In the event bonds are ordered to be issued, the unpaid assessments, as shown on the list filed by the street superintendent and determined by the legislative body, and any reassessments which may be issued thereon or in lieu thereof, together with interest thereon, shall remain and constitute a trust fund for the redemption and payment of the principal of the bonds and for the interest which may be due thereon.
Part 9ASSESSMENT LIENS AND REASSESSMENTS
Section § 8700
If bonds are issued, any unpaid assessments or new reassessments, along with their interest, will be set aside as a trust fund. This fund is used to pay back both the main amount of the bonds and any interest they accumulate.
bonds issuance unpaid assessments street superintendent legislative body reassessments trust fund redemption payment of bonds bond principal interest due financial management public finance municipal bonds interest payment debt recovery
Section § 8701
This law states that assessments (charges for public improvements) and any penalties or interest on them become a lien on the property until they're paid off. However, this lien can only last as long as someone could legally sue over the latest bonds issued based on these unpaid assessments.
Such assessments and reassessments and each installment thereof and the interest and penalties thereon shall constitute a lien against the lots and parcels of land on which they are made, until the same be paid, but for a period not exceeding the time within which an action might be brought on the last series of bonds issued upon the security of such unpaid assessments.
property lien assessments reassessments installments interest penalties land parcels payment period unpaid assessments bonds security public improvements legal action timeframe real estate debt recovery property charges
Section § 8702
This law says that a lien connected to property, like one involving bonds, is less important than any older special assessment liens on the property. However, it takes precedence over any new special assessment liens created later.
The lien, whether bonds issued to represent the assessment or otherwise, shall be subordinate to all fixed special assessment liens previously imposed upon the same property, but it shall have priority over all fixed special assessment liens which may thereafter be created against the property.
lien priority bonds special assessment liens property lien hierarchy subordinated lien prior liens assessment bonds property assessment subordination lien order priority over future liens older liens property encumbrance real estate liens
Section § 8703
This law section states that when a reassessment or a refunding assessment is made on property, it keeps the same level of importance or priority as the initial assessment it replaces. However, a supplemental assessment is considered entirely new and separate from the original.
The lien of a reassessment and a refunding assessment shall have the same priority as the original assessment to which it relates. A supplemental assessment is a new assessment.
reassessment priority refunding assessment priority original assessment supplemental assessment priority of liens property assessment lien priority property reassessment new assessment property tax assessment assessment replacement
Section § 8704
This law means that if you have a general warranty of title, it doesn't cover any upcoming payments, interest, or penalties that are secured by a lien. In simple terms, these financial obligations aren't included in what's guaranteed by the title's warranty.
Unmatured installments, interest and penalties secured by any such lien or liens shall not be deemed to be within the terms of any general warranty of title.
unmatured installments interest penalties lien general warranty of title secured financial obligations property title upcoming payments not covered excluded liabilities real estate lien title guarantee warranty exclusions secured obligations
Section § 8705
If an assessment (a type of charge or levy) is found to be invalid or unenforceable for any reason, or if bonds issued against these assessments are ineffective, a new assessment can be done. This reassessment can happen if requested by the owners or holders of at least one-third of the outstanding bonds, or if the legislative body orders it. The reassessment must follow the original assessment law or Chapter 19 of Division 7 if no valid procedure exists, regardless of whether the related project is finished or planned.
If any assessment heretofore or hereafter issued is void or unenforceable, for any cause, or if bonds are issued to represent or be secured by any assessments and that issuance is not effective through the curative provisions in relation thereto under the law pursuant to which the assessment was levied or under this division to make them valid and enforceable, then a reassessment may be made. The reassessment shall be made upon the demand of the owner or holder of bonds aggregating one-third of the principal amount outstanding, or upon order of the legislative body, and shall be made in the manner and form provided by the law pursuant to which the assessment was levied, without regard to whether the acquisition or improvement has been done or is proposed to be done, if any valid procedure is provided, and otherwise as provided by Chapter 19 (commencing with Section 5500) of Part 3 of Division 7.
invalid assessment unenforceable assessment bond issuance failure reassessment procedure legislative body demand from bondholders principal amount outstanding curative provisions assessment levy law Chapter 19 Division 7 public improvement projects property levies infrastructure financing legal reassessment demand
Section § 8706
When the reassessment is made, it creates a trust fund to pay off the original bonds. Alternatively, the legislative body can replace the outstanding bonds with new ones that use the reassessment as security. If new bonds are planned, the public must be notified through a hearing notice that includes this intent. After the reassessment is confirmed, the legislative body can proceed with issuing the new bonds as it sees fit.
When made, the reassessment shall constitute a trust fund for the redemption and payment of the original bonds issued against the original assessment; or the legislative body may call in the original issue of bonds outstanding and issue new bonds upon the security of the reassessment in lieu thereof. If the legislative body determines that new bonds shall be issued upon the security of the reassessment, the notice of hearing upon the reassessment shall contain a declaration of intention to issue bonds substantially in the form provided for in Section 8573. Upon confirmation of the reassessment the legislative body may issue the new bonds in the manner that it determines.
reassessment trust fund bond redemption original bonds replacement bonds security of reassessment declaration of intention hearing notice bond issuance reassessment confirmation legislative body decisions
Section § 8707
If a government body decides to recall or pay off existing bonds sooner than planned, it can order the treasurer to make those bonds mature earlier. This happens even if there's no extra money in the fund meant for redeeming bonds. Additionally, new bonds will be issued to cover any unpaid reassessment amounts, and these new bonds will start earning interest from their issue date at a rate set by the government body.
If the legislative body calls in the original issue of outstanding bonds, it may direct the treasurer to, and the treasurer shall thereupon, advance the maturity of the outstanding bonds bearing interest in the manner provided in Part 11 (commencing with Section 8750), notwithstanding the fact that there may not be surplus moneys in the redemption fund with which to pay the same. New bonds shall be issued in an aggregate amount equal to the total balance of the reassessment unpaid and shall bear interest from their date at the rate fixed by the legislative body.
outstanding bonds advance maturity original issue redemption fund new bonds issuance bond interest rate unpaid reassessment treasurer's role maturity advancement legislative body direction bond recall treasury operations interest bearing bonds Part 11 regulations bond redemption fund
Section § 8708
This law outlines what happens when new bonds are issued to replace old ones. When holders of the original bonds turn in their old bonds, they're given a share of the new bonds. The amount they get is based on how much they were owed on the old bonds compared to the total new bond amount. The legislative body is responsible for deciding how to distribute the new bonds and can choose how to assign different amounts and due dates in a fair way.
Upon the surrender of the outstanding bonds, the new bonds shall be issued ratably to the holders of the original outstanding bonds. Each holder of such original bonds shall be entitled to such proportion of the new bonds as the total amount of the principal and interest due him on his original bonds, upon the date of the recordation of the reassessment, bears to the total amount of the principal of the new bonds. In making distribution the legislative body may assign the different bonds and allot maturities in such manner as to it shall seem equitable.
bond exchange outstanding bonds new bonds bondholders principal amount interest due bond allocation reassessment recordation legislative body equitable distribution bond maturities
