Section 43727 Of Article 3. Refunding Indebtedness From California Government Code >> Division 4. >> Title 4. >> Chapter 4. >> Article 3.

. The bonds may be sold in the manner provided by the legislative body, to the highest bidder, at such price that the interest rate paid by the city, computed on the sale price, will not exceed 8 percent a year, or may be exchanged for the outstanding evidences of indebtedness pursuant to this article.