2007 California Government Code Article 10. Bonds

CA Codes (gov:25211.1-25211.33)

25211.1.  Whenever the board deems it necessary for the county
service area to incur a bonded indebtedness, it shall by resolution
set forth all of the following:
   (a) A declaration of the necessity for the indebtedness.
   (b) The purpose for which the proposed debt is to be incurred.
   (c) The amount of the proposed debt.
   (d) The time and place for a hearing by the board on the
questions:
   (1) Will the whole or a portion of the area be benefited by the
accomplishment of the purpose?
   (2) If only a portion of the area will be benefited, what portion
will be so benefited?



25211.2.  Notice of the hearing shall be given by publication of a
copy of the resolution pursuant to Section 6066 in a newspaper of
general circulation circulated within the area.



25211.3.  The copy of the resolution published or posted shall be
accompanied by a notice subscribed by the clerk that:
   (a) The hearing referred to in the resolution will be had at the
time and place specified in the resolution.
   (b) At that time and place any person interested, including all
persons owning property in the area, will be heard upon the question
stated in the resolution.


25211.4.  At the time and place fixed for the hearing on the
resolution declaring the necessity for incurring the bonded
indebtedness or at any time and place to which the hearing is
adjourned, the board shall proceed with the hearing.



25211.5.  At the hearing any person interested, including persons
owning property within the area, may appear and present any matters
material to the questions set forth in the resolution declaring the
necessity for incurring the bonded indebtedness.



25211.6.  At the conclusion of the hearing, the board shall by
resolution determine whether the whole or part of the area will be
benefited by the accomplishment of the purpose stated in the
resolution.


25211.7.  If the board determines that the whole of the area will
not be benefited, the resolution shall also describe the portion of
the area which will be benefited, in a manner sufficient for
identification, which portion of the area described in the resolution
shall thereupon constitute and be known as "Improvement Area No.
____ of ____ County Service Area."



25211.7a.  In considering what area will be benefited by the
provision of flood or inundation services, as authorized pursuant to
Section 25210.4d, the board may determine that the acquisition or
construction of a dam intended to protect persons or property from
flooding or inundation in the event of the failure of an existing dam
will benefit exclusively the area benefited by such existing dam and
by the water impounded by such existing dam.
   A resolution determining the area of benefit pursuant to this
section, if adopted by a four-fifths vote of the board of
supervisors, shall be conclusive evidence of the following:
   (a) The proceedings taken in connection with such determination
have been properly and legally conducted.
   (b) The property included within the boundaries of such area will
be benefited by the proposed work.



25211.8.  After the formation of an improvement area within a county
service area pursuant to this article (commencing with Section
25211.1), all proceedings for the purpose of a bond election within
the improvement area and for the purpose of taxation for the payment
of the bonds and interest shall be limited, and apply only to the
improvement area.



25211.9.  The determination of the board that the whole of the area
will be benefited by the bond issue or only that a described portion
of the area will be benefited by the bond issue is final and
conclusive.


25211.10.  After the board has made its determination pursuant to
Section 25211.6, if it deems it necessary to incur the bonded
indebtedness, it shall by resolution state:
   (a) That it deems it necessary to incur the bonded indebtedness.
   (b) The purpose for which the bonded indebtedness will be
incurred.
   (c) Either of the following in accordance with its previous
determination:
   (1) That the whole of the area will be benefited by incurring the
bonded indebtedness.
   (2) That a portion of the area will be benefited by incurring the
bonded indebtedness, which portion shall be described in the
resolution of the board made pursuant to Section 25211.6.
   (d) The amount of debt to be incurred.
   (e) The maximum term the bonds to be issued shall run before
maturity, which term shall not exceed 40 years.
   (f) The annual rate of interest to be paid, which rate shall not
exceed 7 percent, payable annually or semiannually, or in part
annually and in part semiannually.
   (g) The proposition to be submitted to the voters.
   (h) The date of the special county service area election (which
may be consolidated with a general or special district election) at
which such proposition shall be submitted to the voters; the hours
between which the polls shall be open; the boundaries of voting
precincts within the area or portion thereof benefited by incurring
the bonded indebtedness; the location of polling places; and the
names of the officers selected to conduct such election in each
precinct, who shall consist of one judge, one inspector and two
clerks.


25211.11.  The resolution provided for in Section 25211.10 shall
constitute the notice of such special bond election and such
resolution shall be published pursuant to Section 6066 in a newspaper
of general circulation circulating within the area.




