Section 29230 Of Article 5. Temporary Borrowing From California Public Utilities Code >> Division 10. >> Part 2. >> Chapter 8. >> Article 5.
29230
. 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.