The Placer herald., 1871-06-24
AN ACT.
To Provide for the Payment OF the Funded
Indebtedness of the State of California, and
to Contract "a Funded Debt for that Purpose.
(APPROVED APRIL 2, 1870.

Indebtedness of the state of California, a nd
to Contract Funded Debt for that Purpose.
[APPROvED APRIL 2, 1870
TIE People ofthe State Of California;, represented
in Senate and assembly, do enact as .foro,cs:
SECTION L. For the purpose of liquidating and
providing for the payment of the funded indebt-
edness of the State of California hereinafter spec
flied. and to lessen the burden Of taxation. the
Governor of the State, the Controller of State
and the Treasurer of State, and their Successors
in Office, shall constitute a Board of Commits
sioners, to be styled the Loan Commissioners of
the State of California, and shall have and exer-
else the powers and perform the duties herein
after provided.
SEC. 2 The said Loan Commissioners are
hereby authorized to issue and sell not exceed
ing three millions seven hundred thousand dol
lars of the bonds of said State, bearing interest
at the rate of six per cent. per annum, which in
terest shall be payable semi-annually, in gold
coin on the second days in January and July
in each year at the office Of the Treasurer Of
State. The principal of said bonds shall be
made payable in gold coin within twenty years
after the date of their issue and shall b. of such
denominations as the said Loan Commissioners
shall direct, but not less than five hundred dol
lars; shall bear the date of their issue, and shall
be signed by the said Loan Commissioners. and
shall have the seal of the state affixed thereto:
and the faith Of the State Of California is here
by pledged for the payment of said bonds and
the interest accruing thereon as herein provided
! SEC. g. Coupons for the interest shall be at
tached to each bond SO that they may be remoy-
ed without injury or mrtaton 20 the bond; said
coupons, consecutively numbered, shall be
| signed by the Treasurer Of the State.
| SEC. T. Before the sale of any of said bonds
the said Loan Commissioners shall cause mo-
tees of such sale to be published. for the space
of one month, in three daily newspapers publish-
ed in English one in the City of New York, one
in the City of London, in England. and one IN
the Capital of the State; in and for the space of
one month in daily newspaper published in
French in the City of Paris, in France. and for
the space of one month in daily ne wspaper
published in German in the City Of Frankfort
on-the- Main, in Germany Such notice shall
! specify the amount Of bonds to be sold, the rate
of interest they shall bear the day and hour Of
! sale, the place of sale, which shall be at the
State Capital, and that sealed proposals will be
received by the said Loan Commissioners for the
! purchase of such bonds. Within one month
from the expiration of such publication. and on
the day and hour named in said notice the said
! Loan Commissioners shall open all sealed pro-
| posas received by them, and shall award the
| purchase Of said bonds to such bidders as will.
in their opinion, make the most advantageous
bid for the State; proridcd, that said Loan Com.
missioners may reject any or all bids, if they
! deem il to the advantage Of the State, prOrided
further that they may refuse TO make any award
unless sufficient security shall b. furnished by
the bidders for the compliance with tho terms Of
their bids; and prouided further, that said bonds
shall not be sold at less than nincty-one cents
on the dollar in gold coin. par value.
! SEC D. 1t shall be the duty Of the Treasurer
and Controller of State each TO keep n separate
record of all bonds sold under the provisions Of
this Act. showing the number, date. amount and
rate of interest of each bond, and 10 whom the
same was issued.
! SEC g. The sum on one thousand dollars is
/ hereby appropriated out of the General Fund
! for the payment of the expense that may be in
cured by the Loan Commissioners in having
such bonds prepared and said notices published.
SEC T. The proceeds of such bonds shall b.
paid into the State treasury, and shall b. APP
piled to the payment OF the following bonds, in
the order of their issuance
Frs-The outstanding bonds issned under
the Act entitled an Act to provide for certain
equitable claims against the State Of California,
and to contract funded debt for that purpose,
approved April twenty-eighth, eighteen hundred
and fifty-seven.
lSecond-The outstanding bonds issued under
the Act Of eighteen hundred and sixty.
Third-The outstanding soldiers relief bonds.
Fo,Uth-The outstanding soldiers bounty
bonds.
SEC. S. All persons having any of the bonds
specified in section seven of this Act shall, upon
Commissioners, be entitled TO exchange them al
their par value for bonds authorized to be issued
under this Act. at the rate of nnety-three cents
on the dollar, par value. but no bond shall be
issued for n less sum than five hundred dollars,
nor for fractional part of "a hundred dollars,
but the said Loan Commissioners may issue GER
titicates of such fractional parts not bonded,
which said certificate shall be transferable. and
entitled to be paid out of the proceeds Of the
sales of any bonds provided for n section seven
of this Act. The Loan Commissioners shall
cancel each bond so exchanged, and shall ndorse
on such bond the date on, which they rQ.eiyed
the same and from whom the number and
amount of the bond issued in exchange therefor,
and shall file such bond in the Office Of the See
retary Of State.
SEC. 0. Whenever there shall be in the State
treasury, from the proceeds Of the sale OF bonds
issued under this Act, a sum Of ten thousand
dollars or more. it shall be the duty Of the Treas
urer to advertise in two newspapers, printed in
English, one in New York and one in the Capt.
tai of the State, for two months, which adver-
tisement shall state the amount of Of money in
the treasury applicable to the redemption of
bonds, and the number of bonds, numbering
therein the order of their issuance which are re-
deemable; and three months from the date Of
the expiration Of such advertisement such bonds
unless sooner paid, shall cease TO draw interest
but the money for the redemption of such bonds
shall remain in the treasury 10 pay such bonds
whenever presented.
SEC 10. For the payment within twenty
years of the principal and interest of the bonds
issued under this Act there shall be and IL here
by levied annually, after any bonds have been
issued under this Act, such rate OF tax on each
one hundred dollars of the assessed value Of
real and personal property in the State to be
computed by the Controller Of State on the ba-
sis of the assessed value of such property for
the preceding year, as shall produce annually,
for the first five years, seven per centum oi III,
amount Of such bonds issued, for the next ton
years thereafter, twelvcper centum OF the amount
of such bonds is !, and thereafter, until ell