Government Code — Part 65 | GOV — United States — California law | Esheria

Government Code

Part 65 of 107 · provisions 12,801–13,000

This act is named the Government Code.

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This section defines key terms used in the CalSavers retirement savings title. This section creates the CalSavers Retirement Savings Board and sets rules for how the board, program administrator, and staff must operate. This section creates the CalSavers Retirement Savings Trust, assigns the board to administer it, requires the board to split trust money into a program fund and an administrative fund, and gives the Treasurer and the board investment-related powers. It also caps administrative fund spending at 1% of the total program fund after six years from implementation and exempts certain securities from specified Corporations Code sections. The CalSavers Retirement Savings Program must include one or more payroll deduction IRA arrangements, as determined by the board. The board has broad authority over the trust, including contracts, investments, staff, insurance, cooperation, and rulemaking.

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Provisions of Government Code

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  1. 53398.61.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 2.99. Enhanced Infrastructure Financing District [53398.50 - 53398.88] ( Chapter 2.99 added by Stats. 2014, Ch. 785, Sec. 1. ) ## ARTICLE 2. Preparation and Adoption of Infrastructure Financing Plan [53398.59 - 53398.74] ( Article 2 added by Stats. 2014, Ch. 785, Sec. 1. )

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    The legislative body must direct the selected city or county official to send a copy of the resolution to each affected taxing entity, by mail or electronically.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 2.99. Enhanced Infrastructure Financing District [53398.50 - 53398.88] ( Chapter 2.99 added by Stats. 2014, Ch. 785, Sec. 1. ) ## ARTICLE 2. Preparation and Adoption of Infrastructure Financing Plan [53398.59 - 53398.74] ( Article 2 added by Stats. 2014, Ch. 785, Sec. 1. ) ## 53398.61. The legislative body shall direct the city official or county official, as applicable, selected by the legislative body, to mail or electronically submit a copy of the resolution to each affected taxing entity. (Amended by Stats. 2024, Ch. 599, Sec. 4. (SB 1140) Effective January 1, 2025.)
  2. 53398.62.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 2.99. Enhanced Infrastructure Financing District [53398.50 - 53398.88] ( Chapter 2.99 added by Stats. 2014, Ch. 785, Sec. 1. ) ## ARTICLE 2. Preparation and Adoption of Infrastructure Financing Plan [53398.59 - 53398.74] ( Article 2 added by Stats. 2014, Ch. 785, Sec. 1. )

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    After adopting the required resolution, the legislative body must send it to the public financing authority, which must direct the appropriate official to prepare an infrastructure financing plan. For port or harbor districts, the legislative body instead directs the harbor agency, subject to an exception in Harbors and Navigation Code Section 1719.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 2.99. Enhanced Infrastructure Financing District [53398.50 - 53398.88] ( Chapter 2.99 added by Stats. 2014, Ch. 785, Sec. 1. ) ## ARTICLE 2. Preparation and Adoption of Infrastructure Financing Plan [53398.59 - 53398.74] ( Article 2 added by Stats. 2014, Ch. 785, Sec. 1. ) ## 53398.62. (a) Except as provided in subdivision (b), after adopting the resolution pursuant to Section 53398.59, the legislative body shall send a copy of the resolution to the public financing authority. The public financing authority shall designate and direct the city or county engineer or other appropriate official to prepare an infrastructure financing plan pursuant to Section 53398.63. (b) In the case of a district proposed for port or harbor infrastructure, the legislative body shall designate and direct the harbor agency, except as provided in Section 1719 of the Harbors and Navigation Code, to prepare an infrastructure financing plan pursuant to Section 53398.63. (Amended by Stats. 2015, Ch. 793, Sec. 3.5. (SB 63) Effective January 1, 2016.)
  3. 53398.63.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 2.99. Enhanced Infrastructure Financing District [53398.50 - 53398.88] ( Chapter 2.99 added by Stats. 2014, Ch. 785, Sec. 1. ) ## ARTICLE 2. Preparation and Adoption of Infrastructure Financing Plan [53398.59 - 53398.74] ( Article 2 added by Stats. 2014, Ch. 785, Sec. 1. )

