2007 California Water Code Chapter 4.3. Revenue Warrants

CA Codes (wat:36380-36393)

36380.  A district whose facilities are for delivery primarily of
agricultural water supplies and wherein at least 51 percent of the
assessable acreage is zoned and developed for agricultural uses may
issue revenue warrants pursuant to this chapter to obtain funds for
any lawful purpose of the district, including the repayment of
indebtedness of the district.  A district may issue revenue warrants
pursuant to this chapter in any year only if the district does not
receive during such year its full contractual entitlement under a
water supply contract with the United States, the State of
California, or any other public agency, upon which contract the
district relies for meeting a substantial portion of its water supply
needs.



36381.  Revenue warrants shall be secured by all or part of the
revenues received by the district from charges fixed pursuant to
Section 35470 or from any other source other than assessments, and
any such revenues may be pledged to the payment of revenue warrants.
In the resolution authorizing issuance of revenue warrants, the
board may subject such revenues as it specifies to a lien or charge
to secure the payment of the principal of, and the interest on,
revenue warrants, but such warrants shall be not secured by any lien
or charge upon any assessment.



36382.  Revenue warrants shall bear interest at a rate or rates not
exceeding 8 percent per annum, payable annually or semiannually or in
part annually and in part semiannually, as the board may prescribe.



36383.  Revenue warrants shall mature at such time or times as the
board may prescribe, but not more than 10 years from the date of
issuance.


36384.  Revenue warrants may be made subject to redemption prior to
their fixed maturity date upon such terms, conditions and notice, and
at such times and prices, as the board may determine prior to the
issuance of such warrants.


36385.  Revenue warrants may be sold at either public or private
sale upon such terms and conditions as the board may determine.  Such
warrants may be sold at less than their par or face value, but no
revenue warrant may be sold at a price which would yield to the
purchaser an average of more than 8 percent per annum, payable
semiannually, according to standard tables of bond values.



36386.  No revenue warrants shall be issued or sold until their
issuance has been authorized by resolution of the board adopted by a
four-fifths vote.


36386.1.  If, after the board adopts the resolution to issue the
revenue warrants and before 30 days thereafter, the board receives a
petition containing the signatures of persons holding title to 10
percent of the land area within the district, the board shall call an
election of the qualified voters in the district and submit the
resolution to issue revenue warrants to such voters for their
approval or rejection.  The election required by this section shall
be called and noticed, held, and conducted in the same manner
provided for bond elections in the district, excepting that a
majority of the votes cast in favor of such resolution shall be
required for the approval of such resolution.



36387.  The board may determine the form and denomination of revenue
warrants, the manner of their execution, their registration and
exchange privileges and the place or places of their payment.



36388.  The board, in a resolution authorizing the issuance of
revenue warrants, may provide for special funds for the deposit and
application of the proceeds of the warrants and for the deposit and
application of revenues pledged to secure their payment.  The board
may provide for the establishment of a reserve fund from the proceeds
of the revenue warrants or revenues pledged to their payment.  The
board may appoint a fiscal agent to hold any or all such funds in
trust for the holders of revenue warrants and for the district.



36389.  The board, in a resolution authorizing the issuance of
revenue warrants, may covenant to operate and maintain the facilities
producing the revenues pledged for the security of the revenue
warrants, may covenant to fix, maintain, and collect tolls, charges,
rates, or fees which will produce revenues sufficient to provide for
the payment of the principal of and interest on the revenue warrants
and to provide such additional sums for the further security of the
revenue warrants as the resolution may prescribe, and may make such
other covenants, with respect to insurance, investments of funds,
accounting records, independent audits, events of default,
limitations upon competitive facilities, and any other matters
relating to the revenue warrants and their security as the board may
deem necessary, convenient, or desirable in order better to secure
the revenue warrants or to make them more marketable.



36390.  The board, in a resolution authorizing the issuance of
revenue warrants, may provide for paying the interest on the revenue
warrants for a period of not more than one year out of the proceeds
of the sale thereof.


36391.  Except as otherwise provided in any resolution authorizing
the issuance of revenue warrants, the holder of any revenue warrant
may by mandamus, or other appropriate proceeding, require and compel
the performance of any of the duties imposed upon the board, or upon
any officer or employee of the district, in connection with the
collection, deposit, investment, application, or disbursement of any
revenues pledged for the security of the revenue warrants, or in
connection with the deposit, investment, or disbursement of the
proceeds received from the sale of the revenue warrants, or in
connection with any covenants contained in the resolution authorizing
the issuance of the revenue warrants.  The enumeration of such
rights and remedies does not, however, exclude the exercise or
prosecution of any other rights or remedies available to the holders
of revenue warrants.



36392.  Revenue warrants shall not be issued under this chapter by
any district in any one fiscal year in excess of four million dollars
(,000,000).


36393.  The provisions of this chapter shall constitute an addition
to all other power of a district to borrow money, incur indebtedness,
and issue warrants in connection therewith, and shall not be deemed
a restriction or limitation on such other power.