California Government Code 61131 – (a) A district may issue promissory notes to borrow money and …
(a) A district may issue promissory notes to borrow money and incur indebtedness for any lawful purpose, including, but not limited to, the payment of current expenses, pursuant to this section.
(b) The total amount of indebtedness incurred pursuant to this section outstanding at any one time shall not exceed 5 percent of the district’s total enterprise and nonenterprise revenues in the preceding fiscal year. Any indebtedness incurred pursuant to this section shall be repaid within five years from the date on which it is incurred. Any indebtedness incurred pursuant to this section shall bear interest at a rate which shall not exceed the rate permitted under Article 7 (commencing with Section 53530) of Chapter 3 of Part 1 of Division 2 of Title 5.
Terms Used In California Government Code 61131
- Board of directors: means the board of directors of a district that establishes policies for the operation of the district. See California Government Code 61002
- District: means a community services district created pursuant to this division or any of its statutory predecessors. See California Government Code 61002
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- General manager: means the highest level management appointee who is directly responsible to the board of directors for the implementation of the policies established by the board of directors. See California Government Code 61002
(c) Each indebtedness incurred pursuant to this section shall be authorized by resolution adopted by a four-fifths vote of the total membership of the board of directors and shall be evidenced by a promissory note signed by the president of the board of directors and the general manager.
(Added by Stats. 2005, Ch. 249, Sec. 3. Effective January 1, 2006.)