Palm Desert Municipal Code Ch. 17.07 Bond Anticipation Notes

The city council may, by trust indenture, borrow money in anticipation of the sale of bonds which have been authorized pursuant to this title, but which have not been sold and delivered, issue bond anticipation notes therefor, and renew the notes from time to time. The maximum maturity of any bond anticipation notes, including the renewals thereof, shall not exceed three years from the date of delivery of the original notes.

(Ord. 1175 §1, 2008)

The principal and interest on the bond anticipation notes may be paid from any money available for their payment. Any portion of the principal or interest which is due and payable shall be paid from the proceeds of the next sale of bonds in anticipation of which the notes were issued.

(Ord. 1175 §1, 2008)

The proceeds of bond anticipation notes issued pursuant to this chapter may be used for any purpose for which the bonds in anticipation of which the notes were issued may be used.

(Ord. 1175 §1, 2008)

The bond anticipation notes shall not be issued in any amount in excess of the aggregate amount of bonds which the city council has been authorized to issue, less the amount of any bonds of the authorized issue which have been previously sold and less the amount of other bond anticipation notes previously issued and still outstanding.

(Ord. 1175 §1, 2008)

The city council may provide, in its trust indenture authorizing the issuance of bond anticipation notes, that the note shall be subject to call and redemption prior to maturity, at the option of the city council, at the price or prices which are fixed in the trust indenture, but not to exceed a premium of six percent of the par value of the note subject to redemption. The trust indenture shall fix the method of giving notice of redemption to the holders of the notes to be redeemed and the price or prices at which the note shall be subject to redemption. Any notes that are subject to call and redemption prior to maturity shall contain a recital to that effect on their face, and no note shall be subject to call or redemption prior to its fixed maturity date unless it contains that recital.

(Ord. 1175 §1, 2008)

The bond anticipation notes may be issued and sold in the same manner as the bonds.

(Ord. 1175 §1, 2008)

The bond anticipation notes and the trust indenture authorizing them may contain any provisions, conditions, or limitations which a trust indenture of the city council authorizing the issuance of bonds may contain.

(Ord. 1175 §1, 2008)

The city council shall provide a remedy in its trust indenture authorizing the issuance of bond anticipation notes if the anticipated bonds cannot be sold at the time or in the amount specified in the trust indenture or if any default occurs with respect to the notes.

(Ord. 1175 §1, 2008)