§ 3911 Harbor Bond Maturity Schedule

This law tells a committee how to pick when bonds are paid back and how much, using the money they expect to get from the harbor fund.

Key Takeaways

•The committee uses the harbor’s expected money to decide bond pay‑back dates and amounts.
•Bond principal payments are set so that, together with interest, they line up with the expected revenue.
•If the expected revenue changes, the committee can adjust the maturity schedule to stay close to the new estimate.

Example

The harbor expects to collect $150,000 in tolls next year. The committee has to decide how much of the bond principal to pay back that year so the total payment (principal + interest) matches the $150,000 they expect.

They look at the expected $150,000, subtract the interest they have to pay that year, and the rest is the amount of bond principal they can schedule to mature (be paid back) that year.

How to Calculate

Maturity Amount = Estimated Revenue – Interest Payment

Find the estimated revenue the harbor will receive for the date you are planning (e.g., $150,000).
Find the interest payment that is due on the bonds for that same date (e.g., $30,000).
Subtract the interest payment from the estimated revenue. The result is the amount of bond principal that can be set to mature on that date.

Harbor expects $200,000 in revenue next quarter and must pay $50,000 interest on its bonds that quarter.

Result: Maturity Amount = 200,000 – 50,000 = 150,000. So the committee can schedule $150,000 of bond principal to be paid back that quarter.

In determining the dates of maturity of the bonds, and the amount thereof to mature at each date of maturity, the committee shall be guided, so far as it may deem to be practicable, by the amounts of the revenue estimated to accrue to the Harbor Bond Sinking Fund. The committee shall fix and determine the dates and amounts of such maturities in such manner that, together with the dates and amounts of interest payments on the bonds, they shall coincide, as nearly as it may deem to be practicable, with the dates and amounts of such estimated revenue. (Added by Stats. 1958, 1st Ex. Sess., Ch. 103.)

This law tells a committee how to pick when bonds are paid back and how much, using the money they expect to get from the harbor fund.

Key Takeaways

•The committee uses the harbor’s expected money to decide bond pay‑back dates and amounts.
•Bond principal payments are set so that, together with interest, they line up with the expected revenue.
•If the expected revenue changes, the committee can adjust the maturity schedule to stay close to the new estimate.

Example

They look at the expected $150,000, subtract the interest they have to pay that year, and the rest is the amount of bond principal they can schedule to mature (be paid back) that year.

How to Calculate

Maturity Amount = Estimated Revenue – Interest Payment

Find the estimated revenue the harbor will receive for the date you are planning (e.g., $150,000).
Find the interest payment that is due on the bonds for that same date (e.g., $30,000).
Subtract the interest payment from the estimated revenue. The result is the amount of bond principal that can be set to mature on that date.

Harbor expects $200,000 in revenue next quarter and must pay $50,000 interest on its bonds that quarter.

Result: Maturity Amount = 200,000 – 50,000 = 150,000. So the committee can schedule $150,000 of bond principal to be paid back that quarter.

Key Takeaways

Example

How to Calculate

Key Terms

References

§ 3911 Harbor Bond Maturity Schedule

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