Chapter 4. Bond Terms of California Water Code >> Division 14. >> Part 8. >> Chapter 4.

The bonds shall be in such denominations as the board may prescribe.

The bonds shall be signed by the president and attested by the treasurer.

The bonds shall be numbered consecutively in order of their maturity. If the bonds are issued in two or more series, each series shall be lettered in alphabetical order, and the bonds of each series shall be numbered consecutively in order of their maturity within such series.

The bonds or any series thereof shall bear interest at a rate not to exceed 8 percent per year payable annually or semiannually as may be prescribed by the board at the time of the issuance of the bonds at the office of the treasurer and at any other place within the United States which may be designated by the board, upon the presentation of the proper coupons.

Coupons for each installment of interest shall be attached to the bonds and shall bear the facsimile signature of the treasurer.

The principal of the bonds or any series thereof shall be made payable on such dates, in such years and at such places as the board may prescribe.

The bonds or any series thereof shall be payable within 40 years from their date, and not less than 10 percent of the aggregate face value of the bonds or any series thereof issued shall be payable within 15 years from their date.

The bonds shall be in such form as may be prescribed by the board.

The interest coupons shall be in such form as may be prescribed by the board.

When bonds are made callable, a statement to that effect shall be set forth on the face of the bond.

The board may determine to establish a bond reserve fund for the payment of the principal of or interest on the bonds. Such a bond reserve fund may be established from the premium, if any, received upon the sale of the bonds or from tolls or charges levied pursuant to Section 43006, or from both such sources. Except as otherwise provided by the board in the resolution determining to establish a bond reserve fund, any moneys deposited in such a fund shall be used solely for the payment of the principal of and interest on the bonds in the event that other available moneys of the district are insufficient therefor. When all of the principal of and interest on the bonds have been paid, the balance of the money remaining in the bond reserve fund may be applied to any lawful purpose of the district.