DIVISION 10. THE IMPROVEMENT BOND ACT OF 1915 [8500. - 8887.]
Division 10 added by Stats. 1941, Ch. 79.
§§ 8500–8887 · 148 sections
PART 1. GENERAL PROVISIONS §§ 8500–8514 · 14 sections
- § 8500 This division may be cited as the Improvement Bond Act of 1915.
- § 8501 Unless the particular provision or the context otherwise requires, the definitions and general provisions contained in this part shall govern the construction…
- § 8502 This division provides an alternative system for the issuance of bonds to represent and be secured by the assessments made to pay the costs and expenses of the…
- § 8502.5 “Assessed” and “assessment” mean assessments made pursuant to subdivisions (d) and (e) of Section 10204, or other law pursuant to which the assessment was…
- § 8503 “City” includes counties, cities and counties and public corporations, districts and agencies.
- § 8504 “Legislative body” means: (a) When used with reference to a county, the board of supervisors. (b) When used with reference to a city, the body which by law…
- § 8505 “Clerk” means: (a) When used with reference to a county, the person or officer who is or acts as the clerk of the legislative body of the county. (b) When used…
- § 8506 “Treasurer” means: (a) When used with reference to a county, the county treasurer. (b) When used with reference to a city, the city treasurer.
- § 8507 As used with reference to a county, “street superintendent” or “superintendent of streets” means the county surveyor, or such other competent county officer as…
- § 8508 As used with reference to a county, “engineer” means the county surveyor, or such other competent county officer as may be appointed by the legislative body of…
- § 8509 “Auditor” means: (a) When used with reference to a county, the county auditor. (b) When used with reference to a city, any person who is charged with the duty…
- § 8510 “Tax collector” means: (a) When used with reference to a county, the county tax collector. (b) When used with reference to a city, the person who is charged…
- § 8511 The provisions of this division relative to the time or place of performance of official duty or relative to the form of any resolution, notice, order, list,…
- § 8514 Notwithstanding any other provision of this division, income realized from the investment of money on deposit in a fund or account established pursuant to this…
PART 2. NOTICE §§ 8530–8550 · 4 sections
CHAPTER 1. Notice by Publication §§ 8530–8532 · 3 sections
- § 8530 Whenever in this division a notice, resolution, order or other matter is required to be published and the manner of such publication is not specified, it shall…
- § 8531 Whenever in this division, a notice, resolution, order or other matter is required to be published and the time for such publication is not specified, it shall…
- § 8532 If there is no newspaper published in the city any notices required to be published under any provision of this division may in lieu of publication, be given…
CHAPTER 2. Notice by Posting § 8550 · 1 section
- § 8550 Whenever in this division a notice, resolution, order or other matter is required to be posted and the time or method for such posting is not specified, the…
PART 3. DETERMINATION TO ISSUE BONDS §§ 8570–8573 · 6 sections
- § 8570 The legislative body of any city may determine that serial bonds, term bonds, or both, shall be issued as provided in this division to represent and be secured…
- § 8571 If the legislative body determines that bonds shall be issued as provided in this division to represent the expense of any proposed work or improvement, it…
- § 8571.3 (a) The legislative body may determine that bonds issued pursuant to this division shall not be subject to refunding pursuant to the procedures of Division 11…
- § 8571.5 The legislative body may determine that bonds issued pursuant to this division may be refunded under specified conditions. If the legislative body so…
- § 8572 A similar description of the bonds shall be inserted in the assessment issued by the street superintendent to the contractor under the Improvement Act of 1911,…
- § 8573 The bond declaration in the resolution of intention, assessment, and notice of recording the assessment may be substantially in the following form: “Notice is…
PART 5. ISSUANCE OF BONDS §§ 8620–8626 · 7 sections
- § 8620 After confirmation of the assessment by the legislative body and after the filing of the statement of payments received upon the assessment by the contractor…
- § 8621 The treasurer shall determine the assessments which are unpaid and the aggregate amount thereof.
- § 8622 The treasurer, if the assessment was levied under the Improvement Act of 1911, or the legislative body, if the assessment was levied under the Municipal…
- § 8623 The bonds shall be immediately delivered to the contractor or its assigns in satisfaction of the balance due upon the assessment and warrant if the assessment…
- § 8624 The estimated cost of incidental expenses, as defined in the law under which the assessment was levied, shall be included in the assessment.