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    After a resolution of intention is received, the designated official must prepare a proposed infrastructure financing plan.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 2.99. Enhanced Infrastructure Financing District [53398.50 - 53398.88] ( Chapter 2.99 added by Stats. 2014, Ch. 785, Sec. 1. ) ## ARTICLE 2. Preparation and Adoption of Infrastructure Financing Plan [53398.59 - 53398.74] ( Article 2 added by Stats. 2014, Ch. 785, Sec. 1. ) ## 53398.63. After receipt of a copy of the resolution of intention to establish a district, the official designated pursuant to Section 53398.62 shall prepare a proposed infrastructure financing plan. A plan shall be proposed for the district that shall include any project areas, if proposed, within the district. The infrastructure financing plan shall be consistent with the general plan, and specific plan, if applicable, of the city or county within which the district is located and shall include all of the following: (a) A map and legal description of the proposed district, which may include all or a portion of the district designated by the legislative body in its resolution of intention. (b) A description of the public facilities and other forms of development or financial assistance that is proposed in the area of the district, including those to be provided by the private sector, those to be provided by governmental entities without assistance under this chapter, those public improvements and facilities to be financed with assistance from the proposed district, and those to be provided jointly. The description shall include the proposed location, timing, and costs of the development and financial assistance. (c) If funding from affected taxing entities is incorporated into the financing plan, a finding that the development and financial assistance are of communitywide significance and provide significant benefits to an area larger than the area of the district. (d) A financing section, which shall contain all of the following information: (1) A specification of the maximum portion of the incremental tax revenue of the city or county and of each affected taxing entity proposed to be committed to the district for each year during which the district will receive incremental tax revenue. The portion need not be the same for all affected taxing entities. The portion may change over time. (2) A projection of the amount of tax revenues expected to be received by the district in each year during which the district will receive tax revenues, including an estimate of the amount of tax revenues attributable to each affected taxing entity for each year. (3) A plan for financing the public facilities to be assisted by the district, including a detailed description of any intention to incur debt. (4) A limit on the total number of dollars of taxes that may be allocated to the district pursuant to the plan. (5) Either of the following: (A) A date on which the district will cease to exist, by which time all tax allocation to the district will end. (i) For plans proposed on or after January 1, 2025, for districts enacted primarily for the purpose of development and construction of passenger rail projects in the County of Los Angeles, where at least 75 percent of the revenue from the district is used for debt service on a federal Transportation Infrastructure Finance and Innovation Act (TIFIA) loan, the date shall not be more than 75 years from the date on which the issuance of a TIFIA loan is approved by the United States Department of Transportation. Starting 45 years after the issuance of the TIFIA loan, incremental tax revenue received shall only be used for the purposes of the TIFIA loan repayment, including debt service. (ii) For all other districts, the date shall not be more than 45 years from the date on which the issuance of bonds is approved pursuant to Section 53398.77, or the issuance of a loan is approved by the governing board of a local agency pursuant to Section 53398.87. (B) If the district is divided into project areas, a date on which the infrastructure financing plan will cease to be in effect and all tax allocations to the district will end and a date on which the district’s authority to repay indebtedness with incremental tax revenues received under this chapter will end, not to exceed 45 years from the date the district or the applicable project area has actually received one hundred thousand dollars ($100,000) in annual incremental tax revenues under this chapter. After the time limits established under this subparagraph, a district or project area shall not receive incremental tax revenues under this chapter. If the district is divided into project areas, a separate and unique time limit shall be applicable to each project area that does not exceed 45 years from the date the district has actually received one hundred thousand dollars ($100,000) in incremental tax revenues under this chapter from that project area. (6) An analysis of the costs to the city or county of providing facilities and services to the area of the district while the area is being developed and after the area is developed. The plan shall also include an analysis of the tax, fee, charge, and other revenues expected to be received by the city or county as a result of expected development in the area of the district. (7) An analysis of the projected fiscal impact of the district and the associated development upon each affected taxing entity. (8) A plan for financing any potential costs that may be incurred by reimbursing a developer of a project that is both located entirely within the boundaries of that district and qualifies for the Transit Priority Project Program, pursuant to Section 65470, including any permit and affordable housing expenses related to the project. (e) If any dwelling units within the territory of the district are proposed to be removed or destroyed in the course of public works construction within the area of the district or private development within the area of the district that is subject to a written agreement with the district or that is financed in whole or in part by the district, a plan providing for replacement of those units and relocation of those persons or families consistent with the requirements of Section 53398.56. (f) The goals the district proposes to achieve for each project financed pursuant to Section 53398.52. (Amended by Stats. 2024, Ch. 344, Sec. 1. (AB 761) Effective January 1, 2025.)
  4. 53398.64.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 2.99. Enhanced Infrastructure Financing District [53398.50 - 53398.88] ( Chapter 2.99 added by Stats. 2014, Ch. 785, Sec. 1. ) ## ARTICLE 2. Preparation and Adoption of Infrastructure Financing Plan [53398.59 - 53398.74] ( Article 2 added by Stats. 2014, Ch. 785, Sec. 1. )

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    The infrastructure financing plan must be sent to landowners in the proposed district and affected taxing entities, and it must be available for public inspection.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 2.99. Enhanced Infrastructure Financing District [53398.50 - 53398.88] ( Chapter 2.99 added by Stats. 2014, Ch. 785, Sec. 1. ) ## ARTICLE 2. Preparation and Adoption of Infrastructure Financing Plan [53398.59 - 53398.74] ( Article 2 added by Stats. 2014, Ch. 785, Sec. 1. ) ## 53398.64. The infrastructure financing plan shall be sent to each owner of land within the proposed district and to each affected taxing entity together with any report required by the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) that pertains to the proposed public facilities or the proposed development project for which the public facilities are needed, and shall be made available for public inspection. The report shall also be sent to the public financing authority, the planning commission, and the legislative body. (Amended by Stats. 2024, Ch. 599, Sec. 5. (SB 1140) Effective January 1, 2025.)
  5. 53398.65.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 2.99. Enhanced Infrastructure Financing District [53398.50 - 53398.88] ( Chapter 2.99 added by Stats. 2014, Ch. 785, Sec. 1. ) ## ARTICLE 2. Preparation and Adoption of Infrastructure Financing Plan [53398.59 - 53398.74] ( Article 2 added by Stats. 2014, Ch. 785, Sec. 1. )

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    The designated official must consult each affected taxing entity and, if requested, meet with its representatives. Affected taxing entities may suggest revisions to the plan.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 2.99. Enhanced Infrastructure Financing District [53398.50 - 53398.88] ( Chapter 2.99 added by Stats. 2014, Ch. 785, Sec. 1. ) ## ARTICLE 2. Preparation and Adoption of Infrastructure Financing Plan [53398.59 - 53398.74] ( Article 2 added by Stats. 2014, Ch. 785, Sec. 1. ) ## 53398.65. The designated official shall consult with each affected taxing entity, and, at the request of any affected taxing entity, shall meet with representatives of an affected taxing entity. Any affected taxing entity may suggest revisions to the plan. (Added by Stats. 2014, Ch. 785, Sec. 1. (SB 628) Effective January 1, 2015.)
  6. 53398.66.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 2.99. Enhanced Infrastructure Financing District [53398.50 - 53398.88] ( Chapter 2.99 added by Stats. 2014, Ch. 785, Sec. 1. ) ## ARTICLE 2. Preparation and Adoption of Infrastructure Financing Plan [53398.59 - 53398.74] ( Article 2 added by Stats. 2014, Ch. 785, Sec. 1. )

