3900. This part may be cited as the Harbor Development Bond Law of
1958.
3901. As used in this chapter the following words shall have the
following meanings:
(a) "Committee" means the Harbor Improvement Bond Committee.
(b) "Authority" means the San Francisco Port Authority, as the
same is constituted by Part 1 (commencing at Section 1690) of
Division 6 of the Harbors and Navigation Code, or any successor
thereof.
(c) "Commission" means the Harbors and Watercraft Commission, as
the same is constituted by Division 1 (commencing with Section 30) of
this code, or any successor thereof.
(d) "San Francisco Harbor Improvement Fund" means the fund now
existing in the State Treasury and created by Section 1706.
3902. The following funds are created in the State Treasury for the
purposes of this part:
(a) Harbor Bond Sinking Fund.
(b) Fifth San Francisco Seawall Fund.
(c) Small Craft Harbor Bond Fund.
(d) Small Craft Harbor Improvement Fund.
3903. There is in the State Government the Harbor Improvement Bond
Committee. The committee shall consist of the State Controller, the
State Treasurer, and the Director of Finance. The Director of Finance
shall be the chairman of the committee. A majority of the members of
the committee shall be empowered to act for the committee. The
committee shall hold meetings at such times and places as the
chairman shall direct or upon the written request of any two members
of the board.
3904. The members of the committee shall not receive additional
compensation for their services under this part.
3905. For the purpose of creating funds to provide for the
construction, improvement and development of harbors in this State as
provided in this part, the Harbor Improvement Bond Committee is
authorized and empowered to create a debt or debts, liability or
liabilities, of the State of California, in the manner and to the
extent hereinafter provided, but not otherwise, nor in excess
thereof.
3906. After adoption of any resolution by the committee, provided
for in Section 3907, the State Treasurer shall arrange for the
preparation of the requisite number of suitable bonds in accordance
with the specifications contained in such resolution. The aggregate
par value of all bonds issued under this part shall not exceed the
sum of sixty million dollars ($60,000,000).
The authorization to issue bonds as herein set forth shall be a
continuing authorization until all of said bonds shall have been
issued and sold, but no bonds shall be issued or sold pursuant to
this part subsequent to July 1, 1999.
3907. Whenever the authority pursuant to Section 3940 or the
commission pursuant to Section 3950 determines by resolution that a
bond issue under this part is necessary or desirable in order to make
any of the expenditures authorized by this part, and so certifies to
the committee, then the said committee shall approve or disapprove
said resolution, and if it approves said resolution, the committee
shall adopt a resolution authorizing and directing the State
Treasurer to arrange for the preparation of the requisite number of
suitable bonds and shall specify as to such bonds then to be sold:
(a) The aggregate number, aggregate par value, demoninations and
the date of the bonds to be then sold. The bonds may be issued in
series or divisions of the total authorized issue. Such demoninations
shall be in the sum of one thousand dollars ($1,000), or multiples
thereof. The date appearing on the bonds or series or division shall
be deemed to be the date of issuance of such series or division for
all purposes of this part, irrespective of the actual date of
delivery of such bonds of such series or division and the payment of
the purchase price thereof.
(b) The dates of maturity, and the amount and numercial sequence
of the bonds maturing at each date of maturity, which amounts need
not be equal, but which dates shall be at annual or semiannual
intervals, and the first of which dates of maturity shall be not more
than five years, and the last of which dates of maturity shall be
not more than 50 years, after the date of the bonds or any series or
division thereof.
(c) Whether or not the bonds are to be subject to redemption at
the option of the authority or the commission, as the case may be,
prior to maturity, and, if so, the provisions for such redemption,
the manner of the call thereof, and the price or prices at which the
bonds shall be subject to redemption.
(d) The annual rate, or rates, of interest which the bonds to be
issued shall bear, which rate, or rates, at the discretion of the
committee, may be determined by the bidder at the time of sale of
said bonds, not to exceed 6 percent per annum. Such interest may be
payable at such periods as may be fixed by the committee.
(e) The technical form and language of the bonds and interest
coupons.
(f) Whether or not the right is reserved to make delivery in the
form of temporary or interim bonds, certificates, or receipts,
exchangeable for definitive bonds when executed and available for
delivery, and if such right is reserved the denominations and form of
such temporary securities.
(g) Whether or not the bonds are to be subject to registration,
the demoninations of registered bonds and the provisions, if any, for
the interexchange of bonds of different denominations, the issuance
of new bonds of different denominations in lieu of, or in exchange
for, bonds of a like aggregate principal amount but of different
denominations and the form and all of the terms and conditions of
such registration and of such exchange. If such registration is
provided for, all of the provisions of this part with reference to
the payment of bonds and interest coupons shall be subject to the
terms and conditions of such registration with respect to the payment
of registered bonds and the interest thereon.
(h) All other terms and conditions of the bonds and of the
execution, issuance and sale thereof, which shall be consistent with
all of the provisions of this part.
(i) The committee may authorize the State Treasurer to sell all or
any part of the bonds herein authorized at such time or times as may
be fixed by the State Treasurer.
3908. The aggregate par value of all bonds issued under this part
at the instance of the authority shall not exceed fifty million
dollars ($50,000,000) and the aggregate par value of all bonds issued
under this part at the instance of the commission shall not exceed
ten million dollars ($10,000,000).
3909. All bonds issued under this part shall bear the facsimile
signature of the Governor and the facsimile countersignature of the
Controller and shall be endorsed by the State Treasurer by facsimile
signature and the bonds shall be signed, countersigned and endorsed
by the officers who shall be in office on the date of the adoption of
the resolution of the committee, and each of the bonds shall bear a
facsimile of the Great Seal of the State of California. Interest
coupons attached to each bond shall bear the facsimile signature of
the State Treasurer who shall be in office on the date of the
adoption of the resolution of the committee. The bonds and coupons so
signed, countersigned, endorsed and sealed, when sold and delivered,
shall be and constitute a valid and binding obligation upon the
State of California, although the sale or delivery thereof be made at
a date or dates upon which the officers having signed, countersigned
and endorsed the bonds, or any or either of such officers, shall
have ceased to be the incumbents of the offices held by them at the
time of signing, countersigning, or endorsing such bonds. Each bond
issued under this part shall contain a clause or clauses stating that
interest shall cease to accrue thereon from and after the date of
maturity thereof, and referring to the resolution of the committee,
by virtue of which the bond is issued.
3910. All bonds herein authorized, which shall have been duly sold
and delivered as herein provided, shall constitute valid and legally
binding general obligations of the State of California, and the full
faith and credit of the State of California is hereby pledged for the
punctual payment of both principal and interest thereof. There is
hereby appropriated from any available moneys in the account
established in the Harbor Bond Sinking Fund pursuant to subdivision
(a) of Section 3918.5, or if such moneys are insufficient, then from
the General Fund of the State of California, such sum annually as
will be necessary to pay the principal of and interest on the bonds
issued and sold at the instance of the authority pursuant to the
provisions of this part, as such principal and interest become due
and payable. There is hereby appropriated from any available moneys
in the account established in the Harbor Bond Sinking Fund pursuant
to subdivision (b) of Section 3918.5, or if such moneys are
insufficient then from the General Fund of the State of California,
such sum annually as will be necessary to pay the principal of and
interest on the bonds issued and sold at the instance of the
commission pursuant to the provisions of this part, as such principal
and interest become due and payable. Any sums withdrawn from the
General Fund for the payment of principal of or interest on the bonds
shall be returned to the General Fund as soon as moneys are
available for that purpose in the Harbor Bond Sinking Fund account
for the benefit of which the appropriation had been made from the
General Fund, together with interest thereon at the same rate as, at
the time of appropriation, is earned by short term current
investments through the pooled money investment account, such
earnings to be determined by the Controller.
There shall be collected annually in the same manner and at the
same time as other state revenue is collected such a sum, in addition
to the ordinary revenues of the State, as shall be required to pay
the principal and interest on said bonds as herein provided, and it
is hereby made the duty of all officers charged by law with any duty
in regard to the collections of said revenue, to do and perform each
and every act which shall be necessary to collect such additional
sum.
3911. In determining the dates of maturity of the bonds, and the
amount thereof to mature at each date of maturity, the committee
shall be guided, so far as it may deem to be practicable, by the
amounts of the revenue estimated to accrue to the Harbor Bond Sinking
Fund. The committee shall fix and determine the dates and amounts of
such maturities in such manner that, together with the dates and
amounts of interest payments on the bonds, they shall coincide, as
nearly as it may deem to be practicable, with the dates and amounts
of such estimated revenue.
