2005 California Government Code Sections 17240-17253 Article 3. Reimbursement and Refunding Warrants

17240.  As used in this chapter:
   (a) "Reimbursement warrants" refers to warrants drawn by the
Controller on the General Fund pursuant to this article to reimburse
the General Cash Revolving Fund for demands against the General Fund
for which warrants were drawn against the General Cash Revolving
Fund.
   (b) "Refunding warrants" refers to warrants drawn by the
Controller on the General Fund pursuant to this article to provide
funds for the payment of reimbursement warrants bearing a fixed
maturity date.
17241.  To reimburse the General Cash Revolving Fund, the Controller
may draw reimbursement warrants on the General Fund in the same
manner as if General Cash Revolving Fund warrants had not been issued
to meet the demands for which they were drawn.
17242.  If a reimbursement warrant represents an amount in excess of
the balance remaining in the unapplied money in the General Fund
after first deducting from such unapplied money the amount, as
estimated by the Controller, which is required by law to be
earmarked, reserved or set apart from such unapplied money for the
payment of obligations of the State having priority over the
obligation to which such reimbursement warrant is applicable, it
shall be registered by the Treasurer pursuant to the provisions of
this chapter.
17243.  The Controller may fix a maturity date for reimbursement
warrants, and indorse upon each warrant, the date upon which it will
be paid and redeemed.
17244.  In lieu of prescribing a precise interest rate on registered
reimbursement warrants, the committee may fix a maximum rate of
interest for the warrants, and prescribe that the interest rate
thereon (not in excess of such maximum) shall be fixed in accordance
with the best bids for the warrants.  Different rates of interest for
any reimbursement warrants may be so fixed by the Controller.
17245.  Registered reimbursement warrants shall be sold by the
Controller to the best bidders.
17246.  Notice of sale of registered reimbursement warrants shall be
given by the Controller by publication, not less than three days
prior to sale, at least once in a newspaper published in the City of
Sacramento.
17247.  The notice of sale shall specify the amount of warrants to
be sold, and the minimum amount for which the Controller will
consider bids, and shall invite sealed bids for the purchase of the
warrants.  The notice shall state that no bid will be accepted which
is less than the face value of the warrants bid for, and that the
warrants will be awarded to the persons making the best bids as
determined by the Controller, considering the interest rate and
premium offered, if any.
17248.  The Controller may give additional notice of any such sale
in such form and manner as he may determine.
17249.  At the time specified in the notice of sale, the Controller
shall open the bids, and award the warrants to the persons making the
best bids as determined by him.  The Controller may reject any and
all bids.  No bid for less than the face value of any warrants shall
be accepted.
17250.  The Controller shall endorse any registered reimbursement
warrant so sold or to be sold in the name of and on behalf of the
payee named in the warrant.  The endorsement transfers to the holder
the warrant and the claims in pursuance of which it was drawn,
irrespective of whether the claimants have received the amount of
such claims through warrants drawn on the General Cash Revolving
Fund.
17251.  The cancellation, invalidity or abatement, in whole or in
part, of any such claim, or of any warrant drawn against the General
Cash Revolving Fund, does not invalidate or otherwise affect any
registered reimbursement warrant.  The certificate of the Controller
relative to any of the matters required to be found, determined or
exist as a condition to or in connection with the issuance,
registration or sale of registered reimbursement warrants, or the
making or auditing of any demand, or in respect to the issuance of
warrants on the General Cash Revolving Fund is conclusive in favor of
any holder of any registered reimbursement warrant.
17252.  It is not essential to the validity of the sale of any
reimbursement warrant that it be actually registered prior to sale.
17253.  The proceeds of the sale of any registered reimbursement
warrant shall be deposited in the State treasury; an amount equal to
its face value shall be credited to the General Cash Revolving Fund;
and any premium received shall be credited to the General Fund.