SECTIONS 43820-43824 - California Statutes

GOVERNMENT CODE

SECTION 43820-43824

43820. In its ordinance or resolution authorizing the issuance of
bonds, a city legislative body may provide that a certain portion of
such bonds, as determined and specified in the ordinance or
resolution, will be paid by the city each year prior to maturity, at
the option of the holders, pursuant to this article. Such advance
payment of bonds shall be in addition to the payment of bonds of the
same issue at maturity.

43821. In the ordinance or resolution, the legislative body shall
prescribe the method for determining the particular bonds to be paid,
and the manner in which they are payable. It shall also fix the
amount to be paid by the city in lieu of interest on the bonds
accrued but not due at the time of the payment. This amount shall not
exceed the amount of accrued interest.

43822. If the provision is made for the payment of bonds in advance
of maturity, the legislative body shall levy and collect a tax
which, with any other funds in the treasury set apart for the
purpose, is sufficient to pay the portion of such bonds becoming
payable before maturity and prior to the time for fixing the next
general tax levy. The tax shall be levied and collected annually
until all such bonds are paid, or there is a sufficient sum in the
city treasury set apart for that purpose to meet all sums due or to
become due on the principal of the bonds.

43823. Such taxes are in addition to all other taxes levied and
collected for municipal purposes and for meeting payments on the
principal and interest of the bonded indebtedness as they fall due.
They shall be levied and collected at the time and in the manner of
other municipal taxes, and be used only for the purpose of paying
bonds prior to maturity.

43824. The amount fixed by the legislative body to be paid in lieu
of interest accrued but not due shall be paid by the city out of the
fund in its treasury for meeting sums coming due for interest on such
bonds. At the time of payment of the bonds, this amount, and all due
and unpaid interest shall be paid upon surrender of all outstanding
interest coupons on the bonds.