25211.12.  The provisions of the Elections Code relating to the
qualifications of electors, the manner of voting, the duties of
election officers, the canvassing of returns, and all other
particulars in respect to the management of general elections so far
as they may be applicable shall govern all area elections except:
   (a) To the extent that the provisions of the Elections Code
pertaining to the conduct of local elections are inconsistent with
the provisions of that code pertaining to general elections, the
provisions pertaining to local elections shall control.
   (b) Inconsistent provisions of this division (commencing with
Section 24000) shall control over any provisions of the Elections
Code.


25211.13.  Every elector residing within the area designated in the
resolution adopted pursuant to Section 25211.10, but no others, may
vote on the proposition to authorize the bonds.  If the area does not
include the entire county service area, a separate ballot shall be
prepared for the vote upon such proposition and only the voters
entitled thereto shall be given such ballots.



25211.14.  A two-thirds vote shall be required for the issuance of
general obligation bonds.



25211.15.  If more than two-thirds of the vote cast at the election
are in favor of incurring the indebtedness, the board may by
resolution, at the time or times it deems proper, provide for the
following:
   (a) The form of the bonds.
   (b) The execution of the bonds.
   (c) The issuance of any part of the bonds.




25211.16.  The bonds shall be signed by the chairman of the board
and also signed by the treasurer or auditor of the county and shall
be countersigned by the clerk of the board or his deputy.  The
coupons of the bonds shall be signed by the treasurer or auditor of
the county.  All such 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 such signature may be affixed in
accordance with the provisions of the Uniform Facsimile Signatures of
Public Officials Act (Chapter 6 (commencing with Section 5500),
Division 6, Title 1). If any officer whose signature appears on the
bonds or coupons ceases to be such officer before the delivery of the
bonds, his signature is as effective as if he had remained in
office.  All bonds shall be payable at the office of the county
treasurer, who is the depository of the area.



25211.17.  Each year at the time the board of supervisors fixes and
levies taxes for county purposes, it shall also fix and levy that
amount of taxes upon all taxable property within the county service
area which is required for the payment of the principal of and
interest on any outstanding bonded debt of the county service area
becoming due and payable before the next annual levy and collection
of county taxes.  Such tax shall be known as the county service area
bond tax, County Service Area No. ____, and shall be annually levied
and collected by the same officers and at the same time and in the
same manner that all other county taxes are levied and collected.
All such collections shall be paid into the county service area bond
tax fund for such particular county service area and shall be used
solely for the payment of the principal of and interest on the
outstanding bonds of such county service area.



25211.171.  Annually, the board of supervisors may determine to levy
the bond tax on land only in the area or improvement area benefited
by the purposes of the bonded debt.  Such determination may be made
only as to bonds for water purposes as defined under Section 25210.4a
(1) and may be made only under the following conditions:
   (a) If the right so to levy was reserved to the board of
supervisors in the resolution provided for in Section 25211.10; or
   (b) If, after the authorization of bonds, the board determines
that the lands within the area subject to the debt of the bonds
derived the primary benefit from the availability of water.  Such
determination shall be made only after a public hearing which shall
be held and notice of which shall be given in substantially the same
manner as provided for the determination of the necessity for
incurring the bonded indebtedness.  Mailed notice thereof shall also
be given in the manner provided by Section 53521.  The bond tax
levied pursuant to this section constitutes a lien on all property,
both land and improvements, located on the land benefited by the
purposes of the bonded debt.



25211.175.  An action to determine the validity of bonds may be
brought pursuant to Chapter 9 (commencing with Section 860) of Title
10 of Part 2 of the Code of Civil Procedure.



25211.18.  The county service area may sell the bonds so issued at
the times or in the manner the board deems to be to the public
interest, provided, that all bonds shall be sold on sealed proposals
to the highest bidder, after advertising for bids by publication of
notice of sale pursuant to Section 6061, not less than 10 days prior
to the date of sale, in a newspaper of general circulation
circulating in the area.  If no bids are received or if the board
determines that the bids received are not satisfactory as to price or
responsibility of the bidders, the board may reject all bids
received, if any, and either readvertise or sell the bonds at private
sale.



25211.185.  When the board of supervisors deems it in the best
interests of the county service area, it may authorize the county
treasurer, upon such terms and conditions as may be fixed by the
board of supervisors, to issue notes, on a competitive-bid basis,
maturing within a period not to exceed one year, in anticipation of
the sale of county service area bonds duly authorized at the time
such notes are issued.  The proceeds from the sale of such notes
shall be used only for the purposes for which may be used the
proceeds of the sale of bonds in anticipation whereof the notes were
issued.
   All notes issued and any renewal thereof shall be payable at a
fixed time, solely from the proceeds of the sale of the bonds and not
otherwise, except that in the event that the sale of the bonds shall
not have occurred prior to the maturity of the notes issued in
anticipation of the sale, the county treasurer shall, in order to
meet the notes then maturing, issue renewal notes for such purpose.
No renewal of a note shall be issued after the sale of bonds in
anticipation of which the original note was issued.  There shall be
only one renewal of such note or notes.
   Every note and any renewal thereof shall be payable from the
proceeds of the sale of bonds and not otherwise.  The total amount of
such notes or renewals thereof issued and outstanding shall at no
time exceed 25 percent of the total amount of the unsold bonds.
   Interest on the notes shall be payable from proceeds of the sale
of bonds.



