2005 California Education Code Sections 15390-15391 Article 9. Purchase of Bonds by Issuing School Districts ..

15390.  The governing board of a school district or community
college district in which a school facilities improvement district is
located may purchase in the open market bonds issued by the school
facilities improvement district with available funds from the school
facilities improvement fund.
15391.  When any bonds issued by a school facilities improvement
district have been purchased by the governing board of the school
district or community college district in which the school facilities
improvement district is located, the bonds shall be deemed canceled
and of no further validity.  The governing board of the school
district or community college district in which the school facilities
improvement district is located shall immediately, after purchasing
the bonds, notify the board of supervisors of its action, describing
the bonds purchased.  At its first meeting thereafter, the board of
supervisors shall note the purchase and cancellation of the bonds in
the minutes of its proceedings.