Article 9. Form And Content of California Public Utilities Code >> Division 6. >> Chapter 6.5. >> Article 9.
Without limiting in any way the generality of its power, the
board is expressly authorized, in its discretion, to provide, in
connection with any issue of bonds under this chapter all the matters
contained in this article.
The board may provide for such bonds being in such
amounts, of such denominations, payable at such times, and in such
form as the board may determine.
The board may provide for such bonds being negotiable or
The board may provide for such bonds and the interest
thereon, and premiums, if any, due upon the redemption of any
thereof, being payable or collectible at any place or places, within
or without the State of California, and without presentation and
approval of demands.
The board may provide for such bonds being payable to
bearer or only to the registered holder, either as to principal
alone, or as to both principal and interest; for such bonds being
with or without coupons; for such bonds being nonregisterable, or
registerable, either as to principal alone, or as to both principal
and interest; for such bonds being exchangeable or nonexchangeable,
convertible or nonconvertible; and for the reissuance of bonds or
coupons which have been surrendered and preserved, or for the
issuance of new bonds or coupons in the place of bonds or coupons
which have been surrendered and canceled, wherever appropriate as
incident to the discharge of any bond from registration, or to any
exchange or conversion of any bond; all on such terms and conditions,
and at such place or places, within or without the State of
California, as the board may determine.
The board may provide for such bonds being redeemable,
either at the option of the district, or in the operation of any
sinking fund provided for the issue, at such price or prices and in
such manner as the board may determine, whether or not involving the
payment of a premium upon such redemption; provided, that no bond
shall be subject to redemption unless such bond at the time of its
issue states on its face that it is redeemable at the option of the
district or by the operation of a sinking fund for bonds of that
issue, as the case may be.
The board may provide for the issuance by the district of
a duplicate, in the manner and on such terms and conditions as the
board may determine, in the event any bond, temporary bond, coupon or
interim receipt of any such issue is lost, destroyed or mutilated.
The board may provide for the appointment and payment of
fiscal, paying, sinking fund or other agents, or of trustees or
The board may provide for the appointment of the treasurer
of the district to act as such fiscal, paying, sinking fund or other
The board may provide for the custody by the district of
bonds and coupons, whether pending delivery or after purchase or
surrender; for the delivery of bonds and coupons by the district to
the purchaser thereof; for the receipt by the district of the
proceeds of the sale and for the depositing of such proceeds in the
proper fund or funds.
The board may provide for the sale of any such bonds upon
such terms and conditions as the board in its discretion may
determine at public sale. Bonds may be sold by the board below the
par or face value thereof, at a discount not to exceed 6 percent of
par value; provided further, that in the case of refunding bonds the
board may provide for the refunding being made, in whole or in part,
by the exchange of such refunding bonds for the bonds to be refunded.
Before selling the bonds, or any part thereof, the board shall give
notice not less than 10 days prior to the date of sale by publication
in a newspaper of general circulation circulating in the district
inviting sealed bids in such manner as the board shall 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 readvertise or sell
the bonds at private sale.
The board may provide for the issuance of interim
receipts or of temporary bonds, in such form as the board may
prescribe, pending the issuance of definitive bonds.
The board may provide for any signatures to such bonds
and to any coupons thereto attached, and to any interim receipts and
temporary bonds, being by facsimile.
The board may provide for restrictions on the incurring
of additional indebtedness of the district payable out of the
revenues out of which the bonds then authorized are to be payable.
The board may provide for restrictions on future
transfers out of the revenues out of which the bonds then authorized
are to be payable.
The board may provide for covenants with the holders of
bonds to the same effect as set forth in Article 7 of this chapter,
which covenants shall not be subject to alteration or repeal, except
as in Article 8 of this chapter provided.
The board may provide for the issuance and distribution
in such form as the board may determine of official statements
respecting proposed issues of bonds and the properties, operations
and finances of the works on account of which such bonds are to be
issued, for the information of prospective purchasers of such bonds;
and, in any case where any proposition is to be submitted to the
voters for their assent, whether by referendum or pursuant to any
provision of this chapter, for the issuance, distribution,
dissemination and publication of factual statements respecting such
proposed issues of bonds, and such properties, operations and
finances, for the information of such voters.
The board may provide for the making of contracts, or the
placing of orders, for the engraving or printing of any bonds,
whether definitive or temporary, or of interim receipts, authorized
by this chapter, or for any printing incident to the offering or
issuance of any such bonds, without advertising for bids, in any case
where, because of limitations of time, or requirements as to quality
of work, or as to security in the control or custody of plates, or
any similar cause, the board may deem it to be in the public interest
so to do, anything in this division to the contrary notwithstanding,
but in so doing the board shall, if practicable, obtain or cause to
be obtained competitive bids, formal or informal, from bidders who
can perform work of the required quality within the required time,
and, in the case of engraving, who are of proper responsibility and
who have adequate facilities for the control and safekeeping of the
Each issue of bonds issued pursuant to this chapter shall
conform to the following requirements:
(1) Such bonds shall be serial bonds or sinking fund bonds, or a
combination of serial and sinking fund bonds.
(2) Provision shall be made for the retirement of such bonds
through annual payments on principal, and such payments shall begin
not more than 10 years, and end not more than 20 years, after the
date of such bonds.