Article 3. Short Term Borrowing of California Harbors And Navigation Code >> Division 8. >> Part 7. >> Chapter 6. >> Article 3.

A district may incur indebtedness for any purpose for which the district is authorized to expend funds by the issuance of negotiable promissory notes pursuant to this article without an election.

Said notes shall be payable in not to exceed five years from their date and shall bear interest at not exceeding 6 percent per annum, payable as provided therein.

The total aggregate amount of said notes outstanding at any one time shall not exceed a limit of 2 percent of the assessed valuation of the taxable property in the district or, if the assessed valution is not obtainable, 2 percent of the county auditor's estimate of the taxable property in the district evidenced by his certificate, provided:
  (a) A district which has been formed for less than 18 months may exceed said limit and in the event may borrow an aggregate amount of not to exceed thirty-five thousand dollars ($35,000).
  (b) No district shall borrow more than an aggregate amount of one hundred fifty thousand dollars ($150,000).