GOVERNMENT CODE
SECTION 53506-53509.5
53506.  (a) This article is full authority for the issuance of bondsor refunding bonds by any city, county, city and county, schooldistrict, community college district, or special district, secured bythe levy of ad valorem taxes, authorized in accordance with theConstitution and, in the case of a chartered city, county, or cityand county, with the charter thereof, or in the case of a specialdistrict, with the district's principal act. (b) This article is intended to provide a complete additional andalternative method for doing the things authorized by this article.The powers conferred by this article are supplemental and additionalto the powers conferred by any other laws, and the limitationsimposed by this article do not affect the powers conferred by anyother law.53506.5.  This article shall be liberally construed to promote itsobjectives. If inconsistent with any other law, this article shall becontrolling.53507.  As used in this article, the following terms shall have themeanings assigned to them in this section. (a) "Bonds" means bonds, notes, warrants, or other evidence ofindebtedness payable, both principal and interest, from the proceedsof ad valorem taxes that may be levied without limitation as to rateor amount upon property subject to taxation by the legislative body. (b) "Issuer" means a city, county, city and county, schooldistrict, community college district, or special district, secured bythe levy of ad valorem taxes, authorized to issue bonds pursuant tothis article. (c) "Legislative body" means the governing body of the issuer.53507.5.  (a) The legislative body may, by resolution, provide forthe issuance of bonds pursuant to this article. (b) The resolution shall state that the bonds are being issuedpursuant to this article.53508.  The resolution authorizing any bonds or any issue of bondsmay provide for any of the following: (a) The form of the bonds to be issued as serial bonds, or sinkingfund bonds, with serial or term maturities, or any combinationthereof. (b) The number of series in which the bonds are to be issued. (c) The form of the bonds as coupon, registered, or book entry. (d) The interest on the bonds, either fixed or variable, and theinterest rate or rates, payable at the times and in the mannerspecified therein, and whether all or part of any series of the bondsshall be issued as zero coupon or capital appreciation bonds;provided, however, that under no conditions may the annual interestrate, whether fixed or variable, exceed the maximum rate permitted bySection 53531 or 53532. (e) The time, medium, and place or places of payment. (f) The time or times of maturity of the bonds, not exceeding 40years from their respective dates. (g) The date or dates to be borne by the bonds of each series. (h) The denomination of the bonds. (i) The registration and conversion privileges of the bonds. (j) The manner in which the bonds are to be executed. (k) The terms of redemption, with or without premium. (l) Other terms and conditions of the bonds and of theirexecution, issuance, and sale deemed necessary and appropriate by thelegislative body.53508.3.  (a) No bond shall be subject to mandatory tender forpurchase or redemption prior to its fixed maturity date unless itcontains a recital to that effect. (b) Any bond protected by its terms or by the terms of thissection from mandatory tender for purchase or redemption prior to itsfixed maturity date or for a specified period of time afterissuance, may specify terms upon which the issuer may sell ortransfer its right to require the bond to be tendered for purchase orredemption prior to its fixed maturity date.53508.7.  (a) The bonds shall be sold at a public or private saleand at a price at, above, or below par, as the legislative bodydetermines. (b) Any bonds sold at a discount below the par value of the bondsshall be sold in compliance with the provisions of Section 53532. (c) The private sale of bonds is limited to the sale of schooldistricts' and community college districts' bonds pursuant toSections 15140 or 15146 of the Education Code.53508.9.  (a) Notwithstanding Section 53508.7, a local agency maysell bonds at a negotiated sale for a price at, above, or below parvalue, as authorized by the legislative body, without furtherapproval, if the legislative body adopts a resolution before thenegotiated sale, as an agenda item at a public meeting, that includesall of the following: (1) Express approval of the negotiated method of sale. (2) Statement of the reasons for selecting the negotiated methodof sale. (3) Disclosure of the identity of the bond counsel. (4) Disclosure of the identity of the bond underwriter and thefinancial adviser, if used for the negotiated bond sale. If a bondunderwriter or financial adviser has not been selected at the timethe legislative body adopts the resolution, the legislative bodyshall disclose the identity at the public meeting first occurringafter the bond underwriter or financial adviser has been selected. (5) Estimate of the costs associated with the bond issuance. (b) For purposes of this section, the following definitions shallapply: (1) "Legislative body" means the governing body of a local agency. (2) "Local agency" means a city, county, city and county, andspecial district. "Special district" means an agency of the stateformed for the performance of governmental or proprietary functionswithin limited geographic boundaries, and shall not include a schooldistrict or community college district.53509.  (a) Any bond issued under the authority of this article maybe refunded pursuant to this or any other applicable law. Any bondmay be refunded pursuant to this article regardless of whether thebond or the legislation under which its issuance was authorizedexplicitly provides that the bond may be refunded. (b) Refunding bonds shall not be issued if the total net interestcost to maturity on the refunding bonds plus the principal amount ofthe refunding bonds exceeds the total net interest cost to maturityon the bonds to be refunded plus the principal amount of the bonds tobe refunded. Subject to that limitation, the principal amount of therefunding bonds may be more than, less than, or the same as theprincipal amount of the bonds to be refunded.53509.3.  Nothing in this article shall limit the authority of thelegislative body to enter into any contract in connection with theissuance of the bonds which it is permitted by Section 5922 to enterinto.53509.5.  After the sale of bonds issued under the authority of thisarticle, the legislative body shall do both of the following: (a) Present actual cost information for the sale at its nextscheduled public meeting. (b) Submit an itemized summary of the costs of the bond sale tothe California Debt and Investment Advisory Commission.