Merced Municipal Code Ch. 13.42 General Procedure

When bonds are to be issued in any proceeding had and taken in connection with any public improvement, and/or acquisition, and/or immediate possession, and/or street closing, pursuant to this title, the same shall be issued, paid and collected in accordance with this division.

(Prior code § 14A.167).

When the council has determined that bonds shall be issued, it shall so declare in its resolution of intention and shall specify pursuant to which plan provided in this title the bonds are issued, the term or maximum term of their maturity following their date and the rate or maximum rate of interest they shall bear.

(Prior code § 14A.168).

The bonds and coupons shall be payable to bearer and shall be substantially in the form provided in the plan specified with appropriate changes in the wording to show that they are issued pursuant to the plan. When the form is not provided by law it shall be prescribed by the council.

(Prior code § 14A.169).

The bonds shall be executed as provided by law, and if not so provided, shall be executed by the mayor and attested by the city clerk and have affixed the city seal. The interest coupons shall be executed by the treasurer. There shall be at least one manual signature on the bonds. The signature of the mayor on the bonds and of the treasurer on the coupons and the city seal may be printed, engraved or lithographed thereon in facsimile.

(Prior code § 14A.170).

The bonds shall be dated as the council determines; provided, that in a proceeding pursuant to Article 2 of Division 5 of this title, the written consent of the contractor or his assigns shall be obtained before delaying their date.

(Prior code § 14A.171).

The bonds shall mature in series except that the principal of each bond under Bond Plan A shall mature in annual installments represented by coupons. The principal shall mature in annual amounts as the council determines. To this end, assessments of different amounts may be classified and made to mature over different periods. The first installment may be postponed as the council determines.

(Prior code § 14A.172).

The principal of the bonds may include interest and costs of maintenance and operation for the period of the acquisitions and the construction of the improvements plus twelve months.

(Prior code § 14A.173).

The bonds of a series may be issued in more than one division having different dates of maturity and dates from which interest runs.

(Prior code § 14A.174).

The bonds shall be sold as the council determines. Their proceeds shall be deposited in the proper fund and used exclusively for the objects and purposes thereof.

(Prior code § 14A.175).

Premiums received on the sale of bonds shall be deposited in the construction fund, unless the council otherwise determines.

(Prior code § 14A.176).

Accrued interest received on the sale of bonds shall be deposited in the bond fund, unless the council otherwise determines.

(Prior code § 14A.177).

The bonds may be registered against theft, in which event Article 7, Chapter 4, Division 4, Title 4, of the Government Code shall apply.

(Prior code § 14A.178).

Bonds may be registered for nonpayment, in which event Article 2, Chapter 3, Part 1, Division 1, Title 5 of the Government Code shall apply.

(Prior code § 14A.179).

New bonds or coupons may be issued to replace lost or destroyed bonds, in which event the provisions of Article 3, Chapter 3, Part 1, Division 2, Title 5 of the Government Code shall apply.

(Prior code § 14A.180).

Payment of all, or any portion, of any assessment installment levied to pay the principal or interest due, or to become due, on the bonds of any district formed under this title may be made with matured bonds or matured coupons of the district. The bonds and coupons shall be accepted and treated as cash, and when so received, shall be canceled, and the interest and sinking fund of the district shall be credited with the face value thereof.

(Prior code § 14A.181).

Upon the entry of the payment of any bond or coupon in the bond register, and under any additional conditions as the treasurer establishes, the treasurer or other fiscal agent of the city may destroy or cremate any and all bonds and coupons pertaining thereto which have been previously paid or canceled.

(Prior code § 14A.182).

In the event of a surplus remaining in the redemption fund after payment of the entire principal and interest on all bonds issued pursuant to a plan in this title for retirement of which the fund has been established, the surplus shall, subject to any other special provision of this title, be applied first to repayment to the city of any balance due it for contributions and advances which it may have made to the redemption fund, and of any special taxes which it may have levied in aid thereof other than any regular taxes levied to retire any bonds, and of any moneys due it for costs incurred or charges allowed, together with interest on the sums at the rate mentioned in the bonds. The excess, if any, shall be paid into the general fund of the city.

(Prior code § 14A.183).

When the law provides a premium on the call of bonds, the council may provide in the resolution of intention that no premium will be paid upon the call of bonds prior to their fixed date of maturity. In that event, the bond plan designated shall be followed by "(NP)."

(Prior code § 14A.184).

When a proceeding is undertaken pursuant to a bond plan in this title in which the supplemental provisions of the Improvement Bond Act of 1915 requires the city to advance funds and make special tax levies for the purpose of advancing funds to meet delinquencies in assessment installments of principal and interest, the council may declare in the resolution of intention that the provisions shall not apply. In that event, the bond plan designation shall be followed by "(NSR)." If both the premium and the remedy are declared not to apply, the bond plan designated shall be followed by "(NP-NSR)."

(Prior code § 14A.185).

As an alternative method of collecting fixed lien assessments which are less in amount than fifty dollars when bonds are issued pursuant to Bond Plans A, B or C described in this chapter, proceedings therefor may be had as provided in Sections 13.38.0.110 and 13.318.100.

(Prior code § 14A.186).