California Code, Public Utilities Code - PUC § 30951

The district may borrow money in anticipation of the sale of bonds which have been authorized to be issued, but which have not been sold and delivered, and may issue negotiable bond anticipation notes therefor for the same purposes and may renew the same from time to time, but the maximum maturity of any such notes, including the renewals thereof, shall not exceed five years from the date of delivery of such original notes.  Such notes shall be paid from any moneys of the district from which said bonds would be payable.  If not so paid the notes shall be paid from the proceeds of the next sale of the bonds of the district in anticipation of which they were issued, and if said bonds are not issued, then taxes may be levied for their payment in the same manner as taxes are levied for said bonds.  Such notes shall not be issued in an amount in excess of the aggregate amount of authorized bonds of the district remaining, less the amount of bond anticipation notes outstanding.  Such notes shall be in such form as the board of directors of the district may select and may include any applicable provisions of the bonds in anticipation of which they were issued.  The notes may be sold as the board of directors of the district determines by resolution but not for less than par.  Before selling the notes or any part thereof the board of directors shall give notice inviting sealed bids in such manner as it may prescribe.  If satisfactory bids are received the notes offered for sale shall be awarded to the highest responsible bidder.  If no bids are received or if the board of directors determines that the bids received are not satisfactory as to price or responsibility of the bidders, the board of directors may reject all bids received, if any, and readvertise for sealed bids.