School bonds: discounts.

Existing law specifies that bonds issued by a local agency, as defined, may bear interest at a coupon rate or rates as determined by the legislative body in its discretion but not to exceed 12% per year payable. Existing law also specifies that, notwithstanding this provision, a local agency may, where authorized by law, sell bonds at a discount below par. This bill would prohibit a school district or community college district from issuing bonds at a discount exceeding 5%, as specified.