BlackletterCalifornia law

CHAPTER 5. Special Assessment and Bond Refunding Law of 1939 [59100. - 59674.]

Chapter 5 added by Stats. 1951, Ch. 331.

§§ 59100–59674 · 167 sections

  1. ARTICLE 1. Definitions and General Provisions §§ 59100–59129 · 31 sections
    • § 59100 This chapter may be cited as the Special Assessment and Bond Refunding Law of 1939.
    • § 59101 Unless the context otherwise requires, the definitions and general provisions contained in this article govern the construction of this chapter.
    • § 59102 If a city legislative body conducts the proceedings under this chapter, the words and phrases defined in the Improvement Act of 1911 shall be construed to have…
    • § 59103 If a county or city and county legislative body conducts such proceedings the words and phrases defined in the Improvement Act of 1911 and the Improvement Bond…
    • § 59103.1 If a public district legislative body conducts such proceedings the words and phrases defined in the Improvement Act of 1911 and the Improvement Bond Act of…
    • § 59104 “Local agency” means city, county, city and county, or public district.
    • § 59105 “Legislative body” means legislative body of the local agency conducting the proceedings.
    • § 59106 “Bonds” includes: (a) Bonds, their coupons, and accrued interest on matured bonds. (b) Cash assessments and accrued interest and penalties where no bonds are…
    • § 59107 “Lot” means land, lot, part of a lot, parcel, or piece of property and includes property owned or controlled by any person as a railroad right of way or as a…
    • § 59108 “Improvement” where used in “special improvement district” means any public improvement. It shall be liberally construed to include: (a) Any acquisition of…
    • § 59109 “Engineer” means: (a) The city engineer, if a city legislative body conducts the refunding proceedings. (b) The county surveyor, if a county legislative body…
    • § 59110 In addition to other proper items, “incidental expenses” includes: (a) Legal, engineering, and other technical services employed by the legislative body to…
    • § 59111 “Cost of the proceedings” means the cost of acquisition and cancellation of the original bonds and the incidental expenses.
    • § 59112 “Clerk” means clerk of the legislative body conducting the proceedings.
    • § 59113 “Tax-deeded land” means any lot deeded to the State for delinquent taxes or for delinquent taxes and assessments.
    • § 59114 “Original bonds” means the outstanding improvement district bonds which are to be acquired and canceled pursuant to this chapter.
    • § 59115 “New bonds” means refunding bonds issued pursuant to this chapter.
    • § 59116 “Original proceedings” means the proceedings by which the original bonds were issued.
    • § 59117 “Proceedings” means proceedings pursuant to this chapter to refund the indebtedness of a district and to levy a reassessment for such indebtedness.
    • § 59118 “New district” means the assessment district proposed to be created, or created, pursuant to this chapter, and which is, or will be, assessed to pay the cost…
    • § 59119 “District” means the district or improvement district against which the original bonds were issued and whose indebtedness is to be refunded pursuant to this…
    • § 59120 Whenever the legislative body determines that the public interest, convenience, or necessity requires the readjustment of assessments and the refunding of…
    • § 59121 Whenever the legislative body determines that the public interest, convenience, or necessity requires the refunding of bonds of an improvement district within…
    • § 59122 This chapter shall be liberally construed to effectuate its purposes.
    • § 59123 In any procedure taken pursuant to this chapter, if any neglect or omission of an officer of a local agency, or any error or informality, does not directly…
    • § 59124 The reassessment provisions and curative clauses of the Improvement Act of 1911 apply to the proceedings and the assessment and bonds levied and issued…
    • § 59125 A legislative body authorized to conduct a proceeding pursuant to this chapter may file a petition and exercise powers under applicable federal bankruptcy law…
    • § 59126 The Special Assessment Investigation, Limitation and Majority Protest Act of 1931 does not apply to proceedings pursuant to this chapter.
