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Section 4746.1 Of Article 4. District Powers From California Health And Safety Code >> Division 5. >> Part 3. >> Chapter 3. >> Article 4.
4746.1
. If funds are needed to meet current expenses of maintenance
and operation, a district may incur indebtedness by the issuance of
negotiable promissory notes pursuant to this section, without an
election. The notes shall be general obligations of the district
payable in the same manner as bonds of the district, shall mature not
later than two years from the date thereof, and shall bear interest
at a rate not to exceed 7 percent per annum, payable as provided
therein. The aggregate amount of the notes outstanding at any one
time shall not exceed an amount equal to seven cents ($0.07) on each
one hundred dollars ($100) of the assessed valuation of the taxable
real property within the district as shown on the last equalized
assessment roll of the county. If such assessed valuation is not
obtainable, the county auditor's estimate of the assessed valuation
of the taxable real property within the district for the fiscal year
in which the indebtedness is to be incurred shall be used.
All such notes shall be issued after the adoption of a resolution
by a four-fifths vote of the district board setting forth the
following:
(a) The necessity for such borrowing.
(b) The assessed valuation of the taxable real property within the district, or the auditor's estimate thereof.
(c) The amount of funds to be borrowed.
(d) The date, maturity, denomination, and form of such notes. The notes shall be signed by the chairman of the district board and countersigned by the county treasurer and the seal of the district board shall be affixed. The district board shall cause the board of supervisors to levy and collect taxes to pay the interest on and the principal of the notes as the same comes due and, if the maturity of the notes begins more than one year after the date thereof, to constitute a sinking fund for the payment of the principal thereof at maturity. Before selling such notes, the district board shall give notice inviting sealed bids in such manner as the board may prescribe. If satisfactory bids are received, the notes offered for sale shall be awarded to the highest responsible bidder. If no bids are received, or if the district board determines that the bids received are not satisfactory as to price or responsibility of the bidders, the district board may reject all bids received, if any, and either readvertise or sell the notes at private sale.
(a) The necessity for such borrowing.
(b) The assessed valuation of the taxable real property within the district, or the auditor's estimate thereof.
(c) The amount of funds to be borrowed.
(d) The date, maturity, denomination, and form of such notes. The notes shall be signed by the chairman of the district board and countersigned by the county treasurer and the seal of the district board shall be affixed. The district board shall cause the board of supervisors to levy and collect taxes to pay the interest on and the principal of the notes as the same comes due and, if the maturity of the notes begins more than one year after the date thereof, to constitute a sinking fund for the payment of the principal thereof at maturity. Before selling such notes, the district board shall give notice inviting sealed bids in such manner as the board may prescribe. If satisfactory bids are received, the notes offered for sale shall be awarded to the highest responsible bidder. If no bids are received, or if the district board determines that the bids received are not satisfactory as to price or responsibility of the bidders, the district board may reject all bids received, if any, and either readvertise or sell the notes at private sale.
