State Codes and Statutes

State Codes and Statutes

Statutes > California > Shc > 9400-9417

STREETS AND HIGHWAYS CODE
SECTION 9400-9417



9400.  The legislative body shall provide for the issuance of the
refunding bonds.



9401.  In no event shall refunding bonds be issued for more than the
par value of the outstanding bonds and the due and unpaid interest
coupons to be refunded.



9402.  The refunding bonds shall represent and be secured by said
reassessments and any later reassessments which may be levied or
issued upon the same property in lieu of said assessments.



9403.  Refunding bonds issued pursuant to this division shall comply
with the following requirements:
   (a) Bonds shall be in such denominations as the legislative body
may determine.
   (b) Bonds shall be payable to bearer.
   (c) The date of the bonds shall be the date of the recording of
the reassessment.
   (d) Bonds shall be signed by the mayor or other chief executive of
the city and by the city treasurer, and attested by the city clerk,
the seal of the city affixed thereto.
   (e) Bonds shall be numbered consecutively and shall bear interest
and mature as provided in the contract with the bondholders.
   (f) The coupons affixed to the bonds shall be signed by the city
treasurer by his printed, lithographed, or engraved facsimile
signature.
   (g) At least the first two maturing interest coupons on the bonds
must be at a rate of interest less than the interest rate on the
bonds to be refunded.



9404.  All of the refunding bonds shall mature on July 2d.



9405.  In no event shall the first maturity of any refunding bonds
be earlier than the second day of July next succeeding 10 months
after the date of the bonds.



9406.  The last maturity of any refunding bonds shall not exceed 19
years from the second day of July next succeeding 10 months after the
date of said bonds.


9407.  The rate of interest on refunding bonds shall not exceed the
rate of interest on the outstanding bonds.



9408.  The interest on refunding bonds shall be payable on January
2d and July 2d, respectively, of each year.



9409.  The first interest payment on such bonds shall in every case
be January 2d next preceding the second day of July next succeeding
10 months after the date of the bonds.



9410.  Refunding bonds and the interest thereon shall be paid at the
office of the treasurer.



9411.  Refunding bonds may be issued in substantially the following
form:

                   United States of
                        America
                  State of California
  No. __________       City of                    $
              Refunding Improvement Bond
  Under and by virtue of an act of the Legislature
  of the State of California, designated as
  "Refunding Act of 1935 for 1915 Improvement Act
  Bonds," the ____ of the State of California,
  will, on the second day of July, 19__, out of the
  redemption fund for the payment of the bonds
  issued upon the reassessments made for the work
  upon and improvements on certain streets (or on
  ____ street, or in improvement district No. ____,
  or on certain rights of way owned by, or by other
  suitable description, or for the laying out,
  opening, extending, widening,     straightening
  or acquiring of certain streets) more fully
  described in that certain resolution, or
  ordinance of intention passed by the city council
  (or other board) of the municipality on the ____
  day of ____, 19__, pay to bearer the sum of ____
  ($_____) with interest thereon from the ____ day
  of ____, 19__, to the ____ day of ____, 19__ at
  the rate of __ percent per annum, and thereafter
  at the rate of __ percent (__%) per annum,
  payable semiannually on the second days of
  January and July of each year upon presentation
  of the proper interest coupons therefor, both
  principal and interest payable at the office of
  the treasurer of the aforesaid ____.
  This bond is one of an issue of refunding bonds
  of like date and effect issued under the above-
  mentioned act for the purpose of refunding the
  bonds issued under the Improvement Bond Act of
  1915 for the purpose of     providing means for
  paying for the work and improvements described in
  the resolution (or ordinance) of intention and is
  secured by the moneys in the redemption fund and
  by the unpaid reassessments made for the payment
  of the work, and, including principal and
  interest, is payable exclusively out of the
  redemption fund.
  This bond will continue to bear interest after
  maturity at the rate above stated, provided it is
  presented at maturity or within 10 days
  thereafter and payment thereof is refused upon
  the sole ground that there is not sufficient
  money in the redemption fund to pay it. If it is
  not so presented, interest thereon will run until
  maturity.
  This bond may be redeemed and paid in advance of
  maturity upon the second day of January or July
  in any year by giving the notice provided in the
  refunding bond act.
  It is hereby certified, recited, and declared
  that all proceedings, acts, and things required
  by law precedent to or in the issuance of this
  bond have been regularly had, done, and performed
  and this bond is by law made conclusive evidence
  thereof.
  In witness whereof, ____ has caused this bond to
  be signed by the mayor (or other chief executive)
  and the treasurer of ____ and by its clerk and
  has caused its clerk to affix thereto its
  corporate seal, all on the ____ day of ____, 19__.
                 ___________________________________
                                              Mayor.
                 ___________________________________
                                          Treasurer.
  Attest:
  ___________________________________
                         City Clerk.
  (seal)



9412.  Each bond shall be conclusive evidence of the regularity of
all proceedings for the issuance of refunding bonds and of the
validity of said bonds and of all proceedings of which the bonds
refunded were conclusive evidence.


9413.  The refunding bonds shall be delivered to the holders of the
outstanding bonds in accordance with the contract with such
bondholders.


9414.  When the refunding bonds have been exchanged for the
outstanding bonds, the outstanding bonds, except as to any sum
payable from assessments which property owners have by written notice
elected to pay, shall be canceled by the city treasurer and shall be
filed in the office of the treasurer.



9415.  If the city has appropriated money to assist in the
refunding, such money shall be paid to the holders of outstanding
bonds in accordance with the contract with the bondholders.



9416.  The validity of any refunding bonds issued under this
division shall not be contested in any action, suit or proceeding
unless such action or proceeding shall have been brought within three
months after the issuance of such bonds.


9417.  The treasurer shall keep a register in his office which shall
show the series, number, date, amount, rate of interest, and last
known holder of each bond and the number and amount of each interest
coupon paid by him. He shall cancel and file each bond and coupon
paid.