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Article 6. Warrants of California Water Code >> Division 5. >> Part 4. >> Chapter 7. >> Article 6.
All money collected from assessments shall be paid out only
on warrants issued for works or other expenses covered by the
assessment from which the money was derived, to the end that all
money raised by assessment upon any of the lands embraced in the
drainage district, shall be expended only for works of reclamation or
other expenses, beneficial to the lands so assessed, and for the
payment of warrants issued for the construction of the works and
other expenses for which the assessment was levied.
Each warrant shall designate the name and number of the
assessment from which it is to be paid.
Drafts of the board may be presented to the Controller and
warrants drawn against the funds to be raised by an assessment as
soon as the board has passed its order or resolution for the levy of
the assessment and appointed the assessors.
In case there are not sufficient funds applicable thereto for
the payment of the warrants when presented to the State Treasurer,
he shall indorse on the warrants the date of presentation and
register the same, and thereafter the warrants shall bear interest at
the rate of 7 per cent per annum, and shall be paid in the order of
their registration.
All such warrants shall be considered as contracts in writing
for the payment of money, and the period prescribed for the
commencement of an action based upon any such warrants, or connected
therewith, is four years from the date of the first publication of
the notice specifying the warrants published by the State Treasurer
pursuant to the provisions of this article.
No statute of limitations shall be deemed to have run against
any action upon or affecting any warrant drawn against any
assessment under this part by reason of the lapse of time during
which funds adequate for the payment of the outstanding warrants
against the assessment were not available.
The warrants shall, at any time within the period of four
years, be received in payment of any assessment for work or expenses
for which the warrants were issued.
The board may, at its option, at any time before payment of
any warrant renew it upon application of the owner or holder thereof
by an indorsement thereon of the fact and date of the renewal and
notice thereof to the State Treasurer and Controller.
Whenever there is sufficient money in the treasury applicable
to the payment of any outstanding warrants of the drainage district,
the State Treasurer shall give notice that there is money in the
treasury to pay certain warrants, giving their numbers in the order
of their registration.
The notice shall be published for 10 days in one newspaper
published in the City of Stockton and one published in the City of
Sacramento.
After the last publication of the notice the warrants therein
mentioned cease to bear interest.
The board shall designate a paper in each of the cities of
Stockton and Sacramento which shall be the official papers of the
drainage district for the purpose of the publication.
All warrants of the drainage district when received by the
board, Department of Finance, the respective county treasurers or any
other officer authorized by law to accept them, for the cancellation
or retirement thereof or in payment of assessments, shall be
transmitted by the board, department, or officer to the Controller
who shall give the board, department, or officer a receipt for the
warrants.
The Controller upon demand by the board shall cancel the
warrants and credit the face value thereof, plus accrued interest
thereon to the date of the tender of the warrants to the board,
department or officer receiving them, to the fund upon which the
warrants were originally drawn and charge the fund with the accrued
interest.
The Controller shall notify the State Treasurer of the
cancellation and the State Treasurer shall then make the proper
entries in his books.
Whenever any warrant drawn by the Controller upon the State
Treasurer as provided in this chapter has been presented to the State
Treasurer and not paid for want of funds and has not been registered
by the State Treasurer and bears interest as provided in this
chapter, the Controller shall at any time, on presentation of the
warrant to him for that purpose, certify on the warrant, over his
signature, the amount of interest accrued thereon to that date,
specifying the date.
When the State Treasurer pays a warrant he shall, in addition
to the amount for which the warrant was drawn, pay the interest
accrued thereon as certified to by the Controller.
Whenever any unpaid, outstanding and interest-bearing warrant
drawn by the Controller upon the State Treasurer as provided in this
chapter is presented to the board by the owner or holder thereof for
the purpose of having two or more warrants issued to him in lieu
thereof, the board shall present the warrant properly indorsed to the
Controller for credit to the fund upon which it was originally drawn
together with a claim on the Controller setting forth the following:
(a) The number and denomination of the warrant to be credited.
(b) The number of substituted warrants, and denomination of each, to be issued in lieu thereof.
(a) The number and denomination of the warrant to be credited.
(b) The number of substituted warrants, and denomination of each, to be issued in lieu thereof.
The sum of the substituted warrants shall equal the principal
amount of the original warrant.
The Controller shall credit the original warrant to the fund
upon which it was originally drawn and shall prepare and issue
warrants in accordance with the claim so presented showing thereon
that the substituted warrants are issued in lieu of warrant No.____
(giving the warrant number of the original warrant) and also showing
the date of issuance and date of registration of the original
warrant.
When, upon presentation to the State Treasurer, payment can
not be made for want of funds the State Treasurer shall register the
warrants as of the date of registration of the original warrant and
the substituted warrants shall bear interest from the original date
of registration at the rate of 7 per cent per annum as provided in
this chapter.
The Department of Finance may, out of any funds of the State
which it is authorized by law to invest, purchase at their face value
and invest in any warrants of the drainage district drawn by the
Controller as provided in this part and payable out of any assessment
levied or to be levied by the board upon lands within the drainage
district.
The Department of Finance may exchange any warrants purchased
pursuant to the next preceding section for other warrants drawn
against the same assessment, and sell all or any part of the warrants
so purchased or taken in exchange.
All such exchanges or sales of warrants shall be effected
without loss to the State.
All warrants purchased or acquired by exchange by the
Department of Finance shall be registered by the State Treasurer,
unless already registered.
The warrants shall be payable with interest in their proper
order of registration, as provided in this part.
The warrants shall, unless sold or exchanged, be held by the
Department of Finance until paid.
Upon payment of the warrants the proceeds thereof shall be
returned into the fund out of which the purchase or investment was
made.
