6100-6106

HARBORS AND NAVIGATION CODE
SECTION 6100-6106




6100.  Pursuant to this chapter a district may create a revenue bond
indebtedness for the acquisition and construction, or acquisition or
construction of any improvements or property or facilities contained
within its powers.


6101.  The issuance of said bonds shall be authorized by ordinance
adopted by two-thirds of all the members of the board, to take effect
upon its publication.


6102.  The secretary shall publish said ordinance once in a
newspaper of general circulation printed in said district, and if
there is none, then in such newspaper published in the county in
which said district is located.


6103.  The ordinance shall specify the total amount, denomination,
method of maturity, and the rate or maximum rate of interest of the
bonds, whether other parity revenue bonds may be issued, and in
general terms, the acquisitions and improvements to be constructed
thereby; and, in addition, shall contain other and further provisions
as in the judgment of the board are deemed advisable.



6104.  The proceeds of said bonds shall be placed in an account in
the treasury of the district to be entitled ____ Harbor District
Revenue Construction Fund No. ____, and used exclusively for the
objects and purposes mentioned in the ordinance.




6105.  (a) The lien of the bonds of the same issue shall be prior
and superior to all revenue bonds subsequently issued.
   (b) The district shall only issue parity revenue bonds if the
district board determines, based on an audit of the district's
finances conducted under generally accepted accounting principles,
that both of the following conditions exist:
   (1) The district is not in default in the repayment of any prior
issuance of its bonds.
   (2) The net revenues of the district for the prior fiscal year
have amounted to at least 125 percent of the maximum annual debt
service in any fiscal year thereafter, including all indebtedness
incurred as the result of additional issues of bonds.
   (A) For purposes of calculating the net revenues of the district
for the prior fiscal year pursuant to this paragraph, the district
may include up to 75 percent of the district's estimated additional
annual net revenue to be derived from either of the following:
   (i) Any additions, improvements, or extensions to the district's
properties, works, or facilities, or the pro rata portion thereof,
which were not in service during the prior fiscal year, and that
were, or are to be, made using funds from any source, including, but
not limited to, the parity revenue bonds.
   (ii) Any increase in the charges made for the district's services
that became effective prior to the authorization of the parity
revenue bonds but which were not in effect during the prior fiscal
year.


6106.  Proceedings for the issuance of the bonds shall commence, the
board shall have those powers and duties, and the bondholders shall
have those rights and remedies provided in Sections 54344 to 54346,
inclusive, Sections 54347, 54348, 54350, 54351, 54352, and Article 4
(commencing with Section 54400) to Article 11.5 (commencing with
Section 54664), inclusive, of Chapter 6 of Part 1 of Division 2 of
Title 5 of the Government Code. As used in those provisions,
"resolution" means ordinance, "local agency" means district, and
"legislative body" means board.