The provisions of this chapter shall apply to all bonds issued under the authority of this part.
Joint Highway DistrictsGeneral Bond Provisions
Section § 25370
This law states that the rules in this chapter are relevant to every bond issued under the specified part of the law.
bond issuance authority compliance applicability
Section § 25371
This section states that bonds issued by joint highway districts are considered safe investments for several types of funds. Specifically, these bonds can be invested in by trusts, insurance companies, commercial and savings banks, trust companies, state schools, and any other entities allowed to invest in bonds from cities, counties, school districts, or irrigation districts within California.
All bonds issued by joint highway districts shall be legal investments for the funds of:
(a)CA Streets And Highways Code § 25371(a) Trusts.
(b)CA Streets And Highways Code § 25371(b) Insurance companies.
(c)CA Streets And Highways Code § 25371(c) Banks, both commercial and savings.
(d)CA Streets And Highways Code § 25371(d) Trust companies.
(e)CA Streets And Highways Code § 25371(e) State schools.
(f)CA Streets And Highways Code § 25371(f) Any other body whose funds may be invested in bonds of cities, counties, school districts or irrigation districts within the State of California.
joint highway districts legal investments trust funds
Section § 25372
This law states that bonds issued by joint highway districts can be used as security for fulfilling obligations or for depositing public funds, just like bonds from cities, counties, school districts, or irrigation districts.
Whenever bonds of cities, counties, school districts or irrigation districts may be used as security for the performance of any act or the deposit of any public moneys, any bonds issued by joint highway districts may be so used.
joint highway districts bonds as security performance of acts
Section § 25373
This law allows both the State Director of Finance and the county boards of supervisors to buy bonds from joint highway districts. They can use surplus funds from the State treasury or county funds respectively, as long as those funds aren’t needed immediately for other government purposes.
The State Director of Finance may purchase any bonds issued by joint highway districts and pay for them out of any surplus money in the State treasury which, in his judgment, is not required for governmental purposes prior to the maturity of such bonds. The boards of supervisors of the several counties within the district may likewise purchase such bonds with any surplus funds under their control.
State Director of Finance purchase bonds joint highway districts
Section § 25374
This section says that if a project costs over $1 million, the board of directors can choose to spread the payment of bonds over up to 15 years. Each county involved must pay at least an amount equal to the total amount due from that county divided by the number of payments.
If the report of the board of directors shows that the proposed project or any unit thereof, is estimated to cost more than one million dollars ($1,000,000), the board of directors may provide that any bonds issued to finance the same shall be extended over a period of not to exceed 15 annual installments, in which event the initial payment from each county within the district shall be not less than the sum obtained by dividing the total amount payable in each county by the number of installments in which the bonds are to be paid.
project cost estimation board of directors bonds issuance
Section § 25375
This law states that once a district issues bonds, it confirms everything about how the bonds were created and any steps taken were done properly and legally. After the bonds are issued, no one can claim that taxes or charges used to pay off the bonds are invalid, even if there were mistakes in the process of issuing the bonds. Additionally, after issuance, no lawsuits can be initiated to cancel the bonds or stop the payments or taxes related to them.
The issuance of any bonds by the district shall be conclusive evidence of the regularity, validity and legal sufficiency of all proceedings, acts and determinations in any wise pertaining thereto. After the bonds are issued no assessment tax or tax or other charge levied or collected for the purpose of paying the principal or interest thereon shall be held to be invalid or illegal or set aside or refunded, by reason of any error, informality, irregularity, omission or defect in any of the proceedings, acts or determinations in any wise pertaining to the issuance or payment of the bonds. No action or proceeding shall be thereafter commenced or maintained to cancel or set aside the bonds or to prevent the payment thereof or the levy, collection or enforcement of any assessment tax, tax or other charge made for such payment.
bond issuance district bonds validity of bonds
Section § 25376
This law states that the district cannot issue bonds amounting to more than 10% of the total assessed value of all taxable property in the district according to the latest county tax assessment records.
No bonds shall be issued by the district in an amount which will aggregate at any time an obligation in excess of 10 per cent of the assessed value of the aggregate total taxable property within the district as shown by the then current taxation assessment rolls of the several counties within the district.
bonds issuance limit assessed property value taxable property
Section § 25377
This law sets limits on how much taxable property in a county can be used for joint highway district purposes. If a county's total assessed property is worth $100 million or less, only up to 3% can be used. If the property's worth is over $100 million, the limit is 2%.
The taxable property within any county shall not at any time be obligated for all joint highway district purposes, in any amount in excess of the following limitations:
(a)CA Streets And Highways Code § 25377(a) In counties having a total assessed value of all taxable property therein of one hundred million dollars ($100,000,000) or less, not more than 3 per cent thereof.
(b)CA Streets And Highways Code § 25377(b) In counties having a total assessed value of all taxable property therein of more than one hundred million dollars ($100,000,000), not more than 2 per cent thereof.
taxable property limitations county taxable property joint highway district
