2005 California Education Code Sections 15350-15359.3 Article 5. Issuance and Sale of Bonds

15350.  Bonds of a school facilities improvement district shall be
offered for sale by the board of supervisors of the county in which
the county superintendent of schools has jurisdiction over the school
district or community college district in which the school
facilities improvement district is located as soon as possible, when
appropriate, following receipt of a resolution duly adopted by the
governing board of that school district or community college
district.  The resolution shall prescribe the total amount of bonds
to be sold.  The resolution may also prescribe the maximum acceptable
interest rate, not to exceed 8 percent, and the time or times when
the whole or any part of the principal of the bonds shall be payable,
which shall not be more than 25 years from the date of the bonds.
15351.  When authorized by the governing board of the school
district or community college district in which the school facilities
improvement district is located, bonds of the school facilities
improvement district may be offered for sale as a group by the board
of supervisors of the county in which the county superintendent of
schools has jurisdiction over the school district or community
college district in which the school facilities improvement district
is located, at a time determined by the board of supervisors
following receipt of a resolution duly adopted by the governing board
of that school district or community college district.  The
resolution shall prescribe the total amount of bonds to be sold.  The
resolution may also prescribe the maximum acceptable interest rate,
not to exceed 8 percent, and the time or times when the whole or any
part of the principal of the bonds shall be payable, which shall not
be more than 25 years from the date of the bonds.  Bidders shall be
required to bid a lump-sum bid on all bonds as a group.  If bids
satisfactory to the governing board of each school district or
community college district in which a school facilities improvement
district is located are received, the bonds offered for sale shall be
awarded to the bidder whose bid will result in the lowest net
interest cost for the group or for the bonds of any district included
within the group.  Bonds shall be issued and sold in the name of
each school facilities improvement district in the same manner as
provided in this chapter.
15352.  The bonds shall be issued in the name of the school
facilities improvement district and shall be designated "Bonds of the
School Facilities Improvement District of the ____ School District"
or "Bonds of the School Facilities Improvement District of the ____
Community College District" and each bond and all interest coupons
shall state that the tax for the payment thereof shall be limited to
annual taxes to be levied upon and collected from the lands within
the school facilities improvement district.
15353.  The bonds shall be issued in the denomination or
denominations as the board of supervisors of the county in which the
county superintendent of schools has jurisdiction over the school
district or community college district in which the school facilities
improvement district is located may prescribe.
15354.  The bonds shall not bear a rate of interest greater than 8
percent per annum, payable annually or semiannually.
15355.  The number of years the whole or any part of the bonds are
to run shall not exceed 25 years, from the date of the bonds or the
date of any series thereof.
15356.  (a) (1) The board of supervisors of the county in which the
county superintendent of schools has jurisdiction over the school
district or community college district in which the school facilities
improvement district is located shall prescribe the form of the
bonds by an order entered upon its minutes.
   (2) The bonds shall be signed by the chairperson of the board of
supervisors, or by any other member thereof as the board of
supervisors shall, by resolution adopted by a four-fifths vote of all
its members, authorize and designate for that purpose, and also
signed by the treasurer of the county, and shall be countersigned by
the clerk of the board of supervisors or by a deputy of either of the
officers.  Unless the board of supervisors otherwise provides, all
the signatures and countersignatures may be printed, lithographed,
engraved, or otherwise mechanically reproduced except that one of the
signatures or countersignatures to the bonds shall be manually
affixed.  Any signature may be affixed in accordance with the
provisions of the Uniform Facsimile Signatures of Public Officials
Act, Chapter 6 (commencing with Section 5500) of Title 1 of the
Government Code.
   (3) All expenses incurred for the preparation, sale, and delivery
of the school facilities improvement bonds, including but not limited
to, fees of an independent financial consultant, the publication of
the official notice of sale of the bonds, the preparation, printing,
and distribution of the official statement, the obtaining of a
rating, the purchase of insurance insuring the prompt payment of
interest and principal, the preparation of the certified copy of the
transcript for the successful bidder, the printing of the bonds, and
legal fees of independent bond counsel retained by the school
facilities improvement district issuing the bonds are legal charges
against the funds of the school facilities improvement district
issuing the bonds and may be paid from the proceeds of sale of the
bonds.
