Article 5m. Veterans Bond Act Of 1976 of California Military And Veterans Code >> Division 4. >> Chapter 6. >> Article 5m.
This article may be cited as the Veterans Bond Act of
The State General Obligation Bond Law, except as otherwise
provided herein, is adopted for the purpose of the issuance, sale,
and repayment of, and otherwise providing with respect to, the bonds
authorized to be issued by this article, and the provisions of that
law are included in this article as though set out in full in this
article. All references in this article to "herein" shall be deemed
to refer both to this article and such law.
As used in this article and for the purposes of this
article as used in the State General Obligation Bond Law, Chapter 4
(commencing with Section 16720), Part 3, Division 4, Title 2 of the
Government Code, the following words shall have the following
(a) "Bond" means veterans bond, a state general obligation bond
issued pursuant to this article adopting the provisions of the State
General Obligation Bond Law.
(b) "Committee" means the Veterans' Finance Committee of 1943,
created by Section 991.
(c) "Board" means the Department of Veterans Affairs.
(d) "Fund" means the Veterans' Farm and Home Building Fund of 1943
created by Section 988.
(e) "Bond Act" means this article authorizing the issuance of
State General Obligation Bonds and adopting Chapter 4 (commencing
with Section 16720), Part 3, Division 4, Title 2 of the Government
Code by reference.
For the purpose of creating a fund to provide farm and
home aid for veterans in accordance with the provisions of the
Veterans' Farm and Home Purchase Act of 1974 and of all acts
amendatory thereof and supplemental thereto, the Veterans' Finance
Committee of 1943, created by Section 991, shall be and hereby is
authorized and empowered to create a debt or debts, liability or
liabilities, of the State of California, in the aggregate amount of
five hundred million dollars ($500,000,000), in the manner provided
herein, but not otherwise, nor in excess thereof.
All bonds herein authorized, which shall have been duly
sold and delivered as herein provided, shall constitute valid and
legally binding general obligations of the State of California, and
the full faith and credit of the State of California is hereby
pledged for the punctual payment of both principal and interest
There shall be collected annually in the same manner and at the
same time as other state revenue is collected such a sum, in addition
to the ordinary revenues of the state, as shall be required to pay
the principal and interest on said bonds as herein provided, and it
is hereby made the duty of all officers charged by law with any duty
in regard to the collections of said revenue, to do and perform each
and every act which shall be necessary to collect such additional
On the several dates on which funds are remitted pursuant to
Section 16676 of the Government Code for the payment of the then
maturing principal and interest on the bonds in each fiscal year,
there shall be returned into the General Fund in the State Treasury,
all of the money in the Veterans' Farm and Home Building Fund of
1943, not in excess of the principal of and interest on the said
bonds then due and payable, except as hereinafter provided for the
prior redemption of said bonds, and, in the event such money so
returned on said remittance dates is less than said principal and
interest then due and payable, then the balance remaining unpaid
shall be returned into the General Fund in the State Treasury out of
said Veterans' Farm and Home Building Fund of 1943 as soon thereafter
as it shall become available, together with interest thereon from
such dates of maturity until so returned at the same rate as borne by
said bonds, compounded semiannually.
There is hereby appropriated from the General Fund in the
State Treasury for the purpose of this article, such an amount as
will equal the following:
(a) Such sum annually as will be necessary to pay the principal of
and the interest on the bonds issued and sold pursuant to the
provisions of this article, as said principal and interest become due
(b) Such sum as is necessary to carry out the provisions of
Section 998.007, which sum is appropriated without regard to fiscal
For the purposes of carrying out the provisions of this
article the Director of Finance may by executive order authorize the
withdrawal from the General Fund of an amount or amounts not to
exceed the amount of the unsold bonds which have been authorized to
be sold for the purpose of carrying out this article. Any amounts
withdrawn shall be deposited in the Veterans' Farm and Home Building
Fund of 1943. Any moneys made available under this article to the
board shall be returned by the board to the General Fund from moneys
received from the sale of bonds sold for the purpose of carrying out
this article, together with interest at the rate of interest fixed in
the bonds so sold.
Upon request of the Department of Veterans Affairs,
supported by a statement of the plans and projects of said department
with respect thereto, and approved by the Governor, the Veterans'
Finance Committee of 1943 shall determine whether or not it is
necessary or desirable to issue any bonds authorized under this
article in order to carry such plans and projects into execution,
and, if so, the amount of bonds then to be issued and sold.
Successive issues of bonds may be authorized and sold to carry out
said plans and projects progressively, and it shall not be necessary
that all the bonds herein authorized to be issued shall be sold at
any one time.
So long as any bonds authorized under this article may be
outstanding, the Director of Veterans Affairs shall cause to be made
at the close of each fiscal year, a survey of the financial condition
of the Division of Farm and Home Purchases, together with a
projection of the division's operations, that survey to be made by an
independent public accountant of recognized standing. The results of
the surveys and projections shall be set forth in written reports
and the independent public accountant shall forward copies of the
reports to the Director of Veterans Affairs, the members of the
California Veterans Board, the appropriate policy committees dealing
with veterans affairs in the Senate and the Assembly, and to the
members of the Veterans' Finance Committee of 1943. The Division of
Farm and Home Purchases shall reimburse the independent public
accountant for his or her services out of any funds that the division
may have available on deposit with the Treasurer of the State of
The committee may authorize the State Treasurer to sell
all or any part of the bonds herein authorized at such time or times
as may be fixed by the State Treasurer.
Whenever bonds are sold, out of the first money realized
from their sale, there shall be redeposited in the General Obligation
Bond Expense Revolving Fund established by Section 16724.5 of the
Government Code such sums as have been expended for the purposes
specified in Section 16724.5 of the Government Code, which may be
used for the same purpose and repaid in the same manner whenever
additional sales are made.