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    The public financing authority must give public notice, hold hearings, and follow protest and election rules before adopting an enhanced infrastructure financing plan.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 2.99. Enhanced Infrastructure Financing District [53398.50 - 53398.88] ( Chapter 2.99 added by Stats. 2014, Ch. 785, Sec. 1. ) ## ARTICLE 2. Preparation and Adoption of Infrastructure Financing Plan [53398.59 - 53398.74] ( Article 2 added by Stats. 2014, Ch. 785, Sec. 1. ) ## 53398.66. (a) The draft-enhanced infrastructure financing plan shall be made available to the public and to each landowner within the area on a designated internet website and at a meeting held at least 30 days before the first public hearing. The purposes of the meeting shall be to allow the staff of the public financing authority to present the draft-enhanced infrastructure financing plan, answer questions about the enhanced infrastructure financing plan, and consider comments about the enhanced infrastructure financing plan. (b) (1) (A) The public financing authority shall consider adoption of the enhanced infrastructure financing plan at two public hearings that shall take place at least 30 days apart. (B) In addition to the notice given to landowners and affected taxing entities pursuant to Sections 53398.60 and 53398.61, the public financing authority shall post notice of each meeting or public hearing required by this section in an easily identifiable and accessible location on the enhanced infrastructure financing district’s internet website and shall mail a written notice of the meeting or public hearing to each landowner, each resident, and each taxing entity at least 10 days before the meeting or public hearing. (2) At the first public hearing, the public financing authority shall consider any written and oral comments and take action to modify or reject the enhanced infrastructure financing plan. (3) If the enhanced infrastructure financing plan is not rejected at the first public hearing, then the public financing authority shall conduct a protest proceeding at the second public hearing to consider whether the landowners and residents within the enhanced infrastructure financing plan area wish to present oral or written protests against the adoption of the enhanced infrastructure financing plan. (c) (1) The notices required in subparagraph (B) of paragraph (1) of subdivision (b) shall do all of the following, as applicable: (A) Describe specifically the boundaries of the proposed area. (B) Describe the purpose of the enhanced infrastructure financing plan. (C) State the day, hour, and place when and where any and all persons having any comments on the proposed enhanced infrastructure financing plan may appear to provide written or oral comments to the enhanced infrastructure financing district. (D) Notice of the first public hearing shall include a summary of the enhanced infrastructure financing plan and shall identify a location accessible to the public where the enhanced infrastructure financing plan proposed to be presented at the first public hearing can be reviewed. (E) Notice of the second public hearing to consider any written or oral protests shall contain a copy of the enhanced infrastructure financing plan, and shall inform the landowner and resident of their right to submit an oral or written protest before the close of the public hearing. The protest may state that the landowner or resident objects to the public financing authority taking action to implement the enhanced infrastructure financing plan. (2) At the second public hearing, the public financing authority shall consider all written and oral protests received before the close of the public hearing along with the recommendations, if any, of affected taxing entities, and shall terminate the proceedings or adopt the enhanced infrastructure financing plan subject to confirmation by the voters at an election called for that purpose. The public financing authority shall terminate the proceedings if there is a majority protest. A majority protest exists if protests have been filed representing over 50 percent of the combined number of landowners and residents in the area who are at least 18 years of age. An election shall be called if between 25 percent and 50 percent of the combined number of landowners and residents in the area who are at least 18 years of age file a protest. (d) An election required pursuant to paragraph (2) of subdivision (c) shall be held within 90 days of the public hearing and may be held by mail-in ballot. The public financing authority shall adopt, at a duly noticed public hearing, procedures for this election. (e) If a majority of the landowners and residents vote against the enhanced infrastructure financing plan, then the public financing authority shall not take any further action to implement the proposed enhanced infrastructure financing plan. The public financing authority shall not propose a new or revised enhanced infrastructure financing plan to the affected landowners and residents for at least one year following the date of an election in which the enhanced infrastructure financing plan was rejected. (f) At the hour set in the notices required by subparagraph (B) of paragraph (1) of subdivision (b), the public financing authority shall consider all written and oral comments. (g) If less than 25 percent of the combined number of landowners and residents in the area who are at least 18 years of age file a protest, the public financing authority may adopt the enhanced infrastructure financing plan at the conclusion of the second public hearing by resolution. The resolution adopting the enhanced infrastructure financing plan shall be subject to referendum as prescribed by law. (h) The public financing authority shall consider and adopt an amendment or amendments to an enhanced infrastructure financing plan in accordance with the provisions of this section. (i) (1) A separate notice of the first public hearing shall also be published not less than once a week for four successive weeks before the first public hearing in a newspaper of general circulation published in the county in which the area lies. The notice shall state that the district will be used to finance public facilities or development, briefly describe the public facilities or development, briefly describe the proposed financial arrangements, including the proposed commitment of incremental tax revenue, describe the boundaries of the proposed district, and state the day, hour, and place when and where any persons having any objections to the proposed infrastructure financing plan, or the regularity of any of the prior proceedings, may appear before the public financing authority and object to the adoption of the proposed plan by the public financing authority. (2) A separate notice of the second public hearing shall also be published not less than 10 days before the second public hearing in a newspaper of general circulation in the county in which the area lies. The notice shall state that the district will be used to finance public facilities or development, briefly describe the public facilities or development, briefly describe the proposed financial arrangements, describe the boundaries of the proposed district, and state the day, hour, and place when and where any persons having any objections to the proposed infrastructure financing plan, or the regularity of any of the prior proceedings, may appear before the public financing authority and object to the adoption of the proposed plan by the public financing authority. (j) (1) The public financing authority shall review the enhanced infrastructure financing plan at least annually and make any amendments that are necessary and appropriate and shall require the preparation of an annual independent financial audit paid for from revenues of the enhanced infrastructure financing district. (A) Amendments to an approved infrastructure financing plan, including proposals to finance affordable housing and additional eligible projects, as specified in Section 53398.52, or to add a participating taxing entity and its representatives as members of a public financing authority after the date of district formation, may be approved by a majority vote of the public financing authority at a public hearing held following the provision of a 30-day mailed notice describing the proposed changes to all property owners, residents, and affected taxing entities. (B) Amendments that propose any of the following shall be adopted in accordance with all notices and hearing requirements for the affected landowners and residents within the proposed additional territory applicable to an initial proposed enhanced infrastructure financing plan: (i) Addition of new territory to a district. (ii) Increase of the limit of the total number of dollars in local taxes allocated to the plan, except where the increase is a result of an affected taxing entity agreeing to participate in the existing district and the plan is amended pursuant to subparagraph (A). (iii) Approval of a public facility or development that was not proposed to be financed or assisted by the district in the approved plan. (2) A public financing authority shall adopt an annual report within seven months of the close of each fiscal year, after holding a public hearing. Written copies of the draft report shall be made available to the public 30 days before the public hearing. The public financing authority shall cause the draft report to be posted in an easily identifiable and accessible location on the enhanced infrastructure financing district’s internet website and shall mail a written notice of the availability of the draft report on the internet website to each owner of land and each resident within the area covered by the enhanced infrastructure financing plan and to each taxing entity that has adopted a resolution pursuant to Section 53398.68. (3) The annual report shall contain all of the following: (A) A description of the projects undertaken in the fiscal year, including any rehabilitation of structures, and a comparison of the progress expected to be made on those projects compared to the actual progress. (B) A chart comparing the actual revenues and expenses, including administrative costs, of the public financing authority to the budgeted revenues and expenses. (C) The amount of tax increment revenues received. (D) An assessment of the status regarding completion of the enhanced infrastructure financing district’s projects. (E) The amount of revenues expended to assist private businesses. (4) If the public financing authority fails to provide the annual report required by paragraph (3), the public financing authority shall not spend any funds received pursuant to a resolution adopted pursuant to this chapter until the public financing authority has provided the report. (Amended by Stats. 2025, Ch. 260, Sec. 3. (AB 417) Effective January 1, 2026.)
  7. 53398.68.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 2.99. Enhanced Infrastructure Financing District [53398.50 - 53398.88] ( Chapter 2.99 added by Stats. 2014, Ch. 785, Sec. 1. ) ## ARTICLE 2. Preparation and Adoption of Infrastructure Financing Plan [53398.59 - 53398.74] ( Article 2 added by Stats. 2014, Ch. 785, Sec. 1. )