- § 8625 If bonds can not be issued upon the security of any particular unpaid assessments because of a restraining order, injunction or other cause not applicable to…
- § 8626 If the assessment was levied under the Municipal Improvement Act of 1913 or other law, the proceeds of the sale of the bonds shall be paid into the fund of the…
PART 6. FORM AND CONTENT OF BONDS §§ 8650–8655 · 8 sections
- § 8650 (a) Except as provided otherwise by the legislative body pursuant to Section 8650.1, the bonds shall be issued in series and an even annual proportion of the…
- § 8650.1 The legislative body, in its discretion, may determine, either (a) in the resolution of intention describing the improvement work, or (b) thereafter in any…
- § 8651 The final series of installment of the bonds shall mature and be payable on a date which shall not exceed 39 years from the second day of September next…
- § 8651.5 Each bond, or any portion of the bond in a fixed amount or any integral multiple of the fixed amount, shall be subject to redemption in advance of its maturity…
- § 8652 The bonds shall be substantially in the following form: United States of America State of California County of ______ REGISTERED Number REGISTERED $
- § 8653 The bonds shall be signed by the treasurer and the clerk of the legislative body. However, the legislative body may by order authorize the use upon the bonds…
- § 8654 The bonds shall bear interest at the rate specified or determined in the proceedings. The bonds maturing in any year shall constitute the annual series of that…
- § 8655 The bonds, by their issuance, shall be conclusive evidence of the regularity of all proceedings had prior thereto under this division and under the law…
PART 6.5. VARIABLE INTEREST RATE BONDS §§ 8660–8665.5 · 11 sections
- § 8660 As an alternative to any other authority, a legislative body may, at its discretion, issue bonds bearing a variable interest rate pursuant to this division.…
- § 8660.5 The legislative body may determine to issue serial or term bonds, or both, bearing a variable interest rate that represent and are secured by assessments which…
- § 8661 If the legislative body determines to issue bonds as provided in this part to represent the expense of any proposed work or improvement, it shall, in the…
- § 8662 The bonds shall be substantially in the form set forth in Section 8652, except as revised to conform to this part.
- § 8663 The unpaid assessments shall be payable in substantially the manner set forth in subdivision (a) of Section 8680, or in substantially the same manner, but at…
- § 8663.5 Interest on all unpaid assessments shall run from the date of the bonds, and shall be computed for each interest pay period at the date determined pursuant to…
- § 8664 Each bond, or any portion of the bond in a fixed amount or any integral multiple of the fixed amount, shall be subject to redemption in advance of its maturity…
- § 8664.3 The legislative body may, by resolution, specify that the interest rate on the bonds may vary from time to time as determined by a bond index or some other…
- § 8664.5 The legislative body may, by resolution, specify terms and conditions under which the bonds may be converted to a fixed interest rate.
- § 8665 The legislative body may, by resolution, specify terms and conditions under which the city agrees to repurchase the bonds. The legislative body may secure a…
- § 8665.5 The notice of assessment recorded with the county recorder pursuant to Section 3114 shall include the following statement: Notice is further given that unpaid…
PART 7. BOND RECORDS AND PAYMENTS §§ 8670–8672 · 3 sections
- § 8670 The bonds and interest shall be paid at the office of the treasurer or of another paying agent designated by the legislative body.
