2007 California Public Resources Code Chapter 6. Bonds

CA Codes (prc:13100-13129)

13100.  Whenever the board deems it necessary for the district 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 district be benefited by
the accomplishment of the purpose?
   (2) If only a portion of the district will be benefited, what
portion will be so benefited?



13101.  Notice of the hearing shall be given by publication of a
copy of the resolution pursuant to Section 6066 of the Government
Code in a newspaper of general circulation circulated within the
area.


13102.  The copy of the resolution published 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 district, will be heard upon the
question stated in the resolution.


13103.  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.



13104.  At the hearing any person interested, including persons
owning property within the district, may appear and present any
matters material to the questions set forth in the resolution
declaring the necessity for incurring the bonded indebtedness.




13105.  At the conclusion of the hearing, the board shall by
resolution determine whether the whole or part of the district will
be benefited by the accomplishment of the purpose stated in the
resolution.


13106.  If the board determines that the whole of the district will
not be benefited, the resolution shall also describe the portion of
the district which will be benefited, in a manner sufficient for
identification, which portion of the district described in the
resolution shall thereupon constitute and be known as "Improvement
Area No. ____" of the district.



13107.  After the formation of an improvement area within the
district pursuant to this chapter, 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.



13108.  The determination of the board that the whole of the
district will be benefited by the bond issue or only that a described
portion of the district will be benefited by the bond issue is final
and conclusive.


13109.  After the board has made its determination pursuant to
Section 13105, 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 district will be benefited by incurring
the bonded indebtedness.
   (2) That a portion of the district will be benefited by incurring
the bonded indebtedness, which portion shall be described in the
resolution of the board made pursuant to Section 13105.
   (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 district election (which may be
consolidated with a general 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.



13110.  The resolution provided for in Section 13109 shall
constitute the notice of such special bond election and such
resolution shall be published pursuant to Section 6066 of the
Government Code in a newspaper of general circulation circulating
within the area.



13111.  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 district 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 shall control over
any provisions of the Elections Code.



13112.  Every voter within the area designated in the resolution
adopted pursuant to Section 13109, but no others, may vote on the
proposition to authorize the bonds.  If the area does not include the
entire district, a separate ballot shall be prepared for the vote
upon such proposition and only the voters entitled thereto shall be
given such ballots.



13113.  A two-thirds vote shall be required for the issuance of
general obligation bonds.



13114.  If 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.



13115.  The bonds shall be signed by the chairman of the board and
countersigned by the clerk of the board or his deputy and the coupons
shall be signed by the clerk of the board or his deputy.  All
signatures except that of the clerk on the bonds may be printed,
lithographed or engraved.  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 depositary of the district.



13116.5.  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.



13117.  The district 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.  Public notice shall be given in the manner determined by the
board.  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.



13118.  Any bonds issued by any area organized under this division
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 that may be
invested in bonds of cities, counties, cities and counties, school
districts, or municipalities in the state.



13119.  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 district bonds outstanding.
   (b) Submit to the voters of any improvement area a measure to
issue new bonds to refund any improvement area bonds outstanding.



13120.  The measure may be voted on at any district election or an
election may be called for the purpose.



13121.  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 district or only a portion of it.
   (b) A vote of two-thirds of the voters voting upon the measure is
sufficient to authorize the issue of refunding bonds.




13122.  The refunding bonds may, if the holders of the bonds of an
original issue and the board so agree, be exchanged for original
bonds.


13123.  The face value of refunding bonds exchanged for original
bonds shall not exceed the face value of the original bonds.



13124.  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.



13125.  Any bonds issued by the district may be made callable by
resolution of the board adopted at or prior to the time of issuing
the bonds.


13126.  When bonds are made callable a statement to that effect
shall be set forth on the face of the bond.



13127.  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 13125.


13128.  Notice designating the bonds called for redemption shall be
published in a newspaper determined by the board to be the one most
likely to reach the holders of the bonds.  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.


13129.  If on the date fixed for redemption the district has
provided funds available for payment of the principal and interest of
the bonds called, interest on them ceases.
   None of the provisions of this chapter shall apply to any
proceedings for the authorization, issue or sale of revenue bonds of
a county service area.