BONDS

Los Angeles Administrative Code div. 6, ch. 10, art. 6

in effect

Los Angeles Administrative Code § 6.755 Resolution to Incur Debt.

Sec. 6.755. Resolution to Incur Debt. Whenever the Council deems it necessary for an existing or proposed Community Taxing District to incur Debt, it shall, by resolution, set forth all of the following: A. A declaration of the necessity for the indebtedness; B. The purpose for which the proposed Debt is to be incurred; C. The amount of the proposed Debt; D. The time and place for a hearing by the Council on the proposed Debt issue. SECTION HISTORY Added by Ord. No. 177,051, Eff. 11-20-05.

Los Angeles Administrative Code § 6.756 Inclusion of Certain Costs and Estimated Costs in Proposed Debt.

Sec. 6.756. Inclusion of Certain Costs and Estimated Costs in Proposed Debt. The amount of the proposed Debt may include all costs and estimated costs incidental to, or connected with, the accomplishment of the purpose for which the proposed Debt is to be incurred, including, but not limited to, the estimated costs of construction or acquisition of public or private buildings, or both; acquisition of land, rights-of-way, water, sewer or other capacity or connection fees; lease payments for school facilities that are relocated, satisfaction of contractual obligations issued pursuant to this Chapter, architectural engineering, inspection, legal, fiscal and financial consultant fees; environmental review and monitoring costs; bonded and other reserve funds; discount fees; interest on any Debt of the District due and payable prior to the expiration of one year from the date of completion of all of the facilities, not to exceed five years; election costs; administrative expenses of the City in administering the District or the levy and collection of the special taxes; and all costs of issuance of the Debt, including, but not limited to, fees for bond counsel, costs of obtaining credit ratings, bond insurance premiums, fees for letters of credit, and other credit enhancements costs, and printing costs. SECTION HISTORY Added by Ord. No. 177,051, Eff. 11-20-05.

Los Angeles Administrative Code § 6.757 Notice of Hearing on Resolution.

Sec. 6.757. Notice of Hearing on Resolution. The City Clerk shall publish a notice of the hearing in a newspaper of general circulation circulated within the District. The notice shall state: A. The time and place of the hearing; B. At that time and place any person interested, including all persons owning property in the District, will be heard upon the proposed Debt issue. SECTION HISTORY Added by Ord. No. 177,051, Eff. 11-20-05.

Los Angeles Administrative Code § 6.758 Hearing.

Sec. 6.758. Hearing. At the time and place fixed for the hearing on the resolution declaring the necessity for incurring the bonded indebtedness or at any time and place to which the hearing is adjourned, the Council shall proceed with the hearing. At the hearing any person interested, including persons owning property within the District, may appear and present any matters material to the questions set forth in the resolution declaring the necessity for incurring the Debt. SECTION HISTORY Added by Ord. No. 177,051, Eff. 11-20-05.

Los Angeles Administrative Code § 6.759 Improvement Area; Resolution Designating; Application of Proceedings.

Sec. 6.759. Improvement Area; Resolution Designating; Application of Proceedings. For purpose of financing of, or contributing to the financing of, specified facilities, the Council may by resolution designate a portion or portions of the District as one or more improvement areas. An area shall be known as “Improvement Area No. ____” of “Community Taxing District ____ of the City of Los Angeles.” After the designation of an improvement area, all proceedings for purposes of a bond election and for the purpose of levying special taxes for payment of the bonds shall apply only to the improvement area for those specified facilities. SECTION HISTORY Added by Ord. No. 177,051, Eff. 11-20-05.

Los Angeles Administrative Code § 6.760 Resolution; Debt.

