13345-13347

PUBLIC UTILITIES CODE
SECTION 13345-13347




13345.  Whenever the board, by resolution adopted by a four-fifths
vote of all members of the board of a five-ward district, or by a
five-sevenths vote of all members of the board of a seven-ward
district, finds and determines that any part of the works of the
district has been damaged or demolished by reason of fire, flood,
earthquake, sabotage, or act of God or the public enemy, and that the
cost of repairing or replacing the works so damaged or demolished is
too great to be paid out of the ordinary annual income and revenue
of the district, and that the public interest requires the incurring
of indebtedness for the purposes set forth in the resolution, the
board may authorize the incurring of indebtedness for this purpose
pursuant to this chapter.



13346.  Whenever the board makes the finding and determination as
described in Section 13345, the district may borrow money and incur
indebtedness by the issuance of bonds, notes, or other securities as
provided in this chapter by action of the board and without the
necessity of calling and holding an election in the district. These
evidences of indebtedness shall constitute general obligations of the
district or shall be payable solely from revenues of the district as
the board may determine in the resolution authorizing their
issuance. The indebtedness may be incurred for any purpose for which
the district is authorized to expend funds.
   The indebtedness incurred under this chapter shall be evidenced by
bonds, notes, or other evidences of indebtedness maturing in not to
exceed five years from their date, shall bear interest at the rate or
rates fixed by the board, and may be issued and sold at a public or
private sale as the board may direct. All other terms and conditions
of these evidences of indebtedness shall be fixed by the board. The
maximum principal amount of all general obligation indebtedness
outstanding under this chapter shall not, at any one time, exceed 1
percent of the assessed valuation of the property within the district
taxable for district purposes.
   The board may authorize and issue refunding notes for the purpose
of paying and redeeming at or before maturity any notes previously
issued and then outstanding. However, these refunding notes shall not
be in excess of the limitation of indebtedness provided in this
section and shall mature in not to exceed five years from the dates
of the original indebtedness. Refunding notes may in turn be refunded
under similar terms and conditions, except that no refunding note
shall mature in excess of five years from the date of the original
indebtedness.



13347.  Indebtedness incurred pursuant to this chapter shall be
payable from any sources of available funds, including revenues,
taxes, or state or federal grants. The board may levy and collect
taxes upon all property in the district subject to taxation by the
district without limitation of rate or amount for the payment of any
evidences of general obligation indebtedness incurred pursuant to
this chapter and the interest thereon. These taxes shall be in
addition to all other taxes levied for district purposes and shall be
levied at the same time and in the same manner as other district
taxes are levied and, when collected, shall be deposited in a special
fund and shall be used only for the payment of the principal of and
interest on this indebtedness. The board shall apply for any federal
or state funds available for purposes of repairing or replacing works
damaged or demolished by reason of fire, flood, earthquake,
sabotage, or act of God or the public enemy.