8650-8655
STREETS AND HIGHWAYS CODE
SECTION 8650-8655
8650. (a) Except as provided otherwise by the legislative body
pursuant to Section 8650.1, the bonds shall be issued in series and
an even annual proportion of the aggregate principal sum thereof
shall be payable on the second day of September every year succeeding
the first 12 months after their date, until the whole is paid. The
bonds shall bear interest at a rate not in excess of the maximum rate
permitted by law from the 31st day after recording the assessment if
the assessment was levied under the Improvement Act of 1911, or from
their date if the assessment was levied under the Municipal
Improvement Act of 1913 or other law, on all sums unpaid, until the
whole of the principal sum and interest are paid.
(b) Interest shall be payable semiannually on the second day of
March and September, respectively, of each year. The first payment of
interest shall become due on the interest payment date which is six
months before the maturity of the first series of bonds, but, 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. Interest shall
be payable to the registered holders of the bonds as their names and
addresses appeared on the records of the issuing agency or its
registration agent on the 15th day of the calendar month preceding
the interest payment date.
8650.1. The legislative body, in its discretion, may determine,
either (a) in the resolution of intention describing the improvement
work, or (b) thereafter in any change proceedings taken under and in
accordance with the provisions of the same act under which the
resolution of intention was adopted, that the principal amount of the
bonds maturing or becoming subject to mandatory prior redemption
each year shall be other than an amount equal to an even annual
proportion of the aggregate principal of the bonds, and it may
determine that the amount of principal maturing or becoming subject
to mandatory prior redemption in each year plus the amount of
interest payable in that year will be an aggregate amount that is
substantially equal each year, except for the moneys falling due on
the first maturity or mandatory prior redemption date of the bonds
which shall be adjusted to reflect the amount of interest earned from
the date when the bonds bear interest to the date when the first
interest is payable on the bonds. Notwithstanding Section 8651.5, to
the extent that the determination to issue bonds pursuant to Section
8570 includes term bonds, the legislative body shall provide for
mandatory prior redemption of those bonds, without premium, through
annual sinking fund installments conforming to the requirements of
this section.
Notwithstanding Section 8652, the legislative body may prescribe
the form of the bonds and shall fix the date of the bonds. The
legislative body may divide the principal amount of any issue into
two or more divisions and fix different dates for the payment of
bonds of each division. The bonds of one division may be made payable
at different times than bonds of any other division.
The legislative body, in its discretion, may determine in like
manner to classify assessments into different terms of maturity so
that smaller assessments may be made to mature over a shorter period
of time and, in that event, the bond declaration in the resolution of
intention, or in the change proceedings taken under and in
accordance with the provisions of the same act under which the
resolution of intention was adopted, in the assessment, and in the
notice of recording the assessment may recite that the last
installment of bonds shall mature a maximum rather than an exact
number of years from the second day of September next succeeding 12
months from their date.
8651. The final series of installment of the bonds shall mature and
be payable on a date which shall not exceed 39 years from the second
day of September next succeeding 12 months from their date.
8651.5. Each bond, or any portion of the bond in a fixed amount or
any integral multiple of the fixed amount, shall be subject to
redemption in advance of its maturity on any interest payment date
upon payment to the registered owner of the principal and accrued
interest to the date of redemption together with a redemption premium
equal to 5 percent of the principal. Prior to issuance of the bonds,
the legislative body may provide for a reduction of the redemption
premium to an amount equal to not less than 3 percent of the
principal for the first five years of the term of the bonds or to any
amount, including zero, after the first five years of the term of
the bonds, or both.
8652. The bonds shall be substantially in the following form:
United States of
America
State of
California
County of ______
REGISTERED REGISTERED
Number $
IMPROVEMENT
BOND
City (or County) of (naming
it)
__________
SERIES NO.______
INTEREST MATURITY BOND CUSIP
RATE DATE DATE NUMBER
____,19__
Under and by virtue of the Improvement Bond Act of 1915, Division
10 (commencing with Section 8500) of the Streets and Highways Code
(the "Act"), the City (or County) of ____, County of ____, State of
California, (the "City" or "County") will, out of the redemption fund
for the payment of the bonds issued upon the unpaid portion of
assessments made for the acquisition, work, and improvements more
fully described in proceedings taken pursuant to Resolution of
Intention No. ____, adopted by the (legislative body) of the City (or
County) of ____ on the ____ day of ____, 19_, (as later amended),
pay to ____ or registered assigns, on the maturity date stated above,
the principal sum of ____, in lawful money of the United States of
America and in like manner will pay interest from the interest
payment date next preceding the date on which this bond is
authenticated, unless this bond is authenticated and registered as of
an interest payment date, in which event it shall bear interest from
such interest payment date, or unless this bond is authenticated and
registered prior to ____, 19_, (first interest payment date) in
which event it shall bear interest from its date, until payment of
such principal sum shall have been discharged, at the rate per annum
stated above, payable semiannually on March 2 and September 2 in each
year commencing on ____, 19__. Both the principal hereof and
redemption premium hereon are payable at ____ as Transfer Agent,
Registrar, and Paying Agent, in ____, California, and the interest
hereon is payable by check or draft mailed to the owner hereof at the
owner's address as it appears on the records of the ____ (issuing
agency or registration agent) or at an address that has been filed
with the ____ (issuing agency or registration agent) for that
purpose, as of the 15th day of the calendar month immediately
preceding each interest payment date.