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    The public financing authority cannot adopt the district-formation resolution with tax division unless the required plan approvals have been adopted and filed. An affected taxing entity may later approve the plan and join the tax division, and if it does, the tax division must use the last equalized assessment roll.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 2.99. Enhanced Infrastructure Financing District [53398.50 - 53398.88] ( Chapter 2.99 added by Stats. 2014, Ch. 785, Sec. 1. ) ## ARTICLE 2. Preparation and Adoption of Infrastructure Financing Plan [53398.59 - 53398.74] ( Article 2 added by Stats. 2014, Ch. 785, Sec. 1. ) ## 53398.68. (a) The public financing authority shall not adopt a resolution proposing formation of a district and providing for the division of taxes of any affected taxing entity pursuant to Article 3 (commencing with Section 53398.75) unless a resolution approving the plan has been adopted by the governing body of each affected taxing entity that is proposed to be subject to division of taxes pursuant to Article 3 (commencing with Section 53398.75) and has been filed with the legislative body at or before the time of the hearing. (b) Nothing in this section shall be construed to prevent the public financing authority from amending its infrastructure financing plan and adopting a resolution proposing formation of the enhanced infrastructure financing district without allocation of the tax revenues of any affected taxing entity that has not approved the infrastructure financing plan by resolution of the governing body of the affected taxing entity. (c) (1) At any time after the date of district formation, an affected taxing entity may choose to approve the plan and participate in the division of taxes used to finance the activities of a district, by adopting a resolution of the governing body. (2) If, after the date of district formation, an affected taxing entity adopts a resolution approving the plan and to participate in the division of taxes used to finance an enhanced infrastructure financing district, the division of taxes shall be based upon the last equalized assessment roll that is used for the district pursuant to paragraph (2) of subdivision (a) of Section 53398.75. (Amended by Stats. 2025, Ch. 260, Sec. 4. (AB 417) Effective January 1, 2026.)
  8. 53398.69.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 2.99. Enhanced Infrastructure Financing District [53398.50 - 53398.88] ( Chapter 2.99 added by Stats. 2014, Ch. 785, Sec. 1. ) ## ARTICLE 2. Preparation and Adoption of Infrastructure Financing Plan [53398.59 - 53398.74] ( Article 2 added by Stats. 2014, Ch. 785, Sec. 1. )

