The Placer herald., 1871-07-01
AN ACT.
To Provide for the Payment of the Funded
Indebtedness Of the state of California, and
to Contract n Funded Debt for that Purpose
APPROVED APRIL 9, 1870

to Contract n Funded Debt for that Purpose
APPROVED APRIL 9, 1870.
The People of the State of Calitornio, represented
IN Senate and Assembly, do enact as .fouo,cs:
SECTION l. For the purpose of liquidatinga 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 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 q 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 be of such
denominations ~ 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 accrning thereon as herein provided.
SEC. 3. Coupons for the interest shall be at
tached to each bond so that they may be remov-
ed without injury mrtilation to the bond; said
coupons, consecutively numbered, shall be
signed by the Treasurer of the State
SEC. 4. Before the sale of any of said bonds
the said Loan Commissioners shall cause no.
tees of such sale to be published, for the space
of one month, in three daily newspapers publish
Il ~ of W.
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 newspaper
publisher in German, i'll the City of Frankfort
on-the-M Main, i'll 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; pr0ridcd that said Loan Com
missioners may reject any or all bids If they
deem it to the advantage of the State prorided
further, that they may refuse to make any award
unless sufficient security shall be furnished by
the bidders for the compliance with the terms of
their bids; and prorided further, that said bonds
shall not be sold at less than ninety-one cents
on the dollar, in gold coin, par value.
SEC s. 1t shall be the duty of the Treasurer
and Controller of State each to keep 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 to 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 III having
such bonds prepared and said notices published.
SEC T. The proceeds of such bonds shall be
paid into the State treasury, and shall be ap-
piled to the payment of the following bonds, In
the order of their issuance:
First-The outstanding bonds issued under
the Act entitled an Act TO provide for certain
equitable claims against the State of California,
and to contract funded debt for TINT purpose,
approved April twenty-eighth, eighteen hundred
and ffty-seven.
Second-The outstanding bonds issued under
the Act of eighteen hundred and sixty.
Third-The outstanding soldiers relief bonds
Fourth-The outstanding soldiers bounty
bonds.
SEC. g. All persons having any of the bonds
specfed in section seven of this Act shall, upon
| ~@O
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 a less sum than five hundred dollars
nor for a fractional part of hundred dollars
but the said Loan Commissioners may issue Ger
tfcates of such fractional parts not bonded
which said certificate shall be transferable, ano
entitled to be paid out of the proceeds OF the
sales of any bonds provided for in section sever
of this Act. The Loan Commissioners shal
cancel each bond so exchanged and shall lllndorse
on such bond the date on which they received
the same. and from whom, the number ano
omonnt Of tbe bond issued in exchange therefor
and shall file such bond in the office OF the Sec
retary of State 20,
SEc o Whenever there shall be in the State
treasury. from the proceeds of the sale OF bond.
issued under this Act, sum OF ten thousano
dollars or more it shall be the duty OF the Treas
urer to advertise in two newspapers. prlhtea II
| English one in New York and one III the Capi
tai of the State, for two months, which adver
tsement shall state the amount of of money IL
the treasury applicable to the redemption o.
hnnds and the number Of bonds, numbering
therein the order Of their issuance, which are re
deemabl.; and three months from the date o.
the expiration of such advertisement, snch bonds
unless sooner paid, shall cease to draw intere st
bnt the money for the redemption of such bonds
shall remain in the treasury to pay such pona'
whenever presented :.. .uon.,
SEC. 10. For the payment within twenty
wears of the principal and interest OF the bond
issued under this Act there shall be and is mere
by SI levied annually, after any bonds have bee,
issued under this Act such rate of tax on eaci
one hundred dollars of the assessed value I, .
real and personal property N .ile Saa't, th ~ ho -
,is Of the assessed value of such property TO
the M p preceding year. as shall produce annually 9 ny
for the first five years, seven per ce,luin w ~, ~
mount Of such bonds issued for the e, next .e'
vars thereafter, twelve per contum Of the amour
Of guoh bonds led, and thereafter nh''i ~