2007 California Streets and Highways Code Part 11.1. Alternative Procedure For Collecting Assessments And Advance Retirement Of Bonds

CA Codes (shc:8760-8769)

8760.  The procedures of this part are alternative to Part 8
(commencing with Section 8680) and Part 11 (commencing with Section
8750) relating to the partial or full payment of assessments and
advance retirement of bonds.  Except as otherwise provided, Part 8
(commencing with Section 8680) and Part 11 (commencing with Section
8750) apply.  When it is proposed to proceed under this part, it
shall be so stated in the resolution of intention.



8766.  The owner of assessed land, except land which has been
ordered to judicial foreclosure pursuant to Section 8830, may prepay
the assessment and remove the lien of the assessment by paying to the
treasurer all of the following:
   (a) The amount of any delinquent installments of principal and
interest, together with penalties accrued to the date of prepayment.

   (b) The unpaid, nondelinquent principal of the assessment,
including principal posted to the tax roll for the current fiscal
year but not yet paid.
   (c) An allowance for redemption premium, calculated by multiplying
the amount of the unmatured principal by the redemption premium
percentage stated in the bonds.  Unmatured principal excludes
principal due during the fiscal year of prepayment.
   (d) A reasonable fee, fixed by the treasurer, for the cost of
administering the prepayment and the advance redemption of bonds.
   (e) Interest accrued to the next call date of the bonds.  The next
call date is the next bond interest payment date which is not less
than 90 days after the date of prepayment.  Credit shall be given, or
a refund provided, for installments of interest posted to the
current tax roll and actually paid.
   (f) A credit for the reserve fund calculated pursuant to Section
8881.



8766.5.  The owner of assessed land, except land which has been
ordered to judicial foreclosure pursuant to Section 8830, may prepay
the assessment in part and remove the lien of the assessment in part
by paying to the treasurer all of the following:
   (a) The amount of any delinquent installment of principal and
interest, together with penalties accrued to the date of prepayment.

   (b) A portion of the unpaid, nondelinquent principal of the
assessment in increments of five thousand dollars (,000).
   (c) An allowance for redemption premium, calculated by multiplying
the amount of the unmatured principal being prepaid by the
redemption premium percentage stated in the bonds.
   (d) A reasonable fee, fixed by the treasurer, for the cost of
administering the prepayment and the advance redemption of bonds.
   (e) Interest accrued to the next call date of the bonds.  The next
call date is the next bond interest payment date which is not less
than 90 days after the date of prepayment.
   (f) A credit for the reserve fund calculated pursuant to Section
8881.
   When an assessment has been partially prepaid, the treasurer shall
issue a revised auditor's record for that parcel, showing the
proportionate reduction in assessment installments.  Thereafter, the
treasurer shall levy subsequent installments at the reduced rate.



8767.  Upon receiving a partial or full prepayment of an assessment,
the treasurer shall deposit it in an assessment prepayment
subaccount of the bond redemption fund.  All prepayments may be
commingled in a single account.  From the account, the treasurer
shall make disbursements as follows:
   (a) The administrative fee shall be deposited in the general fund
of the city.
   (b) Delinquent principal, interest, and penalties shall be
transferred to the redemption fund for the bonds.  If a special
reserve fund has been established for the bonds and has been depleted
on account of the delinquencies, the delinquent amounts and
penalties shall be transferred instead to the special reserve fund.
   (c) The installment of principal due in the fiscal year of
prepayment shall be transferred to the redemption fund for the bonds.

   (d) Interest accrued to the next call date shall be transferred to
the redemption fund for the bonds.
   (e) The balance in the assessment prepayment account shall be used
to advance  the maturity of bonds to the next call date, as provided
in Part 11 (commencing with Section 8750).  The amount of bonds to
be retired shall be the maximum for which principal and redemption
premium may be paid in full from the prepayment account.  Accrued
interest on bonds to be retired shall be paid from the redemption
fund.


8768.  The treasurer shall select bonds for retirement in such a way
that the ratio of outstanding bonds to issued bonds shall be
approximately the same in each annual series insofar as possible.
Within each annual series, bonds shall be selected for retirement by
lot.



8769.  Before issuing bonds pursuant to this division, the
legislative body shall determine, and shall declare in  the
resolution of intention, one of the following:
   (a) The city will obligate itself to advance available funds from
the city treasury to cure any deficiency which may occur in the bond
redemption fund.  If the legislative body determines to so declare
under this subdivision, the  legislative body may provide further
security for the assessment bonds by creating an improvement district
pursuant to the Benefit Assessment Act of 1982.
   (b) The city will not obligate itself to advance available funds
from the city treasury to cure any deficiency which may occur in the
bond redemption fund.  A determination not to obligate itself shall
not prevent the city from, in its sole discretion, so advancing
funds.
   The determination made pursuant to this section shall be clearly
stated in the text of the bonds issued pursuant to this division, and
the title of the bonds shall include the words "Limited Obligation
Improvement" in the event that the declaration in subdivision (b) is
made.