State Codes and Statutes

State Codes and Statutes

Statutes > California > Shc > 9600-9622

STREETS AND HIGHWAYS CODE
SECTION 9600-9622



9600.  In this chapter, the following terms are used with the
following meanings:
   (a) "Costs of issuing refunding bonds" means those of the
following costs and expenses which are designated by the legislative
body in the resolution providing for the issuance of the bonds.
   (1) All expenses incident to the calling, retiring, or paying of
the bonds to be refunded and to the issuance of refunding bonds,
including, but not limited to, any bond counsel, financial
consultants, underwriters, certified public accountants, and rating
agency fees, printing and advertising costs, city administrative
expenses, and the charges of any escrow agent or trustee in
connection with the issuance of the refunding bonds or in connection
with the redemption or retirement of the bonds to be refunded.
   (2) Interest upon the refunding bonds from the September 2 next
preceding the date of sale thereof to not later than the September 2
next succeeding two years from the date.
   (3) Any accrued and unpaid interest on the bonds to be refunded.
   (4) Any premium necessary in the calling or retiring of the bonds
to be refunded.
   (5) Any amount that the city pays or transfers, or has previously
paid or transferred, either from a special reserve fund or from
surplus funds, into the redemption fund securing the bonds to be
refunded and the penalties and interest thereon, if the amounts and
the penalties and interest thereon are included in and limited to the
particular reassessments levied upon those subdivisions of land
securing the original assessment installments which are delinquent
and for which the payments or transfers are made.
   (b) "Designated costs of issuing the refunding bonds" means
whichever of the items specified in paragraphs (1), (2), (3), (4),
and (5) of subdivision (a) which are designated by the legislative
body in the resolution providing for the issuance of refunding bonds.
   (c) "Federal securities" means those securities described in
Sections 1360 and 1360.1 of the Financial Code and includes United
States Treasury notes, bonds, bills, or certificates of indebtedness,
or obligations for which the faith and credit of the United States
are pledged for the payment of principal and interest, including the
guaranteed portions of small business administration loans, so long
as the loans are obligations for which the faith and credit of the
United States are pledged for the payment of principal and interest.



9601.  The legislative body shall provide for the issuance of the
refunding bonds by resolution.



9601.5.  Section 8769 shall apply to bonds issued pursuant to this
division in the County of San Bernardino.



9602.  The refunding bonds shall be issued in a principal amount
equal to the total principal amount of the reassessment as approved
and confirmed by the legislative body pursuant to either Section 9525
or Section 9535.


9603.  The refunding bonds shall represent and be secured by the
reassessments and any later reassessments which may be levied or
issued upon the same property in lieu of the reassessments.



9604.  Refunding bonds issued pursuant to this division shall comply
with the following requirements which shall be set forth in the
resolution adopted pursuant to Section 9601:
   (a) Bonds shall be in the fully registered form and of the
denominations as the legislative body may determine.
   (b) The bonds shall be dated on or after the date of the recording
of the reassessment.
   (c) Bonds shall be signed by the treasurer and the clerk, except
that the legislative body may, by order, authorize the use of bonds
with an engraved, printed, or lithographed signature of the treasurer
and the clerk in lieu of a signature by hand. The legislative body
may also authorize its seal to be placed on the bonds in a similar
manner.
   (d) Bonds shall be numbered appropriately and shall bear interest
and mature as provided in the contract with the bond purchasers.



9605.  All of the refunding bonds shall mature on September 2.



9606.  In no event shall the first maturity of any refunding bonds
be earlier than the second day of September next succeeding 12 months
after the date of the bonds.



9607.  The last maturity of any refunding bonds shall not exceed 39
years from the second day of September next succeeding 12 months
after the date of the bonds.



9607.5.  For refunding bonds issued in the County of San Bernardino,
the last maturity of any of these bonds shall not exceed the longest
maturity currently authorized for bonds by the law pursuant to which
the bonds to be refunded were issued.



9608.  The rate of interest on refunding bonds shall not exceed the
rate set forth in the resolution of intention adopted pursuant to
Section 9520.


