2009 California Education Code - Section 15220-15221 :: Article 7. Purchase Of Bonds By Issuing School Districts And Community College Districts

15220.  The governing board of a school district or community
college district may purchase in the open market bonds issued by the
district. The cost of bonds purchased may be paid out of any funds of
the district not required by law to be set aside for teachers'
salaries.

15221.  When any bonds issued by a district have been purchased by
the governing board of the district, the bonds shall be deemed
canceled and of no further validity. The governing board of the
district 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.