    • § 59127 When any notice or resolution is required to be published, publication shall be made in any newspaper published and circulated within the local agency in which…
    • § 59128 When a notice is required to be mailed to property owners, upon the completion of the mailing of the notice, the clerk shall file with the legislative body an…
    • § 59129 Wherever the State, or any county, city, school district, public corporation, or political subdivision owns or has an interest in lands within a district whose…
  2. ARTICLE 2. Authority to Conduct Proceedings §§ 59175–59185 · 12 sections
    • § 59175 Authority to conduct proceedings is conferred upon the legislative body of a local agency pursuant to this article.
    • § 59176 The legislative body which ordered the original bonds issued has complete authority to conduct proceedings.
    • § 59177 If the district lies entirely within a city, the city legislative body has complete authority to conduct proceedings.
    • § 59178 If the district lies entirely within unincorporated territory of a county, the county legislative body has complete authority.
    • § 59178.1 If the district lies entirely within the incorporated territory of a public district, the public district legislative body has complete authority.
    • § 59179 In all cases of incorporation of, annexation of territory to, consolidation of, exclusion of territory from, or the dissolution of, a city or cities, the…
    • § 59180 If a district lies entirely within two or more cities, the legislative body of any city in which any of the district lies may conduct the proceedings.
    • § 59181 If the district lies partly within unincorporated territory of a county and partly within one or more cities, the legislative body of the county, or of any…
    • § 59182 If more than one legislative body has authority to conduct the proceedings or if the legislative body proposing to conduct the proceeding is not that which…
    • § 59183 Such legislative bodies may grant such consent, which shall be expressed by resolution.
    • § 59184 The consent shall be obtained and a certified copy of the resolution filed with the clerk of the legislative body proposing to conduct the proceedings on or…
    • § 59185 When consent has been given, the legislative body to which it was granted has complete authority to conduct proceedings pursuant to this chapter.
  3. ARTICLE 3. Resolution of Intention §§ 59210–59226 · 18 sections
    • § 59210 Before ordering the acquisition and cancellation of any bonds, the legislative body shall adopt a resolution declaring its intention to do so.
    • § 59211 The resolution shall contain a description of the boundaries of the new district.
    • § 59212 If the resolution provides that all of the original bonds of only one district are to be acquired and canceled, the exterior boundaries of the new district…
    • § 59213 The original bonds of contiguous or overlapping districts may be acquired and canceled in a single proceeding. All or part of each of such districts shall lie…
    • § 59214 If the resolution of intention provides that all of the original bonds of more than one contiguous or overlapping district are to be acquired and canceled, the…
    • § 59214.5 Less than all of the original bonds of a district or more than one overlapping districts may be acquired and canceled in a single proceeding when all of the…
    • § 59215 No property within the new district shall be charged in the new assessment with any of the debt of a district of which it was not formerly a part.
    • § 59216 In the resolution of intention the new district may be described or reference made to a map, pursuant to the Improvement Act of 1911.
    • § 59217 The resolution of intention shall: (a) Refer to the original proceedings with sufficient clarity to identify them. (b) Indicate the amount of bonds and of each…
    • § 59218 The resolution shall state: (a) That it is proposed to issue bonds of the new district. (b) The maximum amount for which and the character of the proposed new…
    • § 59219 The resolution of intention shall state: (a) The amount of each sum allocated up to the date of the resolution from any source toward the payment and…
    • § 59220 The legislative body may recite in the resolution of intention the facts upon which it finds that the public interest, convenience, or necessity require the…
    • § 59221 The resolution shall contain a notice of the time and place at which any person objecting to the proposed acquisition and cancellation of the original bonds,…
    • § 59222 The time shall be not less than 15 nor more than 60 days after the adoption of the resolution.
    • § 59223 The resolution of intention shall be published twice in a newspaper designated in the resolution. The first publication shall be at least 10 days before the…
    • § 59224 A notice of the passage of the resolution of intention shall be mailed to each property owner at least 10 days before the date set in the resolution for…
    • § 59225 The notice shall be entitled “Notice to Owners of Proposed Assessment and Bond Refunding.”
