Receipt, Deposit and Payment of District Funds.
SEC. 34. Receipt, Deposit and Payment of District
Funds. — The treasurer shall receive, to the credit of the district
and in trust for its use and benefit, all monies belonging to the
district. Any monies belonging to the district shall, where practicable,
be deposited by the treasurer in the Philippine National Bank, except
for the payment of bonds and interest thereon, district money shall be
paid out only upon a warrant therefor drawn and executed by authorized
officers of the district.
Negotiable Promissory Notes.
SEC. 35. Negotiable Promissory Notes. — A
district may issue negotiable promissory notes with a maturity of not
later than two years from the date thereof. The total aggregate amount
of such notes outstanding at any one time shall not exceed twenty
percent (20%) of the annual gross revenues of the district payable from
all revenue sources thereof.
Revenue Bonds.
SEC. 36. Revenue Bonds. — A district may borrow
money to raise funds to pay all costs of any public improvements
authorized by this Title and may issue revenue bonds to evidence the
indebtedness created by such borrowing. Such revenue bonds shall
constitute special obligations and evidence of special indebtedness of
the district and shall be a charge upon, and payable, as to the
principal thereof, any part thereof, solely from such revenues and funds
as are specified therein in the proceedings for their issuance. Said
bonds may be issued pursuant to the following procedures:
(a) Estimate of Expenses. — If a revenue bond
issue is contemplated, the hoard of the district shall adopt by
resolution a plan describing the works to be acquired or constructed
together with an estimate of all costs thereof, including payment of
interest on any bonds of the district, which will become payable before
the expiration of one year from completion or acquisition of such works,
for which the general funds of the district then in the treasury are
inadequate.
(b) Issuance in the District Name: Limitation of
Obligations — Revenue bonds shall be issued in the name of the
district and shall be obligations of the district; limited, however, to
the payment or redemption of the revenue bonds and the payment of
interest thereon from the revenue of the district.
(c) Call, Price and Redemption. — The Board, by
resolution authorizing the issuance of revenue bonds, shall fix the
method of giving notice of redemption. Such bonds shall be issued
subject to call and redemption prior to maturity and a statement to that
effect shall appear on the face of the revenue bonds. No such bond
shall be subject to call or redemption prior to its fixed maturity date
unless it contains such recital.
(d) Form of Bonds. — The face of revenue bonds shall
contain a statement that: (1) the payment of redemption of the bond and
payment of interest therein is secured solely by a first and direct
charge and lien upon all of the revenues received from the sale of
water, (2) neither the payment of all or any part of the principal or
interest thereon is a general debt, liability or obligation of the
district, and (3) the bong is subject to call and redemption prior to
maturity, if the board so provides. Each issue of revenue bonds shall be
numbered consecutively from lower to higher as they mature and shall
bear such dates as may be prescribed by the board. The date appearing
upon the face of a revenue bond shall be deemed the date of issuance
irrespective of subsequent delivery of the bong. Each bond shall be
signed by the chairman and attested by the secretary: Provided,
That interest coupons appertaining thereto may be signed by the
secretary only. The seal of the district shall be affixed to each
revenue bond.
(e) Payment of Maturity. - Revenue bonds shall be paid in
cash and in full at such time and place as may be designated by the
board and shown on the face of each bond, but in no case shall the
maturity of any bond be more than 40 years from its date.
(f) Default. — In the event of default by the district in
the payment of principal or interest on its outstanding revenue bonds,
any bondholder shall have the power to brine an action in any court of
competent jurisdiction to compel the payment of said amount, and in
connection therewith, to require the appointment of a receiver of the
property and operations of the district and to assume full jurisdiction
over its affairs including the power to increase rates, if necessary,
until such time as the default is cured.
