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California Laws | Harbors and Navigation Code


Article 1. General (7170-7176) (3009)(Text)

7170. A district may borrow money, incur indebtedness, and issue bonds or other evidences of indebtedness as provided in this part. (3010)

7171. A district may issue warrants payable in not to exceed two years from their date, to pay the formation expenses of the district, which warrants may bear interest at a rate of not exceeding 6 percent per annum from date of issue until paid, which formation expenses may include fees of attorneys and others employed to conduct formation proceedings. (3011)

7172. All claims for money or damages against the district are governed by Part 3 (commencing with Section 900) and Part 4 (commencing with Section 940) of Division 3.6 of Title 1 of the Government Code except as provided therein, or by other statutes or regulations expressly applicable thereto. Except for bonds and interest coupons which shall be paid when due, all claims shall be approved in writing by the president or a member of the board designated for such purpose, or approved by the board in open meeting. (3012)

7173. Warrants shall be drawn by the treasurer and signed by the president, or a member of the board designated for the purpose and by the secretary. (3013)

7174. The treasurer shall install and maintain a system of auditing and accounting that shall completely and at all times show the financial condition of the district. (3014)

7175. The treasurer shall make annual, or oftener if the board so orders, written reports to the board as to the receipts and disbursements and balances in the several accounts under his control. The report shall be signed by him and filed with the secretary. At least yearly the books and accounts of the district shall be audited by an independent certified public accountant or public accountant or firm of certified public accountants or public accountants employed by the district. (3015)

7176. A bank may act as depositary, paying agent or fiscal agent for the holding or handling of district funds, notwithstanding the fact that a member of the board is an officer, employee or stockholder of the bank, or of a holding company that owns any of the stock of the bank. (3016)

Article 2. Alternative--County Treasurer as Depositary (7190-7195) (3017)(Text)

7190. As an alternative to the procedures of Article 1 (commencing at Section 7170) the board may by resolution designate the county treasurer of the county in which the district is situated to be the depositary and have the custody of all the district's money. The resolution shall be filed with the county treasurer. (3018)

7191. The county treasurer shall: (3019)

(a) Receive and receipt for all the district's money and place it in the county treasury to the credit of the district. (3020)

(b) Be responsible upon his official bond for the safekeeping and disbursing of all district money so held by him. (3021)

7192. The county treasurer shall pay, when due, out of district money, all sums payable on outstanding bonds and coupons of the district; and the county treasurer shall pay any other sums out of district money, or any portion thereof, only upon warrants of the county auditor. (3022)

7193. The county auditor shall draw warrants to pay claims made against the district when the claims have been approved in writing by the president or a member of the board designated for the purpose or approved by the board in open meeting. (3023)

7194. The county treasurer shall report in writing on the first day of July, October, January and March of each year to the board with respect to each of the following: (3024)

(a) The amount of money he then holds for the district. (3025)

(b) The amount of receipts since his last report. (3026)

(c) The amount paid out since his last report. The report shall be verified and filed with the secretary. (3027)

7195. The board of supervisors of the county shall determine the charge to be made against the district for any services of either or both of: (3028)

(a) The county treasurer as custodian of the district's money. (3029)

(b) The county auditor in drawing warrants to pay demands, made and approved, against the district. (3030)

Article 3. Short Term Borrowing (7200-7202) (3031)(Text)

7200. A district may incur indebtedness for any purpose for which the district is authorized to expend funds by the issuance of negotiable promissory notes pursuant to this article without an election. (3032)

7201. Said notes shall be payable in not to exceed five years from their date and shall bear interest at not exceeding 6 percent per annum, payable as provided therein. (3033)

7202. The total aggregate amount of said notes outstanding at any one time shall not exceed a limit of 2 percent of the assessed valuation of the taxable property in the district or, if the assessed valution is not obtainable, 2 percent of the county auditor's estimate of the taxable property in the district evidenced by his certificate, provided: (3034)

(a) A district which has been formed for less than 18 months may exceed said limit and in the event may borrow an aggregate amount of not to exceed thirty-five thousand dollars ($35,000). (3035)

(b) No district shall borrow more than an aggregate amount of one hundred fifty thousand dollars ($150,000). (3036)

Article 4. General Obligation Bonds (7210-7227) (3037)(Text)

7210. Whenever the board deems if necessary for the district to incur a general obligation bonded indebtedness for (a) the acquisition, construction, completion or repair of any or all improvements, works or property mentioned in this part, or (b) the funding or refunding of any outstanding indebtedness of the district, including premiums, if any be payable, the board shall, by resolution, so declare and call an election to be held in the district for the purpose of submitting to the qualified voters the proposition of incurring indebtedness by the issuance of bonds of the district. (3038)

7211. The resolution shall state: (3039)

(a) The purpose for which the proposed debt is to be incurred, which may include expenses of all proceedings for the authorization, issuance and sale of the bonds. (3040)

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