Paying off bonds early

A. Whenever sufficient funds are in the hands of the director of finance in the bond account of the special fund referred to in section 14.52.050 , by reason of advance payment of unpaid assessment installments pursuant to section 14.50.130 , the director of finance shall call for payment such a number of bonds as there are funds to pay. Notice of call of such bonds shall be published once in a newspaper of general circulation in the county, and a copy of such notice shall be mailed, not later than five days after publication thereof, to the person who purchased such bonds at the original sale thereof. B. At the next interest due date of the bonds after expiration of thirty days from the publication of such notice, interest on the bonds so called for payment shall cease; and the moneys for the payment of such bonds shall be set aside by the director of finance in a special deposit to which deposit only the owners of the bonds so called shall thereafter look for payment. The call price of any bond called for payment before maturity pursuant to this section shall be the principal amount of such bond, interest at the rate stated on the face of the bond from the date on which interest on such bond was last paid to and including the next interest due date of the bonds after the thirtieth day from the publication of such notice, together with the applicable premium payable, if any. C. In first selecting a bond for payment before maturity, the lowest numbered bond of the annual series midway to the end of the bond term shall be chosen. Successive bonds to be called shall be chosen from the lowest number of each annual series, before and after the annual series from which the first bond is selected, so that bonds called shall be a pro rata part of each annual series. It is intended that the relationship of unpaid assessments to bonds outstanding be disturbed as little as possible by the call of bonds. (Ord. 801 § 1 (part), 1974: prior code § 25-8.5)