The Placer herald., 1871-06-17
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
GAPPRONED APRIL q 1901

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 2, 1870
The People Of the State of California; represented
in Senate and Assembly, do enact as .folo,cs:
SECTION l. For the purpose Of ofliquidating and
providing for the payment of the funded indebt-
,dness of the State of California hereinafter spec
fed, and TO lessen the burden of taxation. the
Governor of the State, the Controller of STATE
md 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 q The said Loan Commissioners are
hereby authorized to issue and sell not exceed
| ing three millions seven hundred Thousand dol
ars of the bonds of said State, beariLg interest
ut the rate of six per cent. per annum, which in
terest shall be payable semi-annuay 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
tfter the date of their issue and shall be 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
b 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 accriing thereon as herein provided.
! SEC.3 Coupons for the interest shall be at
! tached to each bond so that they may be rem
ed without injury or mrtation to the bond; said
coupons, consecutively numbered, shall be
signed by the Treasurer of the State.
| SEC. f. Before the sale of any of said bonds
| the said Loan Commissioners shall cause
tees of such sale to BE- published, for the space
! of one month, in three daily newspapers publish
ed II En- ylish, one in the City of New York, one
! n 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, III the City of Paris, III France, and fol
The space of one month III n daily newspaper
| published in German, in the City of Frankfort
! pn-the Main, in Germany. Such notice shall
specify the amount of bonds to be sold, the rate
oi interest they shall bear the day and hour OF
! SALE the place of sale, which shall be at the
State Cap tai, and that sealed proposals will b
! received by the said Loan Commissioners for the
| purchase of such bonds. Within one month
rom the expiration Of such publication, and on
/ the day and hour named i'll 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 as will,
/ IN their opinion, make the most advantageous
oid for the State; prorid'd, that said Loan Com
m'ssoners may reject any or all bids, if the
! leem it to the advantage of the State; prOrided
! further that they may refuse to make any award
inloss sufficient security shall be furnished by
! the T. nAders for the compliance with the terms o.
heir in,e: an,, ;"orided further, that said bonds
shall not be sold at less Ian ninety-one cents
On the dollar, in gold coin, par value.
SIC s. 1t shall b. the duty of the TreasIres
md Controller of State each to keep separate
'ecord of all bonds sold under the provisions o.
this Act showing the number, dates amount and
ate 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
or the payment Of the expense that may be in
.urred by the Loan Commissioners i'll having
such bonds prepared and sad notices published
SEC T. The proceeds of such bonds shall b
paid into the State treasury, and shall be ap-
| )led to the payment of the following bonds, III
he order of their issuance:
| Frst-The outstanding bonds ssued under
| he Act ent tied an Act to provide for certain
-quitlble claims against the State of California,
md to contract funded debt for that purpose,
approved April twenty-eighth, eighteen hundred
lnd fifty-seven.
Second-The outstanding bonds issued under
The Act of eighteen hundred and sixty
| Taird-The outstanding soldiers relief bonds.
FouM-The outstanding soldiers bounty
bonds.
SEC s. All persons having any of the bonds
specified in section seven of this Act shall upon
|
Co rmssioners, be entitled to exchange them III
their par value for bonds authorized to be issued
lnder this Act at the rate of ninety-three cents
IN the dollar, par value, but no bond shall be
issued for less sum than five hundred dollars
nor for 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 transf rable and
entitled to b. paid out of the proceeds of thC
sales of any bonds provided for IN section seven
Of this Act. The Loan Commissioners shall
cancel each bond so exchanged, and shall indorst
on such bond the date on which they received
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 Sec
retary of State.
SEC. 8. Whenever there shall be in the State
treasury, from the proceeds of the sale of bonds
issued under this Act, sum of ten thousand
dollars or more it shall be the duty of the Treas
urer to advertise in two newspapers, printed III
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-
deemabla: and three months from the date OF
the expiration of such advertisement, such bonds,
unless sooner paid, shall cease to draw interest.
bat the money for the redemption of such bonds
shall remain in the treasury to pay such bonds
whenever presented.
SEC. 10. For the payment within twenty
years of the principal and interest of the bonds
ssued under this Act, there shall be and is 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 ceItum of the
amount of such bonds issued; for the next ten
years thereafter, twelveper centum of the amount