- § 8671 The treasurer or designated paying agent shall keep a redemption fund designated by the name of the bonds, in which there shall be placed all sums received…
- § 8672 The treasurer or the designated paying agent shall keep a register in his or her office showing the series, number, date, amount, rate of interest, and last…
PART 8. COLLECTION OF ASSESSMENTS §§ 8680–8689 · 10 sections
- § 8680 (a) The unpaid assessments shall be payable in annual installments corresponding in number and proportionate amount to the number of installments and principal…
- § 8681 Interest on all unpaid assessments shall begin to run from the date of filing of the contractor’s statement, or as otherwise provided in the law pursuant to…
- § 8682 (a) A copy of the order of the legislative body determining the assessments remaining unpaid and upon the security of which bonds are issued shall be filed in…
- § 8682.1 (a) In addition to the amounts set forth in Section 8682, the auditor shall further annually enter in the assessment roll on which taxes will next become due,…
- § 8683 If the legislative body conducting the proceedings is not a county and collections of assessments are made by county officials, the county auditor shall,…
- § 8684 Taxpayers shall have the same right to pay assessments together with interest, and any penalties thereon, under protest as they have to pay general city taxes…
- § 8685 If any lot or parcel of land affected by any assessment is not separately assessed on the tax roll so that the installment of the assessment to be collected…
- § 8686 If it appears to the legislative body that, according to the dates when taxes are collected in the city, there will be an insufficient amount on hand to pay…
- § 8688 Any interested owner shall have the right to tender to the treasurer in payment or part payment of any installment of the assessment or interest or penalties…
- § 8689 Within the Bass Lake Improvement District in Madera County, a person who has an interest in any land in the improvement district less than a fee interest, such…
PART 9. ASSESSMENT LIENS AND REASSESSMENTS §§ 8700–8708 · 9 sections
- § 8700 In the event bonds are ordered to be issued, the unpaid assessments, as shown on the list filed by the street superintendent and determined by the legislative…
- § 8701 Such assessments and reassessments and each installment thereof and the interest and penalties thereon shall constitute a lien against the lots and parcels of…
- § 8702 The lien, whether bonds issued to represent the assessment or otherwise, shall be subordinate to all fixed special assessment liens previously imposed upon the…
- § 8703 The lien of a reassessment and a refunding assessment shall have the same priority as the original assessment to which it relates. A supplemental assessment is…
- § 8704 Unmatured installments, interest and penalties secured by any such lien or liens shall not be deemed to be within the terms of any general warranty of title.
- § 8705 If any assessment heretofore or hereafter issued is void or unenforceable, for any cause, or if bonds are issued to represent or be secured by any assessments…
- § 8706 When made, the reassessment shall constitute a trust fund for the redemption and payment of the original bonds issued against the original assessment; or the…
- § 8707 If the legislative body calls in the original issue of outstanding bonds, it may direct the treasurer to, and the treasurer shall thereupon, advance the…
- § 8708 Upon the surrender of the outstanding bonds, the new bonds shall be issued ratably to the holders of the original outstanding bonds. Each holder of such…
PART 10. DIVISION OF LAND AND BOND §§ 8730–8734 · 5 sections
- § 8730 If any lot or parcel of land upon which there is an unpaid assessment against which a bond has been issued under this division, is divided, including a…
- § 8731 The street superintendent shall file with the clerk a report and an amended assessment of the lots or parcels of land described in the order of the legislative…
- § 8732 Upon the filing of the street superintendent’s report and amended assessment the clerk shall fix a time and place for a hearing upon the amended assessment and…
- § 8733 All persons interested in the original assessment, or in the lands affected thereby or in the bonds secured thereby, may, at the time of the hearing or at the…
- § 8734 The clerk shall file the amended assessment as confirmed or modified by the legislative body with the auditor, who shall annually thereafter enter upon the…
PART 10.5. ALTERNATIVE PROCEDURE FOR DIVISION OF LAND AND BOND §§ 8740–8740.5 · 6 sections
- § 8740 The procedures of this part are alternative to Part 10 of this division, relating to division of land and bond.
- § 8740.1 If any lot or parcel of land upon which there is an unpaid assessment represented by bonds issued under this division is subdivided, including a division into…
- § 8740.2 Upon receipt of the application and fee the street superintendent shall apportion to each separate part of the original lot or parcel of land the proportionate…
- § 8740.3 (a) When the apportionment has been made, an application signed by all persons owning an interest in the original lot or parcel of land may be filed with the…
- § 8740.4 When the street superintendent has ascertained that the application is signed by all the necessary persons, and that no request for a hearing has been…
- § 8740.5 The street superintendent shall file the amended assessment with the auditor, who shall annually thereafter enter upon the assessment roll the installments…
PART 10.7. BOND ANTICIPATION NOTES §§ 8745–8746.4 · 8 sections
- § 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…
- § 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…
- § 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…
- § 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…
- § 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…
- § 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…
- § 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…
PART 11. ADVANCE RETIREMENT OF BONDS §§ 8750–8756 · 8 sections
- § 8750 By proceeding in accordance with the provisions of this part the treasurer may advance the maturity of any bond to the second day of March or September in any…
- § 8751 Notice of advanced maturity shall be given in writing to the registered holder or owner of the bond by registered or certified mail or personal service.…
- § 8751.5 In the event the treasurer receives for payment any interest coupon from a bond for which notice of advanced maturity has been given without the bond being…
- § 8752 If notice of advanced maturity is given, the bond shall mature and become payable on the date fixed for maturity in the notice. The holder or owner of the bond…
- § 8753 The cost of serving or publishing the notice of advanced maturity shall be paid from the redemption fund.
