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Article 4. Bonds of California Water Code >> Division 5. >> Part 1. >> Chapter 1. >> Article 4.
All bonds issued under this chapter shall be serial bonds and
of such denominations as the city council determines.
No bond shall be for less than one hundred dollars ($100) nor
for more than one thousand dollars ($1,000).
Not less than one-fortieth part of the whole indebtedness
evidenced by the whole of the issue of bonds shall be, by the terms
of the bonds, made payable each and every year.
Each bond shall be made payable in lawful money of the United
States on a day and at a place designated in the bond, with interest
at the rate specified in the bond.
The interest rate shall not exceed 8 percent per annum, and
shall be fixed by the city council.
The place of payment shall be either at the office of the
treasurer of the city, or at some designated bank in San Francisco,
Chicago, or New York.
The bonds shall be executed on the part of the city by the
mayor or other executive, and the treasurer, and countersigned by the
clerk of the city.
The interest coupons shall be numbered consecutively and
signed by the treasurer.
Any of the bonds may be issued and sold by the city council
at not less than its face value.
The proceeds of the sale of the bonds shall be deposited in
the city treasury to the credit of a designated fund and shall be
applied exclusively to the purposes and objects for which the
electors have voted to incur indebtedness or liability until the
purposes and objects are accomplished, after which the surplus, if
any, may be transferred to the general fund of the city.