This bond will continue to bear interest after maturity at the
rate above stated; provided, it is presented at maturity and payment
thereof is refused upon the sole ground that there are not sufficient
moneys in said redemption fund with which to pay same. If it is not
presented at maturity, interest thereon will run until maturity.
This bond shall not be entitled to any benefit under the Act or
the Resolution Authorizing Issuance of Bonds (the "Resolution of
Issuance"), or become valid or obligatory for any purpose, until the
certificate of authentication and registration hereon endorsed shall
have been dated and signed by the ____ (issuing agency or
registration agent).
IN WITNESS WHEREOF, the City (or County) of ____ has caused this
bond to be signed in facsimile by the Treasurer of the City (or
County) and by its Clerk, and has caused its corporate seal to be
reproduced in facsimile hereon all as of the ____ day of ____, 19_.
CITY (OR COUNTY) OF
________
_______________________ __________________________
Clerk Treasurer
(SEAL)
Certificate of Authentication
and Registration
This is one of the bonds
described
in the within mentioned Resolution
of Issuance, which has been
authenticated and registered
on
By ____________________
ADDITIONAL PROVISIONS OF THE BOND
This bond is one of several annual series of bonds of like date,
tenor, and effect, but differing in amounts, maturities, and interest
rates, issued by the City (or County) of ____ under the Act and the
Resolution of Issuance, for the purpose of providing means for paying
for the improvements described in the proceedings, and is secured by
the moneys in the redemption fund and by the unpaid portion of
assessments made for the payment of those improvements, and,
including principal and interest, is payable exclusively out of the
redemption fund.
This bond is transferable by the registered owner hereof, in
person or by the owner's attorney duly authorized in writing, at the
office of ____ (issuing agency or its registration agent), subject to
the terms and conditions provided in the Resolution of Issuance,
including the payment of certain charges, if any, upon surrender and
cancellation of this bond. Upon transfer, a new registered bond or
bonds, of any authorized denomination or denominations, of the same
maturity, for the same aggregate principal amount, will be issued to
the transferee in exchange therefor.
Bonds shall be registered only in the name of an individual
(including joint owners), a corporation, a partnership, or a trust.
Neither the issuing agency nor the registration agent shall be
required to exchange or to register the transfer of bonds during the
15 days immediately preceding any interest payment date.
The issuing agency and the registration agent may treat the owner
hereof as the absolute owner for all purposes, and the issuing agency
and the registration agent shall not be affected by any notice to
the contrary.
This bond or any portion of it in the amount of five thousand
dollars ($5,000), or any integral multiple thereof, may be redeemed
and paid in advance of maturity upon the second day of March or
September in any year by giving at least 30 days' notice by
registered or certified mail or by personal service to the registered
owner hereof at the owner's address as it appears on the
registration books of the ____ (issuing agency or registration agent)
by paying principal and accrued interest together with a premium
equal to ____ percentum of the principal.
This bond is not subject to refunding pursuant to the procedures
of Division 11 (commencing with Section 9000) or Division 11.5
(commencing with Section 9500) of the Streets and Highways Code prior
to ______, ___. (If applicable).
I hereby certify that the following is a correct copy of the
signed legal opinion of _______
City (or County) Clerk
8653. The bonds shall be signed by the treasurer and the clerk of
the legislative body. However, the legislative body may by order
authorize the use upon the bonds of an engraved, printed, or
lithographed signature of the treasurer and the clerk of the
legislative body in place of a signature by hand. It may also
authorize the seal to be placed in like manner on the bonds.
8654. The bonds shall bear interest at the rate specified or
determined in the proceedings. The bonds maturing in any year shall
constitute the annual series of that year and the aggregate principal
of the bonds in such series shall equal the annual proportion of the
aggregate principal sum of the entire bond issue hereinbefore
referred to.
8655. The bonds, by their issuance, shall be conclusive evidence of
the regularity of all proceedings had prior thereto under this
division and under the law pursuant to which the assessment was
levied.