2005 California Streets and Highways Code Sections 25430-25450 CHAPTER 18. FUNDING BONDS

25430.  As a separate and cumulative method of financing, the board
of directors of the district may issue funding bonds to cover the
costs and expenses of the whole or any part of any acquisitions of
property and improvements undertaken by the district.
25431.  The provisions of this chapter relating to the issuance of
funding bonds shall be cumulative and shall not affect any of the
other provisions or sections of this part relative to other bonds or
levies.  Any number of series of funding bonds may be issued for any
portion or portions of a single or different projects of the
district.
25432.  If the board of directors propose to issue funding bonds,
they shall first adopt a resolution setting forth their intention so
to do, and the resolution shall also contain the following:
   (a) A general description of the boundaries of the funding
district to be charged with the payment of any funding bonds which
are proposed to be issued. The funding district may embrace the whole
or any portion of the joint highway district, and the funding
district shall be divided into zones composed of the counties, or
portions thereof, composing the joint highway district.  It shall be
a sufficient description of the boundaries of the funding district
and the zones therein, if the same are clearly shown upon a map or
plat attached to the resolution.
   (b) A description in general terms of the location, character and
cost of the acquisition of property or improvement for which it is
proposed to issue the funding bonds.
   (c) A statement of the proposed amount for which funding bonds are
to be issued, together with a statement of the maximum time for
which such bonds are proposed to be issued (which shall not exceed
five years from the date of the order providing for their issuance),
and the rate of interest which such bonds shall bear, not to exceed 6
per cent per annum.
   (d) A statement of the percentage of the total amount of the
annual sums to be levied upon the lands, exclusive of improvements,
within each zone in the funding district for the purpose of retiring
the principal and interest of the funding bonds.  The amount to be
thus levied shall not exceed the proportionate amounts chargeable
against the several counties within the district as set forth in the
report of the board of directors adopted pursuant to Section 25154.
   (e) A statement of the time and place fixed for the hearing upon
the matter of the proposed issuance of funding bonds, in the manner
provided for in this resolution.
25433.  Upon the adoption of the resolution of intention to issue
funding bonds, the secretary shall cause a notice of the time and
place of hearing to be published twice in a newspaper of general
circulation published at the county seat of each county embraced
within the boundaries of the proposed funding district.  The
newspapers in which such publication shall be made may be designated
by the board of directors or, if the board does not make the
designation, the secretary may do so.
25434.  The time fixed for the hearing shall not be less than 15
days after the completion of the required publication.  Not less than
30 days prior to the time fixed for the hearing, a copy of the
notice of the hearing shall be transmitted by the secretary of the
board of directors to the several boards of supervisors of the
counties comprising the district.  No county or portion of a county
shall be assessed within any funding district for the payment of any
amount which has previously been paid by such county into the
district treasury upon any amount previously levied within and upon
such county.
25435.  All persons interested may appear at the hearing and they
may set forth in writing any objections they may have to the issuance
of the funding bonds or to the boundaries of the proposed funding
district or the zones therein, or to the amount of benefits to be
derived by any parcel of land within the proposed funding district.
25436.  The board of directors shall hear and determine all
objections presented at the hearing.  The board may alter the
boundaries of the proposed funding district or change the amount for
which funding bonds are proposed to be issued, but it may not enlarge
the boundaries of the funding district or increase the amount of
bonds proposed to be issued.  At the conclusion of the hearing, the
board of directors shall finally determine the boundaries of the
funding district and the zones therein and shall determine the amount
of funding bonds to be issued, and the proportions of the bonds to
be charged against each zone, which amounts shall not exceed the
benefits to be derived by the lands within the funding district from
the project for which the funding bonds are to be issued.
25437.  All decisions, findings and determinations of the board of
directors made upon notice and hearing shall, in the absence of
actual fraud, be final and conclusive upon all persons entitled to
present objections at such hearing.
25438.  If at the hearing, the owners of more than 25 per cent in
area of the property within any proposed funding district object in
writing to the issuance of funding bonds, the board of directors
shall have no power to cause such funding bonds to issue.
25439.  Following the hearing the board of directors shall, if it
determines to issue funding bonds, cause its findings in relation
thereto to be transmitted to the boards of supervisors of the several
counties within the district.  If any board of supervisors makes
objection to the issuance of the funding bonds within 35 days after
receiving notice thereof, the board of directors shall have no power
to cause the same to be issued, but may take new proceedings in the
same manner as provided in the first instance covering an amended
proposition for the issuance of funding bonds for the same or any
different project or any portions thereof.  If no objections are made
by any board of supervisors as in this section provided, the board
of directors may proceed to issue the funding bonds.
25440.  Funding bonds issued pursuant to the provisions of this
chapter shall be in substantially the following form (filling in
blanks as appropriate):
      FUNDING BOND
      Joint Highway District No. ___ of the State of California
$____   Bond No. ___   Serial ___.