3912. The rate of interest to be borne by the bonds need not be
uniform for all bonds of the same issue, series or division and shall
be the rate or rates fixed and determined by the committee in a
resolution adopted prior to the sale of the bonds or as specified in
the bid accepted by the State Treasurer if the bonds are sold on the
basis of the bidder naming the interest rate or rates, in which event
the State Treasurer shall fix such rate or rates in conformity with
the bid of the successful bidder.
3913. Both principal of and interest on the bonds shall be payable
in lawful money of the United States, at the Office of the State
Treasurer, or at the office of any duly authorized fiscal agent of
the State.
3914. Each bond shall contain a reference to this part and if
subject to call or redemption prior to maturity, a recital to that
effect.
3915. The bonds authorized to be issued under this part shall be
sold by the State Treasurer to the highest bidder for cash, either at
public auction or upon sealed bids as the committee may by
resolution determine. Highest bidder shall be the bidder whose bid
will result in the lowest net interest cost on account of said bonds.
If the State Treasurer determines that the bids received are not
satisfactory as to price or responsibility of the bidders, the State
Treasurer may reject all bids received. The Treasurer may from time
to time, by public announcement at the place and time fixed for the
sale, continue such sale, as to the whole of the bonds offered, or
any part thereof offered, at such time and place as he may select. If
the bonds are offered for sale upon sealed bids, then each bid shall
be in writing and signed by the bidder and sealed, and shall be
accompanied by the deposit of a certified check or cashier's check
for one-half of one percent (0.5%) of the par value of the bonds so
offered for sale, but not exceeding one hundred thousand dollars
($100,000), drawn on a bank or trust company authorized to transact
and transacting business in the State of California, payable to the
Treasurer of the State of California, such deposit not to bear
interest. The deposit of each unsuccessful bidder shall be returned
to him immediately upon the nonacceptance of his bid, and the deposit
of the successful bidder shall immediately upon the acceptance of
his bid become and be the property of the State of California and be
placed in the State Treasury to the credit of the Fifth San Francisco
Seawall Fund with respect to bonds issued at the instance of the
authority and to the credit of the Small Craft Harbor Bond Fund with
respect to bonds issued at the instance of the commission, and shall
be credited to the successful purchaser upon the purchase price of
the bonds bid for in case such purchase price is paid in full by him
within the time mutually agreed upon between the successful bidder
and the Treasurer. If the purchase price is not so paid, the
successful bidder shall have no right in and to the bonds or by
reason of such bid, or to the recovery of the deposit accompanying
the bid, or to any allowance or credit by reason of such deposit
unless it shall appear that the bonds would not be validly issued if
delivered to the purchaser in the form and manner proposed. In case
the purchase price is not so paid, the bonds so sold but not paid for
shall be resold by the State Treasurer upon notice as provided in
case of original sale.
Temporary or interim bonds, certificates, or receipts of any
denomination whatever and with or without coupons attached thereto,
to be signed by the State Treasurer, may be issued and delivered
until the definitive bonds are executed and available for delivery.
Signature of the State Treasurer may be by facsimile or signature
stamp.
3916. Due notice of the time and place of sale of all bonds shall
be given by the State Treasurer by publication in one newspaper
published in the City and County of San Francisco and also by
publication in one newspaper published in the City of Sacramento and
by publication in one newspaper published in the City of Los Angeles
once a week during two weeks prior to such sale. In addition to the
notice last above provided for, the State Treasurer may give such
further notice as he may deem advisable.
All money secured from the sale of bonds issued at the instance of
the authority, other than such amount as may have been paid as
premium or accrued interest thereon, and excluding any amount paid
pursuant to Section 3916.5, shall be placed in the State Treasury to
the credit of the Fifth San Francisco Seawall Fund. All money secured
from the sale of bonds issued at the instance of the commission,
other than such amount as may have been paid as premium or accrued
interest thereon, and excluding any amount paid pursuant to Section
3916.5 shall be placed in the State Treasury to the credit of the
Small Craft Harbor Bond Fund. Any premium or accrued interest
received on the sale of bonds issued and sold at the instance of the
authority shall be deposited in the account established in the Harbor
Bond Sinking Fund pursuant to subdivision (a) of Section 3918.5, and
any premium or accrued interest received on the sale of bonds issued
and sold at the instance of the commission shall be deposited in the
account established in the Harbor Bond Sinking Fund pursuant to
subdivision (b) of Section 3918.5.
3916.5. The sum of seventy-five thousand dollars ($75,000) is
hereby appropriated out of the General Fund to be used as a revolving
fund to pay the expenses incurred by the State Treasurer in having
the bonds prepared and in advertising their sale or their prior
redemption, for expenses incurred by the committee, and for legal
services. Whenever bonds are sold at the instance of the authority
out of the first money realized from their sale, there shall be
redeposited in the revolving fund such sums as have been expended for
the above purposes with respect to such bonds, which may be used for
the same purpose and repaid in the same manner whenever additional
sales are made. Whenever bonds are sold at the instance of the
commission, out of the first money realized from their sale, there
shall be redeposited in the revolving fund such sums as have been
expended for the above purposes with respect to such bonds, which may
be used for the same purpose and repaid in the same manner whenever
additional sales are made. Whenever all the bonds authorized by this
part have been sold, the amount of the appropriation made by this
section shall revert to the unappropriated surplus in the General
Fund.
3917. The committee may provide for the issuance, sale or exchange
of refunding bonds out of the bonds issued under this part for the
purpose of redeeming or retiring any bond issued by the committee if,
under the terms of that issue, the bonds issued thereunder may be
redeemed or retired. Any bonds issued hereunder may be redeemed or
retired if the resolution under which the bonds are issued so
permits.
3918. For the payment of the principal and interest of the bonds
the Harbor Bond Sinking Fund shall consist of the following:
(a) Payments from any available moneys in the San Francisco Harbor
Improvement Fund, from time to time on order of the authority, of
amounts equaling, in the aggregate:
(1) That required under this part to be expended from the Harbor
Bond Sinking Fund and the General Fund, to pay the principal and
interest on all bonds issued at the instance of the authority;
(2) Plus interest as required to be paid to the General Fund under
Section 3910 on any amounts paid from the General Fund by reason of
insufficient payments having been made from the San Francisco Harbor
Improvement Fund to pay, when due, the principal and interest on any
bonds issued at the instance of the authority;
(3) Less the amount equal to any interest that accrues from the
investment of money in the Harbor Bond Sinking Fund which has been
paid into that fund from the San Francisco Harbor Improvement Fund.
(b) Payments from any available moneys in the Small Craft Harbor
Improvement Fund from time to time, on order of the commission, of
amounts equaling, in the aggregate:
(1) That required under this part to be expended from the Harbor
Bond Sinking Fund and the General Fund, to pay the principal and
interest on all bonds issued at the instance of the commission;
(2) Plus interest required to be paid to the General Fund under
Section 3910 on any amounts paid from the General Fund by reason of
insufficient payments having been made from the Small Craft Harbor
Improvement Fund to pay, when due, the principal and interest on any
bonds issued at the instance of the commission.
(3) Less the amount equal to any interest that accrues from the
investment of money in the Harbor Bond Sinking Fund which has been
paid into that fund from the Small Craft Harbor Improvement Fund.
3918.5. (a) A separate account shall be established in the Harbor
Bond Sinking Fund, in which shall be deposited all money paid into
such fund from the San Francisco Harbor Improvement Fund. The money
deposited to such account shall be expended only for the purposes
described in subsections (1) and (2) of subdivision (a) of Section
3918.
(b) A separate account shall be established in the Harbor Bond
Sinking Fund, in which shall be deposited all money paid into such
fund from the Small Craft Harbor Improvement Fund. The money
deposited in such account shall be expended only for the purposes
described in subsections (1) and (2) of subdivision (b) of Section
3918.
3919. The State Treasurer shall on Controller's warrants duly drawn
for that purpose, invest the moneys in the Harbor Bond Sinking Fund
in the purchase of the bonds of the United States, or of the State of
California, including any bonds authorized, issued and theretofore
sold under authority of this part or of the several counties,
municipalities, school districts, or other public agencies of the
State of California, which bonds shall be kept in a proper
receptacle, appropriately labeled; but he shall keep on hand a
sufficient amount of money in the sinking fund with which to pay the
principal and interest on such of the state bonds as the same become
due. The State Treasurer may only purchase such bonds authorized and
issued under authority of this part with moneys in the sinking fund
as have been theretofore sold.
