Article 5. Temporary Borrowing of California Public Utilities Code >> Division 10. >> Part 15. >> Chapter 7. >> Article 5.
The district may borrow money for the purpose of defraying
general administrative and preliminary expenses of the district,
lawfully incurred, prior to the time moneys to be raised by the first
tax levy for the district are available, a sum which shall not
exceed five cents ($0.05) on each one hundred dollars ($100) of
assessed valuation of taxable property in the district at the time
the moneys are borrowed, and to evidence such borrowing by notes
bearing interest at a rate not to exceed 7 percent per annum. The
notes shall be payable from the first tax levy made by the district,
and the tax levy shall contain a sum sufficient to provide for the
payment of the notes and the interest thereon. The form of the notes,
and their issuance and sale, shall be governed by the applicable
provisions referred to in Section 103583.
At any time prior to the first receipt by the district of
revenues from taxation, the county may lend any available money to
the district for the purposes of organization and operation. Such
expenditures shall constitute a proper expenditure of county funds.
Such loans may bear interest.
The district may borrow money in accordance with the
provisions of Article 7 (commencing with Section 53820), or of
Article 7.6 (commencing with Section 53850), of Chapter 4, Part 1,
Division 2, Title 5 of the Government Code.
The district may borrow money in anticipation of the sale
of bonds which have been authorized to be issued, but which have not
been sold and delivered, and may issue negotiable bond anticipation
notes therefor and may renew the same from time to time, but the
maximum maturity of any such notes, including the renewals thereof,
shall not exceed five years from the date of delivery of such
original notes. Such notes may be paid from any moneys of the
district available therefor and not otherwise pledged. If not
previously otherwise paid, the notes shall be paid from the proceeds
of the next sale of the bonds of the district in anticipation of
which they were issued and, if not so paid, taxes may be levied for
their payment in the same manner as taxes are levied for the payment
of general obligation bonds pursuant to Article 9 (commencing with
Section 103340) of Chapter 5 until such bonds are issued. Such notes
shall not be issued in any amount in excess of the aggregate amount
of bonds which the district has been authorized to issue, less the
amount of any bonds of such authorized issue previously sold, and
also less the amount of other bond anticipation notes therefor issued
and then outstanding. The notes shall be issued and sold in the same
manner as the bonds. Such notes and the resolution or resolutions
authorizing the same may contain any provisions, conditions, or
limitations which a resolution of the district authorizing the
issuance of bonds may contain.