CA Water Code Section 81437.5

In addition to the uses authorized in Section 81434, the agency may use proceeds of bonds issued pursuant to this division as follows:

(a)

For the construction, reconstruction, or improvement of any works carried out by the agency on behalf of a BAWSCA member.

(b)

For the purpose of assisting in the repayment of any existing capital assets, if those assets were designed and intended in whole or in part to furnish water to BAWSCA members, whether those assets were carried out jointly by the agency and other local public agencies, or solely by those other public agencies.

(c)

To make a prepayment, as described in Section 81436.5, or an acquisition, as described in Section 81437.

(d)

To pay the costs of issuance of the bonds and to fund reserve funds securing the bonds.