Section 71814 Of Chapter 2. Promissory Notes From California Water Code >> Division 20. >> Part 6. >> Chapter 2.
71814
. A district may borrow money in anticipation of the sale of,
but not in excess of the principal amount of, authorized bonds of the
district which have not yet been sold and delivered, and for that
purpose may issue and sell negotiable bond anticipation notes, and
may refund such notes from time to time, but the maximum maturity of
any such notes, as originally issued or as refunded, shall not exceed
five years from the date of the original notes. The notes shall be
sold in such manner as the board may determine, and such notes and
the resolution providing for the issuance of such notes may contain
any provision, condition or limitation which a bond, or any
resolution or ordinance providing for the issuance of bonds, may
contain. The interest on bond anticipation notes shall be payable at
the time or times provided in such notes and may be represented by
interest coupons attached to the notes and shall be payable from the
same funds from which the interest on bonds of the district are
payable. The principal of such notes may be paid from any moneys of
the district available for such purpose. If such notes, or any
portion thereof, have not been previously paid, they shall be paid
from the proceeds of the next sale of bonds in anticipation of which
the notes were issued. The resolution providing for the issuance of
bond anticipation notes may contain a provision that, if for any
reason bonds of the district are not sold in time to provide funds to
pay any unpaid note, and, if other funds of the district are not
available for such payment, taxes shall be levied upon the taxable
property in the district for such payment in the same manner provided
for the payment of bonds in such amount each year for such period of
years as may be set forth in such resolution. To the extent bond
anticipation notes are paid from a tax levy, authorized bonds in a
corresponding amount shall be canceled and not issued thereafter.
When bonds of the district are issued and any portion of the proceeds
of the sale are to be used to pay bond anticipation notes, such
bonds shall mature not later than the maximum permissible years for
such bonds under Section 71951 from the date of such notes as
originally issued.