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Article 2. Warrants Payable At Future Times of California Water Code >> Division 11. >> Part 8. >> Chapter 4. >> Article 2.
If any contract or lease for the acquisition of property
provides for any future payments by the district, warrants may be
issued, on order of the board, for the payments, which warrants shall
be made payable at the times provided in the contract or lease.
When a particular purpose or emergency assessment has been
authorized, warrants in an amount equal to the amount of the
assessment may be issued on order of the board to carry out the
purpose for which the assessment was authorized. These warrants shall
be made payable at the time or times that the board estimates that
they can be paid from the proceeds of the assessment.
Any outstanding registered warrants and their accrued
interest may be refunded by the issuance of warrants payable at
stated times fixed by the board. These warrants may be exchanged for
the registered warrants or sold for not less than their par value to
provide funds for the payment of the registered warrants or any of
them and their accrued interest.
Warrants payable at a future time or times may be issued in
consideration of money loaned to the district for the purchase of any
of its outstanding bonds or the refinancing or retiring of any
outstanding contract. The annual interest payable on these warrants
shall be less than the annual interest on the bonds purchased or
contract refinanced or retired with the proceeds of the warrants.
Warrants payable at a future time or times may also be
issued to obtain funds or property for any lawful purpose of the
district.
Any warrant authorized in the preceding sections of this
article shall draw interest at a rate to be fixed by the board not to
exceed 8 percent per year payable annually or semiannually as the
board may prescribe.
Coupons payable to bearer in a form and signed as prescribed
by the board may be attached to warrants payable at a future date to
evidence their interest.
Warrants of any district may be issued to evidence the
indebtedness allowed to be incurred prior to the levy of the first
district assessment, bearing interest fixed by the board at not more
than 8 percent per year. These warrants shall be made payable on a
date not later than the first day of July next after the first annual
assessment in the district is levied.
If any district owns any property which it is authorized to
lease or sell, its board may in the contract providing for the
issuance of warrants payable at a future time, agree that the
proceeds of the lease or sale of the property, not required by law to
be used for other purposes, shall be allocated to the payment of
these warrants.
No warrants issued pursuant to this article made payable
more than five years from the date of issuance shall be valid unless
their issuance is authorized by a majority of the voters voting at an
election called by the board for the purpose of determining whether
or not the warrants shall be authorized.
Notice of the election shall be given and the election shall
be held and the result determined as nearly as practicable in the
manner provided for bond elections.
All warrants issued pursuant to this article shall be sold
by the board in such manner and in such quantities as may be
determined by the board in its discretion, but except as otherwise
expressly provided in this article, no such warrants shall be sold
for less than 95 percent of the par value thereof.
