California Code, Public Utilities Code - PUC § 29281

Upon receipt of the first money in the treasury applicable to their payment, the chief financial officer shall set apart the amount necessary to pay the past due bonds, notes, coupons, or other evidences of indebtedness that have been registered for want of funds.The chief financial officer shall give notice by registered mail to the owner or holder of the registered bonds, notes, coupons, and other evidences of indebtedness, at the address last filed, stating that the chief financial officer is ready to pay for them. The bonds, notes, coupons, and other evidences of indebtedness shall be paid from that money, in the order of their registration.