Section 71971 Of Article 2. Sale Of Bonds And Use Of Proceeds From California Water Code >> Division 20. >> Part 7. >> Chapter 6. >> Article 2.

. The proceeds from the sale of bonds shall be paid into the treasury of the district, placed to the credit of a special improvement fund, and expended only for the purpose for which the indebtedness was created. When such purpose has been accomplished, any moneys remaining in the special improvement fund may be transferred to the fund to be used for the payment of principal of and interest on the bonds.