Article 3. Investments of California Water Code >> Division 12. >> Part 6. >> Chapter 1. >> Article 3.

As used in this article "surplus money" means any money in any sinking fund established for the purpose of payment of any bonded or other indebtedness or any money in the treasury not required for the immediate necessities of the district.

A district may invest such surplus money, as its board deems wise or expedient in any of the following:
  (a) Bonds issued by the district.
  (b) Bonds issued by any school district any part of which is in a county containing any part of the county water district.
  (c) Bonds issued by the State.
  (d) Bonds issued by the United States.
  (e) Registered warrants issued by the State.

The investment may be made by purchase of the bonds or registered warrants or part thereof at the original sale or by purchase after they have been thus issued.

Any bonds or registered warrants purchased pursuant to this article and held may, from time to time, be sold and the proceeds reinvested pursuant to this article.

Sales of bonds or registered warrants purchased pursuant to this article and held shall be made in season so that the proceeds may be applied to the purposes for which the money with which the bonds or registered warrants were originally purchased was placed in the treasury of the district.