When the board has filed an operation and maintenance assessment roll in the office of the county treasurer, and has directed an assessment levied against that roll to be paid in annual installments, it may issue and sell, or otherwise dispose of, time warrants based upon, and in anticipation of, the collection of such assessment levy, to pay the expenses for the payment of which the assessment was levied on a cash basis, or for the purpose of paying any outstanding warrants payable from such assessment levy. The period over which annual installments of the assessment shall be paid shall not exceed five years or the maturity of time warrants issued pursuant to Section
53042.5.
Issuance, Registration and PaymentTime Warrants
Section § 53040
This law allows a board to issue and sell time warrants, which are like promissory notes, in anticipation of collecting money from an annual assessment they have put in place. This means they can get the funds upfront to cover expenses the assessment is meant for, or to pay off any existing debts. The repayment of these assessments should not last more than five years or the time period set for these warrants to mature.
operation and maintenance assessment county treasurer annual installments
Section § 53041
This section specifies the form and details of 'time warrants' issued by a reclamation district's board of trustees. A time warrant is a promise to pay a certain sum on a future date from the district's maintenance funds. It includes the total amount, interest rate, and payment dates. Payments are made from levies collected by the district. The warrant becomes invalid four years after its due date unless extended by the trustees before maturity. They are registered with the county treasurer and will only be paid when presented.
Time warrants may be in substantially the following form:
Face
No. ________
_____
$________
Office of the Board of Trustees of
Reclamation District No. ____.
Reclamation District No. ____.
______,
California
The Treasurer of ____ County will, on the ____ day of ____, 19__, pay to the order of ____ out of Reclamation District No. ____ maintenance fund, the sum of ____ dollars ($____), together with interest on said sum from date of registration of this warrant in the office of the county treasurer until paid at the rate of __ percent per year, the interest payable on January 1st and July 1st of each year until this warrant is paid in full, upon the presentation of this warrant to said county treasurer.
This warrant is one of a series of warrants aggregating in face amount ____ dollars ($____) all issued by the above-named reclamation district, and payable out of
the proceeds of levies made by the board of trustees of said district by order entered on the minutes of said board on the ____ day of ____, 19__, against an operation and maintenance assessment filed in the office of the treasurer of the above-named county on the ____ day of ____, 19__. This warrant and each of the warrants of said series are payable exclusively from the proceeds of said levies when collected.
Dated this ____ day of ____, 19__.
_____
_____
_____
_____
Trustees
Attest:
_____
_____
Secretary
_____
Reverse
Registered this ____ day of ____, 19__.
________ Treasurer of ____ County
This warrant will outlaw four years after it matures and cannot thereafter be legally paid unless extended by order of the board of trustees on or before maturity.
Interest Endorsements
Date Due
Date Paid
Amount Paid
Transfer Endorsements
time warrants reclamation district maintenance fund
Section § 53042
This law section ensures that the amount of time warrants issued for any given year cannot be more than the amount that is due from assessments in that same year. Additionally, the total principal amount of time warrants allowed to be outstanding at any time is capped at five dollars per acre within the district.
The time warrants which may be issued to mature in any year shall not exceed the amount of the assessment installment payable in such year, and the principal amount of time warrants which is outstanding at any time shall not exceed an amount determined by multiplying the number of acres within the district by five dollars ($5).
time warrants assessment installment principal amount
Section § 53042.5
This law allows for the issuance of time warrants (which are financial instruments like bonds) in amounts greater than usually permitted, and for more than five years. However, this can only occur if a special election is held. During this election, the voters must approve the amount, the length of time, and the reason for issuing these time warrants. Approval requires a majority of the votes.
Time warrants may be issued for more than the amount set forth in Section 53042 and with a maturity longer than five years, provided that a special election is held pursuant to Chapter 3 (commencing with Section 50800) of Part 4 of this division, at which election the principal amount and maturity of such warrants and the purpose for which they are issued are approved by a majority of the votes cast.
time warrants issuance approval special election
Section § 53043
You can't issue, sell, or deal with time warrants for less than their value plus any interest that's built up until they're delivered.
No time warrants shall be issued, sold, or disposed of for less than the face amount thereof and accrued interest thereon to date of delivery.
time warrants issuance sale
Section § 53044
When time warrants are issued and sold, the money from those sales goes into a maintenance fund. This money can be used to cover expenses that the maintenance fund is responsible for, or to pay off any existing warrants, just like money collected from assessments for operation and maintenance.
The proceeds from the issuance and sale of time warrants shall be deposited in the maintenance fund and shall be applicable to the payment of the expenses payable from that fund, or to the payment of outstanding warrants to the same extent as funds collected upon the operation and maintenance assessment levies.
time warrants maintenance fund expenses payment
Section § 53045
Before they can be issued, time warrants need to be registered with the county treasurer.
Time warrants shall be registered with the county treasurer prior to their issuance.
time warrants registration county treasurer
Section § 53046
When time warrants are due, they must be paid when presented to the county treasurer.
Time warrants shall be paid upon their due date upon presentation and surrender to the county treasurer.
time warrants payment due date
Section § 53047
This law states that if time warrants, which are like financial IOUs, aren't paid due to a lack of funds, they don’t need to be registered again. They will keep earning interest after their due date until they are eventually paid, reissued, extended, or canceled.
If time warrants are not paid by reason of lack of funds, no further registration is required, and they shall continue to bear interest after their due date until paid, reissued, extended or canceled.
time warrants lack of funds interest accrual
Section § 53048
This law states that if a time warrant (a type of IOU) isn't paid on its due date because there isn't enough money, it takes priority over later-issued demand warrants. These time warrants should be paid first from an operation and maintenance assessment fund when there is money available.
Time warrants which are not paid on their due date because of lack of funds have priority and shall be paid out of the proceeds of the collection of the operation and maintenance assessment against which they have been issued, in preference to any demand warrants issued and registered after the date of regisration of such time warrants which are payable out of the same assessment.
time warrants priority payment due date
Section § 53049
This section states that the county treasurer can pay time warrants requested by the board before they are due, as long as there are enough funds left after paying demand warrants. Time warrants must be presented for payment.
The county treasurer, upon the request of the board, shall pay all time warrants before the maturity thereof, providing there are sufficient funds, after payment of all outstanding demand warrants, and all such time warrants shall be presented for payment.
county treasurer time warrants maturity
