If any bonds authorized under the provisions of Sections 15100 and 15102, and Sections 15107 to 15140, inclusive, and Sections 15142 to 15261, inclusive, have not been offered for sale for one year from the date of the election at which they were authorized or remain unsold for a period of six months after having been offered for sale in the manner prescribed by the board of supervisors, the governing board of the district, for which the bonds were authorized, may petition the board of supervisors that has jurisdiction of the issuance and sale of the bonds to cause the unsold bonds to be canceled.
Article 6Cancellation of Unsold Bonds
Section § 15200
If bonds approved by voters aren't put up for sale within a year or remain unsold for six months after being offered, the district's governing board can ask the local authorities to cancel these bonds.
bonds sale of bonds unsold bonds district governing board election-authorized bonds cancellation of bonds petition board of supervisors Sections 15100 to 15261 time limits on bond sales jurisdiction of bonds issuance bond sales procedure supervisors' board involvement bond market activity unsold period bond election
Section § 15201
If the majority of a school board signs a petition, the county supervisors have 30 days to hold a hearing about it. They need to advertise the hearing's time, place, and purpose for 10 days before it happens. This notice goes in a local newspaper, or the county seat's paper if there's no local paper.
Upon receiving the petition, signed by a majority of the members of the governing board, the board of supervisors shall fix a time for hearing it, which shall not be more than 30 days after receipt of the petition, and shall cause a notice stating the time and place of the hearing, and the object of the petition in general terms, to be published for 10 days prior to the hearing, in a newspaper published in the school district or community college district, if there is one, and if there is no newspaper published in the school district, in a newspaper published at the county seat of the county.
petition process governing board board of supervisors hearing schedule notice publication school district community college district newspaper notice county seat hearing advertisement
Section § 15202
This law states that during a scheduled meeting, or at any later date if the meeting is delayed, the board of supervisors will listen to arguments for and against approving a petition.
At the time and place designated in the notice, or at any subsequent time to which the hearing may be postponed, the board of supervisors shall hear any reasons that may be submitted for or against the granting of the petition.
board of supervisors hearing petition approval arguments meeting schedule postponed hearing submit reasons granting of petition designated time designated place
Section § 15203
This law section explains that if the board of supervisors decides it's best for a school district or community college district, they can officially cancel any bonds that haven't been sold yet. Once they record this decision in their proceedings, those unsold bonds and the authorization to issue them become invalid and have no legal effect.
If the board of supervisors deem it for the best interests of the school district or community college district named in the petition that the unsold bonds be canceled, it shall make and enter an order in the minutes of its proceedings that the unsold bonds be canceled. Upon the entry of the order the bonds and the vote by which they were authorized to be issued shall cease to be of any validity.
board of supervisors unsold bonds cancel bonds school district community college district petition cancellation order minutes of proceedings authorization bond validity
Section § 15204
This law allows a school district or community college district to ask the county's board of supervisors to cancel their authority to issue and sell a small amount of bonds leftover from a previous bond election, if selling them wouldn't make financial sense. If the leftover amount is $25,000 or less and more than 90% of the bonds have already been sold, the board of supervisors can cancel the remaining bond authorization if they agree it's in the public's best interest. After the cancellation, the original vote for the bonds is no longer valid for the remaining amount.
The governing board of any school district or community college district may petition the board of supervisors to cancel the remaining authorization of that district to issue and sell bonds resulting from any particular school bond election after the sale of at least 90 percent of the bonds authorized at the election if the amount of the remaining authorization is not more than twenty-five thousand dollars ($25,000) and in the opinion of the governing board the sale of the remaining bonds would not be economically justified. Sections 15201 and 15202 shall be applicable and at or following, the hearing provided in Section 15201 and 15202, the board of supervisors, if it determines that the public interest will be served thereby, may make and enter an order in the minutes of its proceedings that the remaining authorization be canceled. Upon the entry of the order the vote by which the remaining authorization was created shall cease to be of any validity with respect to the remaining authorization.
school district bonds community college district cancel bond authorization remaining bond authorization board of supervisors petition economic justification public interest bond election cancellation small bond amount hearing requirements 90 percent bond sale Sections 15201 and 15202
Section § 15205
This law section explains that if a school district planned to issue bonds following an election after November 5, 1991, but then decided to cancel them, the board of supervisors can reverse that cancellation if it's deemed beneficial for the district. If canceled bonds are reinstated, the district can issue them under the same conditions originally approved by voters, like the reasons for the bonds, interest rates, and the term length. However, the total bond amount cannot exceed what was initially approved.
For any bonds authorized at a school district election on November 5, 1991, and thereafter cancelled pursuant to this article without having been issued, the board of supervisors may order the cancellation annulled upon a finding that the issuance of the bonds is in the best interest of the district. Upon such order the district shall have the authority to issue the bonds pursuant to all of the terms and limitations of the original authorization, including the purposes for which such bonds may be issued, the maximum interest rate, and the maximum term to maturity, provided that the aggregate amount of bonds issued pursuant to such authorization does not exceed the amount originally authorized by the voters.
school district bonds cancelled bonds board of supervisors bond issuance bond authorization maximum interest rate term to maturity voter approval aggregate bond amount best interest of the district bond election November 5 1991 annulled cancellation original authorization
