2007 California Public Utilities Code Article 4. Refunding

CA Codes (puc:101315-101321)

101315.  Whenever the board, by resolution passed by a vote of
four-fifths of all its members, determines that the refunding of the
whole, or any portion of, the bonded indebtedness will be of
advantage to the district, the board may refund the bonded
indebtedness, or any portion thereof, and issue refunding bonds of
the district therefor.



101316.  The issuance of refunding bonds shall not be construed as
the incurring or increase of an indebtedness within the meaning of
this part, and the approval of the voters is not required for the
issuance of refunding bonds.  The board may provide for the call and
redemption of any or all of the bonds on any interest payment date
prior to their fixed maturity in the ordinance authorizing the
issuance of the refunding bonds.



101317.  Except as otherwise provided, the provisions of this
chapter shall substantially govern as to all matters pertaining to
the issuance of refunding bonds, including and without limiting the
generality of the foregoing, the form, execution, issuance, maturity,
redemption, refunding, validation, the payment of interest from bond
funds, and the status of the bonds as investments.



101318.  Refunding bonds shall bear interest at a rate not exceeding
the interest rate on the refunded bonds, but payment of the
refunding bonds shall begin not later than one year from the date
thereof and be completed in not more than 40 years from that date.




101319.  The proceeds of the sale of refunding bonds shall be
applied only to the purchase, or retirement at not more than par and
accrued interest, or the call price, of the bonded indebtedness for
which the refunding bonds were issued.


101320.  In lieu of selling refunding bonds and using the proceeds
to purchase or retire the bonds to be refunded, the board may
exchange refunding bonds at not less than par and accrued interest
for the bonds so refunded.


101321.  Whenever outstanding bonds are refunded, they shall be
surrendered to the treasurer of the district, or the county
treasurer, as the case may be, who shall cancel them by endorsing on
their face the manner in which the refunding was effected (whether by
exchange or purchase, and the amount for which so purchased, if any)
and by perforating through each bond and each coupon attached
thereto the word "canceled" together with the date of cancellation.