Article 1. Generally of California Health And Safety Code >> Division 6. >> Part 1. >> Chapter 6. >> Article 1.
A district may issue bonds as provided in this part.
A district may issue bonds to raise money for any of the
purposes stated in Section 6512 hereof.
By order entered in its minutes, when in its judgment it is
advisable, the board may and shall, upon a petition of a majority of
the qualified electors residing in the district, call an election and
submit to the electors of the district the question whether bonds
shall be issued.
The order calling the election may submit as one proposal the
question of issuing bonds to make all of the outlays, or so many of
them as may be selected, or the order may submit at the election as
separate questions the issuance of bonds for any of the outlays
singly or in combination.
If, at the election, two-thirds of the votes cast are in
favor of the issuance of bonds, the board may issue and dispose of
the bonds as proposed in the order calling the election.
Bonds issued by the district under the provisions of this
part shall be of such denomination or denominations as the board
The bonds shall be payable in lawful money of the United
States at the office of the treasurer and bear interest at a rate not
exceeding 8 percent per annum, payable semiannually in like lawful
money. The interest for the first year may be payable in one
installment at the end of such year, or the interest for the period
from the date of the bonds to a date not later than 30 days after the
date the second installment of the first district taxes levied after
the date of said bonds will become delinquent may be payable in one
installment at the end of such period.
No bonds shall be payable in installments, but each shall be
payable in full on the date specified therein by the board, which
need not be an anniversary of the date of the bond.
The board may provide that any bond issued by the district may be
subject to call and retirement prior to maturity at such times and
prices and upon such other terms as the board may specify. If a bond
is subject to call and retirement prior to maturity that fact shall
be stated in the bond.
Each bond shall be signed by the president and countersigned
by the secretary.
The bonds shall be numbered consecutively, beginning with number
one, and shall have coupons attached referring to the number of the
The bonds shall be sold by the board in such manner and in
such quantities as may be determined by it in its discretion but not
less than 95 percent of the par value thereof.
Before selling the bonds, or any part thereof, the board shall
give notice inviting sealed bids in such manner as the board 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, the
board may reject all bids received, if any, and either again give
notice inviting bids or sell the bonds at private sale.
The term of bonds issued shall not exceed forty years.
The outstanding bonds of the district shall not at any one
time exceed 15 percent of the assessed value of the real and personal
property of the district, except where the board elects to use the
county assessor's tax roll pursuant to Article 6 (commencing with
Section 6780) of Chapter 7 of this part, in which case the
outstanding bonds of the district may equal an amount not to exceed
20 percent of the assessed value of the real and personal property of
Within the meaning of this section the term "bonds" means only
bonds payable from the proceeds of taxes levied upon taxable property
in the district.
An action to determine the validity of bonds may be brought
pursuant to Chapter 9 (commencing with Section 860) of Title 10 of
Part 2 of the Code of Civil Procedure.
(1) An issue of bonds is hereby defined to be the aggregate
principal amount of all of the bonds authorized to be issued in
accordance with a proposal submitted to and approved by the electors
of the district, but no indebtedness will be deemed to have been
contracted until bonds shall have been sold and delivered and then
only to the extent of the principal amount of bonds so sold and
(2) The sanitary board of any district issuing any bonds
heretofore or hereafter authorized may, in its discretion, divide the
aggregate principal amount of such issue into two or more divisions
or series and fix different dates for the bonds of each separate
division or series. In the event any authorized issue is divided into
two or more divisions or series, the bonds of each division or
series may be made payable at such time or times as may be fixed by
the legislative body of the district separate and distinct from the
time or times of payment of bonds of any other division or series of
the same issue.
(3) The provisions of this section shall also apply to bonds
issued in an annexed territory and to reconstruction bonds and
In determining the amount of bonds to be issued, the
legislative body may include:
(a) All costs and estimated costs incidental to or connected with
the acquisition, construction, improving or financing of the project.
(b) All engineering, inspection, legal and fiscal agent's fees,
costs of the bond election and of the issuance of said bonds, bond
reserve funds and working capital and bond interest estimated to
accrue during the construction period and for a period of not to
exceed 12 months after completion of construction.