    • § 59226 It shall: (a) Give notice of the passage of the resolution. (b) Give notice of its date. (c) Give notice of the time and place of hearing on the resolution.…
  4. ARTICLE 4. Protests to Proposed Refunding and District §§ 59250–59251 · 2 sections
    • § 59250 Written protests against the proposed refunding or the creation of the new district may be made, filed, heard, considered, and passed upon in the time and…
    • § 59251 The legislative body acquires jurisdiction to order the refunding when: (a) No written protests are filed within the proper time. (b) All protests are found…
  5. ARTICLE 5. Notice to Bondholders of Proposed Refunding and Invitation for Proposals §§ 59270–59273 · 4 sections
    • § 59270 The legislative body shall cause a notice of the refunding to be published in a newspaper designated by it.
    • § 59271 The notice shall be headed substantially as follows: “Notice to assessment and bondholders of proposed refunding.”
    • § 59272 The notice shall briefly set forth: (a) The fact of the adoption of the resolution of intention pursuant to this chapter. (b) Its date. (c) The purpose of the…
    • § 59273 In the notice the legislative body shall invite the holders of the original bonds to submit to it one or more written proposals stating the terms upon which…
  6. ARTICLE 5.5. Refunding of Ad Valorem Tax or Assessment Bonds §§ 59280–59286 · 7 sections
    • § 59280 The legislative body shall have power under this chapter to refund bonds which constitute an indebtedness of a local agency or any improvement district or zone…
    • § 59281 Refunding bonds may be issued under this chapter for the purpose of refunding any indebtedness of the local agency which is evidenced by bonds, whether due or…
    • § 59282 The incidental costs of issuing the refunding bonds may be paid by the purchaser of the refunding bonds or may be paid from any other legally available source…
    • § 59283 The proceeds of the sale of any refunding bonds shall be deposited in escrow or in trust with any bank or trust company within or without the state, or both…
    • § 59284 Such proceeds and reinvestments in escrow or in trust shall be in an amount at the time of the issuance of such refunding bonds sufficient to meet the…
    • § 59285 Upon the issuance, sale and delivery or exchange of refunding bonds pursuant to this article, if both the refunding bonds and the bonds to be refunded remain…
    • § 59286 In proceeding under the alternatives provided for in this article, it shall be unnecessary for the legislative body to give notice to the bondholders and to…
  7. ARTICLE 6. Diagram §§ 59290–59292 · 3 sections
    • § 59290 If pursuant to the notice, the bondholders file with the legislative body one or more written proposals for the surrender and cancellation or redemption of not…
    • § 59291 If in the original proceedings for formation of the district and the issuance of bonds any lot was excepted from the special assessment tax levy to pay the…
    • § 59292 The diagram shall show each lot in the new district and its dimensions sufficient to identify it.
  8. ARTICLE 7. Reassessment §§ 59320–59324 · 5 sections
    • § 59320 In refunding the indebtedness of a district the total amount of the reassessment to be levied pursuant to this chapter and any contributions shall not exceed…
    • § 59321 Upon completion of the diagram the engineer or such other person as the legislative body designates shall estimate the benefit to be received by each lot in…
    • § 59322 The engineer or such other person shall assess upon and against the land in the new district the total net amount of the cost of the proceedings to be assessed…
    • § 59323 Tax deeded lands are subject to reassessment in refunding proceedings pursuant to this chapter.
    • § 59324 In making the assessment and estimating the benefits to be received by each lot, the engineer or other person shall consider, among other things, the…
  9. ARTICLE 8. Notice of Assessment Hearing §§ 59350–59358 · 9 sections
    • § 59350 When the diagram and assessment have been made, they shall be attached together and filed with the clerk.
