Article 3. Bonds of California Military And Veterans Code >> Division 6. >> Chapter 1. >> Article 3.
Bonds of a district may be issued, sold, and the proceeds
thereof expended in the exercise of any of the powers of the district
or in the accomplishment of the purposes of this chapter whenever
two-thirds of the registered electors of the district who vote upon a
proposal to issue bonds vote in favor thereof.
The board may, and upon petition of eight per cent of the
registered electors of the district shall, submit to the electors of
the district the question whether bonds of the district shall be
issued and sold for the purposes set forth by the board in the notice
calling the election at which the question is submitted.
The question may be submitted at a special bond election
called for that purpose or at a general district election. If called
upon petition of the electors of the district, the question shall be
submitted not later than the ninetieth day after the filing of the
petition therefor with the secretary of the board. The notice calling
the election shall be entered in the minutes of the board and in
addition to other requirements of this chapter governing the general
district election shall contain a statement of the purpose of the
proposed bond issue, the amount of bonds proposed to be issued, and
the rate of interest, not exceeding six per cent, to be paid thereon.
If the question whether bonds of the district are to be
issued is submitted at a special election, such election shall be
noticed, called, conducted, governed, and regulated, in the same
manner prescribed for the general district election.
If at such election two-thirds of the votes cast are in favor
of issuing the bonds of the district, the board shall cause that
fact to be entered upon its minutes and shall at once certify to the
board of supervisors all of the proceedings of the board in
connection with the proposed bond issue, including the purpose
thereof, the amount thereof, rate of interest to be paid thereon, and
the result of the election.
Thereupon, the board of supervisors, by an order entered in
its minutes, shall provide for the issuance and sale of bonds of the
district in the amount approved by the electors of the district at
the election and shall provide for the payment of the proceeds of the
sale of the bonds into the county treasury to the credit of a
special fund known as the memorial district bond fund which shall be
used for the purposes specified in the order of the board of
directors calling the special election and shall be expended upon
warrants of the county auditor.
The board of supervisors shall issue and sell the bonds of
the district in the manner and form prescribed by law for county
bonds and subject to the conditions therein specified regarding the
denominations, maturities, and interest rates of county bonds.
If any officer whose signature, countersignature, or
attestation appears on any district bonds or coupons thereof, ceases
to be such officer before the delivery of the bonds to the purchaser
thereof, such signature, countersignature, or attestation shall
nevertheless be valid and sufficient for all purposes the same as if
such officer had remained in office until the delivery of the bonds.
The signature upon the coupons of the person who is county auditor at
the date of such bonds shall be valid although the bonds themselves
may be attested by a different person who is county auditor at the
time of delivery of the bonds.
The board of supervisors at the time of making the levy of
taxes for county purposes shall levy a tax for that year upon the
taxable property in the district for the interest and redemption of
district bonds. Such tax shall not be less than sufficient to pay the
interest of the bonds for that year and the portion of the principal
due or to become due during the year, and in any event shall be
sufficient to raise annually for the first half of the term of the
bonds the sum necessary to pay the interest thereon; and during the
balance of the term, sufficient to pay the annual interest and to pay
annually a proportion of the principal of the bonds equal to a sum
produced by taking the whole amount of the bonds outstanding and
dividing it by the number of years the bonds then have to run. All
money so collected shall be paid into the county treasury to the
credit of the district bond retirement fund and be used for the
payment of the principal and interest on the bonds and for no other
purpose until all bonded indebtedness of the district has been paid
in full. The principal and interest on bonds shall be paid by the
county treasurer upon the warrant of the county auditor out of the
district bond retirement fund if that fund has sufficient moneys and
otherwise out of any other funds of the district. The county auditor
shall cancel and retain such bonds and coupons when he draws his
warrants on the treasurer in favor of the owners thereof.
Whenever the bonds of a district have been investigated and
certified by any officer of this state authorized to make such
investigation and certification, and by the authority of such
certification have been declared to be legal for investment by
savings banks of this state, then such bonds may be lawfully
purchased or received in pledge for loans by savings banks, building
and loan associations, trust companies, insurance companies,
guardians, conservators, executors, administrators, special
administrators, or by any public officer within this state holding
funds which by law may be invested or loaned.