Article 4. Proceedings For Issuance of California Public Utilities Code >> Division 6. >> Chapter 6.5. >> Article 4.
Whenever a district proposes to exercise the power to borrow
money, or to refund indebtedness, pursuant to this chapter, the
board shall adopt a preliminary resolution declaring its intention to
authorize the issuance of bonds for such purpose, which resolution
shall specify all of the following:
(1) The purpose for which the proposed bonds are to be issued.
(2) The maximum principal amount of the bonds proposed to be
issued in the then current calendar year.
(3) The maximum term for which any of said bonds are to run.
(4) The maximum rate of interest to be payable upon such bonds.
(5) The maximum premium, if any, to be payable on the redemption
of any such bonds.
When bonds are issued under this chapter, the preliminary
resolution of the board adopted pursuant to this article shall take
effect upon its adoption by the board subject to the right of
referendum herein provided for.
Upon any such resolution taking effect subject to the right
of referendum, pursuant to this article, the board shall cause the
same to be published in the manner provided for the publication of
notices. At any time within 60 days after the date of the second such
publication a referendary petition, signed by voters in number equal
to at least 3 percent of the total vote cast, as defined in Section
11507, demanding the submission of such resolution to a vote of the
voters of the district for their assent to the issuance of the
proposed bonds, may be filed with the secretary. Upon presentation to
the secretary of a referendary petition, the resolution which is the
subject thereof shall be of no effect unless and until it has been
assented to by the voters.
If no such referendary petition is presented within the
aforesaid period of 60 days, then upon the expiration of said period,
or if the proposition of issuing the bonds specified in the
resolution of the board adopted pursuant to this article has been
assented to by the voters, whether upon referendum or pursuant to any
other provisions of this chapter, then upon such proposition having
been so assented to, the resolution shall take full and final effect,
and the board may proceed in accordance with the provisions of this
chapter and issue bonds within the terms of the resolution.
The provisions of any resolution constituting a part of the
proceedings for the issuance of any bonds under this chapter, when so
declared by its terms, or by the terms of any other such resolution,
shall constitute a contract between the district and the holders of
such bonds, and the provisions thereof shall be enforceable by
mandamus or any other appropriate suit, action or proceeding at law
or in equity in any court of competent jurisdiction.
The board at any time may adopt a resolution providing for
submission to the voters of the district of the proposition of
assenting to any proposed action of the board in any case where such
assent is required or permitted by the terms of this chapter, or in
any case where the board may deem such submission to be desirable.
Such resolution may provide for such submission at any specified
regular district election, or at any special election. Such
resolution and such election shall, except to the extent otherwise
provided in this chapter, conform to the requirements of Article 1,
Chapter 7, of this division. The board shall do, or cause to be done,
any and all things necessary to make such submission at the election
indicated by its resolution and to determine and certify the result