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    The public financing authority may adopt or abandon the proceedings, but if the proceedings are abandoned it ceases to exist and the legislative body cannot start the same district area again for one year.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 2.99. Enhanced Infrastructure Financing District [53398.50 - 53398.88] ( Chapter 2.99 added by Stats. 2014, Ch. 785, Sec. 1. ) ## ARTICLE 2. Preparation and Adoption of Infrastructure Financing Plan [53398.59 - 53398.74] ( Article 2 added by Stats. 2014, Ch. 785, Sec. 1. ) ## 53398.69. (a) (1) At the conclusion of the hearings pursuant to Section 53398.66, the public financing authority may adopt a resolution proposing adoption of the infrastructure financing plan, as modified, and formation of the enhanced infrastructure financing district in a manner consistent with Section 53398.68, or it may adopt a resolution abandoning the proceedings. If the proceedings are abandoned, then the public financing authority shall cease to exist by operation of this section with no further action required of the legislative body and the legislative body may not enact a resolution of intention to establish a district that includes the same geographic area within one year of the date of the resolution abandoning the proceedings. (2) In the case of an infrastructure financing plan adopted pursuant to Section 53398.75.7, the proceedings set forth in subdivision (e) of that section shall govern the adoption of the infrastructure financing plan. (b) The infrastructure financing plan shall take effect upon the adoption of the resolution. The infrastructure financing plan shall specify if the district shall be funded solely through the district’s share of tax increment, governmental or private loans, grants, bonds, assessments, fees, or some combination thereof. However, the public financing authority shall not issue bonds or levy assessments or fees that may be included in the infrastructure financing plan before one or more of the following: (1) The adoption of a resolution meeting the requirements of Section 53398.77, and, if applicable, subdivision (c) of Section 53398.78, to issue bonds to finance the infrastructure financing plan. (2) Compliance with the procedures required in subdivision (f) of Section 53398.75, to levy assessments or fees to finance the infrastructure financing plan. (c) In addition, the district may expend up to 10 percent of any accrued tax increment in the first two years of the effective date of the enhanced infrastructure financing district on planning and dissemination of information to the residents within the district’s boundaries about the infrastructure financing plan and planned activities to be funded by the district. (Amended by Stats. 2019, Ch. 656, Sec. 5. (AB 116) Effective January 1, 2020.)
  9. 53398.7.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 2.9. Infrastructure Financing Districts in the Border Development Zone [53398 - 53398.47] ( Chapter 2.9 added by Stats. 1999, Ch. 773, Sec. 1. ) ## ARTICLE 1. General Provisions [53398 - 53398.8] ( Article 1 added by Stats. 1999, Ch. 773, Sec. 1. )

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    Bond-validity actions may be filed under Civil Procedure Chapter 9, but if brought by an interested person they must be started within 30 days after the bond-resolution is adopted. Any appeal must be started within 30 days after judgment.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 2.9. Infrastructure Financing Districts in the Border Development Zone [53398 - 53398.47] ( Chapter 2.9 added by Stats. 1999, Ch. 773, Sec. 1. ) ## ARTICLE 1. General Provisions [53398 - 53398.8] ( Article 1 added by Stats. 1999, Ch. 773, Sec. 1. ) ## 53398.7. An action to determine the validity of the issuance of bonds pursuant to this chapter may be brought pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure. However, notwithstanding the time limits specified in Section 860 of the Code of Civil Procedure, the action shall be commenced within 30 days after adoption of the resolution pursuant to Section 53398.43 providing for issuance of the bonds if the action is brought by an interested person pursuant to Section 863 of the Code of Civil Procedure. Any appeal from a judgment in that action or proceeding shall be commenced within 30 days after entry of judgment. (Added by Stats. 1999, Ch. 773, Sec. 1. Effective January 1, 2000.)
  10. 53398.70.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 2.99. Enhanced Infrastructure Financing District [53398.50 - 53398.88] ( Chapter 2.99 added by Stats. 2014, Ch. 785, Sec. 1. ) ## ARTICLE 2. Preparation and Adoption of Infrastructure Financing Plan [53398.59 - 53398.74] ( Article 2 added by Stats. 2014, Ch. 785, Sec. 1. )

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    This section says elections under this chapter generally follow the local agency’s election laws, and ballot materials must include an impartial analysis and any arguments and rebuttals unless subdivision (b) applies.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 2.99. Enhanced Infrastructure Financing District [53398.50 - 53398.88] ( Chapter 2.99 added by Stats. 2014, Ch. 785, Sec. 1. ) ## ARTICLE 2. Preparation and Adoption of Infrastructure Financing Plan [53398.59 - 53398.74] ( Article 2 added by Stats. 2014, Ch. 785, Sec. 1. ) ## 53398.70. (a) Except as otherwise provided in this chapter, the provisions of law regulating elections of the local agency that calls an election pursuant to this chapter, insofar as they may be applicable, shall govern all elections conducted pursuant to this chapter. Except as provided in subdivision (b), there shall be prepared and included in the ballot material provided to each voter, an impartial analysis pursuant to Section 9160 or 9280 of the Elections Code, arguments and rebuttals, if any, pursuant to Sections 9162 to 9167, inclusive, and Section 9190 of the Elections Code or pursuant to Sections 9281 to 9287, inclusive, and Section 9295 of the Elections Code. (b) If the vote is to be by the landowners of the proposed district, analysis and arguments may be waived with the unanimous consent of all the landowners and shall be so stated in the order for the election. (Added by Stats. 2014, Ch. 785, Sec. 1. (SB 628) Effective January 1, 2015.)
  11. 53398.71.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 2.99. Enhanced Infrastructure Financing District [53398.50 - 53398.88] ( Chapter 2.99 added by Stats. 2014, Ch. 785, Sec. 1. ) ## ARTICLE 2. Preparation and Adoption of Infrastructure Financing Plan [53398.59 - 53398.74] ( Article 2 added by Stats. 2014, Ch. 785, Sec. 1. )

