Article 7. Payment Of Principal And Interest of California Water Code >> Division 6. >> Part 3. >> Chapter 8. >> Article 7.

From the money deposited in the construction fund the State Treasurer shall transfer to the place or places of payment named in the bonds the sums required to pay the interest as it becomes due on all bonds sold and outstanding for the construction of the project during the period of actual construction and during a period of one year after completion thereof.

After the periods mentioned in the next preceding section the Treasurer shall transfer from the revenue fund to the place or places named in the bonds the sums required to pay the interest on the bonds and redeem the principal thereof as such interest payments and bond redemptions fall due for all bonds issued and sold.

All funds transferred for the payment of principal or interest on bonds shall be segregated and applied solely for the payment of the principal and interest.