The record-union., 1892-10-22
FOURTH.

An Act to provide for the payment of
funded Indebtedness of the State Of
California, and to contract a funded
debt for that purpose.
The people of the State of California. repre-
sented i'll senate and Assembly, do enact as
follows:
Section l. For the purpose of liquidating
and providing for the payment of the funded
Indebtedness of the State of California here
| matter specified and to lessen the burden Of
taxation the Governor of the State the Con-
trolier of State, and the Treasurer of State,
and their successors in office, shall constitute
a Board of Commissioners, to be styled the
Loan commissioners of the State OF Califor-
MIA and shall have and exercise the powers
and perform the duties hereinafter provided.
Section 2. The said Loan Commissioners
are hereby authorized 10 issue and sell not ex-
ceeding two million i've hundred and twenty
eight thousand five hundred dollars (S2. .52S-
300 of the bonds OF SAID State, bearing iater-
est at the rate of four per cent. per annum
which interest Shall be be payable semi-annu-
ally, in gold coin, on the second days in April
and october 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 as
the said Loan CommlS siOners shall direct but
not less than five hundred dollars: shall bear
the date OF their issue, and shall be signed by
the SAID Loan commissioners and shall have
the seal of tine State affixed thereto; and the
faith of the State of California is hereby
pledged for the payment of said bonds and
NAASANCA@
Vided.
section s. Coupons for the interest shall be
attached to eacn bond. so that they may be
removed without injury or mutilation to the
bond; said coupons. cousecutively numbered
shall be signed by the Treasurer OF state.
Section 4. Before the sale of any of said
bonds the said Loan Commissioners shall
cause notice of such sale to be published for
the space OF one month in two daily newspa-
pers published in English, one in the city of
san Francisco and one in the Capital OF the
State. 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 Capitol
and that sealed proposals will be received by
the said Loan Commissioners for the purchase
of said bonds, within one month from the ex-
piratiOn of such publication: ana on the day
and hour named in said notice the said Loan
Commissioners shall open all sealed propo-
salS received by them, and shall award the
purchase Of said bonds to such bidders as will,
in their opinion, make the most advantage
GUS bid Tor the state; provided. that said Loan
! Commissioners may reject any or all bids if
they deem 1t to the advantage Of the state:
and provided further, that they may refuse to
make any award unless sufficient security
shall be iurDished by the bidders for the COM
pliance with the terms of their bids; and pro-
! vided further, that said bonds shall not be
sold for less than one hundred cents on the
dollar. in gold coin. par value.
Section .. II shall be the duty Of the Treas
urer and Controller Of State each to keep
separate record of all bonds sold under the
provisions Of this Act. showing the number
| oate amount and rate OF interest of each
bona aud TO whom the same was issued
section T.. Tie proceeds OF such bonds shall
be paid into the State Treas ury and Shall be
applied TO the payment OF the following
! bonds in the orCer Of their issuance: The
outstanding bonds issued under the Act en-
! titled An Act TO provide for the payment Of
I the funded Indebtedness Of the State OF CALI
fOrna and to contract "a funded debt for that
/ purpose" approved April second, eighteen
hundred and seventy.
! Section :. All persons having any of the
\ bonds specified I'm Section OF this Act shall
! upon presentation of such bonds To the said
I Loan Commissioner be entitled to exchange
| them at their par value for bonds authorized
I TO be issued under this Act at the rate OF one
4 hundred cents on the dollar. par value. but no
/ bond shall be issued Tor less sum than five
Z hundred dollars, nor for ira :tiOnal part of "a
hundred collars, but the said Loan Commits
sioners may issue certificates OF such frac-
/ tionaI rarts 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 6 OF this Act TIE
! Loan Commissioners shall cancel each bond
4 so exchanged, ana snail indorse on such bond
the date on which they received the same
and from whom, the number and the amount
/ OF the bond issued in exchange therefor and
shall 1le such bond in the Office OF the Secre-
/ tary OF State.
section 5. Whenever there shall be in the
State Treasury, rom the proceeds of the sale
OF bonds issued undcr this Act a sum OF ZEN
( thousand dollars or more, ii shall be the duty
/ of the Treasurer to advertise in two ner~ct,,,
pers printed IN English one in San Francisco
and one In the Capital of the State for two
months. which advertisement shall state the
amount OF money in the treasury applicable
to the redemption of bOnGs and the mum ber of
! bonds, numbering them IN the order OF their
Issuance, which are Iedeemable: and three
months from the date Of the expiration OF
sueh advertisement, such bonds, unless sooner
/ PAID, shall cease 10 draw interest, but the
money Tor the redemption Of such bonds shall
/ remain in the treasury to pay such bonds
| whenever presented.