Sec. 6.760. Resolution; Debt. After the Council has held the hearing described in Subsection D of Section 6.755, if it deems it necessary to incur the Debt, it shall by resolution state all of the following: A. That it deems it necessary to incur the Debt; B. The purpose for which the Debt will be incurred; C. Either of the following in accordance with its previous determination; 1. That the whole of the District will pay for the Debt; 2. That a portion of the District will pay for the Debt, which portion shall be described in the resolution of the Council made pursuant to Section 6.759; D. The principal amount of Debt to be incurred; E. The maximum term of the Debt to be issued, which term shall not exceed fifty years; F. The maximum annual rate of interest to be paid, payable annually or semiannually, or in part annually and in part semiannually, or in any other manner as shall be provided by the Council; G. That the proposition will be submitted to the voters; H. The date of the special election (which may be consolidated with a general or special district election, including an election to levy a special tax) at which time the proposition shall be submitted to the voters; I. If the election is not conducted by mail or hand-delivered ballot, the hours between which the polls shall be open; J. If the election is conducted by mail or hand-delivered ballot, the hour when the ballots are required to be received in the office of the City Clerk conducting the election, and that if all qualified electors have voted, the election shall be closed. SECTION HISTORY Added by Ord. No. 177,051, Eff. 11-20-05.

Los Angeles Administrative Code § 6.761 Resolution to Incur Debt; Notice of Election; Publication.

Sec. 6.761. Resolution to Incur Debt; Notice of Election; Publication. The resolution provided for in Section 6.760 shall constitute the notice of the special Debt election and resolution shall be published in a newspaper of general circulation circulating within the District. SECTION HISTORY Added by Ord. No. 177,051, Eff. 11-20-05.

Los Angeles Administrative Code § 6.762 Elections Pursuant to this Chapter; Laws and Rules Applicable.

Sec. 6.762. Elections Pursuant to this Chapter; Laws and Rules Applicable. Except as otherwise provided in this Chapter, the provisions of the California Elections Code relating to the qualifications of electors, the manner of voting, the duties of election officers, the canvassing of returns, and all other particulars in respect to the management of elections insofar as they may be applicable shall govern all elections pursuant to this Chapter, except that voting shall be conducted in the manner specified in Section 6.727 of this Chapter. Propositions relating to the levy of a special tax, incurring of bonded indebtedness, or to establish or change an appropriations limit, or any combination thereof, under this division, may be combined into one ballot proposition as determined by the Council. If the area designated in the resolution adopted pursuant to Section 6.760 does not include the entire Community Taxing District, a separate ballot shall be prepared for the vote upon the proposition to authorize bonds and to levy a special tax for payment of the Debt and only the voters entitled to vote on the proposition shall be given those ballots. SECTION HISTORY Added by Ord. No. 177,051, Eff. 11-20-05.

Los Angeles Administrative Code § 6.763 Resolution Relating to Form, Execution and Issuance of Debt.

Sec. 6.763. Resolution Relating to Form, Execution and Issuance of Debt. If more than two-thirds of the votes cast at the election are in favor of incurring the Debt, the legislative body may, by resolution, at the time or times it deems proper, provide for the following: A. The form of the Debt; B. The execution of the Debt; C. The issuance of any part of the Debt; D. The appointment of one or more banks or trust companies within or without the State having the necessary trust powers as trustee, fiscal agent, paying agent, or bond registrar; E. The execution of a fiscal agent agreement, trust agreement or indenture securing the Debt; F. The pledge or assignment of any revenues of the Community Taxing District to the repayment of the Debt; G. The investment of any Debt proceeds and other revenues, including special tax revenues, by the trustee or fiscal agent in any securities or obligations described in the resolution, fiscal agent agreement, indenture, trust agreement, or other instrument providing for the issuance of the Debt; H. The date or dates to be borne by the Debt and the time or times of maturity of the Debt and the place or places and time or times that the Debt shall be payable; I. The interest, fixed or variable, to be borne by the Debt; J. The denominations, form, and registration privileges of the Debt; K. Any other terms and conditions determined to be necessary by the Council. SECTION HISTORY Added by Ord. No. 177,051, Eff. 11-20-05.

Los Angeles Administrative Code § 6.764 Action to Foreclose Liens; Cumulative Remedy; Resolution to Diligently Pursue Foreclosure Action.

