The Placer herald., 1871-06-10
AN ACT.

AN ACI.
To Provide for the Payment Of the Funded
Indebtedness of the state of California, nnd
to Contract Fnnied Debt Tor that Purpose
APPROVED APRIL 2, 1870
The People Of tie State of California, represented
in Senate and ASSEMBLY. d. eaact as .i'ollo,cs:
SECTION /. 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 n Board of Commits
sioners, to be styledth 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 annnm which in
terest shall be payable sem-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 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
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 sad bond, and
the interest nccrning thereon us herein provided
| SEC. 3. Coupons for the interest shall be at
tached to each bond so III 1t they may be remoy.
| ell wthous injury or Elrtaton 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 b. published Tor the space
of one n nth, in three daily newspapers publish
ed II English, one i'll the City of New York, one
IN ii e City OF Loadan in England and one in
the Capital of the State; in and for the space Of
one month in a daily newspaper published in
/ French, in the City OF Paris, i'll 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
i specify the amount of bonds to be sold, the rate
! of interest they shall bear, the day and honr Of
sale, the place of sale, which shall be at the
State Cap tai, 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-
posals 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; prorided, that said Loan Com
mlssioners may reject any or all bids, if they
deem it to the advantage of the State; pro1'ided
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 procidcd further, that said bonds
shall not be sold mt less than ninety-onc cents
on the dollar, in gold coin par value.
SEC. 8. 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
| rotp of iptOr Of MI To ,ph ha
same was 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 i'll having
such bonds prepared and said notices published.
SEC. z. The proceeds Of such bonds shall be
paid into the State treasury, and shall be APP
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 that purpose,
approved April twenty eighth, eighteen hundred
and lifty-seven.
Second-The outstanding bonds issued under
the Act of eighteen hundred and sixty.
Ttird-The outstanding soldiers relief bonds.
Fo,uh-The outstanding soldiers bounty
| bonds
SEC. s. All persons having any of the bonds
specified in 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 shall be
issued for less sum than i've hundred dollars,
nor for fractional part Of n hundred dollars,
but the said Loan Commissioners may issue GER
| tificates OF such fractional parts not bonded,
which said certificate shall be transferable, and
entitled to be paid out of the proceeds of the
l.. la
of this Act. The Loan Commissioners shall
cancel each bond so exchanged, and shall indorse
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. 0. 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 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-
deemabls; and three months from the date Of
the expiration of such advertisement, such bonds
unless sooner paid, shall cease to draw lntere It,
but the money for the redemption of such bonds
shall remain in the treasury to pay such bonds
whenever presented.
SEC. TO- For the payment within twenty
years of tho principal and interest Of the bonds
issued under this Act, there shall be and is here
ty levied annually, after any bonds have been
issued under this Act, such rate of tax 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 1--WE years, seven per centum of the
amount Of such bonds issued; for the next ten
years thereafter, twelveper centum Of the amount
J of such bonds issued, and thereafter, until all