25211.19.  Any bonds issued by any area organized under the
provisions of this chapter are hereby given the same force, value and
use as bonds issued by any municipality and shall be exempt from all
taxation within the state.
   All bonds issued by any area payable from taxes are legal
investments for all trust funds, for the trust funds of all insurance
companies, the state school funds, and any funds which may be
invested in bonds of cities, counties, cities and counties, school
districts, or municipalities in the state.
   Whenever the board of supervisors declares by resolution that it
deems it desirable that any bonds issued or to be issued by the area
should be certified by the State Treasurer as provided in this
section, the board shall file a certified copy of the resolution with
the State Treasurer and the bonds described in said resolution shall
then be subject to investigation and certification by the State
Treasurer.  If in the opinion of the State Treasurer the bonds are
adequately secured and the revenues and other funds applicable to the
payment of the bonds are, or upon the acquisition, construction or
improvement of the enterprise for which such bonds were or are to be
issued, will be, sufficient to pay the principal of and interest on
such bonds the State Treasurer shall certify that such bonds are
legal investments for all trust funds, for the funds of all insurance
companies, the state school funds, and any funds, other than funds
of savings banks, which may be invested in bonds of cities, counties,
cities and counties, school districts or municipalities in the
state.



25211.20.  The board may, by resolution, do the following:
   (a) Submit to voters a measure to issue new bonds to refund any or
all of the area bonds outstanding.
   (b) Submit to the voters of any improvement area a measure to
issue new bonds to refund any improvement area bonds outstanding.



25211.21.  The measure may be voted on at any area election or an
election may be called for the purpose.



25211.22.  The procedure upon the election shall be in accordance,
so far as applicable, with the procedure upon an original issue of
bonds, except that;
   (a) No hearing need be held upon the question whether the bond
issue will benefit the entire area or only a portion of it;
   (b) A vote of a majority of the voters voting upon the measure is
sufficient to authorize the issue of refunding bonds.




25211.23.  The refunding bonds may, if the holders of the bonds of
an original issue and the board so agree, be exchanged for original
bonds.


25211.24.  Refunding bonds may, if the holders of the bonds of an
original issue and the board so agree, be exchanged for original
bonds.


25211.25.  The face value of refunding bonds exchanged for original
bonds shall not exceed the face value of the original bonds.



25211.26.  The board may raise money by rates or taxes to pay
principal and interest of the refunding bonds in the same manner as
prescribed for payment of bonds of an original issue.



25211.27.  Any bonds issued by the area may be made callable by
resolution of the board adopted at or prior to the time of issuing
the bonds.


25211.28.  When bonds are made callable a statement to that effect
shall be set forth on the face of the bond.



25211.29.  Callable bonds may be redeemed on any interest payment
date prior to their fixed maturity in such amounts and manner and at
such prices as the board may prescribe in the resolution provided for
in Section 25211.27.


25211.30.  Notice designating the bonds called for redemption shall
be published pursuant to Section 6063 in a newspaper of general
circulation circulated in the area.



25211.31.  The first publication of the redemption notice shall not
be less than 30 nor more than 90 days prior to the date fixed for
redemption.


25211.32.  If on the date fixed for redemption the area has provided
funds available for payment of the principal and interest of the
bonds called, interest on them ceases.



25211.33.  The Revenue Bond Law of 1941 provided for in Chapter 6
(commencing with Section 54300) of Part 1 of Division 2 of Title 5 is
applicable to county service areas for the purpose of providing
funds for the acquisition, construction, improving or financing of
any public improvement authorized by this chapter which is not
inconsistent with the provisions of Section 54310.  The board may
also issue revenue bonds under the Revenue Bond Law of 1941 on behalf
of any improvement area created pursuant to this article and any
election for the issuance of the revenue bonds shall be limited to
the area of the improvement area.  If revenue bonds are so issued on
behalf of an improvement area:
   (a) No proceeds of the revenue bonds shall be used to finance
public improvements to provide service outside the area of the
improvement area; and
   (b) Only revenues which are derived from rates or charges for the
providing of service within the area of the improvement area shall be
pledged to or used to pay the revenue bonds.