2005 California Education Code Sections 19520-19532 Article 6. Bonds

19520.  The board of trustees of any library district may, when in
their judgment it is deemed advisable, and shall, upon a petition of
50 or more taxpayers and residents of the library district, call an
election and submit to the electors of the district, the proposition
of whether the bonds of the district will be issued and sold for the
purpose of raising money for any or all of the following:
   (a) The purchase of suitable lots.
   (b) Procuring plans and specifications and erecting a suitable
building.
   (c) Furnishing and equipping the building and fencing and
ornamenting the grounds, for the accommodation of the public library.
   (d) Any or all of the purposes of this chapter.
   (e) Liquidating any indebtedness incurred for the purposes.
   (f) Refunding any outstanding valid indebtedness, evidenced by
bonds or warrants of the district.
19521.  The bond election shall be called and conducted and the
results thereof canvassed, returned, and declared in the manner
provided in Chapter 3 (commencing with Section 5300) of Part 4 of
this division.
19522.  The board of trustees shall set forth in the resolution
calling for a bond election the amount and denomination of the bonds,
the rate of interest, and the number of years that all or any part
of the bonds are to run.
19524.  If it appears that two-thirds of the votes cast at the
election were cast in favor of issuing the bonds, the board shall
enter the fact upon its minutes and shall certify all the proceedings
to the supervising board of supervisors.  Thereupon the board of
supervisors shall issue the bonds of the district, in the number and
amount provided in the proceedings, and the district shall be named
on the bonds.  The bonds shall be paid out of the building fund of
the district.
   The money for the redemption of the bonds and the payment of
interest thereon shall be raised by taxation upon the taxable
property in the district.
19525.  The total amount of bonds issued shall not exceed 5 percent
of the assessed value of the property of the district, prior to the
1980-81 fiscal year and shall not exceed 1.25 percent of the assessed
value of the district beginning after the 1981-82 fiscal year, as
shown by the last equalized assessment roll of the county or counties
in which the district is situated.
19526.  The supervising board of supervisors by an order entered
upon its minutes shall prescribe the form of the bonds and of the
interest coupons attached thereto, and shall fix the time when the
whole or any part of the principal of the bonds shall be payable,
which shall not be more than 40 years from the date thereof.
19527.  The bonds shall not bear a greater amount of interest than 6
percent, to be payable annually or semiannually.  The bonds shall be
sold in the manner prescribed by the board of supervisors, but for
not less than par, and the proceeds of the sale thereof shall be
deposited in the county treasury to the credit of the building fund
of the library district, and shall be drawn out for the purposes for
which the bonds were issued as other library money is drawn out.
19528.  The board of supervisors of each county in which any part of
the district is situated, at the time of making the levy of taxes
for county purposes, shall levy a tax for that year upon the taxable
property in the district, at the equalized assessed value thereof for
that year, for the interest and redemption of the bonds.  The tax
shall not be less than sufficient to pay the interest of the bonds
for that year, and such portion of the principal as is to become due
during the year.  In any event the tax shall be high enough to raise,
annually, for the first half of the term the bonds are to run, a
sufficient sum to pay the interest thereon, and during the balance of
the term, high enough to pay the annual interest and to pay,
annually, a proportion of the principal of the bonds equal to a sum
produced by taking the whole amount of the bonds outstanding and
dividing it by the number of years the bonds then have to run.
19529.  All money levied, when collected, shall be paid into the
county treasury to the credit of the library district, and shall be
used for the payment of principal and interest on the bonds, and for
no other purpose.  The principal and interest on the bonds shall be
paid by the county treasurer, upon the warrant of the county auditor,
out of the fund provided therefor.  The county auditor shall cancel
and file with the county treasurer the bonds and coupons as rapidly
as they are paid.
19530.  Whenever any bonds issued under this article remain unsold
for the period of six months after having been offered for sale in
the manner prescribed by the supervising board of supervisors, the
board of trustees of the library district for or on account of which
the bonds were issued, or of any library district composed wholly or
partly of territory which, at the time of holding the election
authorizing the issuance of the bonds, was embraced within the
district for or on account of which the bonds were issued, may
petition the supervising board of supervisors to cause the unsold
bonds to be withdrawn from the market and canceled.
19531.  Upon receiving the petition, signed by a majority of the
members of the board of trustees, the supervising board of
supervisors shall fix a time for hearing the petition, which shall be
not more than 30 days thereafter, and shall cause a notice, stating
the time and place of hearing, and the object of the petition in
general terms, to be published as provided in this chapter.
19532.  At the time and place designated in the notice for hearing
the petition, or at any subsequent time to which the hearing is
postponed, the supervising board of supervisors shall hear any
reasons that are submitted for or against the granting of the
petition, and if they deem it for the best interests of the library
district named in the petition that the unsold bonds be canceled,
they shall make and enter an order in the minutes of their
proceedings that the unsold bonds be canceled.  Thereupon the bonds,
and the vote by which they were authorized to be issued, shall cease
to be of any validity whatever.