71950-71960

WATER CODE
SECTION 71950-71960




71950.  If from the bond election returns it appears that more than
two-thirds of the votes cast in such election were in favor of and
assented to the incurring of the indebtedness, the board may, by
resolution, at such time or times as it deems proper, issue bonds of
the district for the whole or any part of the amount of the
indebtedness so authorized, and may from time to time provide for the
issuance of such amounts as the necessity thereof may appear, until
the full amount of such bonds authorized has been issued.



71951.  The full amount of the authorized bonds may be divided into
two or more series and different dates fixed for the bonds of each
series. The maximum term which the bonds of any series shall run
before maturity shall not exceed 40 years from the date of the
series.



71952.  The board shall, by resolution, prescribe the form of the
bonds and of the coupons attached thereto and fix the time when the
whole or any part of the principal shall become due and payable. The
payment of the first installment of principal may be deferred for a
period of not more than five years from the date of the bonds or the
date of the bonds of each series respectively.



71953.  The bonds shall bear interest at a rate or rates not to
exceed 8 percent per year, payable semiannually, except that interest
for the first year may be payable at the end of that year.



71954.  The board may provide for the call and redemption of bonds
prior to maturity at such times and prices and upon such other terms
as it may specify. A bond shall not be subject to call or redemption
prior to maturity unless it contains a recital to that effect or
unless a statement to that effect is printed thereon.




71955.  The denomination of the bonds shall be stated in the
resolution providing for their issuance but shall not be less than
one hundred dollars ($100).


71956.  The principal and interest on the bonds shall be payable in
lawful money of the United States at the office of the treasurer of
the district or such other place or places as may be designated, or
at either place or places at the option of the holder of the bond.



71957.  The bonds shall be dated, numbered consecutively, signed by
the president and treasurer of the district, countersigned by the
secretary, and the official seal of the district attached. The
interest coupons of the bonds shall be signed by the treasurer of the
district. All such signatures and countersignatures may be printed,
lithographed, or mechanically reproduced, except that one of the
signatures or countersignatures to the bonds shall be manually
affixed.


71958.  If the bond election proceedings have been limited to and
have applied only to an improvement district, the bonds are bonds of
the district, shall be issued in the name of the district, and shall
be designated "Bonds of ____ Municipal Water District for Improvement
District No. ____." Each bond and all interest coupons thereof shall
state that taxes levied for the payment thereof will be levied
exclusively upon the taxable property in the improvement district.



71959.  Any bonds issued by a district have the same force, value,
and use as bonds issued by a city and are exempt from all taxation
within the State.


71960.  The board may, without a vote of the electors, provide for
the issuance of, and issue, general obligation bonds of the district
or for an improvement district thereof if:
   (a) The principal amount of such bonds do not exceed the then
unissued balance of the principal amount of bonds authorized at an
election held in the district, or in such improvement district, prior
to May 9, 1967;
   (b) The bonds are issued for the same purpose as that for which
said unissued bonds were authorized; and
   (c) The bonds are issued in accordance with the provisions of this
article, except for the requirement of a bond election.
   Bonds issued pursuant to this section may bear interest at a rate
or rates not to exceed 8 percent per year, payable semiannually,
except that interest for the first year may be payable at the end of
that year. When bonds are issued pursuant to this section, unissued
bonds as referred to in (a) and (b) above in a principal amount at
least equal to the principal amount of bonds issued pursuant to this
section, shall be canceled by order of the board and shall not be
issued.