Article 4. Unauthorized Refunding Modification of California Water Code >> Division 11. >> Part 9. >> Chapter 2. >> Article 4.

The provisions of this article are applicable only to refunding plans which both:
  (a) Were adopted prior to January 31, 1939.
  (b) Then contained no provisions for modification.

The terms of any refunding plan and of the refunding bonds outstanding thereunder may be modified from time to time if the modification is approved in the manner provided in this article by all of the following:
  (a) The district.
  (b) The holders of all of the outstanding refunding bonds affected.

The approval of the modification by the district shall be given by a resolution of its board and by its voters at an election called by the board.

Notice of the election shall be given and it shall be held in substantially the same manner as a bond election, except that a majority vote only is required for approval of the modification.

The approval of the holders of outstanding refunding bonds affected by the modification shall be evidenced by either of the following:
  (a) The written consent of all of the owners and holders of the bonds.
  (b) An order under federal bankruptcy law that is binding upon the holders and owners of all of the outstanding refunding bonds affected.

If the modification is approved in the manner provided in this article, the district need not issue new refunding bonds and coupons in exchange for outstanding bonds and coupons the terms of which have been modified, but in lieu thereof the district may provide for the indorsement on the outstanding refunding bonds and coupons affected of the terms of the modification or a reference to its terms if contained in an instrument of modification or modified refunding plan, all as provided in the modification.

If the modification or modified refunding plan provides for the extension of the time of maturity of all or any of the refunding bonds, the district in lieu of issuing new refunding bonds may indorse upon the face of the refunding bonds extended the new date of their maturity and attach to them new interest coupons to evidence interest payments to become due to the extended date of maturity of the refunding bonds.

All refunding bonds the terms of which have been modified shall continue to be binding outstanding bonds of the district and negotiable instruments irrespective of any indorsement of the terms of the modification or of the extension of the time of payment and shall be payable in accordance with their terms and the provisions of the modification.

Any modification of any refunding plan adopted pursuant to the provisions of this article may provide for its subsequent modification with the consent of the holders of any specified percentage of the refunding bonds affected by the modification in the manner provided in it.