- § 8754 More than one bond may be covered in a single notice of advanced maturity.
- § 8755 Prior to the surrender of any bond or the setting aside of any funds, the treasurer may waive and vacate any notice of advanced maturity upon being tendered…
- § 8756 In selecting bonds for retirement, the treasurer shall follow the procedure set forth in Section 8768. The decision of the treasurer in selecting bonds for…
PART 11.1. ALTERNATIVE PROCEDURE FOR COLLECTING ASSESSMENTS AND ADVANCE RETIREMENT OF BONDS §§ 8760–8769 · 6 sections
- § 8760 The procedures of this part are alternative to Part 8 (commencing with Section 8680) and Part 11 (commencing with Section 8750) relating to the partial or full…
- § 8766 The owner of assessed land, except land which has been ordered to judicial foreclosure pursuant to Section 8830, may prepay the assessment and remove the lien…
- § 8766.5 The owner of assessed land, except land which has been ordered to judicial foreclosure pursuant to Section 8830, may prepay the assessment in part and remove…
- § 8767 Upon receiving a partial or full prepayment of an assessment, the treasurer shall deposit it in an assessment prepayment subaccount of the bond redemption…
- § 8768 The treasurer shall select bonds for retirement in such a way that the ratio of outstanding bonds to issued bonds shall be approximately the same in each…
- § 8769 Before issuing bonds pursuant to this division, the legislative body shall determine, and shall declare in the resolution of intention, one of the following:…
PART 12. REDEMPTION FUND DEFICIENCIES §§ 8770–8784 · 14 sections
- § 8770 If it appears to the treasurer that there is danger of an ultimate loss accruing to the bondholders for any reason, he or she shall withhold payment on all…
- § 8771 On receipt of the report, the legislative body shall fix a date for hearing thereon. The clerk shall give notice of the hearing by posting for 10 days. At the…
- § 8772 If the legislative body determines that in its judgment there will be a shortage in the redemption fund, it shall direct the treasurer to pay to the holders of…
- § 8773 In order to facilitate the making of proportionate payments, the holders of outstanding bonds shall surrender them to the treasurer for registration and…
- § 8774 The legislative body may hold supplemental hearings on like notice and such other and supplemental orders may be made from time to time as may be equitable and…
- § 8775 If a deficiency occurs in the redemption fund with which to pay past due bonds, past due interest, or bonds or interest which will become due during the…
- § 8776 When funds become available for the payment of any bond which was not paid upon presentment, the treasurer shall notify the registered owner thereof by…
- § 8778 If a deficiency remains in the redemption fund after one year from the issuance of the bonds, the legislative body may require all persons interested to appear…
- § 8779 Notice of the hearing shall be given by publication, and shall also be posted by the street superintendent in the same manner as provided by the law pursuant…
- § 8780 At the time set for the hearing the legislative body shall proceed to hear any person appearing and may determine whether or not such deficiency was due to the…
- § 8781 The cost of the publication and posting of the notice and of making the supplemental assessment may be included in the supplemental assessment. A copy of the…
- § 8782 The legislative body may provide in its order levying the supplemental assessment that the supplemental assessments may be collected in annual installments…
- § 8783 All money collected on the supplemental assessment shall be paid into the redemption fund and be applied to the payment of the costs of publishing and posting…
- § 8784 If there is a surplus remaining in the redemption fund after payment of all bonds and the interest thereon, that surplus shall first be applied to repayment to…
PART 13. SALE FOR DELINQUENCY §§ 8800–8809 · 9 sections
- § 8800 Upon default in the payment of any installment of principal or interest on any assessment or reassessment, the lands securing those installments and…
- § 8801 If any lot or parcel of land becomes tax-defaulted property for nonpayment of taxes and of any installment of the assessment thereon, or of the penalties,…
- § 8802 The city may pay and transfer into the redemption fund the amount of the delinquent assessment and of the delinquent interest for which the property has become…
