Section 25841.5 Of Article 6. Indebtedness From California Public Utilities Code >> Division 10. >> Part 1. >> Chapter 6. >> Article 6.
25841.5
. A district may borrow money for the purpose of defraying
the expenses of a district lawfully incurred after the commencement
of the fiscal year, but prior to the time moneys from the tax levy
for the fiscal year are received by a district, in a sum which shall
not exceed five cents ($0.05) on each one hundred dollars ($100) of
assessed valuation of taxable property in a district at the time the
moneys are borrowed, and may evidence such borrowing by notes bearing
interest at a rate not to exceed six (6) percent per annum. The
notes shall be payable from the tax levy from the then current fiscal
year, which levy shall contain a sum sufficient to provide for the
payment of the notes and the interest thereon. The form of said notes
and the proceedings relating to their issuance and sale, will be
governed by the applicable provisions contained in Article 7
(commencing at Section 53820) of Chapter 4 of Part 1 of Division 2 of
Title 5 of the Government Code. The maturity of said notes shall not
exceed two (2) years.