The Placer herald., 1871-07-29
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.
TAPPROVED APRIL 2, 1870.

The People Of the state # CalJo,nio, represented
IN Senate and .tsSe0,tiy, do enact as folo,rS:
SECTION J. For the purpose of liquidatingand
providing t6r the payment of the funded indebt-
edness of tie 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 snd Loan Commissioners are
hereby authorized to issue and sell not exceed
ing three millions seven hundred thousanc dol
lars of the bonds of said State, bearing interest
mt the rate of siy PEI cent. per annum which IN
terest shall be payable scmi-anpually, 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 snch
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 Qf 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
ed without injury or n,rtilation to 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 no.
tees of such sale to be published, for the space
of one month, in three daily newspapers publish
ed in English, one in the Ci.y 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 III daily newspaper published III
French in the City of Paris, iii France, and for
the space of one month in daily newspaper
published in German, in the City of Frankfort.
on-the Main in Germany. Such notice shall
specify the amount Of bonds 10 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 dav and hour named in said notice, the said
Loan Commissioners shall open all sealed pro-
posals received by them, and shall award the
purchase of said bonds to such bidders rs will,
in their opinion make the most advantageous
bid for the State; prorided that said Loan Com
mssoners may reject any or all bids, II they
deem il to the advantage of the State; pr0rided
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. 5. 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 issued,
SEC. 6. 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 Ill 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-
plied to the payment of the following bonds, IN
the order of their issuance:
First-rhe 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 that purpose,
approved April twenty-eighth, eighteen hundred
and ffty-seyen,
Sec0nd-The outstanding bonds issued under
the Act of eighteen hundred and sixty.
1Hird-The outstanding soldiers relief tonds.
Fouth-The outstanding soldiers bounty
| bonds
SEC. 8. All persons having any Of the bonds
speciGed i'll section seven of this Act shall, upon
PRESENTATION of such bonds to the said Loan
| commissioners be entitled to exchange them at
their par value for bonds authorized to be issued
under this Act at the rate of ninety-three cents
on the dollar par value, but no BOND shaii De
| ;ssrod for n less sum than five hundred dollars,
nor for a fractional part of a hundred dollars,
but the said Loan Commissioners may issue GER
tifcates 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 IN section seven
of this Act. The Loan COMMISSIONERS Shail
cancel each bond so exchanged, and shall indorse
SEC. 0. Whenever there shall be in the state
treasury. from the proceeds Of the sale OF bonds