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    If a mail-ballot election is used, the election official must provide ballots, election materials, supplies, and instructions needed to use and return the ballot.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 2.99. Enhanced Infrastructure Financing District [53398.50 - 53398.88] ( Chapter 2.99 added by Stats. 2014, Ch. 785, Sec. 1. ) ## ARTICLE 2. Preparation and Adoption of Infrastructure Financing Plan [53398.59 - 53398.74] ( Article 2 added by Stats. 2014, Ch. 785, Sec. 1. ) ## 53398.71. (a) If the election is to be conducted by mail ballot, the election official conducting the election shall provide ballots and election materials pursuant to subdivision (d) of Section 53326 and Section 53327, together with all supplies and instructions necessary for the use and return of the ballot. (b) The identification envelope for return of mail ballots used in landowner elections shall contain the following: (1) The name of the landowner. (2) The address of the landowner. (3) A declaration, under penalty of perjury, stating that the voter is the owner of record or the authorized representative of the landowner entitled to vote and is the person whose name appears on the identification envelope. (4) The printed name and signature of the voter. (5) The address of the voter. (6) The date of signing and place of execution of the declaration pursuant to paragraph (3). (7) A notice that the envelope contains an official ballot and is to be opened only by the canvassing board. (Added by Stats. 2014, Ch. 785, Sec. 1. (SB 628) Effective January 1, 2015.)
  12. 53398.72.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 2.99. Enhanced Infrastructure Financing District [53398.50 - 53398.88] ( Chapter 2.99 added by Stats. 2014, Ch. 785, Sec. 1. ) ## ARTICLE 2. Preparation and Adoption of Infrastructure Financing Plan [53398.59 - 53398.74] ( Article 2 added by Stats. 2014, Ch. 785, Sec. 1. )

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    An official may send a notice to landowners, residents, and affected taxing entities instead of mailing other documents, and the notice must include specified information. If a public hearing is rescheduled, the official must republish, repost, and email the new hearing details at least 10 days before the rescheduled meeting, and the designated contact person must maintain an email list of interested parties.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 2.99. Enhanced Infrastructure Financing District [53398.50 - 53398.88] ( Chapter 2.99 added by Stats. 2014, Ch. 785, Sec. 1. ) ## ARTICLE 2. Preparation and Adoption of Infrastructure Financing Plan [53398.59 - 53398.74] ( Article 2 added by Stats. 2014, Ch. 785, Sec. 1. ) ## 53398.72. (a) As an alternative to mailing documents pursuant to Section 53398.64 and Section 53398.66, the official designated pursuant to Section 53398.62 may mail a notice to each landowner, resident, and affected taxing entity at least 40 days before the meeting held pursuant to subdivision (a) of Section 53398.66. This notice shall include all of the following, as applicable: (1) A summary of the plan, including all required information listed in paragraph (1) of subdivision (c) of Section 53398.66. (2) The internet website where the applicable documents, including those described in Section 53398.64, will be made available for public viewing or inspection. (3) A designated contact person to receive and process any requests for a mailed or electronically mailed packet of all materials. (4) The location, date, and time of the meeting and two scheduled public hearings held in accordance with Section 53398.66. (5) A description of the actions that may be taken at the meeting and each of the public hearings described in paragraph (4). (6) A description of the schedule, information, and process for accessing any amendments to the plan in accordance with paragraph (1) of subdivision (j) of Section 53398.66. (7) A description of the schedule, information, and process for accessing annual reports in accordance with paragraph (2) of subdivision (i) of Section 53398.66. (b) (1) If the first or second public hearing on the plan occurs at the location, date, and time listed in the mailed notice described in subdivision (a), then the public financing authority shall be deemed to comply with the 10-day mailed notice requirement pursuant to subdivision (b) of Section 53398.66. (2) If the first or second public hearing is rescheduled for a later date than listed in the mailed notice described in subdivision (a), due to unanticipated circumstances, the official designated pursuant to Section 53398.62 shall do all of the following: (A) Publish notice of the rescheduled date and time of the first or second public hearing, at least 10 days before the meeting, in a newspaper in accordance with subdivision (i) of Section 53398.66. (B) Post, at least 10 days before the rescheduled meeting, notice of the rescheduled date and time of the first or second public hearing on the internet website described in paragraph (2) of subdivision (a). (C) Email, at least 10 days before the rescheduled meeting, notification of the rescheduled date and time of the first or second public hearing to the email contact list assembled and maintained in accordance with subdivision (c). (c) The designated contact person described in paragraph (3) of subdivision (a) shall assemble and maintain an email contact list of all landowners, residents, and other interested parties who have expressed interest in receiving information and materials. (Added by Stats. 2024, Ch. 599, Sec. 8. (SB 1140) Effective January 1, 2025.)
  13. 53398.73.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 2.99. Enhanced Infrastructure Financing District [53398.50 - 53398.88] ( Chapter 2.99 added by Stats. 2014, Ch. 785, Sec. 1. ) ## ARTICLE 2. Preparation and Adoption of Infrastructure Financing Plan [53398.59 - 53398.74] ( Article 2 added by Stats. 2014, Ch. 785, Sec. 1. )