- § 8803 If a county or a city whose taxes are collected by the county is conducting the proceedings and the county or city has advanced available funds either in…
- § 8804 If there are no available funds in the treasury with which to make payment of the amount of the delinquent assessment and interest for which the property was…
- § 8805 If the city has made advances as provided in Section 8803 with respect to any installment and any succeeding installment of the assessment or of the interest…
- § 8806 Notwithstanding Section 8805, if a city has advanced available funds either in performance of its obligations in proceedings wherein the assessment was levied…
- § 8808 The city shall have the right to advance and pay any other taxes wherever necessary to protect its interest in property against which there is a delinquent…
- § 8809 The legislative body, shall, at the time of fixing the annual tax rate and levying the taxes to be collected for general city purposes, levy a special tax upon…
PART 14. FORECLOSURE BY ACTION §§ 8830–8837 · 9 sections
- § 8830 (a) As a cumulative remedy, if any assessment or reassessment or installment thereof, or of any interest thereon, together with any penalties, costs, fees, and…
- § 8831 Costs in the action shall be fixed and allowed by the court and shall include a reasonable attorney’s fee, interest, penalties and other charges or advances…
- § 8832 (a) The court shall have the power to adjudge and decree a lien against the lot or parcel of property covered by the assessment or reassessment for the amount…
- § 8833 (a) When any foreclosure actions are ordered by the local agency or legislative body, or when subsequent installments and interest that are also to be made the…
- § 8833.5 At any time after the tax collector has been relieved of further duty with regard to amounts charged against him or her on account of the assessments or…
- § 8834 The foreclosure action shall be brought in the name of the city or a trustee employed on behalf of the bondholders pursuant to Section 8830, and may be brought…
- § 8835 The amount of penalties, costs and interest due shall be calculated up to the date of the judgment.
- § 8836 (a) In the event a lot or parcel of property fails to sell for the minimum price required by Section 8832, the city may petition the court to modify its…
- § 8837 This section applies if delinquent assessment installments, together with any penalties, interest, and costs, are collected through the sale of the property by…
PART 14.5. TITLE TAKEN BY PURCHASER § 8840 · 1 section
- § 8840 Except as otherwise provided in Section 8836 and notwithstanding any other provision of law, the purchaser of property subject to delinquent installments of…
PART 15. MISCELLANEOUS PROVISIONS §§ 8850–8851 · 2 sections
- § 8850 No bond, assessment, or installment thereof or of the interest or penalties thereon, or declaration of default or deed shall be held invalid for any error in…
- § 8851 Upon the application of the legislative body or of any holder or other interested party, the Commissioner of Financial Institutions shall examine into the…
PART 16. SPECIAL SECURITY FUND §§ 8880–8887 · 8 sections
- § 8880 In any proceedings leading to the issuance of bonds pursuant to this division, the legislative body may include, as an incidental expense of the proceedings,…
- § 8881 Where a special reserve fund is created for a bond issue, the assessment levied on any parcel for the payment of the bond issue shall be reduced upon the…
- § 8882 Upon receipt of the bond sale proceeds, the amount so provided for the special reserve fund pursuant to Section 8880 shall be transferred to the fund. The…
- § 8883 The money in the special reserve fund shall be available for transfer into the redemption fund for the bonds pursuant to Part 13 (commencing with Section…
- § 8884 Whenever an assessment is paid off following the issuance of bonds, there shall be transferred, from the special reserve fund to the redemption fund, an amount…
- § 8885 Whenever the balance in the special reserve fund is sufficient to retire all remaining outstanding bonds in the issue, whether by advance retirement or…
- § 8886 Money in the special reserve fund may be temporarily invested in any authorized investments pursuant to Article 1 (commencing with Section 53600) of Chapter 4…
- § 8887 Notwithstanding any other provision in this part, for the purposes of (1) assuring that the bonds to be issued will not become arbitrage bonds as defined in…