Whenever there is in the redemption fund two thousand dollars ($2,000) or more available for the payment of principal of bonds, and not collected for the purpose of paying the principal of bonds maturing on the next second day of July, the city shall purchase or call bonds as provided in this chapter.
Chapter 12Advance Retirement of Bonds
Section § 9450
This law requires that if a city has at least $2,000 in its redemption fund that hasn't been set aside for paying bonds maturing by the next July 2nd, it must use that money to buy back or call outstanding bonds as outlined in the same chapter.
redemption fund principal of bonds bond purchase bond call city finance outstanding bonds bond maturity July 2nd deadline available funds municipal bonds bond payment financial management debt servicing bond redemption city obligations
Section § 9451
This law requires the city treasurer to announce when the city wants to buy back some of its refunding bonds. They must publish a notice in a widely circulated financial journal at least 30 days before the deadline. This notice will explain how much money is available for purchasing the bonds and when and where offers will be accepted. Additionally, the treasurer must send the notice to any bondholders who have asked for such notifications at least 10 days before the deadline.
The treasurer shall, by notice published once not less than 30 days prior to the date designated in some financial journal having a national circulation, invite sealed proposals for the sale of any of the refunding bonds to the city. The notice shall state the amount available for the purchase of such bonds and shall specify the time and place when proposals will be opened. The treasurer shall also, at least 10 days prior to the date so designated, mail a copy of the invitation for sealed proposals to any bondholder who has theretofore in writing requested such notice.
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Section § 9452
This law states that when proposals for selling bonds are submitted, they must be opened in a public setting at the time and place previously announced. The decision-making legislative body has the authority to accept or reject any or all proposals as they see fit.
The proposals for the sale of bonds shall be opened in public at the time and place specified in the notice. The legislative body in its discretion may reject any or all of the proposals.
bonds sale proposals public opening legislative discretion proposal rejection public notice bond transactions time and place announcement proposal evaluation decision-making authority legislative body actions
Section § 9453
If no one offers to buy bonds for less than their face value plus interest, or enough bonds aren't offered to use up the available funds, the treasurer must set aside enough money to pay off the principal and interest due on those bonds at the next payment date. Then, the treasurer will start paying back the bonds in number order at full value plus interest, based on how much money is set aside.
If no proposals are received at a price of less than par and accrued interest, or if an insufficient amount of bonds are tendered at less than par and accrued interest to exhaust, as nearly as possible, the money available for purchase of bonds, the treasurer shall set aside a sum sufficient to pay the principal and accrued interest to the next interest payment date of the bonds to be called for redemption and shall proceed to call for redemption, in numerical order, at par and accrued interest to the next interest payment date, such outstanding bonds as can be retired from said funds.
bond redemption par value accrued interest treasurer responsibilities bond purchase call for redemption numerical order redemption available funds for bonds outstanding bonds principal payment interest payment date insufficient bond proposals
Section § 9454
This section states that when bonds are set to be redeemed, a notice must be published once in a financial journal with national reach, unless the bondholders agree in writing to skip this notice. The notice must be published no less than 30 days before the redemption date. Once the redemption date arrives, the bonds will stop earning interest.
Notice of the calling of bonds for redemption shall be given by publication once in a financial journal having a national circulation, unless the holders of the bonds to be called, in writing, waive such notice. The date of publication of notice shall be not less than 30 days prior to the date so fixed for redemption. Interest on the bonds so called shall cease upon the redemption date.
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Section § 9455
When refunding bonds are bought back or redeemed, the treasurer must cancel them.
All refunding bonds so purchased or redeemed pursuant to call shall be canceled by the treasurer.
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Section § 9456
This law section states that any costs related to publishing, as required by this chapter, should be paid from the redemption fund.
All costs of publication provided for in this chapter shall be payable from the redemption fund.
publication costs redemption fund expenses coverage payment source fund allocation financial responsibility cost management fund disbursement budgeting process expenditure from fund funded publications redeemable costs financial obligations payment provisions chapter-related expenses