    • § 59351 Upon such filing, the clerk shall give notice of the filing and of a time to be fixed in the notice by him when all persons interested in the acquisition and…
    • § 59352 The notice shall: (a) Recite that a bondholders’ proposal has been filed. (b) Briefly indicate its terms. (c) Refer to the resolution of intention, the…
    • § 59353 The notice shall contain a statement that before the legislative body may finally confirm the diagram, assessment, bondholders’ proposal, and proceedings,…
    • § 59354 The notice shall state that any such owner may file his written consent to the refunding at any time prior to the adoption of the resolution of final…
    • § 59355 The notice shall be posted for not less than 10 days on or near the door of the chamber in which the legislative body conducts its regular public meetings.
    • § 59356 Before the date designated for the hearing, the notice shall be published twice in the newspaper in which the resolution of intention was published, if still…
    • § 59357 The clerk shall mail a copy of the notice to the owners at least 10 days prior to the time fixed for the hearing.
    • § 59358 The mailed notice shall also: (a) Designate the property within the new district belonging to the owner by a description sufficient to enable him to identify…
  10. ARTICLE 9. Hearing on Assessments §§ 59380–59385 · 6 sections
    • § 59380 As used in this article, “interested person” means an owner or any other person interested in any of the following: (a) The proposed acquisition and…
    • § 59381 Prior to the time fixed for the assessment hearing any interested person may appeal to the legislative body by briefly stating in writing the grounds of his…
    • § 59382 At the time set for hearing protests the legislative body shall hear and pass upon all protests so made.
    • § 59383 Upon such appeal, the legislative body may: (a) Remedy and correct any error or informality in the proceedings. (b) Revise and correct any of the acts or…
    • § 59384 After notice and hearing of assessment pursuant to this chapter all the decisions of the legislative body are conclusive upon all persons entitled to appeal,…
    • § 59385 If the resolution of intention is actually published pursuant to this chapter, a court shall not invalidate any assessment, diagram, or proceedings prior to…
  11. ARTICLE 10. Preliminary Confirmation §§ 59410–59413 · 4 sections
    • § 59410 When no appeal is taken or when the orders and determinations of the legislative body upon appeal have been complied with and it is satisfied with the…
    • § 59411 In the resolution the legislative body shall determine: (a) The amount for which each issue of original bonds are to be acquired. (b) The amount of the…
    • § 59412 Before the legislative body may proceed after the preliminary confirmation or finally confirm the proceedings, including the diagram, assessment, and…
    • § 59413 The State Controller may sign any consent to the refunding and reassessment for the State and the board of supervisors of the county in which the property lies…
  12. ARTICLE 11. Final Confirmation §§ 59440–59441 · 2 sections
    • § 59440 The assessment hearing shall be continued from time to time and the legislative body has continuing jurisdiction to determine by resolution whether and when…
    • § 59441 If the legislative body determines that the consents have been filed, it shall by resolution finally confirm the proceedings, the assessment and diagram, and…
  13. ARTICLE 12. Recording of Assessment §§ 59470–59476 · 7 sections
    • § 59470 If the proceedings are conducted by a city legislative body, the reassessment as confirmed shall be recorded with the city superintendent of streets.
    • § 59471 If the proceedings are conducted by a county legislative body, the reassessment as confirmed shall be recorded with the county surveyor.
    • § 59472 The reassessment shall not be recorded until the occurrence of either of the following: (a) The holders of all original bonds and coupons contract by…
    • § 59473 When recorded, the amounts so reassessed upon the lots are a lien on the lots as of the date of recordation.
    • § 59474 The lien shall continue until the reassessment and the interest and penalties are paid or until it is discharged of record.
    • § 59475 The lien has priority over all special assessment liens created against the same property subsequent to the date of recordation.
    • § 59476 From the date of the recording all persons are deemed to have notice of the contents of the reassessment.
  14. ARTICLE 13. Payment of Assessments §§ 59500–59515 · 16 sections
    • § 59500 If a bond has not been issued to represent the reassessment, the amounts assessed in the reassessment are payable to the superintendent of streets or county…
    • § 59501 Upon payment of any reassessment, such superintendent of streets or the county surveyor shall mark note of the payment upon the reassessment and shall cancel…
    • § 59502 Immediately upon recordation, the officer with whom the reassessment is recorded shall give notice that: (a) The reassessment has been recorded in his office.…
    • § 59503 The notice shall be published once a week for two weeks in a newspaper designated by the legislative body.
