24760-24771

WATER CODE
SECTION 24760-24771




24760.  If a district desires to extend the time or times of
maturity of any or all of its bonds or warrants payable at stated
times or to reduce the rate of interest thereon or to effect any
combination of these, it may either:
   (a) Enter into an agreement in writing with the holders of the
bonds or warrants affected, specifying the changes in dates of
maturity, rate or rates of interest, or both.
   (b) Propose a plan of composition of its outstanding indebtedness
which involves changes in dates of maturity, rate or rates of
interest, or both.


24761.  The rate of interest specified in the agreement or plan
shall not exceed 8 percent per year.



24762.  All interest coupons shall be payable on the first day of
January or the first day of July.



24765.  The board may call an election to submit to the voters the
question whether or not the bonds or warrants shall be modified as
provided in the agreement or plan. Notice of the election shall be
given and it shall be held and its result declared as nearly as
practicable as in the case of bond elections.



24766.  If a majority of the votes cast for and against the proposal
is in favor of modifying the bonds or warrants, the proposal is
approved.


24767.  An agreement or plan may not be carried out pursuant to this
article until a proposal therefor is approved by the voters, and a
plan may not be carried out until it is either:
   (a) Agreed to in writing by all of the holders of bonds and
warrants affected.
   (b) Confirmed in accordance with federal bankruptcy law.




24768.  Upon the presentation to the secretary of any of the bonds
or warrants covered by the agreement or plan, he shall indorse on
them the date to which their maturity is extended and shall attach to
them coupons with his signature or a facsimile of it to evidence the
semiannual interest from the time or times of the original maturity
of the bonds or warrants to the new maturity date or dates.




24769.  If the agreement or plan provides for a reduction in the
rate of interest on the bonds or warrants before the original time or
times of their maturity, new coupons shall be attached to the bonds
or warrants to evidence the reduced interest. Any old coupons
evidencing the interest originally provided shall be detached by the
secretary from the bonds or warrants and canceled.



24770.  Each bond or warrant presented and indorsed shall continue
as an obligation of the district and shall not become due until the
date specified in the agreement or plan.



24771.  This article does not amend, modify, or limit any other
provision of law for changing the date or dates of maturity of
outstanding obligations of a district, but provides an alternative
method of extending any obligations whose date or dates of maturity
may be changed under any other provision of law.