2007 California Public Utilities Code Article 6. Reserve Funds

CA Codes (puc:13121-13124)

13121.  In connection with the exercise of the power to borrow
money, to issue bonds, and to refund indebtedness, pursuant to this
chapter, the board may, from time to time, establish and maintain a
reserve fund or funds in the district treasury, or a special trust
account or accounts with an agent or agents designated by the board
as a sinking fund or otherwise, to insure the payment, when due or
payable, whether at maturity or upon redemption, of the principal of,
and interest on, bonds issued as aforesaid, including premiums, if
any, due upon the redemption of any thereof, or for any of said
purposes.  Money in any such reserve fund may be used for the
purchase of bonds of the issue in connection with which it was
established, for cancellation and retirement pursuant to any
mandatory requirement of the redemption of sinking fund bonds.  Each
such fund or account shall be established and maintained out of the
revenues pertaining to the electric system on acccount of which such
power is exercised or out of any moneys which under the terms of this
article are applicable to the purpose, through transfers or payments
made at such times and in such amounts as the board may direct.



13122.  Money set aside and placed in any such reserve fund or
special trust account shall remain therein until from time to time
expended for the purposes thereof, and shall not be used for any
other purpose whatsoever, except for temporary investment thereof as
provided in this chapter; provided, however,
   (1) That money may be paid or transferred from any such fund or
account in furtherance of the purpose of its establishment, to any
other such fund or account established for a like purpose in
connection with the same issue of bonds, to such extent as may be
required or permitted under the terms of the resolution authorizing
that issue; and
   (2) That all money remaining in any such fund or account in excess
of the amount required to make provision for the payment in full of
the principal of, and interest on, the bonds with respect to which it
was established, including premiums, if any, due upon the redemption
of any thereof, may be returned and transferred to the revenue fund
out of which such reserve fund was established.




13123.  Money in any such reserve fund shall be drawn therefrom only
upon demands authenticated by the signature of the accountant of the
district; provided, however, that the board may, in its discretion,
direct and authorize the payment from such reserve fund, by the
treasurer, without such authenticated demand, (i) of bonds of the
issue in connection with which such reserve fund is so established
when due upon maturity or call, or of coupons pertaining to bonds of
such issue when due, but only upon presentation and surrender of such
bonds or coupons, (ii) of interest upon registered bonds of such
issue when due, or (iii) of premiums, if any, due upon the redemption
of any such bonds.


13124.  Money in any such special trust account shall be drawn
therefrom only in accordance with directions given or authorized by
the board.