Part 4 — ASSESSMENT BONDS - GENERAL PROVISIONS

Charter reference— For Charter provisions on revenue bonds, see Charter §§ 1220 - 1222; for provisions on the Improvement Act of 1911 on improvement bonds, see Str. And Hwys. Code § 6400 et seq.

When bonds are to be issued in any proceeding had and taken in connection with any public improvement or acquisition or immediate possession or street closing, pursuant to the provisions of any part of this chapter, the same shall be issued, paid and collected in accordance with the provisions of this part and parts 5, 6 and 7 of this chapter.

(Prior code § 2600.39.)

When the city council shall determine that serial bonds shall be issued to represent the cost and expenses of any proposed work or improvement, or of the possession or acquisition of any property in any such proceeding, it shall so declare in the resolution of intention therefor, and shall specify pursuant to what plan herein provided said bonds shall be issued, the date of their maturity following the date of their issuance, and shall also specify the interest rate which they shall bear, which shall not exceed seven percent per year; provided, however, that in case said bonds are for the acquisition or immediate possession of property, said interest rate may be stated to be not to exceed seven percent per year. Said bond declaration may be substantially in the following form:

"Notice is hereby given that (serial) bonds to (represent the unpaid assessments (of $25.00 or over) and) bear interest at the rate of (not to exceed) _________ percent per annum, will be issued pursuant to Bond Plan _________ of Part III of the San José Improvement Procedure Code, the last installment of which shall mature _________ years from the second day of (January next succeeding the fifteenth day of November following their date) July next succeeding ten months from their date."

(Prior code § 2600.40.)

Whenever any bonds are issued pursuant to any one of the plans provided in Parts 5, 6 or 7 of this chapter, such bonds shall be substantially in the form provided in the particular plan specified, with such appropriate changes in the wording of such bonds as to show that they were issued pursuant to such plans.

(Prior code § 2600.41.)

In the event that bonds are issued for the immediate possession and use, or for the acquisition of any property, or for the closing of any street, as set forth in Part 3 of this chapter, then said bonds must be sold, at a time to be fixed by the council, to the highest cash bidder therefor after advertising for bids, which advertisement shall be published twice in a newspaper of general circulation published in the city, the first publication of which shall be at least ten days before the date set for opening said bids and making said sale, but said bonds shall not be sold for less than par. The proceeds of the sale of such bonds shall be paid into the fund of the proceeding to represent the assessments in which said bonds were issued. If any bonds be sold for an amount in excess of par, such excess shall be paid into the redemption fund for the payment of such bonds. If satisfactory bids are received, the bonds offered for sale must be awarded to the highest bidder. If no bids are received, or if the council determines that the bids received are not satisfactory as to price or responsibility of bidders, the council may reject all bids received, if any, and readvertise for bids. The city treasurer may be a bidder at such sale.

(Prior code § 2600.42.)

The city council shall have the power to advance from the general fund or from any funds available for the purpose of acquisition of public ways or property, or from any revolving fund created and administered as provided in Part 1 of this chapter, to the appropriate fund, the minimum sum for which all, or any part, of said bonds may be sold, in which case the city shall have the same rights in respect to the enforcement and collection thereof as other purchasers. Where the city so purchases bonds, it shall have authority at any time to sell same, or any thereof, and to reimburse itself therefor. The city council shall have the like power, with the like effect, to purchase with moneys from the proper fund bonds issued for the cost of public improvements, or to issue them to the city payable to bearer, and pay the contractor the balance of his contract price in cash.

(Prior code § 2600.43.)

The city council may bring an action in the superior court of the state in and for the county of Santa Clara, to determine the validity of any such bonds or the levy of such assessments made or to be made thereunder, or of any contract or acquisition or improvement, and of the proceedings had therein. Such action shall be governed by the procedure and shall have like effect as provided in Section 16 of the Improvement Act of 1911, amended prior to and as in effect on January 1, 1938.

(Prior code § 2600.44.)

Any bonds and interest coupons thereon issued pursuant to the provisions of this chapter may be registered in the manner and with like effect provided in that certain act of the legislature of the state entitled "An act to provide for the registration of bonds issued by the state of California, or any county, city

and county, municipal corporation, or other political corporation," approved April 14, 1913 (Stats. 1913, p. 23), and the provisions thereof are incorporated herein and made a part hereof by reference thereto.

(Prior code § 2600.45.)

Any bond or any interest coupon thereon issued pursuant to the provisions of this chapter which is presented to the treasurer for payment, and is not paid for want of funds, may be registered in the manner and with like effect provided in that certain Act of the Legislature of the state of California entitled "An act to provide for the registration of bonds and interest coupons unpaid for want of funds and the preference and payment thereof in the order of such registration when funds are available," approved June 7, 1935 (Stats. 1935, p. 994), and the provisions thereof are incorporated herein and made a part hereof by reference thereto.

(Prior code § 2600.46.)

Whenever it is made to appear to the city council by competent proof that any bond issued pursuant to any of the provisions hereof, has been lost or destroyed, proceedings may be had for the issuance of a duplicate bond in the place thereof in the manner and with like effect provided in that certain act of the legislature of the state entitled "An act to provide for the issuance of duplicate bonds, warrants and other evidence of indebtedness of counties, municipal and other public corporations," approved June 10, 1933 (Stats. 1933, p. 2175), and the provisions thereof are incorporated herein and made a part hereof by reference thereto.

(Prior code § 2600.47.)

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

(Prior code § 2600.48.)

In the event of a surplus remaining in the redemption fund after payment of all bonds issued under any plan mentioned herein and the interest thereon, for retirement of which such fund was established, such surplus shall, subject to any other special provision therefor hereunder, 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 such bonds, and also of any moneys due it for costs incurred or charges allowed, together with interest on such sums at the rate mentioned in said bonds. The remainder of such surplus shall then be ratably

apportioned to the owners of the lots originally assessed for the payment of said bonds, according to the amounts assessed, the ratable sum allowed to the owners of any lot upon which an assessment remains unpaid being first credited therewith, and such owners being those appearing on the tax roll upon which funds to retire the last installment of said bonds were collected.

(Prior code § 2600.49.)