Interest accruing upon investment made from moneys in the Harbor
Bond Sinking Fund shall be deposited in the respective accounts
thereof from which the money invested was derived unless otherwise
required under any resolution providing for the issuance of revenue
bonds to be credited to the San Francisco Harbor Improvement Fund.
3919.3. The authority is authorized with the approval of the
Department of Finance, to invest any surplus moneys in the Fifth San
Francisco Seawall Fund in bonds or other obligations of the United
States, or of the several counties, municipalities, school districts,
or other public agencies of the State of California, and to sell
such bonds or obligations, or any of them, at the governing market
rates, upon approval of the Department of Finance; or the authority
may, with the approval of the Director of Finance, invest money in
such fund, in interest-bearing certificates of deposit of state banks
having a paid-up capital of five hundred thousand dollars ($500,000)
or more; provided, the total amount of money so deposited with any
one bank shall not exceed a sum equal to 50 percent of the paid-up
capital of such bank; provided, however, nothing herein contained
shall inhibit the depositing in banks in accordance with Chapter 4
(commencing at Section 16500), Part 2, Division 4, Title 2 of the
Government Code, of money of any of the funds subject to the control
of the authority or appropriated for their use.
Interest accruing upon the deposit of money of the fund shall be
paid into and credited to the San Francisco Harbor Improvement Fund.
3920. Whenever the committee deems that it will increase the
salability or the price of the bonds to obtain, prior to or after
sale, a legal opinion, other than that of the Attorney General, as to
the validity of the bonds, the committee may authorize the State
Treasurer or the Department of Finance, or both, to obtain such a
legal opinion. Payment for such legal services shall be made from the
proceeds of the sale of the bonds, or any other funds available to
the authority with respect to bonds authorized pursuant to Section
3940 or the commission with respect to bonds authorized pursuant to
Section 3950.
3921. The State Treasurer directly or through a state fiscal agent,
or agents, shall, on the respective dates of maturity of all bonds,
or on the date fixed for the prior redemption of any thereof which
may be duly called for redemption, and on the respective due dates of
all coupons pertaining to any of said bonds, other than coupons
canceled because of the redemption of any of said bonds prior to
maturity, or as soon thereafter as said bonds or coupons respectively
are surrendered to him, or to such state fiscal agent, or agents,
pay the same.
3922. Upon the payment of any such bond or coupon, the State
Treasurer, or such state fiscal agent, or agents, shall perforate the
same with a suitable device in a manner to indicate such payment and
a record of such payment shall be made thereof. The State Treasurer,
or such state fiscal agent, or agents, shall also on the respective
dates of maturity of any such bonds which have been executed but
which remain unsold, cancel the same by perforation with a suitable
device in a manner to indicate such cancellation and the date
thereof, and on the respective due dates of all coupons attached to
any such bond remaining unsold, shall detach all such coupons the due
date of which has been reached, and cancel them in the same manner
as provided for the cancellation of bonds remaining unsold. After
proceedings set forth in Section 3907 new bonds conforming to the
directions of the committee may be prepared and executed in lieu of
any bonds so canceled, and may be sold and issued in the same manner
as provided for other bonds in this part.
3923. The State Treasurer, or such state fiscal agent, or agents,
with the approval of the State Treasurer, may destroy or cremate any
or all bonds and any or all coupons pertaining thereto which have
been previously paid or canceled as provided herein in accordance
with the provisions of Government Code Section 16772.
3924. It shall be the duty of the State Treasurer to pay the
interest of said bonds, when the same falls due, out of the moneys
provided for in this part, on Controller's warrants duly drawn for
that purpose.
3925. All bonds issued under this part and sold shall be deemed to
have been called in at their respective dates of maturity and the
State Treasurer shall, on the respective dates of maturity of said
bonds, or as soon thereafter as said matured bonds are surrendered to
him, pay the same upon Controller's warrants duly drawn for that
purpose. The provisions of this section shall be applicable also to
the interest coupons pertaining to the bonds authorized by this part
to be issued.
3926. Whenever the committee shall determine that any bonds then
outstanding, and which by their terms are subject to redemption prior
to maturity, should be redeemed, and that money sufficient for such
redemption will be available at the time proposed for such
redemption, it may, by resolution, direct the State Treasurer to call
and redeem any such bonds, at a time specified in such resolution,
and the State Treasurer shall thereupon give notice of such proposed
redemption and redeem the bonds in accordance with the provisions for
redemption provided for in the resolution of the committee adopted
under Section 3907 pursuant to which the bonds were issued.
3927. The State Controller and the State Treasurer shall keep full
and particular account and record of all their proceedings under this
part, and they shall transmit to the Governor an abstract of all
such proceedings thereunder. All books and papers pertaining to the
matter provided for in this part shall at all times be open to the
inspection of any party interested, or the Governor, or the Attorney
General, or a committee of either house of the Legislature, or a
joint committee of both, or any citizen of the State.
3928. All money remaining in the account of the Harbor Bond Sinking
Fund, established pursuant to subdivision (a) of Section 3918.5,
after the principal of and interest upon all bonds issued under this
part at the instance of the authority have been paid in full and
after all such bonds and interest coupons therefrom have been
canceled, shall be paid into the San Francisco Harbor Improvement
Fund to be expended in accordance with law. All money remaining in
the account of the Harbor Bond Sinking Fund, established pursuant to
subdivision (b) of Section 3918.5, after the principal of and
interest upon all bonds issued under this part at the instance of the
commission have been paid in full and after all such bonds and
interest coupons therefrom have been canceled, shall be paid into the
Small Craft Harbor Improvement Fund to be expended in accordance
with law.
3900. This part may be cited as the Harbor Development Bond Law of
1958.
3901. As used in this chapter the following words shall have the
following meanings:
(a) "Committee" means the Harbor Improvement Bond Committee.
(b) "Authority" means the San Francisco Port Authority, as the
same is constituted by Part 1 (commencing at Section 1690) of
Division 6 of the Harbors and Navigation Code, or any successor
thereof.
(c) "Commission" means the Harbors and Watercraft Commission, as
the same is constituted by Division 1 (commencing with Section 30) of
this code, or any successor thereof.
(d) "San Francisco Harbor Improvement Fund" means the fund now
existing in the State Treasury and created by Section 1706.
3902. The following funds are created in the State Treasury for the
purposes of this part:
(a) Harbor Bond Sinking Fund.
(b) Fifth San Francisco Seawall Fund.
(c) Small Craft Harbor Bond Fund.
(d) Small Craft Harbor Improvement Fund.
3903. There is in the State Government the Harbor Improvement Bond
Committee. The committee shall consist of the State Controller, the
State Treasurer, and the Director of Finance. The Director of Finance
shall be the chairman of the committee. A majority of the members of
the committee shall be empowered to act for the committee. The
committee shall hold meetings at such times and places as the
chairman shall direct or upon the written request of any two members
of the board.
3904. The members of the committee shall not receive additional
compensation for their services under this part.
3905. For the purpose of creating funds to provide for the
construction, improvement and development of harbors in this State as
provided in this part, the Harbor Improvement Bond Committee is
authorized and empowered to create a debt or debts, liability or
liabilities, of the State of California, in the manner and to the
extent hereinafter provided, but not otherwise, nor in excess
thereof.
3906. After adoption of any resolution by the committee, provided
for in Section 3907, the State Treasurer shall arrange for the
preparation of the requisite number of suitable bonds in accordance
with the specifications contained in such resolution. The aggregate
par value of all bonds issued under this part shall not exceed the
sum of sixty million dollars ($60,000,000).
The authorization to issue bonds as herein set forth shall be a
continuing authorization until all of said bonds shall have been
issued and sold, but no bonds shall be issued or sold pursuant to
this part subsequent to July 1, 1999.
3907. Whenever the authority pursuant to Section 3940 or the
commission pursuant to Section 3950 determines by resolution that a
bond issue under this part is necessary or desirable in order to make
any of the expenditures authorized by this part, and so certifies to
the committee, then the said committee shall approve or disapprove
said resolution, and if it approves said resolution, the committee
shall adopt a resolution authorizing and directing the State
Treasurer to arrange for the preparation of the requisite number of
suitable bonds and shall specify as to such bonds then to be sold:
(a) The aggregate number, aggregate par value, demoninations and
the date of the bonds to be then sold. The bonds may be issued in
series or divisions of the total authorized issue. Such demoninations
shall be in the sum of one thousand dollars ($1,000), or multiples
thereof. The date appearing on the bonds or series or division shall
be deemed to be the date of issuance of such series or division for
all purposes of this part, irrespective of the actual date of
delivery of such bonds of such series or division and the payment of
the purchase price thereof.
