Year: 1871

AFFIRMED APKlL z lS(U,


TIE People of the State Of Cali iforno represented


in Senate and Assembly, do ej,act as .foiio,cs:


SECTION 1. For the purpose of liquidating and
providing for the payment of the funded indebt-
edness of the State of California hereinafter spec
fled, and to lessen the burden of taxation, the
Governor of the State, the Controller of STATE
and the Treasurer of State, and their successors
in office, shall constitute Board of Commits
sioners, to be styled the Loan Commissioners Of
the State of California, and shall have and exer-
else the powers and perform the duties herein
after provided.


SEC 2. The said Loan Commissioners are
hereby authorized to issue and sell not exceed
ing three millions seven hundred thousand dol
lars of the bonds of said State, bearing interest
at the rate of six per cent. per annum, which in
terest shall be payable semi-annually, in gold
coin, on the second days in January and July
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 the said Loan Commissioners
shall direct, but not less than five hundred dol
lars 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 here
by pledged for the payment of said bonds and
the interest accruing thereon as herein provided.


SEC 3. Coupons for the interest shall be at
tached to each bond so that they may be remov.
ed without injury or mrtlation to the bond; said
coupons, consecutively numbered shall be
signed by the Treasurer of the State.


SEC. f. Before the sale of any of said bonds
the said Loan Commissioners shall cause no.
tees OF such sale to be published, for the space
of one month, in three daily newspapers publish
ed in English, one in the City of New York one
in the City of London, in England, and one il
the Capital of the State; in and for the space of
one month in daily newspaper published in
French, in the City of Paris, in France, and for
the space of one month in q daily newspaper
published in German, in the City of Frankfort
on-the-Man, in Germany. Such notice shall
specify tho 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 Capital, and that sealed proposals will be
received by the said Loan Commissioners for the
purchase of such bonds Within one month
from the expiration of such publication, and on
the day and hour named in said notice the said
Loan Commissioners shall open all sealed pro-
posals received by them, and shall award the
purchase of said bonds to such bidders as WILL
in their opinion, make the most advantageous
bid for the State; pr0rided, that said Loan Com.
missioners may reject any or all bids, if they
deem it to the advantage of the State; prorded
further, that they may refuse to make any award
unless sufficient security shall be furnished by
the bidders for the compliance with the terms of
their bids; and prorided further, that said bonds
shall not be sold at less than ninety-one cents
on the dollar, in gold coin, par value.


SEC. s. 1t shall be the duty of the Treasurer
and Controller of State each to keep separate
record CT sii 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 issued.


SEC. g. The sum on one thousand dollars is
hereby appropriated out of the General Fund
for the payment of the expense that may be in
Cured by the Loan Commissioners in having
such bonds prepared and said notices published


SEC. T. The proceeds of such bonds shall be
paid into the State treasury, and shall be APP
piled to the payment of the following bonds, in
the order ot their issuance:


First-The outstanding bonds issued under
the Act entitled an Act to provide for certain
equitable claims against the State of California,
and to contract funded debt for that purpose,
approved April twenty-eighth, eighteen hundred
and ffty-seven.


Second-The outstanding bonds issued under
the Act of eighteen hundred and sixty


Third-The outstanding soldiers relief bonds.


Fomth-The outstanding soldiers bounty
bonds.


SEC s. All persons having any Of the bonds
specified in section seven 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 ninety-three cents
on the dollar, par value, but no bond shall be
issued for Less SUM than five hundred dollars,
nor for fractional part of hundred dollars,
but the said Loan Commissioners may issue GER
tifcates of such fractional 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 seven
of this Act. The Loan Commissioners shall
cancel each bond so exchanged, and shall ndorse


SEC. 3. Whenever there shall be in the State
from tho nrOcpe1c Of tba ca1a Of bnpIu
issued under this Act a sum of ten thousand
dollars more it shall be the duty of the Treas
urer to advertise in two newspapers printed in
English one in New York and one in the Capt.
tai of the State, for two months which adver.
tsement shall state the amount of of money in
the treasury applicable to the redemption of
bonds and the number of bonds. numbering
therein the order of their issuance, which are re-
deemable; and three months from the date OF
the expiration Of such advertisement such bonds
unless sooner paid, shall cease to draw interest.
but the money for the redemption Of such bonds
Shall remain III the treasury to pay such bonds
whenever presented.


SEC. ~, For the payment within twenty
years OF the principal and interest of the bonds
issued Dnder this Act, there shall be and is here
by levied annually, after any bonds have been
issued under this Act, such rate of tax on each
one hundred dollars of the assessed value of
real and personal property in the State, to be
computed by the Controller of State on the ba.
sis Of the assessed value of such property for
the preceding year, as shall produce annually.
for the first five years, seven per centum of the
amount of such bonds issued; for the next ten
years thereafter, twelvep per centum of the amount
TO such hoais issued, and thereafter, until all
sn such bond the date on which they received
the same, and from whom, the number and
amount Of the bond issued in exchange therefor
and shall file such bond in the Office Of the Sec
Ietary Of State.


the bonds are issued under this Act are paid ff-
teen per centum Of the amount of such bonds
issued The Controler shall certify the rate of
tax thus computed by him to the several County
Auditors, and the SAID Auditors are hereby d.
rected and required to enter such rate on the as.
sessment rolls of their respective counties, in
the same manner and with the same effect as is
provided by law in relation to other State taxes.
Every tax levied under the provisions or author
yy Of this Act is hereby made a lien against the
property assessed, which lien shall attach on
fhe tirst Monday in March in each year, and
shall not be satisfied or removed until such tax
has beep paid, Al moneys derived from taxes
authorized by the provisions of this section shall
be paid ipto the State treasury, and shall be ap-