   Under and by virtue of Part 1 of Division 16 of the Streets and
Highway Code the treasurer of Joint Highway District No. ____ of the
State of California will pay to the bearer, out of the fund
hereinafter designated, at the office of the treasurer of said
district, on the ____ day of ____, 19_, the sum of ____ dollars, in
lawful money of the United States of America, with interest thereon
in like lawful money at the rate of ____ per cent per annum, payable
semiannually on the second day of January and the second day of July
in each year from the date hereof (except the last installment
thereof, which shall be payable at the maturity of this bond), upon
presentation and surrender, as they respectively become due, of the
proper interest coupons hereto attached, the first of which is for
interest from date hereof to the next date of interest payment, and
the last for interest to maturity hereof from the last preceding date
of interest payment.  This bond is issued under and in conformity
with the provisions of the above mentioned Part 1 of Division 16 of
the Streets and Highways Code, and is one of a series of bonds of
like date and effect numbered from one to ____ consecutively.  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.
   This bond is payable out of the "Joint Highway District No. ____
of the State of California Funding Bond Redemption Fund,"
exclusively, as the same appears upon the books of the treasurer of
said district, and in accordance with the provisions of Part 1 of
Division 16 of the Streets and Highways Code special assessment taxes
will be levied and collected upon the lands within Funding District
No. ____ in said joint highway district in an amount clearly
sufficient to pay the principal and interest of said bonds as same
shall become due and payable.
   In witness whereof the board of directors of said district has
caused this bond to be signed by the treasurer of said district
attested by the secretary of said board and the official seal of said
district to be affixed hereto this ____ day of ____, 19_.
_________________________________________
             (SEAL)              Treasurer of Joint Highway District
                                 No. ___ of the State of California.
        Attest:
     __________________________________________
        Secretary of the Board of Directors.
25441.  Funding bonds shall be dated as of the date of the
resolution or order of the board of directors authorizing their
issuance.
25442.  The board of directors may use any available moneys of the
district, not already allocated to some other purpose, for the
payment of any interest or principal due or past due upon any funding
bonds of the district, and may advance moneys of the district for
that purpose.  If an advancement is made the district shall be
entitled to reimbursement out of any levies thereafter made or any
moneys thereafter collected and applicable to the payment of the
funding bonds.
25443.  All funding bonds shall be signed by the treasurer of the
district, attested by the secretary, and shall have the official seal
of the district affixed thereto.  The form of the interest coupons
attached to the funding bonds shall be determined by the treasurer
subject to the approval of the board of directors.  The signature on
the interest coupons shall be that of the treasurer and may be either
written, or an engraved or printed facsimile. The principal and
interest of the funding bonds shall be payable in lawful money of the
United States of America at the office of the treasurer of the
district issuing the same.
25445.  All funding bonds shall be serial in character and
approximately an even proportion of the total amount of each issue
shall be payable annually.  The amount of the principal due in each
annual payment need not be exactly the same but with respect to each
installment excepting the last may be made to differ not more than
five hundred dollars ($500) from the amount obtained by dividing the
total of the principal amount due under the bonds, by the number of
installments.  The last installment shall be for the balance of the
total principal amount not provided to be paid in the previous
installments.
25446.  The funding bonds shall be issued by the board of directors
at such time and manner and in such amounts as may be required to
meet the demands of the district, as may be determined by the board
of directors.  The form, denomination, rate of interest, time, place
and manner of payment and all matters relating to such issuance shall
be determined by the board of directors, but the rate of interest
shall not exceed 6 per cent per annum.
   The funding bonds so issued may be sold in such amounts and at
such times and in such manner as the board of directors may
determine, or they may be delivered to any contractor performing any
work for the district, at par, in satisfaction of any sum due upon
his contract.
25447.  In each district in which funding bonds have been issued
there is hereby created a special fund to be designated "Joint
Highway District No.  ____ of the State of California Funding Bond
Redemption Fund No. ____" (each such fund to be consecutively
numbered within each district as created) for the discharge and
payment of principal and interest on such bonds.
25448.  The treasurer of the district shall annually before the
fifteenth day of August transmit to the several boards of supervisors
within the funding district, a statement showing the amount to be
raised in such year by the levy and collection of special assessment
taxes upon the lands only, exclusive of improvements, within each
county which is within the funding district and subject to be taxed
for the payment of principal, interest and delinquencies upon any
funding bonds of the district.  The statement shall show the
percentages of the total amount to be levied upon the lands in each
county in accordance with the zones established for each such funding
district.  The engineer of the district shall cause to be prepared
and filed in the office of the clerk of the board of supervisors of
each county within the district, a map or plat showing the boundaries
of the lands in each county which are within any funding district
showing the boundaries of the zones therein and the percentage of the
total assessment to be paid by each zone.
25449.  The special assessment taxes levied for the payment of
funding bonds shall be independent of and distinct from any other
levies authorized by this part and shall be levied, collected and
enforced by the proper officers of the several counties within the
district, in behalf of the joint highway district and in the same
manner and by the same persons and at the same time and with the same
penalties and interest as are taxes for county purposes, and all
laws applicable to the levy, collection and enforcement of taxes for
county purposes are hereby made applicable to these special
assessment taxes where such laws are not in conflict with the
provisions of this part except that such special assessment taxes
shall be levied and collected upon land only, exclusive of the
improvements thereon.
25450.  It shall be the duty of the board of supervisors of each
county within the district to annually cause to be levied upon the
lands only, exclusive of improvements, within the county liable
therefor the amounts reported to it by the treasurer of such
district, which amounts shall be clearly sufficient to pay the
principal and interest coming due or past due in such year upon any
funding bonds of the district together with a sufficient amount to
cover delinquencies.