(b) The dates of maturity, and the amount and numercial sequence
of the bonds maturing at each date of maturity, which amounts need
not be equal, but which dates shall be at annual or semiannual
intervals, and the first of which dates of maturity shall be not more
than five years, and the last of which dates of maturity shall be
not more than 50 years, after the date of the bonds or any series or
division thereof.
(c) Whether or not the bonds are to be subject to redemption at
the option of the authority or the commission, as the case may be,
prior to maturity, and, if so, the provisions for such redemption,
the manner of the call thereof, and the price or prices at which the
bonds shall be subject to redemption.
(d) The annual rate, or rates, of interest which the bonds to be
issued shall bear, which rate, or rates, at the discretion of the
committee, may be determined by the bidder at the time of sale of
said bonds, not to exceed 6 percent per annum. Such interest may be
payable at such periods as may be fixed by the committee.
(e) The technical form and language of the bonds and interest
coupons.
(f) Whether or not the right is reserved to make delivery in the
form of temporary or interim bonds, certificates, or receipts,
exchangeable for definitive bonds when executed and available for
delivery, and if such right is reserved the denominations and form of
such temporary securities.
(g) Whether or not the bonds are to be subject to registration,
the demoninations of registered bonds and the provisions, if any, for
the interexchange of bonds of different denominations, the issuance
of new bonds of different denominations in lieu of, or in exchange
for, bonds of a like aggregate principal amount but of different
denominations and the form and all of the terms and conditions of
such registration and of such exchange. If such registration is
provided for, all of the provisions of this part with reference to
the payment of bonds and interest coupons shall be subject to the
terms and conditions of such registration with respect to the payment
of registered bonds and the interest thereon.
(h) All other terms and conditions of the bonds and of the
execution, issuance and sale thereof, which shall be consistent with
all of the provisions of this part.
(i) The committee may authorize the State Treasurer to sell all or
any part of the bonds herein authorized at such time or times as may
be fixed by the State Treasurer.
3908. The aggregate par value of all bonds issued under this part
at the instance of the authority shall not exceed fifty million
dollars ($50,000,000) and the aggregate par value of all bonds issued
under this part at the instance of the commission shall not exceed
ten million dollars ($10,000,000).
3909. All bonds issued under this part shall bear the facsimile
signature of the Governor and the facsimile countersignature of the
Controller and shall be endorsed by the State Treasurer by facsimile
signature and the bonds shall be signed, countersigned and endorsed
by the officers who shall be in office on the date of the adoption of
the resolution of the committee, and each of the bonds shall bear a
facsimile of the Great Seal of the State of California. Interest
coupons attached to each bond shall bear the facsimile signature of
the State Treasurer who shall be in office on the date of the
adoption of the resolution of the committee. The bonds and coupons so
signed, countersigned, endorsed and sealed, when sold and delivered,
shall be and constitute a valid and binding obligation upon the
State of California, although the sale or delivery thereof be made at
a date or dates upon which the officers having signed, countersigned
and endorsed the bonds, or any or either of such officers, shall
have ceased to be the incumbents of the offices held by them at the
time of signing, countersigning, or endorsing such bonds. Each bond
issued under this part shall contain a clause or clauses stating that
interest shall cease to accrue thereon from and after the date of
maturity thereof, and referring to the resolution of the committee,
by virtue of which the bond is issued.
3910. All bonds herein authorized, which shall have been duly sold
and delivered as herein provided, shall constitute valid and legally
binding general obligations of the State of California, and the full
faith and credit of the State of California is hereby pledged for the
punctual payment of both principal and interest thereof. There is
hereby appropriated from any available moneys in the account
established in the Harbor Bond Sinking Fund pursuant to subdivision
(a) of Section 3918.5, or if such moneys are insufficient, then from
the General Fund of the State of California, such sum annually as
will be necessary to pay the principal of and interest on the bonds
issued and sold at the instance of the authority pursuant to the
provisions of this part, as such principal and interest become due
and payable. There is hereby appropriated from any available moneys
in the account established in the Harbor Bond Sinking Fund pursuant
to subdivision (b) of Section 3918.5, or if such moneys are
insufficient then from the General Fund of the State of California,
such sum annually as will be necessary to pay the principal of and
interest on the bonds issued and sold at the instance of the
commission pursuant to the provisions of this part, as such principal
and interest become due and payable. Any sums withdrawn from the
General Fund for the payment of principal of or interest on the bonds
shall be returned to the General Fund as soon as moneys are
available for that purpose in the Harbor Bond Sinking Fund account
for the benefit of which the appropriation had been made from the
General Fund, together with interest thereon at the same rate as, at
the time of appropriation, is earned by short term current
investments through the pooled money investment account, such
earnings to be determined by the Controller.
There shall be collected annually in the same manner and at the
same time as other state revenue is collected such a sum, in addition
to the ordinary revenues of the State, as shall be required to pay
the principal and interest on said bonds as herein provided, and it
is hereby made the duty of all officers charged by law with any duty
in regard to the collections of said revenue, to do and perform each
and every act which shall be necessary to collect such additional
sum.
3911. In determining the dates of maturity of the bonds, and the
amount thereof to mature at each date of maturity, the committee
shall be guided, so far as it may deem to be practicable, by the
amounts of the revenue estimated to accrue to the Harbor Bond Sinking
Fund. The committee shall fix and determine the dates and amounts of
such maturities in such manner that, together with the dates and
amounts of interest payments on the bonds, they shall coincide, as
nearly as it may deem to be practicable, with the dates and amounts
of such estimated revenue.
3912. The rate of interest to be borne by the bonds need not be
uniform for all bonds of the same issue, series or division and shall
be the rate or rates fixed and determined by the committee in a
resolution adopted prior to the sale of the bonds or as specified in
the bid accepted by the State Treasurer if the bonds are sold on the
basis of the bidder naming the interest rate or rates, in which event
the State Treasurer shall fix such rate or rates in conformity with
the bid of the successful bidder.
3913. Both principal of and interest on the bonds shall be payable
in lawful money of the United States, at the Office of the State
Treasurer, or at the office of any duly authorized fiscal agent of
the State.
3914. Each bond shall contain a reference to this part and if
subject to call or redemption prior to maturity, a recital to that
effect.
3915. The bonds authorized to be issued under this part shall be
sold by the State Treasurer to the highest bidder for cash, either at
public auction or upon sealed bids as the committee may by
resolution determine. Highest bidder shall be the bidder whose bid
will result in the lowest net interest cost on account of said bonds.
If the State Treasurer determines that the bids received are not
satisfactory as to price or responsibility of the bidders, the State
Treasurer may reject all bids received. The Treasurer may from time
to time, by public announcement at the place and time fixed for the
sale, continue such sale, as to the whole of the bonds offered, or
any part thereof offered, at such time and place as he may select. If
the bonds are offered for sale upon sealed bids, then each bid shall
be in writing and signed by the bidder and sealed, and shall be
accompanied by the deposit of a certified check or cashier's check
for one-half of one percent (0.5%) of the par value of the bonds so
offered for sale, but not exceeding one hundred thousand dollars
($100,000), drawn on a bank or trust company authorized to transact
and transacting business in the State of California, payable to the
Treasurer of the State of California, such deposit not to bear
interest. The deposit of each unsuccessful bidder shall be returned
to him immediately upon the nonacceptance of his bid, and the deposit
of the successful bidder shall immediately upon the acceptance of
his bid become and be the property of the State of California and be
placed in the State Treasury to the credit of the Fifth San Francisco
Seawall Fund with respect to bonds issued at the instance of the
authority and to the credit of the Small Craft Harbor Bond Fund with
respect to bonds issued at the instance of the commission, and shall
be credited to the successful purchaser upon the purchase price of
the bonds bid for in case such purchase price is paid in full by him
within the time mutually agreed upon between the successful bidder
and the Treasurer. If the purchase price is not so paid, the
successful bidder shall have no right in and to the bonds or by
reason of such bid, or to the recovery of the deposit accompanying
the bid, or to any allowance or credit by reason of such deposit
unless it shall appear that the bonds would not be validly issued if
delivered to the purchaser in the form and manner proposed. In case
the purchase price is not so paid, the bonds so sold but not paid for
shall be resold by the State Treasurer upon notice as provided in
case of original sale.
