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Article 9. Refunding Bonds of California Water Code >> Division 5. >> Part 5. >> Chapter 6. >> Article 9.
The board may, by resolution entered in its minutes, order
the refunding of the whole or any part of the principal of any bond
issue now or hereafter outstanding at lower rates of interest
whenever in its judgment and opinion it will be for the best
interests of the owners of lands assessed by the assessment to be
refunded so to do.
Refunding bonds may be issued for the purpose, and when
issued their proceeds may be used to refund outstanding bonds either
as they mature or to call and redeem outstanding bonds as provided in
this part, or both.
The resolution ordering refunding of bonds shall designate
the numbers, denominations, dates of maturity and aggregate principal
amounts of the bonds to be refunded, and shall fix and prescribe the
form of the refunding bonds and of the interest coupons attached
thereto, and shall fix the rate of interest the bonds shall bear,
which rate, however, shall be less than the rate provided in the
bonds to be refunded.
Refunding bonds shall mature serially in amounts to be fixed
by the board in its resolution.
The payment of the refunding bonds shall begin not later than
five years from the date thereof and shall be completed in not more
than 25 years from the date thereof.
The refunding bonds, together with interest thereon, shall be
payable at the office of the State Treasurer.
Refunding bonds shall be issued in such denominations as the
board may determine except that no bonds shall be of a denomination
of less than one hundred dollars ($100) nor of a greater denomination
than one thousand dollars ($1,000), and shall be payable on the day
fixed in the bonds with interest at the rate specified therein which
interest shall be payable semiannually.
The refunding bonds shall be signed by the president of the
board or such other member of the board as the board may by
resolution designate and shall be countersigned by the secretary of
the board with the seal of the board affixed thereto.
The interest coupons of the refunding bonds shall be numbered
consecutively and signed by the secretary of the board by his
engraved or lithographed signature.
In case any officer whose signature or countersignature
appears on the refunding bonds or coupons ceases to be such officer
before the delivery of the bonds to the purchaser, the signature or
countersignature shall nevertheless be valid and sufficient for all
purposes the same as if the officer had remained in office until the
delivery of the bonds.
The refunding bonds may be issued and sold by the board as it
may determine but for not less than their par value and accrued
interest thereon.
The proceeds of the refunding bonds shall be placed in the
State Treasury to the credit of the drainage district in the bond
fund of the assessment upon which the bonds are based, and the
proceeds shall be used and applied for the objects and purposes for
which the refunding bonds were issued.
The proceeds may also be used to defray the expenses of
refinancing the obligations.
The principal and interest of the refunding bonds shall be
based upon, secured by and payable out of the assessment or
assessments upon which the bonds refunded were payable in accordance
with the provisions of this part.
Upon the sale of any of the refunding bonds, installments of
the assessment upon which the bonds are based shall be called and
collected and the installments shall become delinquent, with the
penalties, provisions for sale, redemption and conveyancing all as
set forth in this part, which provisions apply to the refunding bond
issues to the same extent as to original issues.
The refunding bonds or any part thereof when sold may be
called and redeemed by the board in the manner provided by Chapter 6
of this part.
The refunding bonds issued by the drainage district pursuant
to this part shall be legal investments for all trust funds and for
the funds of all insurance companies, banks, both commercial and
savings, and trust companies, and for the State school funds, and
whenever any moneys or funds may by law now or hereafter enacted be
invested in bonds of cities, cities and counties, counties or school
districts, in the State, such moneys or funds may be invested in the
bonds of the drainage district.
Whenever bonds of cities, cities and counties, counties or
school districts may by law be issued as security for the performance
of any act or as security for the deposit of public funds of the
State or of any county, city and county, municipality or other public
corporation or political subdivision in any State or National bank
or banks, refunding bonds of the drainage district may be so used.
