13161-13166

PUBLIC UTILITIES CODE
SECTION 13161-13166




13161.  Prior to the issue of any bonds to be issued pursuant to
this chapter, the board, after satisfying itself respecting the
relevant facts, shall, by resolution, find and determine--
   (1) The amount of earned surplus derived from the operation of the
electric system of the district to which the revenues out of which
such bonds are to be payable pertain, as of the end of the last
fiscal year which ended not less than four months prior to the making
of such finding and determination, and that the ascertainment of
such earned surplus has been in accordance with the then current
accounting practice of the district; provided, however, that such
finding and determination need not be made in the case of the
authorization of refunding bonds, or in any case where the voters
have assented to the issuance of bonds in excess of the limitation
specified in this chapter.
   (2) The amount of bonds issued under this chapter which are
outstanding at the time of the adoption of such resolution.
   (3) That the resolution or resolutions authorizing such issue of
bonds in all respects conforms or conform with the provisions of this
chapter.
   (4) That the indebtedness to be evidenced by such issue of bonds,
together with all other indebtedness of the district, pertaining to
the electric system for or on account of which such bonds are to be
issued, is within every debt or other limit prescribed by the
Constitution and statutes of the State of California.
   (5) That upon the issuance of such bonds any and all acts,
conditions and things required to exist, to happen and to be
performed, precedent to and in the issuance thereof, will exist, will
have happened and will have been performed, in due time, form and
manner, as required by the Constitution and statutes of the State of
California.


13162.  The board may also, by resolution, find and determine any
other facts relevant to the legality of the issue.



13163.  The board, by resolution adopted in connection with any
issue of bonds pursuant to this chapter, may direct that there shall
be included in each of the bonds of that issue a certification and
recital that any and all acts, conditions and things required to
exist, to happen and to be performed, precedent to and in the
incurring of the indebtedness evidenced by that bond, and in the
issuing of said bond, exist, have happened and have been performed in
due time, form and manner, as required by the Constitution and
statutes of the State of California, and that said bond, together
with all other indebtedness of the district pertaining to the
electric system for or on account of which the indebtedness evidenced
by said bond was incurred, is within every debt and other limit
prescribed by the Constitution and statutes of the State of
California.


13164.  From and after the issuance of any issue of bonds the
findings and determinations of the board respecting that issue made
pursuant to this article shall be conclusive evidence of the
existence of the facts so found and determined in any action or
proceeding in any court in which the validity of such bonds is at
issue, and no bona fide purchaser of any such bond containing the
certification and recital permitted by this article shall be required
to see to the existence of any fact, or to the performance of any
condition, or the taking of any proceeding, required prior to such
issue, or to the application of the purchase price paid for such
bonds.



13165.  Bonds shall be deemed to be issued, within the meaning of
this article whenever the definitive bonds, or any temporary bonds or
interim receipts exchangeable therefor, have been delivered to the
purchasers thereof, and the purchase price thereof received, or in
the case of bonds to be refunded through exchange, whenever such
exchange has been made.



13166.  The validity of bonds reciting that they have been issued
pursuant to this chapter shall not be affected by any provision or
limitation contained in any other section or sections of this
division. All bonds issued under this chapter shall be incontestable
from and after the time of payment to the district of the purchase
price thereof.