Section 52852 Of Chapter 5. Creation Of Reserve Fund Pursuant To Agreement With The United States From California Water Code >> Division 15. >> Part 8. >> Chapter 5.

. If the bond fund contains a sum derived from an assessment securing the bonds to be refunded pursuant to the agreement which is in excess of the amount required to pay all installments of principal and interest due or to become due within six months upon all outstanding bonds secured by the assessment, the board may by resolution direct that the excess, or such part thereof as they deem advisable, be set apart for the purpose of creating a reserve fund.