Section 32130.5 Of Article 2. Powers From California Health And Safety Code >> Division 23. >> Chapter 2. >> Article 2.
32130.5
. The first board of directors of a district may, within a
period of two years from and after the formation of the district,
pursuant to a resolution adopted by it for the purpose, borrow money
on certificates of indebtedness, promissory notes, or other evidences
of indebtedness, in anticipation of the estimated tax revenue for
the following fiscal year, to be repaid within two years from the
date of borrowing with interest at a rate not to exceed 5 percent per
annum, in order to enable the district to meet all of its necessary
initial expenses of organization, construction, acquisition,
maintenance, and operation. The total amount of money borrowed and
indebtedness incurred under this section and Section 32130 during
this two-year period shall not exceed 50 percent of the total amount
of estimated tax revenue as estimated by the county auditor or
auditors of the county or counties in which the district lies for the
following fiscal year.
The provisions of Section 32130 are applicable in respect to any
indebtedness incurred under this section to the extent that they are
consistent with this section.