Article 2. County And Municipal Bonds of California Harbors And Navigation Code >> Division 8. >> Part 6. >> Chapter 4. >> Article 2.
Whenever, upon the creation of a district, any municipality
therein or any county in which the district is located, which has
theretofore authorized or incurred a bonded indebtedness for any work
or improvement for which the district may incur a bonded debt, and
the municipality or county thereafter sells the bonds or any portion
thereof, the proceeds of the sale, may, upon the order of the
appropriate board of supervisors or city council, be paid by the
custodian into the treasury of the district. They shall be applied by
the board, exclusively to the purposes for which the bonds were
authorized by the municipal corporation or the county issuing them.