§ 6939 Bond Issuance Requirements

This law says any bond the city issues must clearly state how much money is being borrowed, the sizes of the bond pieces, when they will be paid back, the interest rate (or the highest rate allowed), and what projects the money will be used for.

Key Takeaways

•Bond rules must include the total amount of money being borrowed.
•They must say what denominations (sizes) the bonds will have.
•They must state how the bonds will mature (when they are paid back) and the interest rate or maximum rate.
•They must describe in general what the money will be used for, like building roads or parks.
•The board can add any other provisions it thinks are helpful.

Example

The city wants to build a new community park and needs money, so it issues bonds to raise funds.

The bond ordinance must list the total amount of money to be raised, the denominations of the bonds (like $1,000 or $5,000 pieces), when each bond will mature, the interest rate that will be paid, and that the money will go toward building the park.

Said ordinance shall specify the total amount, denomination, method of maturity, and the rate or maximum rate of interest of said bonds, and in general terms, the acquisitions and improvements to be constructed thereby; and, in addition, shall contain such other and further provisions as in the judgment of the board are deemed advisable. (Added by Stats. 1958, 1st Ex. Sess., Ch. 91.)

Key Takeaways

•Bond rules must include the total amount of money being borrowed.
•They must say what denominations (sizes) the bonds will have.
•They must state how the bonds will mature (when they are paid back) and the interest rate or maximum rate.
•They must describe in general what the money will be used for, like building roads or parks.
•The board can add any other provisions it thinks are helpful.

Example

The city wants to build a new community park and needs money, so it issues bonds to raise funds.

Key Takeaways

Example

Key Terms

References

§ 6939 Bond Issuance Requirements

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References