Temporary or interim bonds, certificates, or receipts of any
denomination whatever and with or without coupons attached thereto,
to be signed by the State Treasurer, may be issued and delivered
until the definitive bonds are executed and available for delivery.
Signature of the State Treasurer may be by facsimile or signature
stamp.
3916. Due notice of the time and place of sale of all bonds shall
be given by the State Treasurer by publication in one newspaper
published in the City and County of San Francisco and also by
publication in one newspaper published in the City of Sacramento and
by publication in one newspaper published in the City of Los Angeles
once a week during two weeks prior to such sale. In addition to the
notice last above provided for, the State Treasurer may give such
further notice as he may deem advisable.
All money secured from the sale of bonds issued at the instance of
the authority, other than such amount as may have been paid as
premium or accrued interest thereon, and excluding any amount paid
pursuant to Section 3916.5, shall be placed in the State Treasury to
the credit of the Fifth San Francisco Seawall Fund. All money secured
from the sale of bonds issued at the instance of the commission,
other than such amount as may have been paid as premium or accrued
interest thereon, and excluding any amount paid pursuant to Section
3916.5 shall be placed in the State Treasury to the credit of the
Small Craft Harbor Bond Fund. Any premium or accrued interest
received on the sale of bonds issued and sold at the instance of the
authority shall be deposited in the account established in the Harbor
Bond Sinking Fund pursuant to subdivision (a) of Section 3918.5, and
any premium or accrued interest received on the sale of bonds issued
and sold at the instance of the commission shall be deposited in the
account established in the Harbor Bond Sinking Fund pursuant to
subdivision (b) of Section 3918.5.
3916.5. The sum of seventy-five thousand dollars ($75,000) is
hereby appropriated out of the General Fund to be used as a revolving
fund to pay the expenses incurred by the State Treasurer in having
the bonds prepared and in advertising their sale or their prior
redemption, for expenses incurred by the committee, and for legal
services. Whenever bonds are sold at the instance of the authority
out of the first money realized from their sale, there shall be
redeposited in the revolving fund such sums as have been expended for
the above purposes with respect to such bonds, which may be used for
the same purpose and repaid in the same manner whenever additional
sales are made. Whenever bonds are sold at the instance of the
commission, out of the first money realized from their sale, there
shall be redeposited in the revolving fund such sums as have been
expended for the above purposes with respect to such bonds, which may
be used for the same purpose and repaid in the same manner whenever
additional sales are made. Whenever all the bonds authorized by this
part have been sold, the amount of the appropriation made by this
section shall revert to the unappropriated surplus in the General
Fund.
3917. The committee may provide for the issuance, sale or exchange
of refunding bonds out of the bonds issued under this part for the
purpose of redeeming or retiring any bond issued by the committee if,
under the terms of that issue, the bonds issued thereunder may be
redeemed or retired. Any bonds issued hereunder may be redeemed or
retired if the resolution under which the bonds are issued so
permits.
3918. For the payment of the principal and interest of the bonds
the Harbor Bond Sinking Fund shall consist of the following:
(a) Payments from any available moneys in the San Francisco Harbor
Improvement Fund, from time to time on order of the authority, of
amounts equaling, in the aggregate:
(1) That required under this part to be expended from the Harbor
Bond Sinking Fund and the General Fund, to pay the principal and
interest on all bonds issued at the instance of the authority;
(2) Plus interest as required to be paid to the General Fund under
Section 3910 on any amounts paid from the General Fund by reason of
insufficient payments having been made from the San Francisco Harbor
Improvement Fund to pay, when due, the principal and interest on any
bonds issued at the instance of the authority;
(3) Less the amount equal to any interest that accrues from the
investment of money in the Harbor Bond Sinking Fund which has been
paid into that fund from the San Francisco Harbor Improvement Fund.
(b) Payments from any available moneys in the Small Craft Harbor
Improvement Fund from time to time, on order of the commission, of
amounts equaling, in the aggregate:
(1) That required under this part to be expended from the Harbor
Bond Sinking Fund and the General Fund, to pay the principal and
interest on all bonds issued at the instance of the commission;
(2) Plus interest required to be paid to the General Fund under
Section 3910 on any amounts paid from the General Fund by reason of
insufficient payments having been made from the Small Craft Harbor
Improvement Fund to pay, when due, the principal and interest on any
bonds issued at the instance of the commission.
(3) Less the amount equal to any interest that accrues from the
investment of money in the Harbor Bond Sinking Fund which has been
paid into that fund from the Small Craft Harbor Improvement Fund.
3918.5. (a) A separate account shall be established in the Harbor
Bond Sinking Fund, in which shall be deposited all money paid into
such fund from the San Francisco Harbor Improvement Fund. The money
deposited to such account shall be expended only for the purposes
described in subsections (1) and (2) of subdivision (a) of Section
3918.
(b) A separate account shall be established in the Harbor Bond
Sinking Fund, in which shall be deposited all money paid into such
fund from the Small Craft Harbor Improvement Fund. The money
deposited in such account shall be expended only for the purposes
described in subsections (1) and (2) of subdivision (b) of Section
3918.
3919. The State Treasurer shall on Controller's warrants duly drawn
for that purpose, invest the moneys in the Harbor Bond Sinking Fund
in the purchase of the bonds of the United States, or of the State of
California, including any bonds authorized, issued and theretofore
sold under authority of this part or of the several counties,
municipalities, school districts, or other public agencies of the
State of California, which bonds shall be kept in a proper
receptacle, appropriately labeled; but he shall keep on hand a
sufficient amount of money in the sinking fund with which to pay the
principal and interest on such of the state bonds as the same become
due. The State Treasurer may only purchase such bonds authorized and
issued under authority of this part with moneys in the sinking fund
as have been theretofore sold.
Interest accruing upon investment made from moneys in the Harbor
Bond Sinking Fund shall be deposited in the respective accounts
thereof from which the money invested was derived unless otherwise
required under any resolution providing for the issuance of revenue
bonds to be credited to the San Francisco Harbor Improvement Fund.
3919.3. The authority is authorized with the approval of the
Department of Finance, to invest any surplus moneys in the Fifth San
Francisco Seawall Fund in bonds or other obligations of the United
States, or of the several counties, municipalities, school districts,
or other public agencies of the State of California, and to sell
such bonds or obligations, or any of them, at the governing market
rates, upon approval of the Department of Finance; or the authority
may, with the approval of the Director of Finance, invest money in
such fund, in interest-bearing certificates of deposit of state banks
having a paid-up capital of five hundred thousand dollars ($500,000)
or more; provided, the total amount of money so deposited with any
one bank shall not exceed a sum equal to 50 percent of the paid-up
capital of such bank; provided, however, nothing herein contained
shall inhibit the depositing in banks in accordance with Chapter 4
(commencing at Section 16500), Part 2, Division 4, Title 2 of the
Government Code, of money of any of the funds subject to the control
of the authority or appropriated for their use.
Interest accruing upon the deposit of money of the fund shall be
paid into and credited to the San Francisco Harbor Improvement Fund.
3920. Whenever the committee deems that it will increase the
salability or the price of the bonds to obtain, prior to or after
sale, a legal opinion, other than that of the Attorney General, as to
the validity of the bonds, the committee may authorize the State
Treasurer or the Department of Finance, or both, to obtain such a
legal opinion. Payment for such legal services shall be made from the
proceeds of the sale of the bonds, or any other funds available to
the authority with respect to bonds authorized pursuant to Section
3940 or the commission with respect to bonds authorized pursuant to
Section 3950.
3921. The State Treasurer directly or through a state fiscal agent,
or agents, shall, on the respective dates of maturity of all bonds,
or on the date fixed for the prior redemption of any thereof which
may be duly called for redemption, and on the respective due dates of
all coupons pertaining to any of said bonds, other than coupons
canceled because of the redemption of any of said bonds prior to
maturity, or as soon thereafter as said bonds or coupons respectively
are surrendered to him, or to such state fiscal agent, or agents,
pay the same.
3922. Upon the payment of any such bond or coupon, the State
Treasurer, or such state fiscal agent, or agents, shall perforate the
same with a suitable device in a manner to indicate such payment and
a record of such payment shall be made thereof. The State Treasurer,
or such state fiscal agent, or agents, shall also on the respective
dates of maturity of any such bonds which have been executed but
which remain unsold, cancel the same by perforation with a suitable
device in a manner to indicate such cancellation and the date
thereof, and on the respective due dates of all coupons attached to
any such bond remaining unsold, shall detach all such coupons the due
date of which has been reached, and cancel them in the same manner
as provided for the cancellation of bonds remaining unsold. After
proceedings set forth in Section 3907 new bonds conforming to the
directions of the committee may be prepared and executed in lieu of
any bonds so canceled, and may be sold and issued in the same manner
as provided for other bonds in this part.
