General Bond ProvisionsBond Terms
Section § 25200
In this section, when the term “bonds” is mentioned, it includes both construction bonds, which are used to fund the building of projects, and refunding bonds, which are used to refinance existing debt. This applies unless there's a specific exception stated.
Section § 25201
This law section states that the board is responsible for deciding what the bonds and the attached interest coupons look like, as per the rules of this article.
Section § 25202
This law defines that 'an issue of bonds' refers to all the bonds that are released based on one proposal that has been approved by voters in an election.
Section § 25203
This law states that when bonds are issued, they must be assigned consecutive numbers. Each series of issued bonds has its own sequence of numbers that follows one after another.
Section § 25204
This law states that the board is responsible for setting the date when each set of bonds will be issued. They also have the authority to split a single set of bonds into multiple groups and assign different issuance dates to each group.
Section § 25205
This law states that a bond's date must be set after the election where its issuance was approved but before the bond is given to the buyer.
Section § 25206
This law states that the official date of a bond is the date printed on its front.
Section § 25207
The board is responsible for determining the value or values of each bond issued.
Section § 25208
This law states that bonds can have an interest rate of up to 8% per year, which is set by the board. However, if it's determined that the bond interest will be taxed federally, the rate can go up to 10% per year. This rule has been in effect since January 1, 1984.
Section § 25208.1
This law allows the Board of Directors of the Solano Irrigation District to set interest rates on their bonds up to 18% per year if they anticipate that the interest will be taxed federally. This decision has to be made through a resolution before the bond sale.
Section § 25209
This law states that interest payments need to be made twice a year, specifically on January 1st and July 1st.
Section § 25209.1
This law specifies that for certain districts, the interest on bonds, which are paid only from revenue and used for electric power projects, must be paid at least twice a year on specific dates set by the district's board.
Section § 25210
The board is responsible for deciding where the bonds and their interest will be paid out.
Section § 25211
This law states that bonds must be paid using U.S. currency.
Section § 25212
This law states that each bond must be paid back in full at a specified time, rather than paying only a portion of its value.
Section § 25213
This law states that the main sum (or principal) that is owed on bonds must be paid on either January 1st or July 1st of the years specified by the board.
Section § 25213.1
This California law states that for certain districts, when bonds are issued exclusively for projects related to electric power, the main payments (except for early repayments) must be made on the same dates designated for interest payments. This applies only if the bonds are entirely funded by revenue from those projects.
Section § 25214
This law says that any bond issued cannot have a maturity date that is longer than 50 years from the date it was issued.
Section § 25215
Section § 25216
This law states that each bond from a district must be signed by the president and secretary who are in office anytime from when the bond is issued until it is delivered to the buyer.
Section § 25217
Each bond issued by the district must have the district's official seal stamped on it.
Section § 25218
This law says that the interest coupons, which are part of a bond from a district, need to be signed by the secretary who is in office at some point between when the bond is created and when it is sold. The signature can be a facsimile, which means it doesn't have to be handwritten and can be printed or stamped.
Section § 25219
This law states that unless specified differently when bonds are issued, both the bonds and their interest will be paid using money from an annual assessment on land. Alternatively, payments may come from charges decided by the board. This ensures that all land remains responsible and can be assessed for these payments.