8770-8784

STREETS AND HIGHWAYS CODE
SECTION 8770-8784




8770.  If it appears to the treasurer that there is danger of an
ultimate loss accruing to the bondholders for any reason, he or she
shall withhold payment on all matured bonds and interest and report
the facts to the legislative body so that proper action may be taken
by that body to equitably protect all bondholders.




8771.  On receipt of the report, the legislative body shall fix a
date for hearing thereon. The clerk shall give notice of the hearing
by posting for 10 days. At the hearing the legislative body shall
determine whether in its judgment there will ultimately be
insufficient money in the redemption fund to discharge the unpaid
bonds and interest. If it determines that in its judgment there will
be no such shortage, it shall direct the treasurer to pay matured
bonds and interest as long as there is available money in the
redemption fund.


8772.  If the legislative body determines that in its judgment there
will be a shortage in the redemption fund, it shall direct the
treasurer to pay to the holders of all outstanding and unpaid bonds
such proportion thereof as the amount of funds on hand bears to the
total amount of the unpaid principal of the bonds and the interest
which has accrued or will accrue thereon. Similar proportionate
payments shall thereafter be made periodically as moneys come into
the redemption fund.



8773.  In order to facilitate the making of proportionate payments,
the holders of outstanding bonds shall surrender them to the
treasurer for registration and cancellation. Upon cancellation each
holder shall be credited with the amount of his bond so canceled.
Thereupon the treasurer shall by warrant pay to each holder the
proportionate amount of principal and accrued interest due on his or
her bonds as may be available from time to time out of the money in
the redemption fund. Interest shall cease on payments made on account
of principal from the date of payment, but interest shall continue
to run on the unpaid principal at the rate specified in the bonds
until payment thereof be made. No premiums shall be paid on payments
made in advance of the due date. If bonds are not surrendered for
registration and payment the treasurer shall give notice to the
holder thereof by registered mail, at the holder's address as last
known to the treasurer, of the amount available for payment.
Thereupon interest shall cease as to the amount so available for
payment 10 days from the date of mailing of the notice.



8774.  The legislative body may hold supplemental hearings on like
notice and such other and supplemental orders may be made from time
to time as may be equitable and proper.



8775.  If a deficiency occurs in the redemption fund with which to
pay past due bonds, past due interest, or bonds or interest which
will become due during the current tax collecting year, but it does
not appear to the treasurer that there will be an ultimate loss to
the bondholders, he shall pay matured bonds as presented and make
interest payments when due as long as there are available funds in
the redemption fund, in the following order of priority:
   (1) All matured interest payments shall be made before the
principal of any bonds is paid.
   (2) Interest on bonds of earlier maturity shall be paid before
interest on bonds of later maturity.
   (3) Within a single maturity, interest on lower-numbered bonds
shall be paid before interest on higher-numbered bonds.
   (4) The principal of bonds shall be paid in the order in which the
bonds are presented for payment. Any bond which is presented but not
paid shall be assigned a serial number according to the order of
presentment and shall be returned to the bondholder.
   Bonds not paid when presented, and interest payments not paid when
due, shall bear interest at the rate stated in the bonds, without
compounding, until paid.


8776.  When funds become available for the payment of any bond which
was not paid upon presentment, the treasurer shall notify the
registered owner thereof by registered mail to present the bond for
payment. If the bond is not presented for payment within 10 days
after the mailing of the notice, interest shall cease to run on the
bond.



8778.  If a deficiency remains in the redemption fund after one year
from the issuance of the bonds, the legislative body may require all
persons interested to appear before it at a day, hour and place
fixed by it for a hearing and to show cause why a supplemental
assessment should not be made to pay for the cost and incidental
expenses of the original work done upon which the original
assessments were made upon which the bonds were issued.



8779.  Notice of the hearing shall be given by publication, and
shall also be posted by the street superintendent in the same manner
as provided by the law pursuant to which the work was done for the
posting of notices of the passage of the resolution of intention. The
first publication of the notice and the posting shall be completed
10 days before the time fixed for the hearing.



8780.  At the time set for the hearing the legislative body shall
proceed to hear any person appearing and may determine whether or not
such deficiency was due to the fact that the original assessment for
such cost and incidental expenses was not apportioned equitably or
in accordance with benefits. The hearing may be postponed from time
to time. If it appears to the legislative body that the amount
apportioned to any lot was less than the amount which such lot should
equitably bear according to the benefit which it received from the
improvement, the legislative body may levy a supplemental assessment
apportioning to such lot the additional sums which it should
equitably bear according to such benefits.



8781.  The cost of the publication and posting of the notice and of
making the supplemental assessment may be included in the
supplemental assessment. A copy of the order levying the supplemental
assessment shall be recorded in the office of the street
superintendent and from and after such recording, the sum therein
levied on any lot shall be and constitute a lien thereon and
thereafter bear interest at the rate specified in the bonds. The
several amounts levied by the supplemental assessment shall be
extended on the next succeeding tax rolls to be delivered to the tax
collector and shall be collected in the manner provided for the
collection of installments of the original assessments.



8782.  The legislative body may provide in its order levying the
supplemental assessment that the supplemental assessments may be
collected in annual installments during the remaining term of years
during which the bonds run, an equal proportion of principal coming
due in each of the remaining years. However, any property owner may
pay the whole of the supplemental assessment subsequent to the order
of the legislative body and before the amount has been extended on
the tax roll, whereupon interest shall cease on such assessment.



8783.  All money collected on the supplemental assessment shall be
paid into the redemption fund and be applied to the payment of the
costs of publishing and posting the notice of hearing and of making
the supplemental assessment and then to the payment of the bonds and
interest thereon. After satisfaction of the bonds, repayment, if
possible, of all funds collected on the supplemental assessment shall
be made to those persons paying the same out of recoveries had
through the collection of the delinquent installments of the
assessments upon which the bonds were originally issued and of the
interest and penalties thereon, and then out of any surplus remaining
in the redemption fund after repayment to the city of any special
taxes levied by it for the purpose of advancing funds under Part 13
(commencing with Section 8800) less its recovery on the sale or
redemption of the properties assessed and any costs incurred by it
under this division.


8784.  If there is a surplus remaining in the redemption fund after
payment of all bonds and the interest thereon, that surplus shall
first be applied to repayment to the city of any special taxes levied
by it for the purpose of advancing funds under Part 13 (commencing
with Section 8800) less its recovery on the sale or redemption of the
properties assessed, and also of any costs incurred by it under this
division. The remainder shall be repaid in accordance with the
provisions of Section 8783 to persons paying supplemental
assessments, if any, and the balance may be proportionately credited
upon the final installments due upon the assessments securing the
bonds and repaid to those persons whose assessments have been
previously paid or may be transferred to the general fund of the
city.