SECTIONS 8745-8746.4 - California Statutes

STREETS AND HIGHWAYS CODE

SECTION 8745-8746.4

8745. The legislative body may, by resolution, borrow money in
anticipation of the sale of bonds which have been authorized pursuant
to this division, but which have not been sold and delivered, issue
negotiable bond anticipation notes therefor, and renew the notes from
time to time. The maximum maturity of any bond anticipation notes,
including the renewals thereof, shall not exceed three years from the
date of delivery of the original notes.

8745.2. The principal and interest on the bond anticipation notes
may be paid from any money available for their payment. Any portion
of the principal or interest which is due and payable shall be paid
from the proceeds of the next sale of bonds in anticipation of which
the notes were issued.

8745.4. The proceeds of bond anticipation notes issued pursuant to
this part may be used for any purpose for which the bonds in
anticipation of which the notes were issued may be used.

8745.6. The bond anticipation notes shall not be issued in any
amount in excess of the aggregate amount of bonds which the
legislative body has been authorized to issue, less the amount of any
bonds of the authorized issue which have been previously sold and
less the amount of other bond anticipation notes previously issued
and still outstanding.

8745.8. The legislative body may provide, in its resolution
authorizing the issuance of bond anticipation notes, that the note
shall be subject to call and redemption prior to maturity, at the
option of the legislative body, at the price or prices which are
fixed in the resolution, but not to exceed a premium of 6 percent of
the par value of the note subject to redemption. The resolution shall
fix the method of giving notice of redemption to the holders of the
notes to be redeemed and the price or prices at which the note shall
be subject to redemption. Any notes that are subject to call and
redemption prior to maturity shall contain a recital to that effect
on their face, and no note shall be subject to call or redemption
prior to its fixed maturity date unless it contains that recital.

8746. The bond anticipation notes may be issued and sold in the
same manner as the bonds.

8746.2. The bond anticipation notes and the resolution authorizing
them may contain any provisions, conditions, or limitations which a
resolution of the legislative body authorizing the issuance of bonds
may contain.

8746.4. The legislative body shall provide a remedy in its
resolution authorizing the issuance of bond anticipation notes if the
anticipated bonds cannot be sold at the time or in the amount
specified in the resolution or if any default occurs with respect to
the notes. Any remedy which is so provided shall limit the
obligations of property owners within the area subject to assessment
to the amount of the assessment authorized and levied, except that
the legislative body may enter into an agreement with any of the
property owners within the district pledging some or all of the
property of those property owners who are a party to the agreement as
additional security for the notes.