Revenue Bonds for Harbor Districts

Division 8, Part 3, Chapter 4 deals with revenue bonds used by harbor districts.

Section 6100 authorizes a district to create a revenue bond indebtedness for the acquisition and construction, or make any improvements or property or facilities contained within its powers.

Section 6101 requires the issuances of bonds to be authorized by ordinance adopted by two-thirds of all the members of the board, to take effect upon its publication.

Section 6102 requires the secretary to publish the ordinance once in a newspaper of general circulation printed in the district and, if there is none, then in the newspaper published in the county in which said district is located.

Section 6103 requires the ordinance to specify the total amount, denomination, method of maturity, and the rate or maximum rate of interest of the bonds, among other specified items.

Section 6104 requires te proceeds of bonds to be placed in an account in the treasury of the district to be entitled ____ Harbor District Revenue Construction Fund No. ____, and used exclusively for the objects and purposes mentioned in the ordinance.

Section 6105 states that the lien of the bonds of the same issue is prior and superior to all revenue bonds subsequently issued. The district is only allowed to issue parity revenue bonds if the district board determines, based on an audit of the district’s finances conducted under generally accepted accounting principles, that two specified conditions.

Section 6106 requires proceedings for the issuance of the bonds to commence, and for the board to have those powers and duties, and for the bondholders to have those rights and remedies. As used in those provisions, “resolution” means ordinance, “local agency” means district, and “legislative body” means board.