SECTIONS 43850-43860 - California Statutes

GOVERNMENT CODE

SECTION 43850-43860

43850. Whenever a city has an outstanding indebtedness evidenced by
bonds the legislative body may submit to the electors of the city,
at any election held for that purpose, a proposition:
(a) Declaring all or any of the bonds to be at once due and
payable.
(b) Compromising the bonded indebtedness.
(c) Consenting to a judgment in favor of the bondholders.
(d) Providing for the payment of such judgment in installments.

43851. The election shall be called and held in the same manner as
other elections in the city.

43852. The notice of election shall state:
(a) The bonded indebtedness which it is proposed to declare at
once due and payable.
(b) The terms of the proposed compromise.
(c) The terms of the proposed judgment by consent in favor of the
bondholders.
(d) The proposed method of paying the judgment in installments.

43853. The question shall be voted upon as an entirety. If
two-thirds of the electors vote in favor of it, by ordinance the
legislative body shall declare the bonds described in the notice due
and payable.

43854. The legislative body shall carry the compromise into effect
and consent to the judgment specified in the notice of election and
the proposed method of paying the judgment in installments. By
resolution, it shall designate the officers and attorneys to sign the
necessary documents.

43855. It shall provide for the collection of an annual tax
sufficient to pay the interest on the judgment as it falls due and
such portion of the principal as is designated in the notice of
election.

43856. The rights of any nonconsenting holder of bonds specified in
the notice are not affected by the proceedings.

43857. In any action brought upon any of the bonds described in the
notice, the judgment of a court of competent jurisdiction is
conclusive as to the regularity of all proceedings taken.

43858. In any action brought upon any of the bonds described in the
notice of election, the plaintiff shall deposit in court the bonds
upon which he sues.

43859. When the judgment, rendered in accordance with the terms of
the proposed compromise described in the notice, becomes final, the
bonds sued upon shall be delivered to the treasurer of the city
against which the judgment is rendered, to be held by him and his
successors until the judgment has been fully satisfied.

43860. If for any reason the judgment is reversed or set aside, or
if any orders or writs under it are disobeyed by the defendant or its
officers, the treasurer shall return the bonds to the plaintiff. At
his option, the plaintiff may be relegated to all rights which he
held and enjoyed under the bonds, crediting on such rights all
amounts received on the judgment. The court in which the judgment is
rendered shall enforce the duty imposed upon the treasurer.