Section 11854 Of Article 7. Insurance And Indemnity Bonds From California Water Code >> Division 6. >> Part 3. >> Chapter 9. >> Article 7.

. Insurance or indemnity bonds against loss of revenues may be in an amount equal to the probable revenues to be received from the use and operation of the project during any period of time that is determined upon and fixed by the department, and shall be paid for out of the revenue fund.