If any bonds remain unsold for six months after having been offered for sale, the board of directors of the district for which the bonds were issued or of a district containing any territory which at the time of the bond election was embraced within the district for which the bonds were issued, may petition the board of supervisors to cause the unsold bonds to be withdrawn from the market and canceled.
BondsCancellation of Unsold Bonds
Section § 22811
This law allows the board of directors of a district to ask the board of supervisors to cancel bonds that have been unsold for six months after being offered for sale. This applies to bonds issued for that specific district or for a district that was part of the original district during the bond election.
unsold bonds bond cancellation district board of directors
Section § 22812
This law states that when a majority of the board of directors signs a petition, the board of supervisors must schedule a hearing. The hearing must be held within 30 days of receiving the petition.
Upon receiving a petition signed by a majority of the members of the board of directors, the board of supervisors shall fix a time for hearing the petition. The hearing shall be held not more than 30 days after receipt of the petition.
board of directors petition board of supervisors hearing petition hearing schedule
Section § 22813
This law requires that the board of supervisors announce when and where a public hearing will take place, as well as the purpose of a petition, by publishing a notice. This notice must appear in a newspaper within the district, or if there isn't one, in a newspaper at the county seat of the county affected.
The board of supervisors shall publish a notice stating the time and place of the hearing and the object of the petition in general terms, pursuant to Section 6062 of the Government Code in a newspaper published in the district or, if there is no such newspaper, in a newspaper published at the county seat of an affected county.
board of supervisors public hearing notice publishing requirements
Section § 22814
This law explains that when there's a meeting (or hearing) about a petition to cancel unsold bonds in a district, people can share reasons for or against the cancellation. If the local board of supervisors thinks canceling these bonds is good for the district, they will officially record the decision. Once canceled, the bonds and their original approval lose all validity, meaning they can no longer be used or issued.
At the time and place designated in the notice, or at any subsequent time to which the hearing is postponed, the board of supervisors shall hear any reason that may be submitted for or against the granting of the petition. If the board of supervisors deems it for the best interest of the district named in the petition that the unsold bonds be canceled, it shall make and enter an order in its minutes that the unsold bonds are canceled. Thereafter the bonds and the vote by which they were authorized to be issued have no validity whatever.
unsold bonds petition hearing board of supervisors
