§ 3.40.020. Bonds—Registration—Insufficient funds.

A.

Whenever the principal or interest coupon of any general obligation bond issued by the City is due and payable and such bond or interest coupon is presented and surrendered to the Treasurer, and there is not sufficient moneys in the fund out of which such bond or interest is payable or such bond or interest coupon represents an amount in excess of the unapplied money in the fund out of which such bond or interest coupon is payable, the Treasurer shall, upon the date that such bond or interest coupon is presented and surrendered to him, draw his warrant payable out of the fund from which such bond or interest coupon is payable and he shall, upon the date that such warrant is drawn by him, endorse his signature upon the back thereof, the date of his signature and that the same is not paid for want of money in the fund upon which such warrant is drawn and bears interest at the rate of four percent (4%) per year from the date of such registration, to and including the date upon which the Treasurer advertises that such warrant is payable upon presentation. Endorsement by the Treasurer in the manner prescribed in this Subsection shall constitute the registration of such warrant.

B.

After the registration thereof, the Treasurer shall deliver or transmit the same to the payee or payees named thereon.

C.

The Treasurer shall keep a separate warrant register account for each of the funds in the City Treasury against which warrants are registered under this Section, and the City Treasurer shall stamp on the warrant register the date on which any warrant is registered, and the date on which the warrant is advertised as payable.

D.

Whenever, from time to time, there are sufficient moneys in any fund in the City Treasury upon which warrants have been drawn and registered to pay, in the order of their priority, all or at least five (5) or more of the registered warrants outstanding against any such fund, together with interest thereon as provided in this Section, the Treasurer shall immediately publish notice that such warrants are redeemable, by advertising one (1) time in the official newspaper of the City. Said notice shall read substantially as follows:

"NOTICE TO HOLDERS OF CITY OF LONG BEACH WARRANTS. City of Long Beach warrants, Registration Number _______ to Registration Number _______, inclusive, drawn on the City Treasurer of the City of Long Beach, are payable upon presentation to the City Treasurer of the City of Long Beach.

___________
(Name of City Treasurer)
City Treasurer of the City of
Long Beach, California."

E.

Warrants registered in accordance with the provisions of this Section shall cease to bear interest on the date following the day on which said advertisement appears. Warrants registered as provided for in this Section, together with interest thereon as provided in this Section, shall constitute a prior lien, in the order of registration of such warrants, on any moneys thereafter received into the fund in the City Treasury upon which such warrants are drawn, and such warrants, and interest thereon, as provided in this Section, shall be paid in the order of their registration; provided, that such registered warrants, and interest thereon as provided in this Section, shall not take priority over unregistered warrants drawn upon the same fund and outstanding at the time of such registration. No money shall be withdrawn or paid from any fund in the City Treasury upon which warrants have been drawn and registered except to pay registered warrants drawn thereon, in the order of their priority together with interest thereon as provided in this Section, or to pay unregistered warrants drawn on said fund and outstanding at the time of such registration, until all of the registered warrants drawn on such fund have been paid. Interest on each registered warrant as provided in this Section shall have the same priority as the registered warrant upon which it is payable.

F.

Upon the presentation of any registered warrant to the Treasurer for payment, after the Treasurer has published notice that such warrant is redeemable, the Treasurer shall pay to the payee of the warrant, or his assignee, the amount for which the warrant is drawn, together with interest thereon at the rate of four percent (4%) per year from the date of the registration of the warrant to and including the date upon which the Treasurer advertised that the warrant would be payable upon presentation, the interest to be paid from the same fund out of which the principal of the warrant is paid, and the Treasurer shall be entitled to credit for the amount of interest so paid.

G.

For the purposes of this Chapter "unapplied money" means money in any fund in the City Treasury for which outstanding warrants have not been already drawn, and which would remain in such fund if all outstanding warrants drawn upon such fund were paid.

(Prior code § 2620.1)