Section 4792.1 Of Article 5. Bonds From California Health And Safety Code >> Division 5. >> Part 3. >> Chapter 3. >> Article 5.
4792.1
. When the board of supervisors is the district board of a
district and such board deems it in the best interests of the
district, it may authorize the county treasurer, upon such terms and
conditions as may be fixed by such board, to issue notes, on a
competitive-bid basis, maturing within a period not to exceed one
year, in anticipation of the sale of district bonds duly authorized
at the time such notes are issued. The proceeds from the sale of such
notes shall be used only for the purposes for which may be used the
proceeds of the sale of bonds in anticipation whereof the notes were
issued.
All notes issued and any renewal thereof shall be payable at a
fixed time, solely from the proceeds of the sale of the bonds and not
otherwise, except that in the event that the sale of the bonds shall
not have occurred prior to the maturity of the notes issued in
anticipation of the sale, the county treasurer shall, in order to
meet the notes then maturing, issue renewal notes for such purpose.
No renewal of a note shall be issued after the sale of bonds in
anticipation of which the original note was issued. There shall be
only one renewal of such note or notes.
Every note and any renewal thereof shall be payable from the
proceeds of the sale of bonds and not otherwise. The total amount of
such notes or renewals thereof issued and outstanding shall at no
time exceed the total amount of the unsold bonds.
Interest on the notes shall be payable from proceeds of the sale
of bonds.