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Article 3. Refunding Bonds of California Water Code >> Division 16. >> Part 4. >> Chapter 2. >> Article 3.
The board may issue refunding bonds of the district for the
purpose of refunding any or all outstanding bonds of the district.
The board shall by resolution determine the amount of the
outstanding bonds to be refunded, fix the maximum amount of refunding
bonds to be issued, the maximum rate of interest to be paid (which
shall not exceed the rate of interest on the bonds to be refunded),
and the number of years, not exceeding 30, that the refunding bonds
or any part thereof are to run.
In the resolution the board shall call an election and
submit to the qualified voters of the district the question whether
the refunding bonds should be issued.
The resolution shall fix the time of the election, establish
one or more voting precincts, designate the polling place or places,
appoint an inspector, judge, and clerk for each precinct, and fix
the hours during the day in which the polls will be open and the
manner of voting for and against the issuance of the refunding bonds.
In all particulars not set forth in this article the
election shall be held and conducted as provided in Chapter 4 of Part
2 of this division.
The resolution shall be published pursuant to Section 6066
of the Government Code in a newspaper of general circulation in the
county designated by the board for that purpose, the last publication
to be at least one week before the date of the election. No other
notice of the election need be given.
If at the election a majority of the votes cast are in favor
of the issuance of the refunding bonds, the board shall be
authorized to issue refunding bonds of the district not exceeding the
maximum amount set forth in the resolution, payable out of the funds
of the district to be provided as prescribed in Section 55591.
The board shall, by order entered in its minutes, prescribe
the form of the refunding bonds and of the interest coupons to be
attached, and fix the date of the refunding bonds, the date of
maturity, and the rate or rates of interest to be paid. The bonds and
the interest coupons thereof shall be signed as provided in Article
1 of this chapter.
Refunding bonds may be exchanged at par value for any
outstanding bonds to be refunded at their par value or less, upon
such terms as may be agreed upon by the board and the holders of such
bonds, subject to adjustment of accrued interest to the date of
exchange. Any moneys required for the adjustment of interest may be
paid from any funds of the district.
In lieu of the exchange for outstanding bonds, the refunding
bonds may be sold by the board for cash at not less than par and
accrued interest, and the proceeds used for the purchase or
retirement of the outstanding bonds upon terms agreed upon by the
board and the holders of the bonds, but not to exceed par and accrued
interest.
Any bonds refunded and all interest coupons appurtenant
thereto shall be canceled immediately by the county treasurer.
Expenses of the refunding proceedings may be paid from any funds of
the district.
Taxes for the payment of principal and interest of refunding
bonds shall be levied as provided in Chapter 3 of this part except
that if the bonds refunded were payable from taxes levied upon land
only, the taxes for the payment of principal and interest of
refunding bonds shall likewise be levied upon land only.