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    Certain notices under this chapter must be given in English and in any other qualifying languages spoken in the affected county area, except for notices covered by subdivision (i) of Section 53398.66.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 2.99. Enhanced Infrastructure Financing District [53398.50 - 53398.88] ( Chapter 2.99 added by Stats. 2014, Ch. 785, Sec. 1. ) ## ARTICLE 2. Preparation and Adoption of Infrastructure Financing Plan [53398.59 - 53398.74] ( Article 2 added by Stats. 2014, Ch. 785, Sec. 1. ) ## 53398.73. Except for the notices described in subdivision (i) of Section 53398.66, a notice required by this chapter shall be provided in English and in all other languages spoken jointly by 20 percent or more of the population in the jurisdiction of the county of the proposed district that speaks English less than “very well” and jointly speaks a language other than English according to data from the most recent American Community Survey or data from an equally reliable source. (Added by Stats. 2024, Ch. 599, Sec. 9. (SB 1140) Effective January 1, 2025.)
  14. 53398.74.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 2.99. Enhanced Infrastructure Financing District [53398.50 - 53398.88] ( Chapter 2.99 added by Stats. 2014, Ch. 785, Sec. 1. ) ## ARTICLE 2. Preparation and Adoption of Infrastructure Financing Plan [53398.59 - 53398.74] ( Article 2 added by Stats. 2014, Ch. 785, Sec. 1. )

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    Money allocated and paid to a district under Section 53398.75 is not treated as tax proceeds for Article XIII B purposes.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 2.99. Enhanced Infrastructure Financing District [53398.50 - 53398.88] ( Chapter 2.99 added by Stats. 2014, Ch. 785, Sec. 1. ) ## ARTICLE 2. Preparation and Adoption of Infrastructure Financing Plan [53398.59 - 53398.74] ( Article 2 added by Stats. 2014, Ch. 785, Sec. 1. ) ## 53398.74. This section implements and fulfills the intent of this chapter and of Article XIII B of the California Constitution. The allocation and payment to a district of the portion of taxes specified in Section 53398.75 for the purpose of paying principal of, or interest on, loans, advances, or indebtedness incurred by the district pursuant to this chapter, shall not be deemed the receipt by a district of proceeds of taxes levied by or on behalf of the district within the meaning or for the purposes of Article XIII B of the California Constitution, nor shall that portion of taxes be deemed receipt of proceeds of taxes by, or an appropriation subject to limitation of, any other public body within the meaning or for purposes of Article XIII B of the California Constitution or any statutory provision enacted in implementation of Article XIII B of the California Constitution. (Repealed and added by Stats. 2015, Ch. 320, Sec. 14. (AB 313) Effective January 1, 2016.)
  15. 53398.75.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 2.99. Enhanced Infrastructure Financing District [53398.50 - 53398.88] ( Chapter 2.99 added by Stats. 2014, Ch. 785, Sec. 1. ) ## ARTICLE 3. Division of Taxes [53398.75 - 53398.76] ( Article 3 added by Stats. 2014, Ch. 785, Sec. 1. )

