election the board shall submit to the landowners the question of whether bonds shall be issued in an amount equal to the amount of such assessment, or the part of such assessment remaining unpaid, which amount shall be entered by the board in its records and stated by it in the order for the special election.
special election landowners bonds issuance
Section § 52203
If more than half of the votes in an election support issuing bonds, the board must arrange for the specified bonds to be prepared and sent, along with an assessment list, to the county treasurer.
If a majority of the votes cast at the election are in favor of the issuance of bonds, the board shall cause the amount of bonds stated in the order for the election to be executed and delivered, with the assessment list, to the county treasurer.
bonds issuance majority votes election results
Section § 52204
This law allows a board to hold a special election before deciding to assess any costs, to see if bonds can be issued for a specified amount. However, the bonds can only be issued after an assessment matching the bond amount is completed and filed with the county treasurer.
If the board deems it advisable, it may order a special election to be held prior to making any assessment, to determine whether bonds shall be issued for an amount to be stated in the order for the election, but no bonds shall, in such instance, be issued until an assessment for the amount of the bonds authorized at the election has been made and filed with the county treasurer.
special election bonds issuance assessment
Section § 52205
The county treasurer is responsible for depositing the bonds into the district's account.
The county treasurer shall place the bonds to the credit of the district.
county treasurer bonds credit of the district
Section § 52206
This law section outlines how bonds must be paid back over time. Essentially, if bonds are issued, at least 10% of their total face value needs to be paid back within the first 10 years. After those 10 years, at least 10% of what's left over must be paid every year, starting in the 11th year, until all the bonds are completely paid off.
The bonds shall be payable serially within 20 years from their date, as follows:
(a)CA Water Code § 52206(a) Not less than 10 percent of the aggregate face value of bonds issued shall be payable within 10 years from their date.
(b)CA Water Code § 52206(b) Not less than 10 percent of the aggregate face value of bonds remaining unpaid at the end of 10 years shall be payable each year beginning with the eleventh (11th) year from their date, until the whole amount of the bonds is paid.
bonds payment schedule serial payments 10 percent payment
Section § 52207
This section outlines the format and details required for bonds issued by Reclamation Districts in California. It specifies what information needs to be included on the bond, such as the amount, interest rate, and payment schedule. The bond is secured by an assessment on the land within the district and is issued following a voter-approved election. The bond must be signed by the district's board president and the county auditor, confirming its compliance with the relevant laws.
The bonds shall be substantially in the following form:
Form of Bonds
United States of America
State of California
United States of America
State of California
County of ______
No. _____
$ ______
Reclamation District ______
Reclamation District No. ____, for value received hereby acknowledges itself indebted to and promises to pay to the holder hereof at the office of the treasurer of said county, in the State of California, on the first day of ____, 19_, the sum of ____ dollars ($____), in lawful money of the United States of America, with interest thereon in lawful money from date hereof until paid, at the rate of ____ percent, per year, payable at the office of said treasurer on the first day of January, and the first day of July in each year on presentation and surrender of the interest coupons hereto attached.
This bond is one of a series of ____ bonds of like tenor and effect, except as to denomination and maturity, numbered from ____ to ____ inclusive, amounting in the aggregate to ____ dollars ($____), issued in
accordance with Division 15 of the Water Code of the State of California pursuant to an election held in said reclamation district on the ____ day of ____, 19_, authorizing its issuance, and is based upon and secured by an assessment levied on the lands in said district, and filed in the Office of the County Treasurer of said County of ____, on the ____ day of ____, 19_, and the said reclamation district does hereby certify and declare that said election was duly called and held upon due notice, and the result thereof was duly canvassed and ascertained, in pursuance of and in strict conformity with the laws of the State of California applicable thereto, and that all of the acts and conditions and things required by law to be done, precedent to and in the issue of said bonds have been done and have been performed in regular and in due form and in strict accordance with the provisions of the law authorizing the issuance of reclamation bonds.
In the testimony whereof,
the said district, by its board of trustees, has caused this bond to be signed by the president of said board and attested by the Auditor of said County of ____ with his seal of office affixed this ____ day of ____, 19_.
President of said board
Attest
Auditor of the County of
, State of
California
reclamation district bonds bond format interest rate
Section § 52208
This section describes what the interest coupons for bonds related to a Reclamation District in a specific county of California might look like. It includes fields for the coupon number, amount of interest to be paid, the county name, and dates associated with payment. The coupon signifies the County Treasurer's obligation to pay the holder a certain amount on a specific date. Additionally, it includes a placeholder for the County Auditor's signature.
The interest coupons may be substantially in the following form:
No. ________
$ _______
The County Treasurer of ____ County, California, will pay to the holder hereof on the ____ day of ____, 19_, at his office
in said County of ____, the sum of ____ dollars ($____) in lawful money of the United States out of the funds of Reclamation District No. ____ for interest on bonds of said district numbered ____.
County Auditor
interest coupons Reclamation District bonds County Treasurer