Sec. 6.764. Action to Foreclose Liens; Cumulative Remedy; Resolution to Diligently Pursue Foreclosure Action. A. As a cumulative remedy, if Debt is outstanding for a District, the Council or the legislative body of the District may, not later than four years after the due date of the last installment of principal, order that any delinquent special taxes levied in whole or in part for payment of the Debt, together with any penalties, interest, and costs, be collected by any action brought in the Superior Court to foreclose the lien of special tax. B. The Council or the legislative body of the District may covenant for the benefit of Debt owners to commence and diligently pursue to completion any foreclosure action regarding delinquent installments of any amount levied as a special tax for the payment of interest or principal of any Debt issued. SECTION HISTORY Added by Ord. No. 177,051, Eff. 11-20-05.

Los Angeles Administrative Code § 6.765 Credits for Delinquent Taxes.

Sec. 6.765. Credits for Delinquent Taxes. A. When any foreclosure actions are ordered, the tax collector shall be credited upon the current tax roll with the amount charged on account of the delinquent special taxes to be sued on, including applicable penalties, interest and costs, and the tax collector shall be relieved of further duty in regard thereto. Any amounts not the subject of a foreclosure action shall remain collectible by the tax collector. B. The tax collector may charge the actual cost incurred in removing these sums from the tax roll. This charge shall be added to the costs to be recovered in the foreclosure action. SECTION HISTORY Added by Ord. No. 177,051, Eff. 11-20-05.

Los Angeles Administrative Code § 6.766 Delinquent Taxes, Procedures.

Sec. 6.766. Delinquent Taxes, Procedures. At any time after the tax collector has been relieved of the tax collector’s duty to collect sums under Section 6.765 and before judgment in a foreclosure action, the Council shall dismiss the action upon payment of all of the following: A. The amount of any delinquent special taxes together with any penalties, interest, and costs accrued to date of complete payment; B. Costs of suit, including, but not limited to, litigation guarantees provided by title companies with respect to all claims of ownership or interest in the subject property; C. Attorney’s fees authorized by the local agency; and D. The tax collector’s costs authorized by Subsection B of Section 6.765. SECTION HISTORY Added by Ord. No. 177,051, Eff. 11-20-05.

Los Angeles Administrative Code § 6.767 Foreclosures.

Sec. 6.767. Foreclosures. The foreclosure action shall be brought in the name of the City, and may be brought within the time specified in Section 6.764. The complaint may be brief and need only include the following allegations: A. That on a stated date, a certain sum of special taxes, levied against the subject property, describing it, pursuant to this division, became delinquent; B. On that date, bonds issued pursuant to this division, payable in whole or in part by the subject special taxes, were outstanding if applicable; C. That the Council or the legislative body of the District has ordered the foreclosure. SECTION HISTORY Added by Ord. No. 177,051, Eff. 11-20-05.

Los Angeles Administrative Code § 6.768 Judgments.

Sec. 6.768. Judgments. Any judgment shall decree the amount of the continuing lien against each parcel to be foreclosed, and shall order the parcel to be sold on execution as in other cases of the sale of the real property by process of the court. The judgment amount shall include reasonable attorney’s fees to be fixed by the court, together with interest, penalties and other authorized charges and costs, all calculated up to date of judgment. The foreclosure action shall be governed and regulated by the provisions of this division, and also where not in conflict with this division, by other provisions of law generally applicable to foreclosure actions. Property sold pursuant to this Chapter may not be sold for less than the amount of the judgment plus post-judgment interest and authorized costs with the consent of the owners of fifty-one percent by principal amount of the outstanding Debt. SECTION HISTORY Added by Ord. No. 177,051, Eff. 11-20-05.

Los Angeles Administrative Code § 6.769 Errors.

Sec. 6.769. Errors. No special tax installment, interest or penalties thereon, or deed shall be held invalid for any error in computation if the error is found to be comparatively negligible, or is found to be in favor of the owner of the real property affected thereby. SECTION HISTORY Added by Ord. No. 177,051, Eff. 11-20-05.

Los Angeles Administrative Code § 6.770 Signatures on Bonds or Coupons - Place Debt Is Payable.

Sec. 6.770. Signatures on Bonds or Coupons - Place Debt Is Payable. The Debt forms shall be signed by the Mayor, or other officer as the Council authorizes by resolution, and by the Treasurer, and countersigned by the City Clerk. All signatures on the Debt forms may be printed, lithographed, or engraved. If any officer whose signature appears on the Debt forms ceases to be that officer before the delivery of the Debt forms, the officer’s signature is as effective as if the officer had remained in office. All Debt shall be payable at the office of the City Treasurer or at the office of any agent designated by the City. SECTION HISTORY Added by Ord. No. 177,051, Eff. 11-20-05.

