California Health and Safety Code

§ 4746.1

HSC § 4746.1Div. 5 · Part 3 · Ch. 3 · Art. 4

Statute text

If funds are needed to meet current expenses of maintenance and operation, a district may incur indebtedness by the issuance of negotiable promissory notes pursuant to this section, without an election. The notes shall be general obligations of the district payable in the same manner as bonds of the district, shall mature not later than two years from the date thereof, and shall bear interest at a rate not to exceed 7 percent per annum, payable as provided therein. The aggregate amount of the notes outstanding at any one time shall not exceed an amount equal to seven cents ($0.07) on each one hundred dollars ($100) of the assessed valuation of the taxable real property within the district as shown on the last equalized assessment roll of the county. If such assessed valuation is not obtainable, the county auditor’s estimate of the assessed valuation of the taxable real property within the district for the fiscal year in which the indebtedness is to be incurred shall be used. All such notes shall be issued after the adoption of a resolution by a four-fifths vote of the district board setting forth the following:

(a)The necessity for such borrowing.

(b)The assessed valuation of the taxable real property within the district, or the auditor’s estimate thereof.

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Legislative history

Amended by Stats. 1972, Ch. 1384.