California Water Code

§ 36063

WAT § 36063 Effective Sep 17, 1985Div. 13 · Part 6 · Ch. 2 · Art. 6

Statute text

(a)Whenever the board of directors determines that prudent management of the fiscal affairs of the district so requires, it may refund by defeasing or calling for redemption any outstanding bonds, subject to all of the following:

(1)The last-maturing refunding bonds shall mature not later than the date on which the last-maturing bonds being refunded would have matured.

(2)Refunding bonds shall not be issued unless the total interest cost to maturity of the refunding bonds added to the principal amount of those refunding bonds will be less than the total interest cost to maturity of the bonds being refunded added to the principal amount of the bonds being refunded. If any of the refunding bonds or the bonds being refunded, or both, bear or may bear interest at a variable rate, thereby making the actual total interest cost to maturity indeterminable in advance of maturity, the determination required by this paragraph may consist of a finding made by the board based on substantial evidence, which means evidence that is reasonable, credible, and of solid value and ponderable legal significance, based upon the record as a whole. The test in Section 53552 of the Government Code need not be met if the determination in this paragraph is made.

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Legislative history

Amended by Stats. 1985, Ch. 645, Sec. 2. Effective September 17, 1985.