71970-71975

WATER CODE
SECTION 71970-71975




71970.  Before selling the bonds, or any part thereof, the board
shall give notice inviting sealed bids in such manner as it may
prescribe. If satisfactory bids are received, the bonds offered for
sale shall be awarded to the highest responsible bidder. If no bids
are received, or if the board determines that the bids received are
not satisfactory as to price or responsibility of the bidders, it may
reject all bids received, if any, and either readvertise or sell the
bonds at private sale.



71971.  The proceeds from the sale of bonds shall be paid into the
treasury of the district, placed to the credit of a special
improvement fund, and expended only for the purpose for which the
indebtedness was created. When such purpose has been accomplished,
any moneys remaining in the special improvement fund may be
transferred to the fund to be used for the payment of principal of
and interest on the bonds.



71972.  Any moneys remaining in the special improvement fund from
the sale of bonds of the district after the purpose for which the
indebtedness was created has been accomplished may also be used for
any other municipal water district purpose. Such moneys remaining
from the sale of bonds of the district for an improvement district
therein may also be used for any purpose which will benefit the
property in the improvement district.
   Such moneys may not be used for such other municipal water
district purpose or improvement district purpose until two-thirds of
the qualified voters of the district or improvement district have
consented thereto at a special election called in the district or
improvement district by the board. Notice of the election shall be
given in the manner provided for bond elections in the district or
improvement district, as the case may be, and in other respects the
election shall be conducted as are other district elections.




71973.  Interest on any bonds issued by the district coming due
before the proceeds of a tax levied at the next general tax levy
after the sale of the bonds are available, and interest on any bonds
issued by the district coming due before the expiration of one year
following completion of the acquisition and construction of the works
and improvements for which the bonds were issued may be paid from
the proceeds of the sale of the bonds.



71974.  The proceeds from the sale of bonds of the district issued
for an improvement district thereof may be expended for the purpose
for which the indebtedness was created in any territory annexed to
the improvement district after the authorization of the bonds.



71975.  Notwithstanding any other provision of law, within the
Rainbow Municipal Water District, if bonds have been authorized or
issued pursuant to Chapter 4 (commencing with Section 71920) of this
part, and thereafter, due to a change in conditions or circumstances,
the board determines that the improvement, generally described in
the resolution of intention No. 438, adopted October 27, 1969,
pursuant to Section 71924, should be significantly modified, the
board by resolution may so modify such improvement and may issue
authorized but unissued bonds or, to the extent the rights of
bondholders are not impaired, expend the proceeds of bonds issued for
the purpose of paying the cost of the improvement as modified,
without any further election or without taking proceedings pursuant
to Chapter 4 (commencing with Section 71920) of this part, provided
that such modification shall not change the purpose for which the
sale of bonds was originally authorized, and only after notice and
hearing in the same manner as provided in Article 2 (commencing with
Section 71880) of Chapter 3 of this part and Article 6 (commencing
with Section 53520) of Chapter 3, Part 1, Division 2, Title 5 of the
Government Code, and provided that at the conclusion of the hearing
the board, four-fifths of the members concurring, shall by resolution
determine that the territory within the improvement district will be
benefited by the improvement as modified. Notwithstanding the
foregoing, the board, by resolution, may make minor modifications in
the plans for the acquisition and construction of improvements and
the determination made in such resolution shall be final and
conclusive.