Article 5. Temporary Borrowing of California Public Utilities Code >> Division 10. >> Part 2. >> Chapter 8. >> 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 six (6) per centum 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
said notes their issuance and sale, will be governed by the
applicable provisions referred to in Section 29233. The maturity of
said notes shall not exceed two (2) years.
At any time prior to the first receipt by the district of
revenues from taxation, the counties within the district may loan any
available money to the district for the purposes of organization and
operation. Such expenditures shall constitute a proper expenditure
of county funds.
The treasurers of the counties within the district shall pay
into the treasury of the district all funds held by them to the
credit of the district.
The district may borrow money in accordance with the
provisions of Article 7 (commencing at Section 53820), Chapter 4,
Part 1, Division 2, Title 5 of the Government Code, and these
sections apply to and govern all such proceedings instituted under
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 Section 29121 until such
bonds are issued. Such notes shall not be issued in an 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.
(a) The district may borrow money for the purchase of
transit vehicles, as defined in subdivision (b) of Section 99501,
transit equipment, or transportation facilities, or for capital
improvements, by the issuance of grant anticipation notes issued
pursuant to Article 7.7 (commencing with Section 53859) of Chapter 4
of Part 1 of Division 2 of Title 5 of the Government Code payable on
the basis of any of the following:
(1) From appropriated state funds.
(2) From other funds committed, but not appropriated, and
evidenced by an appropriate document of intent.
(3) On specific dates or events and evidenced by an appropriate
document of intent. There shall be no liability on the state for
funds appropriated but not allocated.
(b) In addition to the grant money that may be pledged for the
payment of the notes pursuant to Section 53859.06 of the Government
Code, the district may pledge as security, on terms that it deems
appropriate, the transit vehicles or equipment, transportation
facilities, or capital improvements acquired with the proceeds of the
In addition to any other existing authority, the district
may borrow money and incur indebtedness pursuant to Article 7.4
(commencing with Section 53835) of Chapter 4 of Part 1 of Division 2
of Title 5 of the Government Code.