3923. The State Treasurer, or such state fiscal agent, or agents,
with the approval of the State Treasurer, may destroy or cremate any
or all bonds and any or all coupons pertaining thereto which have
been previously paid or canceled as provided herein in accordance
with the provisions of Government Code Section 16772.
3924. It shall be the duty of the State Treasurer to pay the
interest of said bonds, when the same falls due, out of the moneys
provided for in this part, on Controller's warrants duly drawn for
that purpose.
3925. All bonds issued under this part and sold shall be deemed to
have been called in at their respective dates of maturity and the
State Treasurer shall, on the respective dates of maturity of said
bonds, or as soon thereafter as said matured bonds are surrendered to
him, pay the same upon Controller's warrants duly drawn for that
purpose. The provisions of this section shall be applicable also to
the interest coupons pertaining to the bonds authorized by this part
to be issued.
3926. Whenever the committee shall determine that any bonds then
outstanding, and which by their terms are subject to redemption prior
to maturity, should be redeemed, and that money sufficient for such
redemption will be available at the time proposed for such
redemption, it may, by resolution, direct the State Treasurer to call
and redeem any such bonds, at a time specified in such resolution,
and the State Treasurer shall thereupon give notice of such proposed
redemption and redeem the bonds in accordance with the provisions for
redemption provided for in the resolution of the committee adopted
under Section 3907 pursuant to which the bonds were issued.
3927. The State Controller and the State Treasurer shall keep full
and particular account and record of all their proceedings under this
part, and they shall transmit to the Governor an abstract of all
such proceedings thereunder. All books and papers pertaining to the
matter provided for in this part shall at all times be open to the
inspection of any party interested, or the Governor, or the Attorney
General, or a committee of either house of the Legislature, or a
joint committee of both, or any citizen of the State.
3928. All money remaining in the account of the Harbor Bond Sinking
Fund, established pursuant to subdivision (a) of Section 3918.5,
after the principal of and interest upon all bonds issued under this
part at the instance of the authority have been paid in full and
after all such bonds and interest coupons therefrom have been
canceled, shall be paid into the San Francisco Harbor Improvement
Fund to be expended in accordance with law. All money remaining in
the account of the Harbor Bond Sinking Fund, established pursuant to
subdivision (b) of Section 3918.5, after the principal of and
interest upon all bonds issued under this part at the instance of the
commission have been paid in full and after all such bonds and
interest coupons therefrom have been canceled, shall be paid into the
Small Craft Harbor Improvement Fund to be expended in accordance
with law.
3900. This part may be cited as the Harbor Development Bond Law of
1958.
3901. As used in this chapter the following words shall have the
following meanings:
(a) "Committee" means the Harbor Improvement Bond Committee.
(b) "Authority" means the San Francisco Port Authority, as the
same is constituted by Part 1 (commencing at Section 1690) of
Division 6 of the Harbors and Navigation Code, or any successor
thereof.
(c) "Commission" means the Harbors and Watercraft Commission, as
the same is constituted by Division 1 (commencing with Section 30) of
this code, or any successor thereof.
(d) "San Francisco Harbor Improvement Fund" means the fund now
existing in the State Treasury and created by Section 1706.
3902. The following funds are created in the State Treasury for the
purposes of this part:
(a) Harbor Bond Sinking Fund.
(b) Fifth San Francisco Seawall Fund.
(c) Small Craft Harbor Bond Fund.
(d) Small Craft Harbor Improvement Fund.
3903. There is in the State Government the Harbor Improvement Bond
Committee. The committee shall consist of the State Controller, the
State Treasurer, and the Director of Finance. The Director of Finance
shall be the chairman of the committee. A majority of the members of
the committee shall be empowered to act for the committee. The
committee shall hold meetings at such times and places as the
chairman shall direct or upon the written request of any two members
of the board.
3904. The members of the committee shall not receive additional
compensation for their services under this part.
3905. For the purpose of creating funds to provide for the
construction, improvement and development of harbors in this State as
provided in this part, the Harbor Improvement Bond Committee is
authorized and empowered to create a debt or debts, liability or
liabilities, of the State of California, in the manner and to the
extent hereinafter provided, but not otherwise, nor in excess
thereof.
3906. After adoption of any resolution by the committee, provided
for in Section 3907, the State Treasurer shall arrange for the
preparation of the requisite number of suitable bonds in accordance
with the specifications contained in such resolution. The aggregate
par value of all bonds issued under this part shall not exceed the
sum of sixty million dollars ($60,000,000).
The authorization to issue bonds as herein set forth shall be a
continuing authorization until all of said bonds shall have been
issued and sold, but no bonds shall be issued or sold pursuant to
this part subsequent to July 1, 1999.
3907. Whenever the authority pursuant to Section 3940 or the
commission pursuant to Section 3950 determines by resolution that a
bond issue under this part is necessary or desirable in order to make
any of the expenditures authorized by this part, and so certifies to
the committee, then the said committee shall approve or disapprove
said resolution, and if it approves said resolution, the committee
shall adopt a resolution authorizing and directing the State
Treasurer to arrange for the preparation of the requisite number of
suitable bonds and shall specify as to such bonds then to be sold:
(a) The aggregate number, aggregate par value, demoninations and
the date of the bonds to be then sold. The bonds may be issued in
series or divisions of the total authorized issue. Such demoninations
shall be in the sum of one thousand dollars ($1,000), or multiples
thereof. The date appearing on the bonds or series or division shall
be deemed to be the date of issuance of such series or division for
all purposes of this part, irrespective of the actual date of
delivery of such bonds of such series or division and the payment of
the purchase price thereof.
(b) The dates of maturity, and the amount and numercial sequence
of the bonds maturing at each date of maturity, which amounts need
not be equal, but which dates shall be at annual or semiannual
intervals, and the first of which dates of maturity shall be not more
than five years, and the last of which dates of maturity shall be
not more than 50 years, after the date of the bonds or any series or
division thereof.
(c) Whether or not the bonds are to be subject to redemption at
the option of the authority or the commission, as the case may be,
prior to maturity, and, if so, the provisions for such redemption,
the manner of the call thereof, and the price or prices at which the
bonds shall be subject to redemption.
(d) The annual rate, or rates, of interest which the bonds to be
issued shall bear, which rate, or rates, at the discretion of the
committee, may be determined by the bidder at the time of sale of
said bonds, not to exceed 6 percent per annum. Such interest may be
payable at such periods as may be fixed by the committee.
(e) The technical form and language of the bonds and interest
coupons.
(f) Whether or not the right is reserved to make delivery in the
form of temporary or interim bonds, certificates, or receipts,
exchangeable for definitive bonds when executed and available for
delivery, and if such right is reserved the denominations and form of
such temporary securities.
(g) Whether or not the bonds are to be subject to registration,
the demoninations of registered bonds and the provisions, if any, for
the interexchange of bonds of different denominations, the issuance
of new bonds of different denominations in lieu of, or in exchange
for, bonds of a like aggregate principal amount but of different
denominations and the form and all of the terms and conditions of
such registration and of such exchange. If such registration is
provided for, all of the provisions of this part with reference to
the payment of bonds and interest coupons shall be subject to the
terms and conditions of such registration with respect to the payment
of registered bonds and the interest thereon.
(h) All other terms and conditions of the bonds and of the
execution, issuance and sale thereof, which shall be consistent with
all of the provisions of this part.
(i) The committee may authorize the State Treasurer to sell all or
any part of the bonds herein authorized at such time or times as may
be fixed by the State Treasurer.
3908. The aggregate par value of all bonds issued under this part
at the instance of the authority shall not exceed fifty million
dollars ($50,000,000) and the aggregate par value of all bonds issued
under this part at the instance of the commission shall not exceed
ten million dollars ($10,000,000).
