§ 5882 County Bond Denomination Rules

This law lets the county board decide how big each bond can be, but each bond must be between $100 and $1,000, and it tells how interest on the bond is paid.

Key Takeaways

•Each bond must be at least $100 and no more than $1,000.
•The county board chooses the exact denominations within that range.
•Interest is paid twice a year and can’t be higher than the maximum the board allowed.

Example

The county needs money for a new park and sells a $500 bond that promises 6% interest per year.

Because the bond is $500 (which is between $100 and $1,000), it follows the rule. The county will pay interest twice a year, each time using half of the yearly rate.

How to Calculate

Semiannual interest = Principal × (Annual interest rate ÷ 2)

Find the bond amount (principal).
Find the annual interest rate written on the bond (it can’t be higher than the maximum the board set).
Divide that annual rate by 2 to get the rate for each half‑year.
Multiply the principal by the half‑year rate to get the interest paid every six months.

County sells a $500 bond with a 6% annual interest rate.

Result: Semiannual rate = 0.06 ÷ 2 = 0.03 (3%). Interest each six months = 500 × 0.03 = $15. Total interest for the year = $30.

The board of supervisors of the county may determine the denomination of the bonds, except that no one bond shall be of a denomination less than one hundred nor more than one thousand dollars. The bonds shall be payable on the date and at the place fixed in the bond, with interest payable semiannually at the rate specified in the bond, which shall not exceed the maximum fixed by the resolution calling the election. (Enacted by Stats. 1937, Ch. 368.)

This law lets the county board decide how big each bond can be, but each bond must be between $100 and $1,000, and it tells how interest on the bond is paid.

Key Takeaways

•Each bond must be at least $100 and no more than $1,000.
•The county board chooses the exact denominations within that range.
•Interest is paid twice a year and can’t be higher than the maximum the board allowed.

Example

The county needs money for a new park and sells a $500 bond that promises 6% interest per year.

Because the bond is $500 (which is between $100 and $1,000), it follows the rule. The county will pay interest twice a year, each time using half of the yearly rate.

How to Calculate

Semiannual interest = Principal × (Annual interest rate ÷ 2)

Find the bond amount (principal).
Find the annual interest rate written on the bond (it can’t be higher than the maximum the board set).
Divide that annual rate by 2 to get the rate for each half‑year.
Multiply the principal by the half‑year rate to get the interest paid every six months.

County sells a $500 bond with a 6% annual interest rate.

Result: Semiannual rate = 0.06 ÷ 2 = 0.03 (3%). Interest each six months = 500 × 0.03 = $15. Total interest for the year = $30.

Key Takeaways

Example

How to Calculate

Key Terms

References

§ 5882 County Bond Denomination 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