Section 12937 Of Chapter 8. Water Resources Development Bonds From California Water Code >> Division 6. >> Part 6. >> Chapter 8.
12937
. The ways and means for the payment of the interest on and
the principal of such bonds shall be as follows:
(a) There shall be collected annually in the same manner and at
the same time as other state revenue is collected such a sum, in
addition to the ordinary revenues of the State, as shall be required
to pay the principal and interest on said bonds as herein provided,
and it is hereby made the duty of all officers charged by law with
any duty in regard to the collection of said revenue, to do and
perform each and every act which shall be necessary to collect such
additional sum.
There is hereby appropriated from the General Fund in the State
Treasury such sum annually as will be necessary to pay the principal
of and the interest on the bonds issued and sold pursuant to the
provisions of this chapter, as said principal and interest become due
and payable.
On the several dates on which funds are remitted pursuant to
Section 16676 of the Government Code for the payment of the then
maturing principal and interest on the bonds, to wit, on the several
dates of maturity of said principal and interest in each fiscal year
there shall be transferred into the General Fund in the State
Treasury from revenues deposited in the fund as provided in
subdivision (b) of this Section 12937, and from any accrued interest
and premiums received on any sale, or sales of the bonds, so far as
available therein, amounts equal to, but not in excess of, all sums
so becoming due for principal and interest and in the event such
money received from such sources and so returned on said remittance
dates is less than the principal and interest then due and payable
then the balance remaining unpaid shall be transferred to the General
Fund out of moneys in the fund received from such sources as soon
thereafter as it shall become available, together with simple
interest thereon, from such remittance dates until so returned at the
same rate as borne by the bonds.
(b) All revenues derived from the sale, delivery or use of water
or power, and all other income or revenue, derived by the State, from
the State Water Resources Development System shall be deposited in a
special account or accounts in the California Water Resources
Development Bond Fund and shall be accounted for and used annually
only for the following purposes and in the following order, to wit:
1. The payment of the reasonable costs of the annual maintenance
and operation of the State Water Resources Development System and the
replacement of any parts thereof.
2. The annual payment of the principal of and interest on the
bonds issued pursuant to this chapter.
3. Transfer to the California Water Fund as reimbursement for
funds utilized from said fund for construction of the State Water
Resources Development System.
4. Any surplus revenues in each year not required for the purpose
specified in the foregoing subparagraphs (1), (2) and (3) of this
subdivision (b) of Section 12937 and not required to be transferred
to the General Fund pursuant to subparagraph (a) of this Section
12937, shall, during the time any of the bonds authorized herein are
outstanding, be deposited in a special account in the California
Water Resources Development Bond Fund and are hereby appropriated for
use and shall be available for expenditure by the department for
acquisition and construction of the State Water Resources Development
System as described in Section 12931 hereof.
All such revenues shall constitute a trust fund and are hereby
pledged for the uses and purposes above set forth and such pledge
shall inure to the direct benefit of the owners and holders of all
general obligation bonds issued under this chapter. The department,
subject to such terms and conditions as may be prescribed by the
Legislature, shall enter into contracts for the sale, delivery or use
of water or power, or for other services and facilities, made
available by the State Water Resources Development System with public
or private corporations, entities, or individuals. Such contracts
shall not be impaired by subsequent acts of the Legislature during
the time when any of the bonds authorized herein are outstanding and
the State may sue and be sued with respect to said contracts. Said
contracts shall be for a stated term and, insofar as practicable and
feasible, for the full term of the life of the general obligation
bonds issued under this chapter and each such contract shall recite
(i) that it is entered into for the direct benefit of the holders and
owners of all general obligation bonds issued under this chapter,
and (ii) that the income and revenues derived from such contracts are
pledged to the purposes and in the priority herein set forth. Such
pledge of revenues as herein set forth is hereby declared to be and
shall constitute an essential term of this chapter and upon its
ratification by the people of the State of California shall be
binding upon the State so long as any general obligation bonds
authorized hereunder are outstanding and unpaid. Such income and
revenues, subject to the priorities herein set forth, shall
constitute additional security for all of the bonds authorized and
issued hereunder irrespective of the date of their issuance and sale
and so long as any of the bonds authorized and issued hereunder, or
the interest thereon, are unpaid, such income and revenues shall not
be used for any other purpose. The bonds authorized hereunder shall
be equally secured by a lien upon all income and revenues derived
from the State Water Resources Development System without priority
for number, amount, date of bonds, of sale, of execution, or of
delivery pursuant to this chapter. Notwithstanding the pledge of
revenues herein contained, the State of California shall remain
liable for the payment of the principal of and interest upon all of
the bonds authorized and issued under this chapter.