Bonds to be entitled “L.I.D. No. __________, City and Borough of Sitka, Alaska, Bonds” may be issued to provide funds to pay any part or all of the costs of improvements in any special assessment district; provided, that such bonds shall not be issued in a total principal amount in excess of such costs of improvement, nor shall they be issued prior to 20 days after the 30 days allowed for the payment of assessments without penalty or interest.
Such bonds shall be issued pursuant to ordinance and shall be made payable on a date not sooner than two years later than the date upon which the last installment of the assessments securing such bonds becomes due and not later than two years six months after the date upon which the last installment of the assessments securing such bonds becomes due.
(S.C.C. 3-9-37; S.G.C. 17.24.010)
Such bonds shall bear interest at a rate per year to be determined by the assembly, payable annually or semiannually, shall be in such denominations as may be provided in the ordinance authorizing their issuance, and shall be numbered from one up consecutively.
Each bond shall:
A. 
Be signed by the manual or facsimile signature of the mayor of the city and borough and attested by the manual or facsimile signature of the municipal clerk;
B. 
Shall have the seal of the city and borough impressed or reproduced thereon;
C. 
Refer to the improvement for which it is issued and the ordinance ordering it;
D. 
Provide that the principal amount thereof and the interest thereon shall be payable out of the L.I.D. fund of such district or out of the local improvement guaranty fund of the city and borough and not otherwise;
E. 
Provide that the bondholders’ remedy in case of any nonpayment shall be confined to the enforcement of the special assessments levied for the improvements in such L.I.D. and to such guaranty fund.
(S.G.C. 17.24.020; S.C.C. 3-9-38; Ord. 86-688 § 4, 1986)
L.I.D. bonds and notes may be issued to the contractor or contractors constructing and installing the improvements in such district, or may be sold by the city and borough at public or private sale, but at a price to be determined by the assembly plus accrued interest. The proceeds of sale of such bonds or notes shall be deposited in the applicable L.I.D. fund and be applied in payment of the costs of improvement either in cash or by the redemption of warrants or other obligations of the city and borough issued to pay such costs.
(S.G.C. 17.24.030; S.C.C. 3-9-39; Ord. 86-688 § 4, 1986)
The finance director shall call in and redeem the principal of one or more bonds of any issue in their numerical order whenever there is sufficient money in the L.I.D. fund against which the bonds have been issued, over and above the amount needed for the payment of current annual interest and the annual interest next to fall due on all unpaid bonds of that issue. Such call shall be made by publication of a notice thereof in a newspaper of general circulation throughout the city and borough as soon as practicable after the day of delinquency of any assessment installments, and in any other manner as may be deemed necessary to advise the holder of the bonds being called of such call. The notice of call shall state the serial number or numbers of the bonds being called, that they will be paid on the next interest payment date, and that interest thereon will cease on such call date.
(S.G.C. 17.24.040; S.C.C. 3-9-40; Ord. 87-757 § 4, 1987)
Neither the holder nor the owner of any L.I.D. bond, note or warrant issued against an L.I.D. fund, shall have any claim therefor against the city and borough except for payment from the special assessments made for the improvement for which such bond, note or warrant was issued and except for payment from the local improvement guaranty fund of the city and borough as to bonds and notes issued the payment of which is secured by such fund. The city and borough shall not be liable to the holder or owner of any such bond, note or warrant for any loss to the local guaranty fund occurring in the lawful operation thereof. A copy of the foregoing part of this section shall be plainly written, printed or engraved on each L.I.D. bond and note.
(S.G.C. 17.24.050; S.C.C. 3-9-41; Ord. 86-688 § 4, 1986)
If the city and borough fails to pay any bonds, notes or warrants issued against an L.I.D. fund or to promptly collect any assessments when due, the owner or holder of any bond or note may enforce payment of the principal thereof or interest thereon and costs of collection in a civil action in the same manner and with the same effect as actions for the foreclosure of mortgages on real property. Foreclosure shall be against all property on which assessments are in default. The period for redemption shall be the same as in the case of a mortgage foreclosure on real property. Any number of owners or holders of bonds and notes of any single L.I.D. may join as plaintiffs, and any number of owners of property upon which the delinquent assessments are liens may be joined as defendants in the same suit. Such owners and holders shall also have recourse against the local improvement guaranty fund.
(S.G.C. 17.24.060; S.C.C. 3-9-42; Ord. 86-688 § 4, 1986)
L.I.D. bonds and notes which are within the protection of the local improvement guaranty fund of the city and borough shall be considered legal investments for any available surplus funds of the city and borough which now or hereafter may be authorized by the assembly to be invested in such bonds.
(S.G.C. 17.24.070; S.C.C. 3-9-43; Ord. 86-688 § 4, 1986)
Notes to be entitled “L.I.D. No. ________, City and Borough of Sitka, Alaska, Notes” may be issued to provide funds to pay any part or all of the costs of improvements in any special assessment district; provided, that such notes may only be issued in anticipation of the receipt of cash or the issuance of bonds sufficient to redeem such notes.
Such notes shall be issued pursuant to ordinance and shall be made payable within a number of years to be determined by the assembly.
The provisions of SGC § 17.30.020 shall apply to such notes.
Notes issued shall be claims against the assessments that are prior and superior to a right, lien or claim of a surety on a bond given to the city and borough to secure the performance of its contracts for a local improvement project, or to secure the payment of persons who have performed work or furnished materials under the contract.
The finance director may accept notes against special assessments on conditions prescribed by resolution of the assembly in payment of:
A. 
Assessments against which the notes were issued in order of priority;
B. 
Judgments rendered against property owners who have become delinquent in the payment of assessments; and
C. 
Certificates of purchase when property has been sold under execution or at tax sale for failure to pay assessments.
(S.G.C. 17.24.090; Ord. 86-688 § 4, 1986)
Special assessment bonds and notes may be issued in registered form in accordance with procedures determined by the assembly.
(S.G.C. 17.24.100; Ord. 86-688 § 4, 1986)