§ 15231 Bond Series Issuance Rules

This law lets the board split a big bond issue into separate groups (called series) that can have different start dates, and each group's final payoff date is counted from its own start date.

Key Takeaways

•The board can split one big bond approval into several smaller series.
•Each series can start selling on a different date.
•The final payoff date for each series is counted from its own start date, not from the original election date.

Example

A school district wants to raise $10 million for a new building. The board can break the $10 million into two series: $6 million that starts selling in 2024 and $4 million that starts selling in 2026.

Each series will have its own payoff (maturity) date counted from when that series is first sold, so the 2026 series isn’t forced to wait until the 2024 series finishes.

How to Calculate

Maturity Date = Series Issue Date + Maximum Term (as set for that series)

Find the date the series of bonds is first issued (the Issue Date).
Look up the maximum term (how many years the bonds can run) that the board set for that series.
Add the number of years from the maximum term to the Issue Date. The result is the Maturity Date for that series.

The board creates a series that is issued on July 1 2024 with a maximum term of 20 years.

Result: Maturity Date = July 1 2024 + 20 years = July 1 2044

The board of supervisors at the direction of governing board of the district may divide the principal amount of bonds authorized at any election into two or more series and may fix different dates for the bonds of each series, in which event the maximum maturity date of the bonds shall be calculated from the date of each series respectively. When the issuance of bonds shall have been authorized pursuant to two or more propositions submitted at the same or different elections, all or any part of the bonds not theretofore issued may be combined and issued and sold as one or more series. (Repealed and added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)

This law lets the board split a big bond issue into separate groups (called series) that can have different start dates, and each group's final payoff date is counted from its own start date.

Key Takeaways

•The board can split one big bond approval into several smaller series.
•Each series can start selling on a different date.
•The final payoff date for each series is counted from its own start date, not from the original election date.

Example

Each series will have its own payoff (maturity) date counted from when that series is first sold, so the 2026 series isn’t forced to wait until the 2024 series finishes.

How to Calculate

Maturity Date = Series Issue Date + Maximum Term (as set for that series)

Find the date the series of bonds is first issued (the Issue Date).
Look up the maximum term (how many years the bonds can run) that the board set for that series.
Add the number of years from the maximum term to the Issue Date. The result is the Maturity Date for that series.

The board creates a series that is issued on July 1 2024 with a maximum term of 20 years.

Result: Maturity Date = July 1 2024 + 20 years = July 1 2044

Key Takeaways

Example

How to Calculate

Key Terms

References

§ 15231 Bond Series Issuance Rules

Key Takeaways

Example

How to Calculate

Key Terms

References

Key Takeaways

Example

How to Calculate

Key Terms

Related Statutes

References

Key Takeaways

Example

How to Calculate

Key Terms

Related Statutes

References