Los Angeles Administrative Code § 6.771 Special Tax or Charge for Outstanding Bonded Debt.

Sec. 6.771. Special Tax or Charge for Outstanding Bonded Debt. When the Council fixes and levies special taxes and charges for the Community Taxing District it shall also fix and levy that amount of special taxes and charges within the Community Taxing District, which is required for the payment of the principal of and interest on any outstanding bonded Debt of the Community Taxing District, including any necessary replenishment or expenditure of bond reserve funds or accumulation of funds for future bonded payments. The special tax or charge shall be levied and collected by the same officers and at the same time and in the same manner that all other special taxes and charges are levied and collected for the Community Taxing District or in any other manner specified by the Council. The special taxes and charges shall not exceed the authority granted by Articles 2, 3 or 5 hereof. All of the collections for payment of principal and interest on bonds shall be paid into the Community Taxing District bond or similar fund and reserve or other fund for the particular Community Taxing District and shall be used solely for the payment of the principal of and interest on the outstanding Debt of the Community Taxing District. SECTION HISTORY Added by Ord. No. 177,051, Eff. 11-20-05.

Los Angeles Administrative Code § 6.772 Action to Determine Validity of Debt or Special Tax Levy.

Sec. 6.772. Action to Determine Validity of Debt or Special Tax Levy. Any action to determine the validity of Debt issued pursuant to this Chapter or the validity of any special taxes levied pursuant to this Chapter may be brought pursuant to Chapter 9 (commencing with Section 860 of Title 10 of Part 2 of the California Code of Civil Procedure) but shall, notwithstanding the time limits specified in California Code of Civil Procedure Section 860, be commenced within thirty days after the voters approve the issuance of the Debt or the special tax if the action is brought by an interested person pursuant to California Code of Civil Procedure Section 863. Any appeal from a judgment in that action or proceeding shall be commenced within thirty days after entry of judgment. SECTION HISTORY Added by Ord. No. 177,051, Eff. 11-20-05.

Los Angeles Administrative Code § 6.773 Sale of Debt.

Sec. 6.773. Sale of Debt. The City may sell the Debt when and in the manner the Council deems to be in the public interest, provided that the bonds shall not be sold for less than par. The Council shall give notice inviting sealed bids for the Debt in the manner the Council prescribes. If satisfactory bids are received, the Debt offered for sale shall be awarded to the lowest responsible bidder. If no bids are received or if the Council determines that the bids received are not satisfactory as to price or responsibility of the bidders, the Council may reject all bids received, if any, and either re-advertise or sell the Debt at a private sale. SECTION HISTORY Added by Ord. No. 177,051, Eff. 11-20-05.

Los Angeles Administrative Code § 6.774 Force, Value and Use of Bonds; Exemption From State Taxation.

Sec. 6.774. Force, Value and Use of Bonds; Exemption From State Taxation. Any Debt issued by a District organized under the provisions of this Chapter are hereby given the same force, value and use as Debt issued by any municipality and shall be exempt from all taxation within the State. SECTION HISTORY Added by Ord. No. 177,051, Eff. 11-20-05.

Los Angeles Administrative Code § 6.775 Refunding Bonds; Resolution.

Sec. 6.775. Refunding Bonds; Resolution. The Council may, by resolution, authorize the issuance of new bonds to refund any or all of the District Debt outstanding or improvement area bonds outstanding that have been issued pursuant to this Chapter. The Council may issue refunding Debt without repeating any of the procedures required for the approval of the original Debt issue, if the Council determines that the total net interest cost to the maturity on the refunding Debt plus the principal amount of the refunding Debt does not exceed the total net interest cost to maturity on the Debt to be refunded plus the principal amount of the Debt to be refunded. Subject to these limitations, the principal amount of the refunding Debt may be more than, less than, or the same as the principal amount of the Debt to be refunded. The total authorized amount of the Debt of a District or an improvement area in a District, as approved by the qualified voters thereof, shall not be reduced by the principal amount of any refunding Debt issued to refund any or all outstanding Debt of the District or improvement area. SECTION HISTORY Added by Ord. No. 177,051, Eff. 11-20-05.

