By proceeding in accordance with the provisions of this part the treasurer may advance the maturity of any bond to the second day of March or September in any year and pay and cancel the same whenever there is sufficient surplus moneys in the redemption fund for its retirement.
Part 11ADVANCE RETIREMENT OF BONDS
Section § 8750
This law allows the treasurer to pay off a bond earlier than its original maturity date, specifically on the second day of March or September. This can happen as long as there's enough extra money in the redemption fund to retire the bond.
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Section § 8751
This law requires that when a bond is going to mature earlier than originally planned, the bondholder must be informed. This notification must be sent either through certified mail or delivered in person.
The notice should be given at least 30 days before the new maturity date.
Notice of advanced maturity shall be given in writing to the registered holder or owner of the bond by registered or certified mail or personal service. Service or mailing of the notice shall be made at least 30 days before the date fixed for advanced maturity.
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Section § 8751.5
If the treasurer receives an interest payment request from a bond that was due early (without the bond being returned), they must mail a notice to the payment address. If the interest request is for a bond no longer earning interest due to early due date, they must also return the interest request with the notice. If the bondholder doesn't receive this extra notice, it doesn't change the bond's new due date.
In the event the treasurer receives for payment any interest coupon from a bond for which notice of advanced maturity has been given without the bond being surrendered to him or her, he or she shall mail a copy of the notice of advanced maturity to the address given for payment of the coupon and, if the coupon received is for interest which has ceased to accrue on the bond by reason of its advanced maturity, shall also return the interest coupon with the copy of notice. Failure of the holder or owner of the bond to receive the additional notice shall not affect the advancing of the maturity of the bond.
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Section § 8752
This section explains what happens when a bond's maturity date is moved up with a notice. The bond is due for payment on the new date given in the notice. If the bondholder agrees with the treasurer, they can turn in their bond before this date and get back the main amount, interest, and any extra redemption amount outlined in the bond.
If the bond isn't handed in early, the treasurer will set aside the amount due, including interest and redemption premium, for the bondholder. At this point, the bond is considered fully matured, and it won't earn any more interest. The bondholder gets this money when they bring in and cancel their bond.
If notice of advanced maturity is given, the bond shall mature and become payable on the date fixed for maturity in the notice. The holder or owner of the bond may, prior to the date of advanced maturity, with the consent of the treasurer, surrender it and receive the principal and interest thereon to the date of payment together with the redemption premium provided for the bond. If the bond has not been sooner surrendered on the date fixed for advanced maturity, the treasurer shall set aside to the credit of the owner of the bond the amount of principal and accrued interest then due on the bond together with the redemption premium and the bond shall then be deemed to have matured and interest shall cease to accrue on the bond. The amount so set aside shall upon demand and upon the surrender and cancellation of the bond be paid to the holder or owner of the bond.
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Section § 8753
The cost of notifying people about early payment deadlines will be taken from a special fund set aside for paying off debt.
The cost of serving or publishing the notice of advanced maturity shall be paid from the redemption fund.
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Section § 8754
This law says that a single notice about a bond maturing sooner than expected can cover more than one bond.
More than one bond may be covered in a single notice of advanced maturity.
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Section § 8755
Before any bond is surrendered or funds are set aside, the treasurer can cancel a notice about a bond maturing sooner than expected. This is possible if a replacement bond or bonds, equal in value and maturing no earlier than the original, are offered for cancellation. Ten days' notice must be given to the bond holder or owner, and there must be no objections from them.
Prior to the surrender of any bond or the setting aside of any funds, the treasurer may waive and vacate any notice of advanced maturity upon being tendered for cancellation some other bond or bonds of an equivalent amount and of a maturity not earlier than that noticed, if 10 days’ notice of his intention so to do is first given by mail or otherwise to the holder or owner of the bond noticed for advanced maturity and such holder or owner has not objected to such action.
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Section § 8756
This law outlines the responsibilities of the treasurer when deciding which bonds to retire. The selection must follow certain procedures, and the treasurer's decision is final unless there's evidence of fraud. The treasurer also needs to ensure that bond owners who release unpaid assessments get back any interest that hasn't accumulated, minus any premiums, interest paid on retired bonds, and administrative costs.
In selecting bonds for retirement, the treasurer shall follow the procedure set forth in Section 8768. The decision of the treasurer in selecting bonds for retirement shall be conclusive in the absence of fraud. The treasurer shall make provision for returning to owners releasing unpaid assessments under Part 8 all interest not accrued less the premium and interest paid on the bonds retired and the cost of administering retirement of the bonds.
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