Article 3. Transfer Or Deposit Of Bonds of California Water Code >> Division 14. >> Part 6. >> Chapter 6. >> Article 3.

In case any contract is made with the United States, bonds of the district may be transferred to or deposited with the United States if so provided by the contract, at not less than their par value, to the amount, or any part thereof, to be paid by the district to the United States. The interest or principal, or both, of the bonds may be regularly paid to the United States and applied as provided in the contract.

The bonds may:
  (a) Call for the payment of interest not exceeding 6 percent per year.
  (b) Be of the denomination specified in the contract.
  (c) Call for the repayment of the principal at such times as specified in the contract.

The contract with the United States may call for the payment of the amount, or any part thereof, to be paid by the district to the United States at specified times, in installments, and with interest not exceeding 6 percent per year.

The board may accept, on behalf of the district, appointment of the district as fiscal agent of the United States or authorization of the district by the United States to make collection of money for and on behalf of the United States and to assume the duties and liabilities incident to such action.

The board as fiscal agent of the United States may do any and all things required by the federal statutes now or hereafter enacted in connection therewith and all things required by any rules or regulations now or hereafter established under any such federal statutes.