The record-union., 1892-10-25

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-
senteG i'll Senate and Assembly, do enact as
follows:
Section l. For the purpose of IiquiGating
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
trOller of State, and the Treasurer of state
and their successors in office, shall constitute
Board OF Commissioners to be styled the
Loan Commissioners of the State OF Callur-
mia, and shall have and exercise the powers
ana perform the duties hereinafter provided
Section =. The said Loan Commissioners
are hereby authorized to issue and sell not px-
ceeding two million five hundred and twenty
eight thousand five hundred dollars $50 52S-
300 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-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 Commissioners shall direct, but
not less than five hundred dollars: shan 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: ana 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 3. Coupons for the interest shall be
attached to each bond, so that they NAV be
removed without injury or mutiatiOn TO the
bond; said coupons, cOnsecutively 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 ncvsDa-
pers published in English, one in the CITY of
san Francisco and one in the Capital of the
State. SuCl notice EhllI I,o
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 viii be received by
the said Loan Commissioners for the purchase
OF said bonds, within one month from the ex-
piTation of such publication; and on the dav
and hour named in said notice the said Loan
Commissioners shall open all sealed propO-
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 bids. if
they deem It to the advantage of the Sf9ta.
and provided further, that they may refuse to
make any award unless sufficient security
shall be furnished by the bidders for the COM
p!lanIe with the terms Of their bids; and pro-
Vlded further that said bonds shall not be
sold for less than one hundred cents on the
dollar, in gold coin, par value.
Section 3. 1t snail be the duty of the Treas
ureT and Controller Of State each 10 Keen n
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 was issued
Section g. The 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 tunded Indebtedness OF the State of Cali
fornia, 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 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 no
hundred dollars, nor for q fractional part of a
hundred dollars, but the Said Loan Commits
sloners may issue certificates of such f7ac-
tional parts not bonded, which said certiticafe
shall be transferable and entitled to be paid
out OF the proceeds OF the sales of any h6nde
provided for in Section 6 of this Act Tbc
Loan commissioners shall cancel each hond
SO exchanged, ana shall indorse on such bond
the GATE on which they received the same
ana from whom, the number and the amount
l ol tie ii 1olu issued IN exchange therefor and
shall fle such bond in the Office OF the Secre-
tary of State.
Section g. Whenever there shall be in the
state treasury, from the proceeds of the sale
OF bonds issued under this Act q sum OF ten
thousand dollars or more, it shall be the duty
OF the treasurer to advertise in two neWspa-
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 or money in the treasury applicable
70 the redemption OF bonds, and thenumber OF
bonds, numbering them in the order of their
issuance, which are redeemable; and three
months from the date of the expiratiOn of
sQch advertisement, such bonds, unless sooner