The record-union., 1892-10-20
FOURTH.

An Act to provide for the payment of
funded Indebtedness of the State Of
California, and to contract fund I'd
debt for that purpose.
The people of the State of California. repre-
sented III Senate and Assembly, do enact as
follows:
Section l. For the purpose of Hquidating
and providing for the payment of the funded
| Indebtedness of the Stale of California here
matter specified, and to lessen the burden of
taxation, the Governor of the State the Con
uo!ler of State, and the Treasurer of Stat
and their successors in office. shall constitute
Board OF Commissioners. TO be styled the
Loan mmissionerS of the State OF CalifOr-
MIA and shall have and exercise the powers
and perform the duties hereinafter provided
Section =. The said Loan Commissioners
are hereby authorized to issue and sell not ex-
cceding two million nve hundred and twenty
eight thousand five hundred dollars 80 52S-
500 of the bonds OF SAID State bearing inter
est at the rate OF four per cent. per annum
which interest shall be be payable semi-aunu-
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 SOneTs shall direct but
not less than five hundred dollars; shafl bear
the date OF their ISSUE and shall be signed bv
the said Loan Commissioners, and shall have
the seal of The State affixed thereto; and the
faith OF the State OF California is hereby
pledged for the payment of said bonds and
! the interest accruing thereon, as herein pro
Vided.
section 8. Coupons for the interest shall be
attached to each bond. 50 that they may be
removed without injury or mutllation to the
bond; said coupons. cOnSecutiVeIy 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 i'll English, one in the CITY of
san Francisco and one in the Capital of the
f4fhff hall -g.rtfF,- .
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 receiV ed by
the said Loan Commissioners for the purchase
of said bonds, within one month from the ey-
piraton of such publication; and on the day
and hour named in said notice the said Loan
Commissioners shall open all sealed promo
sails 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 for the state provided that said Loan
Commissioners may reject any or all bios if
they deem II 10 the advantage of the State;
ana provided further, that they may refuse to
make any award unless sufficient security
shall lie IurnisheG by the bidders for the conf
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 com, par value.
Section 5. II shall be the duty of the Treas
urer and Controller of State each to Keen a
separate record OF all bonds sold under fhe
provisions OF this Act, showing the number
Gate, amount and rate of interest OF each
bond and to whom the same was issued.
Section &. Tie proceeds Of such bonds shall
be paid into the State Treasury, and shall be
applied TO the payment OF the following
bonds, in the order OF their issuance. The
outstanding bonds issued under the Act en-
titled An Act to provide for the payment Of
the funded Indebtedness OF the state Of Cali
fornia, and to contract u funded debt for that
purpose approved April second, eighteen
hundred and seventy.
Section T. All persons having any of the
bonds specified in Section 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 one
hundred cents on the dollar. par value: but nc,
bond shall be issued tor a less sum than fivo
hundred dollars, nor for fractional part of a
hundred dollars, but the said Loan Commits
siOnerS may issue certificates OF such frac-
tional parts not bonded, which said Certificate
shall be transferable and entitled to be maid
out OF tire proceeds OF the sales OF any bonds
provided for in Section & OF this Act Tho
Loan Commissioners shah cancel each bond
so exchanged, anG shall indorse on such bond
the GATE on winch they received the same
and from whom, the number and tho anIo1,,,t
OF the bond Issued in exchange therefor s,,d
shall file such bond in the Office OF the Secre.
tary OF State.
section S. Whenever there shall be in the
state Treasury, from the proceeds Of the sale
of bonds issued under this Act. a sum Of ten
thousand dollars or more, it shall he the d,,fv
OF the treasurer to advertise III two newspsa-
Pers printed IN english, one in San Francisco
and one in the Capital of the State for tJro
months, which advertisement shall state thc
amount OF money in the treasury applicable
to the redemption of bonds and tho nj, t,er r,t
bonds, numbering them in the order Of fTeir
Issuance, which are Iedeemablc. and three
months nom the date of the expiration of
@ s@uG1 advertisement such bonds, unless sooner
palu, snall cease 10 draw interest, but the
money Tor the redemption Of such bonds shall
remain in the treasury to pay such bonds
whenever presented.