3909. All bonds issued under this part shall bear the facsimile
signature of the Governor and the facsimile countersignature of the
Controller and shall be endorsed by the State Treasurer by facsimile
signature and the bonds shall be signed, countersigned and endorsed
by the officers who shall be in office on the date of the adoption of
the resolution of the committee, and each of the bonds shall bear a
facsimile of the Great Seal of the State of California. Interest
coupons attached to each bond shall bear the facsimile signature of
the State Treasurer who shall be in office on the date of the
adoption of the resolution of the committee. The bonds and coupons so
signed, countersigned, endorsed and sealed, when sold and delivered,
shall be and constitute a valid and binding obligation upon the
State of California, although the sale or delivery thereof be made at
a date or dates upon which the officers having signed, countersigned
and endorsed the bonds, or any or either of such officers, shall
have ceased to be the incumbents of the offices held by them at the
time of signing, countersigning, or endorsing such bonds. Each bond
issued under this part shall contain a clause or clauses stating that
interest shall cease to accrue thereon from and after the date of
maturity thereof, and referring to the resolution of the committee,
by virtue of which the bond is issued.
3910. All bonds herein authorized, which shall have been duly sold
and delivered as herein provided, shall constitute valid and legally
binding general obligations of the State of California, and the full
faith and credit of the State of California is hereby pledged for the
punctual payment of both principal and interest thereof. There is
hereby appropriated from any available moneys in the account
established in the Harbor Bond Sinking Fund pursuant to subdivision
(a) of Section 3918.5, or if such moneys are insufficient, then from
the General Fund of the State of California, such sum annually as
will be necessary to pay the principal of and interest on the bonds
issued and sold at the instance of the authority pursuant to the
provisions of this part, as such principal and interest become due
and payable. There is hereby appropriated from any available moneys
in the account established in the Harbor Bond Sinking Fund pursuant
to subdivision (b) of Section 3918.5, or if such moneys are
insufficient then from the General Fund of the State of California,
such sum annually as will be necessary to pay the principal of and
interest on the bonds issued and sold at the instance of the
commission pursuant to the provisions of this part, as such principal
and interest become due and payable. Any sums withdrawn from the
General Fund for the payment of principal of or interest on the bonds
shall be returned to the General Fund as soon as moneys are
available for that purpose in the Harbor Bond Sinking Fund account
for the benefit of which the appropriation had been made from the
General Fund, together with interest thereon at the same rate as, at
the time of appropriation, is earned by short term current
investments through the pooled money investment account, such
earnings to be determined by the Controller.
There shall be collected annually in the same manner and at the
same time as other state revenue is collected such a sum, in addition
to the ordinary revenues of the State, as shall be required to pay
the principal and interest on said bonds as herein provided, and it
is hereby made the duty of all officers charged by law with any duty
in regard to the collections of said revenue, to do and perform each
and every act which shall be necessary to collect such additional
sum.
3911. In determining the dates of maturity of the bonds, and the
amount thereof to mature at each date of maturity, the committee
shall be guided, so far as it may deem to be practicable, by the
amounts of the revenue estimated to accrue to the Harbor Bond Sinking
Fund. The committee shall fix and determine the dates and amounts of
such maturities in such manner that, together with the dates and
amounts of interest payments on the bonds, they shall coincide, as
nearly as it may deem to be practicable, with the dates and amounts
of such estimated revenue.
3912. The rate of interest to be borne by the bonds need not be
uniform for all bonds of the same issue, series or division and shall
be the rate or rates fixed and determined by the committee in a
resolution adopted prior to the sale of the bonds or as specified in
the bid accepted by the State Treasurer if the bonds are sold on the
basis of the bidder naming the interest rate or rates, in which event
the State Treasurer shall fix such rate or rates in conformity with
the bid of the successful bidder.
3913. Both principal of and interest on the bonds shall be payable
in lawful money of the United States, at the Office of the State
Treasurer, or at the office of any duly authorized fiscal agent of
the State.
3914. Each bond shall contain a reference to this part and if
subject to call or redemption prior to maturity, a recital to that
effect.
3915. The bonds authorized to be issued under this part shall be
sold by the State Treasurer to the highest bidder for cash, either at
public auction or upon sealed bids as the committee may by
resolution determine. Highest bidder shall be the bidder whose bid
will result in the lowest net interest cost on account of said bonds.
If the State Treasurer determines that the bids received are not
satisfactory as to price or responsibility of the bidders, the State
Treasurer may reject all bids received. The Treasurer may from time
to time, by public announcement at the place and time fixed for the
sale, continue such sale, as to the whole of the bonds offered, or
any part thereof offered, at such time and place as he may select. If
the bonds are offered for sale upon sealed bids, then each bid shall
be in writing and signed by the bidder and sealed, and shall be
accompanied by the deposit of a certified check or cashier's check
for one-half of one percent (0.5%) of the par value of the bonds so
offered for sale, but not exceeding one hundred thousand dollars
($100,000), drawn on a bank or trust company authorized to transact
and transacting business in the State of California, payable to the
Treasurer of the State of California, such deposit not to bear
interest. The deposit of each unsuccessful bidder shall be returned
to him immediately upon the nonacceptance of his bid, and the deposit
of the successful bidder shall immediately upon the acceptance of
his bid become and be the property of the State of California and be
placed in the State Treasury to the credit of the Fifth San Francisco
Seawall Fund with respect to bonds issued at the instance of the
authority and to the credit of the Small Craft Harbor Bond Fund with
respect to bonds issued at the instance of the commission, and shall
be credited to the successful purchaser upon the purchase price of
the bonds bid for in case such purchase price is paid in full by him
within the time mutually agreed upon between the successful bidder
and the Treasurer. If the purchase price is not so paid, the
successful bidder shall have no right in and to the bonds or by
reason of such bid, or to the recovery of the deposit accompanying
the bid, or to any allowance or credit by reason of such deposit
unless it shall appear that the bonds would not be validly issued if
delivered to the purchaser in the form and manner proposed. In case
the purchase price is not so paid, the bonds so sold but not paid for
shall be resold by the State Treasurer upon notice as provided in
case of original sale.
Temporary or interim bonds, certificates, or receipts of any
denomination whatever and with or without coupons attached thereto,
to be signed by the State Treasurer, may be issued and delivered
until the definitive bonds are executed and available for delivery.
Signature of the State Treasurer may be by facsimile or signature
stamp.
3916. Due notice of the time and place of sale of all bonds shall
be given by the State Treasurer by publication in one newspaper
published in the City and County of San Francisco and also by
publication in one newspaper published in the City of Sacramento and
by publication in one newspaper published in the City of Los Angeles
once a week during two weeks prior to such sale. In addition to the
notice last above provided for, the State Treasurer may give such
further notice as he may deem advisable.
All money secured from the sale of bonds issued at the instance of
the authority, other than such amount as may have been paid as
premium or accrued interest thereon, and excluding any amount paid
pursuant to Section 3916.5, shall be placed in the State Treasury to
the credit of the Fifth San Francisco Seawall Fund. All money secured
from the sale of bonds issued at the instance of the commission,
other than such amount as may have been paid as premium or accrued
interest thereon, and excluding any amount paid pursuant to Section
3916.5 shall be placed in the State Treasury to the credit of the
Small Craft Harbor Bond Fund. Any premium or accrued interest
received on the sale of bonds issued and sold at the instance of the
authority shall be deposited in the account established in the Harbor
Bond Sinking Fund pursuant to subdivision (a) of Section 3918.5, and
any premium or accrued interest received on the sale of bonds issued
and sold at the instance of the commission shall be deposited in the
account established in the Harbor Bond Sinking Fund pursuant to
subdivision (b) of Section 3918.5.
3916.5. The sum of seventy-five thousand dollars ($75,000) is
hereby appropriated out of the General Fund to be used as a revolving
fund to pay the expenses incurred by the State Treasurer in having
the bonds prepared and in advertising their sale or their prior
redemption, for expenses incurred by the committee, and for legal
services. Whenever bonds are sold at the instance of the authority
out of the first money realized from their sale, there shall be
redeposited in the revolving fund such sums as have been expended for
the above purposes with respect to such bonds, which may be used for
the same purpose and repaid in the same manner whenever additional
sales are made. Whenever bonds are sold at the instance of the
commission, out of the first money realized from their sale, there
shall be redeposited in the revolving fund such sums as have been
expended for the above purposes with respect to such bonds, which may
be used for the same purpose and repaid in the same manner whenever
additional sales are made. Whenever all the bonds authorized by this
part have been sold, the amount of the appropriation made by this
section shall revert to the unappropriated surplus in the General
Fund.
3917. The committee may provide for the issuance, sale or exchange
of refunding bonds out of the bonds issued under this part for the
purpose of redeeming or retiring any bond issued by the committee if,
under the terms of that issue, the bonds issued thereunder may be
redeemed or retired. Any bonds issued hereunder may be redeemed or
retired if the resolution under which the bonds are issued so
permits.