9609.  The interest on refunding bonds shall be payable on March 2,
and September 2, respectively, of each year.



9610.  The first interest payment on the bonds shall be March 2 next
preceding the second day of September next succeeding 12 months
after the date of the bonds, except that, if any portion of the
interest is funded, the legislative body may specify that the first
payment of interest shall become due on any earlier interest payment
date following the date of the bonds.



9611.  Refunding bonds and the interest thereon shall be paid at the
office of the treasurer or at any other place as is set forth in the
bonds.


9612.  Each bond shall be conclusive evidence of the regularity of
all proceedings for the levy of reassessments and the issuance of the
refunding bonds and of the validity of said bonds and of all
proceedings of which the bonds refunded were conclusive evidence.




9613.  Refunding bonds issued pursuant to this chapter may be
exchanged for the bonds to be refunded on any basis the legislative
body determines is for the benefit of the city if the bondholders
consent to the exchange. As an alternative to exchanging the
refunding bonds for the bonds to be refunded, the legislative body
may sell the refunding bonds at public or private sale and at a price
at or below par or with a premium. The proceeds of any sale of
refunding bonds for cash shall be placed in the treasury of the local
agency to the credit of a fund to be established for the purpose of
refunding the bonds to be refunded, and the proceeds shall be applied
only as permitted by this division.



9614.  The designated costs of issuing the refunding bonds may be
paid by the purchaser of the refunding bonds or may be paid from any
other legally available source, including the general fund of the
city, other available revenues of the city under the control of the
legislative body, the proceeds of sale of the refunding bonds, the
interest or other gain derived from the investment of any of the
proceeds of sale of the refunding bonds, any other moneys in escrow
or in trust or any combination thereof as the legislative body may
determine.


9615.  Any proceeds of sale of any refunding bonds may be deposited
in escrow or trust with any bank or trust company within or without
the state, or both within and without the state, shall be secured in
accordance with the laws applicable to funds of the city and shall be
invested in federal securities.


9616.  The proceeds and investments in escrow or trust shall be in
an amount at the time of issuance of such refunding bonds which is
certified by a certified public accountant licensed to practice in
this state to be sufficient, together with any interest or other gain
to be derived from any such investment, to pay the principal of and
interest and redemption premiums, if any, on the refunded bonds as
they become due or at designated dates prior to maturity (in
connection with which the legislative body has exercised or has
obligated itself to exercise a redemption privilege on behalf of the
city), and the designated costs of issuance of the refunding bonds.




9617.  Following the issuance of any refunding bonds pursuant to
this article, the legislative body of the city shall provide for the
payment of principal and interest thereon in the same manner and at
the same times as it provides for payment of principal and interest
on bonds issued pursuant to the act. The reassessments levied
pursuant to this division shall be and constitute security for the
payment of the refunding bonds in the same manner as the original
unpaid assessments constituted security for the refunded bonds.



9618.  Any outstanding refunded bonds which have been exchanged for
refunding bonds shall be canceled by the city treasurer.



9619.  The treasurer shall keep a register in his or her office
which shall show the series, number, date, amount, rate of interest,
and registered owner of each bond. The treasurer shall cancel and
file each bond paid.


9620.  The legislative body may provide, in the resolution
authorizing the issuance of the refunding bonds, for the
establishment from the proceeds of the sale of the refunding bonds of
a special reserve fund for the refunding bonds pursuant to Part 16
(commencing with Section 8880) of Division 10.
   If the legislative body elects to establish the reserve fund, it
shall provide, in the resolution adopted pursuant to Section 9520,
for the inclusion of the amount of the special reserve fund in the
reassessment.



9622.  Notwithstanding any other provision of this part, bonds
originally issued as variable rate bonds pursuant to Part 6.5
(commencing with Section 8660) may be refunded by the issuance of
variable rate bonds issued pursuant to that Part 6.5. For purposes of
this section and that Part 6.5 "bonds" includes "refunding bonds."