Article 7. Obligation To Bondholders of California Public Utilities Code >> Division 6. >> Chapter 6.5. >> Article 7.
So long as any bonds of the district are outstanding and
unpaid, or so long as provision has not been made for the full
payment and discharge of all such outstanding bonds, upon maturity,
or upon redemption prior to maturity, through the setting apart in a
reserve fund or special trust account created pursuant to this
article to insure the payment thereof, of money sufficient for that
purpose, or through other irrevocable allocation to that purpose of
money sufficient therefor all provisions of this article shall be
The board shall fix rates for service from the electric
system to which the indebtedness pertains, and collect charges for
such service, such as to provide revenues at least sufficient in the
aggregate to pay, as the same shall become due, the principal and
interest on all such bonds so outstanding payable out of those
revenues, including premiums, if any, due upon the redemption of any
thereof, in addition to paying, as the same shall become due, the
necessary expenses of operating and maintaining such system, and all
other obligations and indebtedness payable out of those revenues.
Bonds issued under this chapter shall be issued without any
priority with respect to payment of principal or interest.
The electric system of the district to which the
indebtedness pertains shall not be sold or otherwise disposed of, as
a whole or substantially as a whole, unless such sale or other
disposition be so arranged as to provide for a continuance of
payments into a fund sufficient in amount to permit payment therefrom
of principal of, and interest on, and premiums, if any, due upon the
redemption of, all bonds issued under this chapter.
No indebtedness payable out of revenues shall be created in
contravention of the provisions of any resolutions heretofore adopted
by the board in connection with the authorization of any bonds
payable out of revenues.
Anything in this article to the contrary notwithstanding,
the board, in any resolution constituting a part of the proceedings
for the issuance of any issue of bonds under this chapter may
determine that the holders of the bonds of that issue are not to be
entitled to the benefits of or to enforce any or all of the
provisions of this article, and to that end the board, in such
resolution, shall specify the provisions of this article to the
benefits of which the holders of the bonds of that issue shall be
entitled; and the holders of the bonds of that issue shall not be
entitled to the benefits of or to enforce any of the provisions of
this article not so specified.