Article 1. Issuance of California Water Code >> Division 15. >> Part 8. >> Chapter 2. >> Article 1.

All provisions of Chapter 1 of this part are applicable to bonds issued pursuant to this article.

When any assessment, except an operation and maintenance assessment, levied and assessed upon district lands remains unpaid in whole or in part and, in the judgment of the board it would be for the best interest of the district or the landowners therein to issue bonds to obtain money to pay the cost of reclamation, the indebtedness of the district, or any other legal charge, or when a petition signed by the owners of more than one-half of the land in the district is filed with the secretary, the board, by order entered upon its records, shall order a special election to be held at some place in the district to be designated by the board.

At the special election the board shall submit to the landowners the question of whether bonds shall be issued in an amount equal to the amount of such assessment, or the part of such assessment remaining unpaid, which amount shall be entered by the board in its records and stated by it in the order for the special election.

If a majority of the votes cast at the election are in favor of the issuance of bonds, the board shall cause the amount of bonds stated in the order for the election to be executed and delivered, with the assessment list, to the county treasurer.

If the board deems it advisable, it may order a special election to be held prior to making any assessment, to determine whether bonds shall be issued for an amount to be stated in the order for the election, but no bonds shall, in such instance, be issued until an assessment for the amount of the bonds authorized at the election has been made and filed with the county treasurer.

The county treasurer shall place the bonds to the credit of the district.

The bonds shall be payable serially within 20 years from their date, as follows:
  (a) Not less than 10 percent of the aggregate face value of bonds issued shall be payable within 10 years from their date.
  (b) Not less than 10 percent of the aggregate face value of bonds remaining unpaid at the end of 10 years shall be payable each year beginning with the eleventh (11th) year from their date, until the whole amount of the bonds is paid.

The bonds shall be substantially in the following form:

Form of Bonds United States of America State of California County of ______ No. _____ $ ______ Reclamation District ______

Reclamation District No. ____, for value received hereby acknowledges itself indebted to and promises to pay to the holder hereof at the office of the treasurer of said county, in the State of California, on the first day of ____, 19_, the sum of ____ dollars ($____), in lawful money of the United States of America, with interest thereon in lawful money from date hereof until paid, at the rate of ____ percent, per year, payable at the office of said treasurer on the first day of January, and the first day of July in each year on presentation and surrender of the interest coupons hereto attached. This bond is one of a series of ____ bonds of like tenor and effect, except as to denomination and maturity, numbered from ____ to ____ inclusive, amounting in the aggregate to ____ dollars ($____), issued in accordance with Division 15 of the Water Code of the State of California pursuant to an election held in said reclamation district on the ____ day of ____, 19_, authorizing its issuance, and is based upon and secured by an assessment levied on the lands in said district, and filed in the Office of the County Treasurer of said County of ____, on the ____ day of ____, 19_, and the said reclamation district does hereby certify and declare that said election was duly called and held upon due notice, and the result thereof was duly canvassed and ascertained, in pursuance of and in strict conformity with the laws of the State of California applicable thereto, and that all of the acts and conditions and things required by law to be done, precedent to and in the issue of said bonds have been done and have been performed in regular and in due form and in strict accordance with the provisions of the law authorizing the issuance of reclamation bonds. In the testimony whereof, the said district, by its board of trustees, has caused this bond to be signed by the president of said board and attested by the Auditor of said County of ____ with his seal of office affixed this ____ day of ____, 19_.

_____________________ President of said board Attest ___________ Auditor of the , State of County of ________ California

The interest coupons may be substantially in the following form:

No. ________ $ _______

The County Treasurer of ____ County, California, will pay to the holder hereof on the ____ day of ____, 19_, at his office in said County of ____, the sum of ____ dollars ($____) in lawful money of the United States out of the funds of Reclamation District No. ____ for interest on bonds of said district numbered ____.

_______________________________ County Auditor