The record-union. [volume] (Sacramento, Calif.) 1891-1903, 1892-10-15
FOURTH.

An Actto provide for the payment of
funded Indebtedness of the State of
California, and to contract funded
debt for that purpose.
The people of the State of California. repre-
sented i'll Senate and Assembly, do enact as
follows:
Section !. For the purpose of liuuidating
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 Com
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 2. The said Loan Commissioners
are hereby authorized to issue and sell not ex-
ceedlng 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 annun
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: 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 accruing thereon, as herein pro-
vided.
section g. Coupons for the interest sbo1l no
attached to each bond, so that they NAV be
removed without injury or mutilation to the
pond; SAID coupons, consecutively numbered,
shall be signed by the Treasurer of State
Section f. 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 newsna
pers published in English one in the civ 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 place
OF sale, which shall be at the State Capitol
ana that sealed proposals will be received nv
the said Loan Commissioners for the nI1rchase
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 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 II TO the advantage OF the State.
and provided further, that they may refuse to
make any award unless sufficient security
shall be furnished by the bidders for the COM
p!iance with the terms OF their bids; and pro-
yided further. that said bonds shall not he
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 keep
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 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-
titled IAN Act 10 provide for the PAYMENT of
the funded Indebtedness of the State of Cali
fornia, and to contract funded debt for that
purpose" approved April second, eighteen
hundred and seventy.
Section Z. 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 al 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 q 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 frac-
tional parts not bonded, which said certificate
shall be transferable and entitled to be maid
out of the proceeds OF the sales of any bonds
provided for in Section or this Act The
Loan Commissioners shall cancel each bond
SO exchanged, ana shall indorse on such bcnd
the date winch they received the same
and from whom. the number and the amount
OF the Dond issued In exchange therefor and
shall file such bond in the Office OF the Secre
tary of State.
section 8. Whenever there shall be in the
State treasury, from the proceeds of the sale
OF bonds issued under this Act sum of ten
thousand dollars or more, it shall be the duty
OF the treasurer to advertise in two neusna
pers printed In English, one in San Francisco
and one IN the Capital of the State fortyvo
months, which advertisement shall state the
amount OF money in the treasury apOlicshIe
to the redemption of bonds and the number of
bonus, nuinpering them Ia the order of their
Issuance, which are Tedeemable: and three
months from the date of the expiration of
such advertisement, such bonds niiless soone,
PAID, shall cease to draw interest, but the
money for the redemption of such bonds shsT
remain in the treasury to paw such honfis
whenever presented.