Los Angeles Administrative Code § 6.776 Refunding Debt; Resolution for Issuance.

Sec. 6.776. Refunding Debt; Resolution for Issuance. If the Council determines to issue refunding Debt pursuant to this division it shall adopt a resolution providing for their issuance. The resolution shall: A. Describe the Debt being refunded and state the date on which it is anticipated that the refunding will occur; B. Fix the date of the refunding Debt; C. Designate the denomination or denominations of the refunding Debt; D. Fix the minimum rate or rates of interest to be paid on the refunding Debt; E. Fix the maturity dates of the refunding Debt, which may exceed the latest maturity date of the Debt being refunded, provided that the latest maturity date of the refunding Debt shall not be in excess of fifty years from the date of issuance of the Debt to be refunded; F. Designate the place or places of payment of principal and interest on the refunding Debt and on the Debt to be refunded; G. Describe the form of the refunding Debt. SECTION HISTORY Added by Ord. No. 177,051, Eff. 11-20-05.

Los Angeles Administrative Code § 6.777 Sale of Refunding Obligations.

Sec. 6.777. Sale of Refunding Obligations. The Council may sell the refunding bonds in the manner set forth in Section 6.773. The proceeds of any sale of refunding bonds for cash shall be applied only as permitted by this Chapter. SECTION HISTORY Added by Ord. No. 177,051, Eff. 11-20-05.

Los Angeles Administrative Code § 6.778 Amount of Proceeds and Investments in Funding Fund.

Sec. 6.778. Amount of Proceeds and Investments in Funding Fund. The proceeds of the refunding Debt and the earnings thereon shall be in an amount sufficient to meet either the requirements of A or B of Section 6.778 at the time of issuance of the refunding bonds, as certified by a certified public accountant licensed to practice in this State. A. The proceeds (including any amounts in any reserve fund established for the Debt to be refunded not needed for purposes of the refunding Debt) and investments, together with any interest or other gain to be derived from any such investment, shall be in an amount sufficient to pay the principal, interest, and redemption premiums, if any, on the refunded Debt as they become due or at designated dates prior to maturity and the costs of issuance of the refunding Debt. B. The proceeds (including any amounts in any reserve fund established for the Debt to be refunded not needed for purposes of the refunding Debt) and investments, together with any interest or other gain to be derived from any such investment, shall be in an amount sufficient to pay the principal, interest, and redemption premiums, if any, on the refunding bonds prior to the maturity of the Debt to be refunded or prior to a designated date or dates before the maturity of the Debt to be refunded, the principal and any redemption premiums due on the refunded Debt at maturity or upon that designated date or dates, and the costs of issuance of the refunding Debt. SECTION HISTORY Added by Ord. No. 177,051, Eff. 11-20-05.

Los Angeles Administrative Code § 6.779 Refunding Debt; Use of Savings; Reduction of Tax Levy.

Sec. 6.779. Refunding Debt; Use of Savings; Reduction of Tax Levy. Any savings achieved through the issuance of refunding Debt shall be used to reduce the special taxes, which were levied to retire the Debt being refunded. At the time the Council makes a determination to issue the refunding Debt, it shall determine and cause to be made any reduction in the annual tax in the District, which reduction shall be made on a pro rata basis. SECTION HISTORY Added by Ord. No. 177,051, Eff. 11-20-05.

Los Angeles Administrative Code § 6.780 Callable Debt.

Sec. 6.780. Callable Debt. Any Debt issued may be made callable in the document providing the terms of the Debt. When Debt is made callable, a statement to that effect shall be set forth on the face of the Debt. Callable Debt may be redeemed on any interest payment date prior to the fixed maturity in the amounts, manner and prices prescribed in the document providing the terms. SECTION HISTORY Added by Ord. No. 177,051, Eff. 11-20-05.

Source: City of Los Angeles, Charter and Codes (American Legal Publishing, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/los_angeles/latest/laac/0-0-0-64174Fetched: 10/24/2026