The record-union., 1892-10-18

An Act to provide for the payment of
funded Indebtedness of the State of
California, and to contract q funded
debt for that purpose.
The people of the State of California. repre-
sented in Senate and Assembly, do enact as
follows:
Section l. For the purpose of Ifouldatinr
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 constftute
a Board of Commissioners, 10 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 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 atpr-
est at the rate of four per cent. per annum
which interest shall be be payable senliannu-
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 snail be made payable in gold coin,
within twenty years after the date of their
issue, and shall be of such denominations rs
the said Loan Commissioners 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
falth 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, so that they may be
removed without injury or mutiation to the
bond; SAID coupons, consecutively numbered,
shall be signed by the Treasurer OF State
Section /. Before the sale of any of said
bonds the said Loan Commissioners shall
cause notice of such sale 20 be published for
the space OF one month in two daily newSDa-
pers published in English, one in the citV 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 nlace
OF sale, which shall be at the State Capitol
aad that sealed proposals will 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 IS 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.
ana provided further, that they may refuse 10
make any award unless sufficient security
shall be furnished by the bidders for the COM
pliance with the terms of their bids; and pro-
Nided further. that said bonds shall not be
sold for less than one hundred cents on tho
dollar, in gold coin, par value.
Section D. 1t shall be the duty of the Treas
urer and Controller of State each to keep a
separate record OF al bonds sold under the
date, amount and rate OF interest of each
bond and 10 whom the same was issued
Section .. 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 funded Indebtedness OF the State of calf
fornia, and to contract a funded debt for that
purpose" approved April second, eighteen
hundred and seventy.
Section T.. All DerEOnS ha wing of Ha
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
bond shall be issued for a less sum than five
hundred dollars, nor for a fractional Part of a
hundred dollars, but the said Loan Commits
sioners may issue certificates OF such irac-
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 6 of this Act The
Loan Commissioners shall cancel each bond
so exchanged, ana shall indorse on such bond
the date on which they received the same
and from whom, the number and the amount
OF the pond 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 the
State treasury, nom the proceeds of the sale
of bonds issued under this Act a sum of ten
thousand dollars or more, it shall be the dutv
OF the Treasurer to advertise in two neyysps-
bers 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 bonds and the tu Der of
ponQs, numbering them in the order of thei.
Issuance, which are redeemabIe; and three
months from the dale of the expiration or
such advertisement, such bonds unless sooner
paid shall cease 10 draw Interest but the
money for the redemption Of such bonds shall
remain In the treasury 10 pay such bonds
whenever presented.