    • § 59504 Notice shall also be given by mailing a postcard to the owners.
    • § 59505 Any reassessment upon public property shall be paid by the officer or board having charge of the disbursement of the funds of the owner of the property. The…
    • § 59506 If money is not available for the payment of the reassessment, the board or officer who levies taxes for the owner of the public property shall include in the…
    • § 59507 Any reassessment upon public property not in use in the performance of a public function may be foreclosed pursuant to Sections 5398 to 5421, inclusive, of the…
    • § 59508 The foreclosure action shall be brought in the name of the local agency whose legislative body levied the reassessment upon the request of any person entitled…
    • § 59509 The foreclosure action may be brought by any competent attorney appointed by the legislative body which levied the reassessment.
    • § 59510 New bonds shall not issue against public property and the list of unpaid reassessments to be filed with the treasurer shall not include any unpaid…
    • § 59511 If a reassessment has been levied upon tax-deeded land and upon the recordation of the reassessment, the clerk shall send to the auditor of the county in which…
    • § 59512 If the property was deeded to a city or other municipal or public corporation for nonpayment of its taxes, the computation of the amount to be deducted for…
    • § 59513 After the adoption of the resolution of intention in the proceedings all sums paid for any lot into the interest and sinking fund for the payment of principal…
    • § 59514 After the expiration of 30 days from the date of recording the reassessment, the officer with whom the reassessment is recorded shall make and certify to the…
    • § 59515 The list shall exclude reassessments upon public property, but shall include tax-deeded land and all other land.
  15. ARTICLE 14. Contributions §§ 59530–59536 · 7 sections
    • § 59530 To aid in refunding the indebtedness of a district, entirely or partly within a city or unincorporated county territory, any city in which all or part of the…
    • § 59531 The legislative body making any contribution of public funds to aid in the refunding shall determine that the public interest, convenience, or necessity…
    • § 59532 Prior to the final confirmation of the assessment, the legislative body may receive and accept cash contributions from any source. The contributions shall be…
    • § 59533 If the proceedings for which contributions are made are not consummated, the legislative body may refund any contribution to the person who made it.
    • § 59534 If contributions are made exclusively for the payment of the incidental expenses, the legislative body may refund pro rata to the persons making them any…
    • § 59535 The legislative body may pay all or part of the costs and expenses of any proceedings from any fund over which it has jurisdiction and control and which is…
    • § 59536 The legislative body may appropriate funds from a general fund or from any funds available for any or all of the purposes contemplated in this chapter.
  16. ARTICLE 15. Acquisition and Cancellation of Bonds of Consenting Bondholders §§ 59560–59562 · 3 sections
    • § 59560 If the holders of all of the original bonds agree to refund them as proposed in the refunding proceeding, all new refunding bonds, all money collected on the…
    • § 59561 Any such proposal or contract may provide such terms of exchange as are agreed upon by the holder and the legislative body and may contain terms relating to…
    • § 59562 When the new bonds or money is delivered to the bondholders, they shall concurrently deliver to the legislative body or its representatives the original bonds…
  17. ARTICLE 16. Acquisition and Cancellation of Bonds of Nonconsenting Bondholders §§ 59590–59598 · 9 sections
    • § 59590 If the holders of one or more of the original bonds do not enter any proposal or contract with the legislative body to refund the bonds but the holders of 75…
    • § 59591 Any local agency authorized by this chapter to appropriate money to aid in refunding the original bonds of the district may make an advancement, contribution,…
    • § 59592 When any local agency, person, or corporation advances money for the payment or retirement of the original bonds of nonconsenting holders, the legislative body…
    • § 59593 If the legislative body makes all or part of such advancement it may reimburse the local agency of which it is the legislative body, entirely or partially by…
