Article 4. General Obligation Bonds of California Harbors And Navigation Code >> Division 8. >> Part 7. >> Chapter 6. >> Article 4.
Whenever the board deems if necessary for the district to
incur a general obligation bonded indebtedness for (a) the
acquisition, construction, completion or repair of any or all
improvements, works or property mentioned in this part, or (b) the
funding or refunding of any outstanding indebtedness of the district,
including premiums, if any be payable, the board shall, by
resolution, so declare and call an election to be held in the
district for the purpose of submitting to the qualified voters the
proposition of incurring indebtedness by the issuance of bonds of the
The resolution shall state:
(a) The purpose for which the proposed debt is to be incurred,
which may include expenses of all proceedings for the authorization,
issuance and sale of the bonds.
(b) The amount of debt to be incurred.
(c) The maximum term the bonds proposed to be issued shall run
before maturity, which shall not exceed 40 years.
(d) The maximum rate of interest to be paid, which shall not
exceed 6 percent per annum, payable semiannualy, except that interest
for the first year may be payable at the end of the year.
(e) The measure to be submitted to the voters.
(f) The date upon which an election shall be held for the purpose
of authorizing the bonded indebtedness to be incurred; and
(g) The designation of the precincts, the location of the polling
places and the names of the officers selected to conduct the
election, who shall consist of one inspector, one judge, and two
clerks in each precinct.
Notice of the holding of the election shall be given by
publishing the resolution calling the election pursuant to Section
6066 of the Government Code in at least one newspaper published in
the district. The first publication to be at least two weeks prior to
the date of the election. If there is no newspaper published in the
district the resolutions shall be posted in three public places in
the district for not less than two weeks prior to the date of the
election. No other notice of the election need be given.
The returns of the election shall be made, the votes
canvassed at least seven days following the election, and the results
thereof ascertained and declared in accordance with the provisions
of the Elections Code, so far as they may be applicable, except as
otherwise provided in this part. The secretary, as soon as the result
is declared, shall enter in the district records a statement of the
result of the election.
No irregularities or informalities in conducting the election
shall invalidate the same, if the election shall have been otherwise
Any action or proceeding wherein the validity of the election
or of the proceedings in relation thereto is contested, questioned
or denied, shall be commenced within three months from the date of
the election; otherwise the election and all proceedings in relation
thereto shall be held to be valid and in every respect legal and
If from the election returns it appears that more than
two-thirds of the votes cast upon the measure were in favor of and
assented to the incurring of the general obligation bonded
indebtedness, then the board may, by resolution, at the time or times
it deems proper, issue bonds of the district for the whole or any
part of the amount of the indebtedness so authorized, and may from
time to time provide for the issuance of such amounts as the
necessity thereof may appear, until the full amount of the bonds
authorized shall have been issued.
The full amount of bonds may be divided into two or more
series and different dates fixed for the bonds of each series. The
maximum term which the bonds of any series shall run before maturity
shall not exceed 40 years from the date of each series respectively.
The board shall, by resolution, prescribe the form of the
bonds and the form of the coupons attached thereto and fix the time
when the whole or any part of the principal shall become due and
payable. The payment of the first installment of principal may be
deferred for a period of not more than five years from the date of
the bonds or the date of the bonds of each series respectively.
The bonds shall bear interest at a rate or rates not to
exceed 6 percent per annum payable semiannually, except that interest
for the first year shall be payable at the end of the year.
The board may also provide for the call and redemption of
bonds prior to maturity at the time and prices and upon such other
terms as it may specify. A bond shall not be subject to call or
redemption prior to maturity unless it contains a recital to that
effect, or unless a statement to that effect is printed thereon.
The denomination of the bonds shall be stated in the
resolution providing for their issuance, but shall not be less than
one hundred dollars ($100).
The principal and interest shall be payable in lawful money
of the United States at the office of the treasurer of the district
or at any other place or places as may be designated, or at either
place or places at the option of the holder of the bond.
The bonds shall be dated, numbered consecutively, and be
signed by the president of the board and the treasurer of the
district and countersigned by the secretary of the district and the
official seal of the district affixed. The interest coupons of the
bonds shall be signed by the treasurer of the district. All the
signatures and countersignatures may be printed, lithographed or
mechanically reproduced, except that one of said signatures or
countersignatures to said bonds shall be manually affixed.
If any officer whose signature or countersignature appears on any
bonds or coupons ceases to be an officer before the delivery of the
bonds to the purchaser, the signature or countersignature either on
the bonds or the coupons, or on both, is nevertheless valid and
sufficient for all purposes the same as if the officer had remained
in office until the delivery of the bonds, and the signature upon the
coupons of the person who is treasurer at the date of the bonds, is
valid although the bonds themselves may be attested by a different
person who is treasurer at the time of delivery of the bonds.
Before selling the bonds, or any part thereof, the board
shall give notice inviting sealed bids in such manner as it may
prescribe. If satisfactory bids are received, the bonds offered for
sale shall be awarded to the highest responsible bidder. If no bids
are received or if the board determines that the bids received are
not satisfactory as to price or responsibility of the bidders, it may
reject all bids received, if any, and either readvertise or sell the
bonds at private sale.
The proceeds from the sale of the bonds shall be paid into
the treasury of the district and placed to the credit of a special
improvement fund and expended only for the purpose for which the
indebtedness was created; however, when the purpose has been
accomplished, any moneys remaining in the special improvement fund
may be transferred to the fund to be used for the payment of the
principal of and interest on the bonds.
Any action or proceeding, wherein the validity of any such
bonds or of proceedings in relation thereto is contested, questioned
or denied, shall be commenced within three months from the date of
the issuance thereof; otherwise said bonds and all proceedings in
relation thereto shall be held to be valid and in every respect legal
Any general obligation bonds issued by a district shall have
the same force, value and use as bonds issued by any city and shall
be exempt from all taxation within the State of California.