CHAPTER 6. Financial Provisions [7170. - 7243.]

Chapter 6 added by Stats. 1959, Ch. 1598.

§§ 7170–7243 · 37 sections

1. ARTICLE 1. General §§ 7170–7176 · 7 sections

   • § 7170 A district may borrow money, incur indebtedness, and issue bonds or other evidences of indebtedness as provided in this part.
   • § 7171 A district may issue warrants payable in not to exceed two years from their date, to pay the formation expenses of the district, which warrants may bear…
   • § 7172 All claims for money or damages against the district are governed by Part 3 (commencing with Section 900) and Part 4 (commencing with Section 940) of Division…
   • § 7173 Warrants shall be drawn by the treasurer and signed by the president, or a member of the board designated for the purpose and by the secretary.
   • § 7174 The treasurer shall install and maintain a system of auditing and accounting that shall completely and at all times show the financial condition of the…
   • § 7175 The treasurer shall make annual, or oftener if the board so orders, written reports to the board as to the receipts and disbursements and balances in the…
   • § 7176 A bank may act as depositary, paying agent or fiscal agent for the holding or handling of district funds, notwithstanding the fact that a member of the board…
2. ARTICLE 2. Alternative—County Treasurer as Depositary §§ 7190–7195 · 6 sections

   • § 7190 As an alternative to the procedures of Article 1 (commencing at Section 7170) the board may by resolution designate the county treasurer of the county in which…
   • § 7191 The county treasurer shall: (a) Receive and receipt for all the district’s money and place it in the county treasury to the credit of the district. (b) Be…
   • § 7192 The county treasurer shall pay, when due, out of district money, all sums payable on outstanding bonds and coupons of the district; and the county treasurer…
   • § 7193 The county auditor shall draw warrants to pay claims made against the district when the claims have been approved in writing by the president or a member of…
   • § 7194 The county treasurer shall report in writing on the first day of July, October, January and March of each year to the board with respect to each of the…
   • § 7195 The board of supervisors of the county shall determine the charge to be made against the district for any services of either or both of: (a) The county…
3. ARTICLE 3. Short Term Borrowing §§ 7200–7202 · 3 sections

   • § 7200 A district may incur indebtedness for any purpose for which the district is authorized to expend funds by the issuance of negotiable promissory notes pursuant…
   • § 7201 Said notes shall be payable in not to exceed five years from their date and shall bear interest at not exceeding 6 percent per annum, payable as provided…
   • § 7202 The total aggregate amount of said notes outstanding at any one time shall not exceed a limit of 2 percent of the assessed valuation of the taxable property in…
4. ARTICLE 4. General Obligation Bonds §§ 7210–7227 · 18 sections

   • § 7210 Whenever the board deems if necessary for the district to incur a general obligation bonded indebtedness for (a) the acquisition, construction, completion or…
   • § 7211 The resolution shall state: (a) The purpose for which the proposed debt is to be incurred, which may include expenses of all proceedings for the authorization,…
   • § 7212 Notice of the holding of the election shall be given by publishing the resolution calling the election pursuant to Section 6066 of the Government Code in at…
   • § 7213 The returns of the election shall be made, the votes canvassed at least seven days following the election, and the results thereof ascertained and declared in…
   • § 7214 No irregularities or informalities in conducting the election shall invalidate the same, if the election shall have been otherwise fairly conducted.
   • § 7215 Any action or proceeding wherein the validity of the election or of the proceedings in relation thereto is contested, questioned or denied, shall be commenced…
   • § 7216 If from the election returns it appears that more than two-thirds of the votes cast upon the measure were in favor of and assented to the incurring of the…
   • § 7217 The full amount of bonds may be divided into two or more series and different dates fixed for the bonds of each series. The maximum term which the bonds of any…
   • § 7218 The board shall, by resolution, prescribe the form of the bonds and the form of the coupons attached thereto and fix the time when the whole or any part of the…
   • § 7219 The bonds shall bear interest at a rate or rates not to exceed 6 percent per annum payable semiannually, except that interest for the first year shall be…
   • § 7220 The board may also provide for the call and redemption of bonds prior to maturity at the time and prices and upon such other terms as it may specify. A bond…
   • § 7221 The denomination of the bonds shall be stated in the resolution providing for their issuance, but shall not be less than one hundred dollars ($100).
   • § 7222 The principal and interest shall be payable in lawful money of the United States at the office of the treasurer of the district or at any other place or places…
   • § 7223 The bonds shall be dated, numbered consecutively, and be signed by the president of the board and the treasurer of the district and countersigned by the…
   • § 7224 Before selling the bonds, or any part thereof, the board shall give notice inviting sealed bids in such manner as it may prescribe. If satisfactory bids are…
   • § 7225 The proceeds from the sale of the bonds shall be paid into the treasury of the district and placed to the credit of a special improvement fund and expended…
   • § 7226 Any action or proceeding, wherein the validity of any such bonds or of proceedings in relation thereto is contested, questioned or denied, shall be commenced…
   • § 7227 Any general obligation bonds issued by a district shall have the same force, value and use as bonds issued by any city and shall be exempt from all taxation…
5. ARTICLE 5. Revenue Bonds §§ 7240–7243 · 3 sections

   • § 7240 The district may issue revenue bonds for any purpose mentioned in this part under the provisions of the Revenue Bond Law of 1941 (Chapter 6 (commencing at…
   • § 7241 If revenue bonds are issued, the bonds shall be authorized by a majority of the qualified electors as provided in the Revenue Bond Law of 1941 (Chapter 6…
   • § 7243 In any ordinance or resolution calling an election to authorize the issuance of revenue bonds of the district, the board may insert a provision that it intends…