The record-union., 1892-10-25
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 ia 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-
troller 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 =. The said Loan Commissioners
are hereby authorized to issue and sell not ex-
ceeding two million five hundred and twenty
eight thousand five hundred dollars (S2 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 seni-annu-
ally, in gold coin, on the second days in April
ana OciOUef IN eslcn 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: shall hear
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
- -SSAN-t ava etiAl AASlNOut tks utitlu pro
vided.
section 8. 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, cOnsecutiyely 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 ncwspa-
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 thev
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 bV
the said Loan Commissioners for the purchase
OF said bonds, WITHIN one month from the ex-
plratlOn 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. the
purchase of said bonds to such bidders as will
in their opinion, make the most advantage
ous bid for the state; provided. that said Loan
Commissioners may reject any or all bids, if
tney deem IL 20 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
pliauee with the terms of their bids; and pro-
Vidcd further. that said bonds shall not be
sold for less than one hundred cents on the
dollar, in gold coin. par value.
Section 5. II snail bethe duty of the Treas
urer ana Controller of State each to keep a
separate record of all bonds sold under the
provisions of this Act, showing the number,
bond and to whom the same was issued.
Section 8. The proceeds of such bonds shall
be paid into the State Treasury. and shall be
appiled 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
Ihe Iuhdea Indebtedness of the State of Cali
Iothla ana 10 contract a funded debt for that
purpose, approved April second. eighteen
hundred aud SEVENTY
SecLlon Z. All persons having any of the
bonds specined IN Section 8 of this Act shall.
upon presentation OF such bonds to the said
Loan Coininlssloners. be entitled to exchange
them at their par value for bonds authorfzed
to be issued nnder this Act at the rate o. one
hundred cents on the dollar, par value; but no
bond shaI oe issued ior a less sum than five
hundred dollars, nor for fractional naTt Of n
/ hundred dollars, but the said Loan Commits
siouerS may issue certificates Of such trac-
tional parts not bonded, which said rfificafe
shall be transferable and entitled TO he maid
out OF the proceeds OF the sales of any bones
pro ovided for in Section of this Act The