BondsCompromise

Section § 43850

Explanation

This law allows a city with existing bond debt to put forward different financial propositions to its voters. These include making the bonds due immediately, negotiating terms with bondholders, agreeing to a legal judgment in favor of bondholders, or arranging for payments over time.

Whenever a city has an outstanding indebtedness evidenced by bonds the legislative body may submit to the electors of the city, at any election held for that purpose, a proposition:
(a)CA Government Code § 43850(a) Declaring all or any of the bonds to be at once due and payable.
(b)CA Government Code § 43850(b) Compromising the bonded indebtedness.
(c)CA Government Code § 43850(c) Consenting to a judgment in favor of the bondholders.
(d)CA Government Code § 43850(d) Providing for the payment of such judgment in installments.
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Section § 43851

Explanation

This law states that any election in the city must follow the same procedures and processes as all other city elections.

The election shall be called and held in the same manner as other elections in the city.
city election procedures election process municipal elections ...

Section § 43852

Explanation

This section lays out what must be included in a notice of election concerning a financial dispute involving bonded debt. It requires clearly stating the debt that needs to be paid immediately, any compromise terms, details of a proposed agreement in favor of bondholders, and how the repayment will be handled in installments.

The notice of election shall state:
(a)CA Government Code § 43852(a) The bonded indebtedness which it is proposed to declare at once due and payable.
(b)CA Government Code § 43852(b) The terms of the proposed compromise.
(c)CA Government Code § 43852(c) The terms of the proposed judgment by consent in favor of the bondholders.
(d)CA Government Code § 43852(d) The proposed method of paying the judgment in installments.
bonded indebtedness notice of election immediate debt payment ...

Section § 43853

Explanation

This law states that if two-thirds of voters approve a bond proposal, the legislative body must officially announce that the bonds will be issued and payment will begin as described in the initial notice.

The question shall be voted upon as an entirety. If two-thirds of the electors vote in favor of it, by ordinance the legislative body shall declare the bonds described in the notice due and payable.
bond proposal elector vote two-thirds majority ...

Section § 43854

Explanation

This law requires the legislative body to finalize a settlement agreement and agree to the court's decision as described in an election notice. It also mandates that the payment of the judgment should be made in installments. Additionally, the law requires a resolution to appoint officers and attorneys to sign necessary documents for the process.

The legislative body shall carry the compromise into effect and consent to the judgment specified in the notice of election and the proposed method of paying the judgment in installments. By resolution, it shall designate the officers and attorneys to sign the necessary documents.
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Section § 43855

Explanation

This law requires the collection of an annual tax to cover the interest payments and a specified part of the principal amount due on a judgment. This ensures that what is owed is paid on time, as indicated in an election notice.

It shall provide for the collection of an annual tax sufficient to pay the interest on the judgment as it falls due and such portion of the principal as is designated in the notice of election.
annual tax collection interest payments judgment debt ...

Section § 43856

Explanation
If you hold bonds and didn't agree to certain proceedings, your rights aren't impacted by those actions.
The rights of any nonconsenting holder of bonds specified in the notice are not affected by the proceedings.
nonconsenting bondholder bondholder rights notice ...

Section § 43857

Explanation

If you go to court over any of the bonds mentioned in the notice, the court's decision will definitively determine whether everything was done correctly in the process.

In any action brought upon any of the bonds described in the notice, the judgment of a court of competent jurisdiction is conclusive as to the regularity of all proceedings taken.
court judgment bonds notice legal proceedings ...

Section § 43858

Explanation

If someone goes to court to sue regarding certain bonds mentioned in a notice of election, they must first give those bonds to the court as part of the procedure.

In any action brought upon any of the bonds described in the notice of election, the plaintiff shall deposit in court the bonds upon which he sues.
plaintiff bond deposit action on bonds court bond deposit requirement ...

Section § 43859

Explanation

Once a court decision regarding a proposed agreement is final, the bonds in question will be given to the city treasurer. The treasurer will keep the bonds until the court decision is completely settled and fulfilled.

When the judgment, rendered in accordance with the terms of the proposed compromise described in the notice, becomes final, the bonds sued upon shall be delivered to the treasurer of the city against which the judgment is rendered, to be held by him and his successors until the judgment has been fully satisfied.
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Section § 43860

Explanation

If a court judgment is overturned or ignored by the defendant, the treasurer must return any bonds back to the plaintiff. The plaintiff can choose to restore their previous rights related to the bonds and must account for any money already received under the judgment. The court must ensure that the treasurer fulfills this duty.

If for any reason the judgment is reversed or set aside, or if any orders or writs under it are disobeyed by the defendant or its officers, the treasurer shall return the bonds to the plaintiff. At his option, the plaintiff may be relegated to all rights which he held and enjoyed under the bonds, crediting on such rights all amounts received on the judgment. The court in which the judgment is rendered shall enforce the duty imposed upon the treasurer.
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