The record-union., 1892-10-19
FOURTH.

An Act to provide for the payment of
funded inde btedness Of the State of
California, and to contract funded
debt for that purpose.
The people of the State Of California. repre-
sented in Senate and Assembly, do enact as
follows:
Section /. For the purpose of uouidatino
and providing for the payment of the funded
Indebtedness of the State of California here
matter specified, and to lessen the burden of
taxauon, 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 Califor-
mia, and shall have ana exercise the powers
and perform the duties hereinafter provided,
Section ?. The said Loan Commissioners
are hereby authorized to issue and sell not ex-
ceedlng Two million uVe hundred and twenty
eight thousand five hundred dollars tS2 52S-
500 OF the bonds of SAID State bearing infer-
est at the rate of four per cent per annum,
which interest shall oe 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
bones 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 Commis 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 the State affixed thereto; and the
faith OF the state of California is hereby
pledged for the payment of said bonds and
the interest aceruing thereon, as herein pro-
vided.
section 3. Coupons for the interest shall be
attached to each bond, so that they may be
removed without injury or mutilation to the
BOND; said coupons, consecutively numbered,
Snail 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 nevspa-
pers published in English, one in the citV of
san Francisco and one in the Capital OF the
State. Such notice shah specify the amount
of bonds to be sold, the rate of interest thev
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; and on the day
and hour named in said notice the said Loan
Commissioners shall open all sealed propo-
sails received by them, and shall award Inc
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 1t TO the advantage of the State.
ana provided further that they may refuse to
make any award unless sufficient security
shall be furnished by the bidders for the COM
pliance with the terms of their bids; ana 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 5. 1t shall be the duty of the Treas
urer and Controller OF State each To keen n
separate record of all bonds sold under the
date, amount and rate OF interest of each
bond and to whom the same was issued.
Section 6. 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-
tltIea AN Act TO provide for the payment of
the funded Indebtedness of the State of Cali
fornta, and to contract funded debt for that
purpose" approved April second, eighteen
hundred and seventy.
Section = a II ha r
BONDS specified in Section 8 OF this Act shall
upon presentattO 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
bond shall be issued for less sum than five
hundred dollars, nor for a fractional Part of
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 paid
out of the proceeds of the sales of any bonds
provided for in Section 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 the anloun}
OF the bond issued In exchange therefor and
shall file such bond in the Office of the Secre
tary of State.
Section s. Whenever there shall be IN tho
State Treasury, from the proceeds of the eoja
U oI @ pohos isSueo % unaer TINS Act, a sum of ten
thousand dollars or more, il shall be the CI1t,1
of the Treasurer to advertise in two neu-s,.;
pers printed in English. one in San Lfro y,aisicc
and one In the Capital of the State. for two
months, Whlch advertisement shall state the
amount OF money in the treasury appIicahle
TO the redemption OF bonds and the nf1Toher Of
bonds, numbering them in the order OF their
Issuance, which are redeerna5le. ond three
months from the dale of the expiratiou Of
such advertisement, such bonos. unless sooner
para. snall cease TO draw interest, but the
money Tor the redemption of such bonds shall
remain In the treasury to pay such bonds
whenever presented.