If the treasurer thinks that there's a risk of bondholders losing money, they will stop paying any due bonds and interest. The treasurer must then inform the legislative body so they can figure out a fair way to protect all the bondholders.

When a report is received, the legislative body must set a date for a hearing and the clerk needs to announce the hearing by posting for 10 days. During the hearing, the legislative body decides if there's enough money in the redemption fund to pay off outstanding bonds and interest. If they find there's enough money, the treasurer is instructed to continue paying matured bonds and interest as funds allow.

If a government body in California sees that there won't be enough money in the redemption fund to pay off bonds, they must order the treasurer to distribute the available money to bondholders. This distribution should match the percentage that the available money represents of the total unpaid bonds and their interest.

More payments should be made regularly as more money is added to the fund.

This law requires bondholders to submit their bonds to the treasurer so they can be registered and canceled. Once a bond is canceled, the holder gets credited for that amount. The treasurer then pays the bondholders their share of the principal and any interest that has built up, depending on available funds in the redemption fund. Interest stops accumulating on the principal once payment is made, but runs on any unpaid principal until it is fully paid. There are no extra payments for early settling of the bond. If a bondholder doesn't submit their bond, the treasurer will send a notice by registered mail about available payment. Interest on the amount available stops after ten days from mailing the notice.

This law section allows the legislative body to conduct additional hearings with the same type of notice. It also permits the creation of any other necessary orders to ensure fairness.

If there's not enough money in the redemption fund to pay due or upcoming bond payments and interest, but the treasurer believes bondholders won't ultimately lose money, then the treasurer must pay according to a set order. First, all matured interest payments are made before any bond principal. Next, interest on older bonds is paid before newer ones. Within a specific maturity, interest on lower-numbered bonds is prioritized over higher-numbered ones. Bond principal is paid based on the order they're presented. Unpaid bonds will get a serial number noting their order and returned to the holder. Any unpaid bonds or interest will continue to accrue interest at the rate specified in the bonds until they are paid.

If the government gets the money to pay off a bond that wasn't paid initially, the treasurer sends a registered mail to the bondholder asking them to present the bond for payment. If the bondholder does not present it within 10 days of getting the mail, the bond stops earning interest.

This law states that if there's still not enough money in the redemption fund a year after bonds have been issued, the local government can call for a hearing. People who are affected by or interested in the project related to those bonds must explain why additional charges shouldn't be applied to cover the costs of the initial work.

This law section requires that a notice for a hearing must be published and posted by the street superintendent. It should follow the same procedures used for posting notices about resolutions of intention when the work was initially announced. All this must be done at least 10 days before the hearing.

This law says that during a hearing, the legislative body will listen to anyone who appears and discuss whether a shortfall in funds happened because the original costs weren't divided fairly based on who benefited. The hearing can be rescheduled if needed. If they find out that a property was charged less than its fair share of the costs for improvements, they can issue an extra charge so that property pays its rightful amount based on the benefits it received.

This law allows the costs for publishing and posting notices, along with making a supplemental assessment, to be added to the supplemental assessment itself. Once an order for the supplemental assessment is made, it must be recorded with the street superintendent's office. After recording, the amount listed becomes a lien on the property, and it will accumulate interest as specified by any related bonds. This supplemental assessment is then added to the next tax rolls and collected like the original assessments.

This law allows a government body to decide that any additional property tax assessments (known as supplemental assessments) can be spread out in equal yearly payments over the time left before the associated bonds are fully paid off.

If a property owner wants to, they can choose to pay the entire supplemental assessment upfront, after the decision is made but before it's added to the tax roll, which means they won't have to pay interest on it.

Money collected from a supplemental assessment goes into a fund that first covers the costs of notifying the public about hearings and creating the assessment itself. Next, it pays off bonds and any associated interest. Once the bonds are fully paid, if there's any remaining money, it should be refunded to the people who initially paid these assessments, if possible. This repayment comes from collecting overdue installments tied to the original bonds, including any interest and penalties. After that, any leftover money covers other city expenses related to these transactions, like special taxes or property sales.

If there's extra money in a city's redemption fund after paying off bonds and interest, that money is first used to pay back special taxes the city used to advance funds. This payment is reduced by any money the city made from selling or redeeming assessed properties, and any related costs. What's left should repay people who paid supplemental assessments, based on Section 8783. The remaining balance can be credited to final assessment payments or added to the city's general fund.