3918. For the payment of the principal and interest of the bonds
the Harbor Bond Sinking Fund shall consist of the following:
(a) Payments from any available moneys in the San Francisco Harbor
Improvement Fund, from time to time on order of the authority, of
amounts equaling, in the aggregate:
(1) That required under this part to be expended from the Harbor
Bond Sinking Fund and the General Fund, to pay the principal and
interest on all bonds issued at the instance of the authority;
(2) Plus interest as required to be paid to the General Fund under
Section 3910 on any amounts paid from the General Fund by reason of
insufficient payments having been made from the San Francisco Harbor
Improvement Fund to pay, when due, the principal and interest on any
bonds issued at the instance of the authority;
(3) Less the amount equal to any interest that accrues from the
investment of money in the Harbor Bond Sinking Fund which has been
paid into that fund from the San Francisco Harbor Improvement Fund.
(b) Payments from any available moneys in the Small Craft Harbor
Improvement Fund from time to time, on order of the commission, of
amounts equaling, in the aggregate:
(1) That required under this part to be expended from the Harbor
Bond Sinking Fund and the General Fund, to pay the principal and
interest on all bonds issued at the instance of the commission;
(2) Plus interest required to be paid to the General Fund under
Section 3910 on any amounts paid from the General Fund by reason of
insufficient payments having been made from the Small Craft Harbor
Improvement Fund to pay, when due, the principal and interest on any
bonds issued at the instance of the commission.
(3) Less the amount equal to any interest that accrues from the
investment of money in the Harbor Bond Sinking Fund which has been
paid into that fund from the Small Craft Harbor Improvement Fund.
3918.5. (a) A separate account shall be established in the Harbor
Bond Sinking Fund, in which shall be deposited all money paid into
such fund from the San Francisco Harbor Improvement Fund. The money
deposited to such account shall be expended only for the purposes
described in subsections (1) and (2) of subdivision (a) of Section
3918.
(b) A separate account shall be established in the Harbor Bond
Sinking Fund, in which shall be deposited all money paid into such
fund from the Small Craft Harbor Improvement Fund. The money
deposited in such account shall be expended only for the purposes
described in subsections (1) and (2) of subdivision (b) of Section
3918.
3919. The State Treasurer shall on Controller's warrants duly drawn
for that purpose, invest the moneys in the Harbor Bond Sinking Fund
in the purchase of the bonds of the United States, or of the State of
California, including any bonds authorized, issued and theretofore
sold under authority of this part or of the several counties,
municipalities, school districts, or other public agencies of the
State of California, which bonds shall be kept in a proper
receptacle, appropriately labeled; but he shall keep on hand a
sufficient amount of money in the sinking fund with which to pay the
principal and interest on such of the state bonds as the same become
due. The State Treasurer may only purchase such bonds authorized and
issued under authority of this part with moneys in the sinking fund
as have been theretofore sold.
Interest accruing upon investment made from moneys in the Harbor
Bond Sinking Fund shall be deposited in the respective accounts
thereof from which the money invested was derived unless otherwise
required under any resolution providing for the issuance of revenue
bonds to be credited to the San Francisco Harbor Improvement Fund.
3919.3. The authority is authorized with the approval of the
Department of Finance, to invest any surplus moneys in the Fifth San
Francisco Seawall Fund in bonds or other obligations of the United
States, or of the several counties, municipalities, school districts,
or other public agencies of the State of California, and to sell
such bonds or obligations, or any of them, at the governing market
rates, upon approval of the Department of Finance; or the authority
may, with the approval of the Director of Finance, invest money in
such fund, in interest-bearing certificates of deposit of state banks
having a paid-up capital of five hundred thousand dollars ($500,000)
or more; provided, the total amount of money so deposited with any
one bank shall not exceed a sum equal to 50 percent of the paid-up
capital of such bank; provided, however, nothing herein contained
shall inhibit the depositing in banks in accordance with Chapter 4
(commencing at Section 16500), Part 2, Division 4, Title 2 of the
Government Code, of money of any of the funds subject to the control
of the authority or appropriated for their use.
Interest accruing upon the deposit of money of the fund shall be
paid into and credited to the San Francisco Harbor Improvement Fund.
3920. Whenever the committee deems that it will increase the
salability or the price of the bonds to obtain, prior to or after
sale, a legal opinion, other than that of the Attorney General, as to
the validity of the bonds, the committee may authorize the State
Treasurer or the Department of Finance, or both, to obtain such a
legal opinion. Payment for such legal services shall be made from the
proceeds of the sale of the bonds, or any other funds available to
the authority with respect to bonds authorized pursuant to Section
3940 or the commission with respect to bonds authorized pursuant to
Section 3950.
3921. The State Treasurer directly or through a state fiscal agent,
or agents, shall, on the respective dates of maturity of all bonds,
or on the date fixed for the prior redemption of any thereof which
may be duly called for redemption, and on the respective due dates of
all coupons pertaining to any of said bonds, other than coupons
canceled because of the redemption of any of said bonds prior to
maturity, or as soon thereafter as said bonds or coupons respectively
are surrendered to him, or to such state fiscal agent, or agents,
pay the same.
3922. Upon the payment of any such bond or coupon, the State
Treasurer, or such state fiscal agent, or agents, shall perforate the
same with a suitable device in a manner to indicate such payment and
a record of such payment shall be made thereof. The State Treasurer,
or such state fiscal agent, or agents, shall also on the respective
dates of maturity of any such bonds which have been executed but
which remain unsold, cancel the same by perforation with a suitable
device in a manner to indicate such cancellation and the date
thereof, and on the respective due dates of all coupons attached to
any such bond remaining unsold, shall detach all such coupons the due
date of which has been reached, and cancel them in the same manner
as provided for the cancellation of bonds remaining unsold. After
proceedings set forth in Section 3907 new bonds conforming to the
directions of the committee may be prepared and executed in lieu of
any bonds so canceled, and may be sold and issued in the same manner
as provided for other bonds in this part.
3923. The State Treasurer, or such state fiscal agent, or agents,
with the approval of the State Treasurer, may destroy or cremate any
or all bonds and any or all coupons pertaining thereto which have
been previously paid or canceled as provided herein in accordance
with the provisions of Government Code Section 16772.
3924. It shall be the duty of the State Treasurer to pay the
interest of said bonds, when the same falls due, out of the moneys
provided for in this part, on Controller's warrants duly drawn for
that purpose.
3925. All bonds issued under this part and sold shall be deemed to
have been called in at their respective dates of maturity and the
State Treasurer shall, on the respective dates of maturity of said
bonds, or as soon thereafter as said matured bonds are surrendered to
him, pay the same upon Controller's warrants duly drawn for that
purpose. The provisions of this section shall be applicable also to
the interest coupons pertaining to the bonds authorized by this part
to be issued.
3926. Whenever the committee shall determine that any bonds then
outstanding, and which by their terms are subject to redemption prior
to maturity, should be redeemed, and that money sufficient for such
redemption will be available at the time proposed for such
redemption, it may, by resolution, direct the State Treasurer to call
and redeem any such bonds, at a time specified in such resolution,
and the State Treasurer shall thereupon give notice of such proposed
redemption and redeem the bonds in accordance with the provisions for
redemption provided for in the resolution of the committee adopted
under Section 3907 pursuant to which the bonds were issued.
3927. The State Controller and the State Treasurer shall keep full
and particular account and record of all their proceedings under this
part, and they shall transmit to the Governor an abstract of all
such proceedings thereunder. All books and papers pertaining to the
matter provided for in this part shall at all times be open to the
inspection of any party interested, or the Governor, or the Attorney
General, or a committee of either house of the Legislature, or a
joint committee of both, or any citizen of the State.
3928. All money remaining in the account of the Harbor Bond Sinking
Fund, established pursuant to subdivision (a) of Section 3918.5,
after the principal of and interest upon all bonds issued under this
part at the instance of the authority have been paid in full and
after all such bonds and interest coupons therefrom have been
canceled, shall be paid into the San Francisco Harbor Improvement
Fund to be expended in accordance with law. All money remaining in
the account of the Harbor Bond Sinking Fund, established pursuant to
subdivision (b) of Section 3918.5, after the principal of and
interest upon all bonds issued under this part at the instance of the
commission have been paid in full and after all such bonds and
interest coupons therefrom have been canceled, shall be paid into the
Small Craft Harbor Improvement Fund to be expended in accordance
with law.
