27240-27250

STREETS AND HIGHWAYS CODE
SECTION 27240-27250




27240.  At or before the time of issuing any bonds the board shall
estimate:
   (a) The total cost of constructing or acquiring or both the works
for which the bonds are to be issued.
   (b) The period of construction of such works.
   (c) The amount of bonds which will be required to pay the total
estimated cost and to pay interest on the bonds during the estimated
period of construction and for six months thereafter.
   No bonds shall be issued if the estimated amount of bonds required
to pay the estimated cost and interest exceeds the total amount of
bonds authorized to be issued by the district.



27241.  If the estimated amount of bonds required to pay the
estimated cost and interest exceeds the total amount of bonds
theretofore authorized, the board may submit to the electors of the
district the proposition of authorizing additional bonds for the
purpose of meeting the estimate. No error or informality in any
estimate shall invalidate any bonds of the distirct.



27242.  Bonds may be issued in accordance with the estimate in such
amounts not exceeding the total amount of bonds authorized as will
produce a sum sufficient to pay the cost of constructing or acquiring
or both the works for which they were authorized and interest on the
bonds so issued during the period of construction and six months
thereafter. The failure to issue the full amount of bonds authorized
shall not invalidate any bonds of the district.



27243.  Prior to the preparation of definitive bonds the board may
issue temporary bonds of any denomination and with or without coupons
and subject to the same restrictions imposed upon the issuance of
definitive bonds. Temporary bonds shall be exchangeable for
definitive bonds upon the issuance of the latter.



27244.  If, after any bond has been duly signed by any properly
authorized officer, that officer ceases to hold office, the bond may
nevertheless be delivered with the same effect as if it had been
signed by the person holding the office at the time of delivery.




27245.  The district bonds may be made registerable as to principal
alone or as to both principal and interest under such terms and
conditions as may be fixed by the board prior to the issuance
thereof.


27247.  If after paying the cost of constructing or acquiring or
both the works and interest on the bonds during the actual period of
construction and for a period of six months thereafter, there is a
surplus of the proceeds of the bonds issued by the district,
including all premiums paid there shall be set aside out of such
surplus in a reserve interest fund an amount equal to one year's
interest on the bonds, or, if the surplus shall be less than one year'
s interest on the bonds, all of the surplus shall be set aside.



27248.  The money in the reserve interest fund shall be deposited in
the same manner as other funds of the district or invested in
securities which are legal investments for public funds, and the fund
shall be used solely for the payment of interest on such bonds
whenever there shall be a deficit in the revenues of the works and
only to the extent of such deficit.



27249.  If the surplus from the proceeds of the bonds exceeds one
year's interest on the bonds, the balance shall be placed in the fund
for the payment of the principal of such bonds.



27250.  A district formed under this part may issue either general
obligation bonds or revenue bonds secured solely by tolls.