2005 California Streets and Highways Code Sections 9400-9417 CHAPTER 11. ISSUANCE OF REFUNDING BONDS

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.