   (b) Notwithstanding subdivision (a), the board of supervisors may,
in its discretion, determine that all of the required signatures and
countersignatures shall be by facsimiles, provided, however, that
the bonds shall not be valid or become obligatory for any purpose
until manually signed by an authenticating agent duly appointed by
the board or its authorized designee.
15357.  The board of supervisors shall establish within the county
treasury a school facilities improvement fund for each school
facilities improvement district the purpose of depositing the
proceeds of the bonds issued pursuant to this chapter.  The board of
supervisors shall also establish within the county treasury a school
facilities improvement bond interest and sinking fund for each school
facilities improvement district.
15358.  (a) The bonds shall be issued by the board of supervisors,
payable out of the interest and sinking fund of the school facilities
improvement district.  The board of supervisors, in its discretion,
and without further authorization from the governing board of the
school district or community college district in which the school
facilities improvement district is located, may sell the bonds at a
negotiated sale or by competitive bidding.  The bonds may be sold at
a discount not to exceed 5 percent and at an interest rate not
exceeding the maximum permitted by Section 15354.  If the sale is by
competitive bid, the board of supervisors shall comply with the
provisions of Sections 15359 and 15359.1.  The bonds shall be sold by
the board of supervisors no later than the date designated by the
governing board of the school district or community college district
in which the school facilities improvement district is located as the
final date for the sale of the bonds.
   (b) The proceeds of the sale of the bonds, exclusive of any
premium received, shall be deposited in the county treasury to the
credit of the school facilities improvement fund of the school
facilities improvement district.  The proceeds deposited shall be
drawn out as necessary to finance the purposes approved by the voters
pursuant to this chapter.  The bond proceeds withdrawn shall not be
applied to any other purposes than those for which the bonds were
issued.  Any premium or accrued interest received from the sale of
the bonds shall be deposited in the interest and sinking fund of the
county treasury established for the school facilities improvement
district.
15359.  Before selling the bonds, or any part of them, the board of
supervisors as appropriate, shall advertise for bids at least two
weeks in some daily or weekly newspaper of general circulation
published in the county whose county superintendent of schools has
jurisdiction over the governing board of the school district or
community college district in which the school facilities improvement
district is located or if there is no newspaper published in the
county, in a newspaper published in some other county in the state
having a general circulation in the county.
15359.1.  (a) If satisfactory bids are received, the bonds offered
for sale shall be awarded to the highest responsible bidder or
bidders, and the clerk of the board of supervisors shall prepare and
certify to all of the proceedings on file in his or her office
relative to the issuance and sale of the bonds, which transcript of
proceedings shall be delivered to the successful bidder or bidders
without charge.  If no bids are received, or if the board determines
that the bids received exceed either the maximum acceptable interest
rate prescribed by the governing board or the maximum rate prescribed
by Section 15353, or that they are not satisfactory as to price or
responsibility of the bidders, the board may reject all bids
received, if any, and without further authorization from the
governing board of the school district or community college district
in which the school facilities improvement district is located,
either readvertise or sell the bonds at private sale.
   (b) For the purpose of determining whether or not a bid exceeds
the maximum acceptable interest rate, the interest rate of that bid
shall be deemed to be the interest rate resulting from the total net
interest cost arrived at by computing the total amount of interest
that the school facilities improvement district would be required to
pay from the date of the bonds to the respective maturity dates
thereof at the rate or rates specified in the bid and by deducting
therefrom any premium bid.
15359.2.  (a) The issuing school facilities improvement district, by
action of the governing board of the school district or community
college district in which the school facilities improvement district
is located, may prepare, or have prepared, bond brochures to serve as
a prospectus for bond buyers to assist in the satisfactory sale of
the bonds, the expense of the brochures shall be payable out of the
funds of the district.  The brochures may be prepared only after the
issuance of the bonds to be sold has been approved by the electors of
the school facilities improvement district pursuant to Article 4
(commencing with Section 15340).
   (b) The issuing school facilities improvement district by action
of the governing board in which the school facilities improvement
district is located may expend funds of the school facilities
improvement district for the purposes of advertising the availability
of the bonds for purchase in any publication or newspaper that in
the opinion of that governing board will give notice to prospective
bond buyers that the bonds are available for purchase by bond buyers.
15359.3.  The governing board of a school district or community
college district may proceed pursuant to Chapter 1.5 (commencing with
Section 15264) and subject to the requirements therein on behalf of
a school facilities improvement district that is created by and under
the exclusive authority of the school district or community college
district under this chapter.