    • § 59594 Any cash collected on reassessments and not required to pay consenting bondholders may also be used to reimburse in whole or in part any local agency, person,…
    • § 59595 The legislative body may use any other method of raising funds for the payment or retirement of the original bonds of nonconsenting bondholders which will…
    • § 59596 When money is placed in any fund for the retirement or payment of the original bonds of nonconsenting holders it shall be used only for that purpose. After all…
    • § 59597 If the proposals or contract with the bondholders so provides, the legislative body may sell all of the new bonds for cash and pay the bondholders in cash at a…
    • § 59598 If the discharge of the original bonds of any nonconsenting holders at less than par has been authorized by any final decree or order confirming a plan of…
  18. ARTICLE 17. Foreclosure on Tax-Deeded Land §§ 59620–59621 · 2 sections
    • § 59620 Upon any default in the payment of an installment of interest or principal of any new bond issued to represent a reassessment upon tax-deeded land, the land…
    • § 59621 The State, or the city or other municipal or public corporation may be made a party defendant in such foreclosure suit, or in any quiet title suit brought by…
  19. ARTICLE 18. Bond Plans §§ 59640–59654 · 15 sections
    • § 59640 Serial bonds shall be issued to represent the unpaid reassessments, including unpaid reassessments on tax-deeded land, pursuant to Bond Plan A, B, or C. The…
    • § 59641 Under Bond Plan A, a bond shall be issued to represent each of the assessments remaining unpaid and shall be entitled “Refunding Bond. Bond Plan A.” Such bonds…
    • § 59642 Under Bond Plan B or C bonds shall be issued to represent and be secured by the unpaid assessments upon the reassessment.
    • § 59643 Bond Plan B bonds shall be: (a) Issued in the manner and form provided in the Improvement Bond Act of 1915. (b) Entitled “Refunding Bond. Bond Plan B.” (c)…
    • § 59644 Bond Plan C bonds shall be: (a) Issued in the manner and form provided in the Refunding Assessment Bond Act of 1935. (b) Entitled “Refunding Bond. Bond Plan…
    • § 59645 Any appropriate changes may be made in the wording of the bonds necessary to make them conform to this chapter and the proceedings taken pursuant to this…
    • § 59646 Bond Plan A bonds shall be payable to the person to whom they issue, or order.
    • § 59647 Bond Plan A bonds shall be for the term and bear interest at the rate specified in the resolution of final confirmation.
    • § 59648 Bond Plan A bonds shall have annual coupons attached to them payable in annual order on January 2d of each year after the October 15th following the date of…
    • § 59649 Bond Plan A bonds shall also have semiannual interest coupons attached to them and payable as in the case of bonds issued pursuant to the Improvement Act of…
    • § 59650 The bonds issued under Bond Plans A, B, or C may be redeemed or canceled, have the effect, shall be enforced, paid, and subject to the penalties, and, so far…
    • § 59651 Bond Plan A bonds may be issued for a period of not to exceed 29 years from the January 2d succeeding the October 15th following their date.
    • § 59652 Bond Plan B or C bonds may be issued for not to exceed 29 years after July 2d following the first 10 months after their date.
    • § 59653 The determination of the legislative body as to the form and contents of the bonds issued under any of the plans is conclusive, except that the bonds shall…
    • § 59654 If Bond Plan B or C is used the reassessment and curative clauses and all other bond and assessment provisions of the Improvement Bond Act of 1915 or the…
  20. ARTICLE 19. Validating Proceedings §§ 59670–59674 · 5 sections
    • § 59670 Unless commenced within 60 days after the confirmation of the reassessment, a person shall not maintain any action or proceeding to cancel, annul, or correct…
    • § 59671 An action to determine the validity of the reassessment may be brought pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of…
    • § 59672 In such validation action all findings, conclusions, and determinations of the legislative body which conducted the proceedings are conclusive in the absence…
    • § 59673 If any reassessment or any refunding bond is held invalid in any action or proceedings upon any ground which would apply to the entire reassessment or entire…
    • § 59674 A reassessment of a reassessment made pursuant to this chapter may be ordered and made under this chapter for the reasons and purposes, and when made have the…