Merced Municipal Code Ch. 13.58 Refunding Bonds

The refunding bonds shall be issued pursuant to the provisions of Division VI.

(Prior code § 14A.276).

The council may by resolution establish a plan of refunding, and rules and regulations therefor, to be performed by the city officials or other persons designated by it.

(Prior code § 14A.280).

The city council may appoint and provide a bank or other trust company to act as depository of the former bonds for their holders, and to otherwise assist in the consummation of a refunding plan.

(Prior code § 14A.281).

Refunding bonds may be issued in a principal amount sufficient to provide for the payment of all of the following:

A. The principal amount of the bonds to be refunded;

B. The premiums necessary to be paid in calling and retiring the outstanding bonds;

C. The price in excess of the par value of bonds required to be paid for their purchase in the open market;

D. Interest accrued, or to accrue, on the bonds to be refunded, to the date of their refunding or to the next interest payment date thereafter when required to be paid;

E. The costs of engineering, legal and other technical services employed to accomplish the refunding;

F. The costs of printing and advertising, and all other costs of the city incurred or to be incurred in the refunding proceedings;

G. Interest on the refunding bonds from their date to the date they are delivered to the former bondholders, in exchange for former bonds.

(Prior code § 14A.277).

Refunding bonds may be exchanged for former bonds, in which event the holder of the former bonds and the council shall agree upon the amounts and maturities of the bonds to be exchanged.

(Prior code § 14A.278).

Proceedings for refunding bonds may be had in conjunction with proceedings for the acquisition or construction of public improvements pursuant to Chapter 13.36.

(Prior code § 14A.282).

Nothing in this chapter shall be construed as authorizing the city to violate any contract or other vested rights arising from the issuance or ownership of the former bonds. The city is authorized to and shall conduct a refunding proceeding and to take all proceedings necessary therein to avoid the violation of a contract or vested right. To this end, the city may exercise in whole or in part the procedures therefor in any law or provide therefor itself.

(Prior code § 14A.283).

Refunding bonds may be sold in the manner provided in Division VI, and the proceeds used to purchase or pay for all or any of the former bonds and costs of refunding.

(Prior code § 14A.279).

Special assessments and special assessment bonds heretofore or hereafter levied or issued pursuant to general law may be refunded pursuant to this chapter. The provisions of the Special Assessment and Bond Refunding Act of 1939, Chapter 5 (commencing with Section 59100), Division 1, Title 6, of the Government Code shall apply.

(Prior code § 14A.274).

Special assessment and special assessment bonds hereafter levied or issued pursuant to this title may be refunded by proceedings had pursuant to Chapter 13.36. The provisions of this chapter are to be read in pari materia with the provisions of Divisions V and VI pursuant to which the former assessments were levied or bonds were issued.

(Prior code § 14A.275).