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    This section says an infrastructure financing plan may divide certain taxes for an enhanced infrastructure financing district, and the city or county legislative body may dedicate some net available revenue to the district.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 2.99. Enhanced Infrastructure Financing District [53398.50 - 53398.88] ( Chapter 2.99 added by Stats. 2014, Ch. 785, Sec. 1. ) ## ARTICLE 3. Division of Taxes [53398.75 - 53398.76] ( Article 3 added by Stats. 2014, Ch. 785, Sec. 1. ) ## 53398.75. (a) Any infrastructure financing plan may contain a provision that taxes, if any, levied upon taxable property in the area included within the enhanced infrastructure financing district each year by or for the benefit of the State of California, or any affected taxing entity after the effective date of the resolution adopted pursuant to Section 53398.69 to create the district, shall be divided, subject to the provisions of Section 53993, as follows: (1) That portion of the taxes that would be produced by the rate upon which the tax is levied each year by or for each of the affected taxing entities upon the total sum of the assessed value of the taxable property in the district as shown upon the assessment roll used in connection with the taxation of the property by the affected taxing entity, last equalized prior to the effective date of the resolution adopted pursuant to Section 53398.69 to create the district, shall be allocated to, and when collected shall be paid to, the respective affected taxing entities as taxes by or for the affected taxing entities on all other property are paid. (2) That portion of the levied taxes each year specified in the adopted infrastructure financing plan for the city or county and each affected taxing entity that has agreed to participate pursuant to Section 53398.68 in excess of the amount specified in paragraph (1) shall be allocated to, and when collected shall be paid into a special fund of, the district for all lawful purposes of the district. Unless and until the total assessed valuation of the taxable property in a district exceeds the total assessed value of the taxable property in the district as shown by the last equalized assessment roll referred to in paragraph (1), all of the taxes levied and collected upon the taxable property in the district shall be paid to the respective affected taxing entities. When the district ceases to exist pursuant to the adopted infrastructure financing plan, all moneys thereafter received from taxes upon the taxable property in the district shall be paid to the respective affected taxing entities as taxes on all other property are paid. (b) Notwithstanding subdivision (a), where any district boundaries overlap with the boundaries of any former redevelopment project area, any debt or obligation of a district shall be subordinate to any and all enforceable obligations of the former redevelopment agency, as approved by the Oversight Board and the Department of Finance. For the purposes of this chapter, the division of taxes allocated to the district pursuant to subdivision (a) of this section or of subdivision (b) of Section 53396 shall not include any taxes required to be deposited by the county auditor-controller into the Redevelopment Property Tax Trust Fund created pursuant to subdivision (b) of Section 34170.5 of the Health and Safety Code. (c) The legislative body of the city or county forming the district may choose to dedicate any portion of its net available revenue to the district through the financing plan described in Section 53398.63. (d) For the purposes of this section, “net available revenue” means periodic distributions to the city or county from the Redevelopment Property Tax Trust Fund, created pursuant to Section 34170.5 of the Health and Safety Code, that are available to the city or county after all preexisting legal commitments and statutory obligations funded from that revenue are made pursuant to Part 1.85 (commencing with Section 34170) of Division 24 of the Health and Safety Code. “Net available revenue” shall not include any funds deposited by the county auditor-controller into the Redevelopment Property Tax Trust Fund or funds remaining in the Redevelopment Property Tax Trust Fund prior to distribution. Net available revenues shall not include any moneys payable to a school district that maintains kindergarten and grades 1 to 12, inclusive, community college districts, county office of education, or to the Educational Revenue Augmentation Fund, pursuant to paragraph (4) of subdivision (a) of Section 34183 of the Health and Safety Code. (e) (1) That portion of any ad valorem property tax revenue annually allocated to a city or county pursuant to Section 97.70 of the Revenue and Taxation Code that is specified in the adopted infrastructure financing plan for the city or county that has agreed to participate pursuant to Section 53398.68, and that corresponds to the increase in the assessed valuation of taxable property shall be allocated to, and, when collected, shall be apportioned to, a special fund of the district for all lawful purposes of the district. (2) When the district ceases to exist pursuant to the adopted infrastructure financing plan, the revenues described in this subdivision shall be allocated to, and, when collected, shall be apportioned to, the respective city or county. (f) This section shall not be construed to prevent a district from utilizing revenues from any of the following sources to support its activities provided that the applicable voter approval has been obtained, and the infrastructure financing plan has been approved pursuant to Section 53398.69: (1) The Improvement Act of 1911 (Division 7 (commencing with Section 5000) of the Streets and Highways Code). (2) The Municipal Improvement Act of 1913 (Division 12 (commencing with Section 10000) of the Streets and Highways Code). (3) The Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500) of the Streets and Highways Code). (4) The Landscaping and Lighting Act of 1972 (Part 2 (commencing with Section 22500) of Division 15 of the Streets and Highways Code). (5) The Vehicle Parking District Law of 1943 (Part 1 (commencing with Section 31500) of Division 18 of the Streets and Highways Code). (6) The Parking District Law of 1951 (Part 4 (commencing with Section 35100) of Division 18 of the Streets and Highways Code). (7) The Park and Playground Act of 1909 (Chapter 7 (commencing with Section 38000) of Part 2 of Division 3 of Title 4 of this code). (8) The Mello-Roos Community Facilities Act of 1982 (Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of this title). (9) The Benefit Assessment Act of 1982 (Chapter 6.4 (commencing with Section 54703) of Part 1 of Division 2 of this title). (10) The so-called facilities benefit assessment levied by the charter city of San Diego or any substantially similar assessment levied for the same purpose by any other charter city pursuant to any ordinance or charter provision. (11) Any state funds. (Amended by Stats. 2025, Ch. 769, Sec. 1. (SB 516) Effective January 1, 2026.)
  16. 53398.75.5.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 2.99. Enhanced Infrastructure Financing District [53398.50 - 53398.88] ( Chapter 2.99 added by Stats. 2014, Ch. 785, Sec. 1. ) ## ARTICLE 3. Division of Taxes [53398.75 - 53398.76] ( Article 3 added by Stats. 2014, Ch. 785, Sec. 1. )

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    This section lets a city, county, or city and county allocate certain tax revenues to an enhanced infrastructure financing district if specified housing and site conditions are met, and it bars use of those revenues for highway improvements.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 2.99. Enhanced Infrastructure Financing District [53398.50 - 53398.88] ( Chapter 2.99 added by Stats. 2014, Ch. 785, Sec. 1. ) ## ARTICLE 3. Division of Taxes [53398.75 - 53398.76] ( Article 3 added by Stats. 2014, Ch. 785, Sec. 1. ) ## 53398.75.5. (a) This section shall be known and may be cited as the Neighborhood Infill Finance and Transit Improvements Act, or NIFTI. (b) The Legislature finds and declares all of the following: (1) California is facing an affordable housing crisis that necessitates the creation of additional tools for local jurisdictions to create new local funding streams that will support equitable infill housing and associated supportive utility and transit infrastructure. (2) The creation of a NIFTI district will authorize local jurisdictions to capitalize on existing revenues. This will spur private investment and provide additional dollars to support development and revitalization of urbanized areas that include housing for all income levels with equal access to public transit, goods, services, and economic opportunities. (3) The benefits of a NIFTI district include the ability to fund more affordable housing units, as well as needed infrastructure upgrades to meet the current and future capacity demands. (c) At any time before or after the adoption of the infrastructure financing plan, a city, county, or city and county may adopt a resolution to allocate tax revenues of that entity to the district, including revenues derived from local sales and use taxes imposed pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200) of Division 2 of the Revenue and Taxation Code) or transactions and use taxes imposed in accordance with the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code) if all of the following apply: (1) The area to be financed with funds received pursuant to this section is an infill site, as defined by Section 21061.3 of the Public Resources Code. (2) The infrastructure financing plan requires that at least 20 percent of the total funds received by the district pursuant to this section be used for the acquisition, construction, or rehabilitation of housing for persons and families of low income, as defined in Section 50093 of the Health and Safety Code, or very low income households, as defined in Section 50105 of the Health and Safety Code, for rent or purchase. (3) (A) The infrastructure financing plan requires that, prior to the time limits set forth in subdivision (d) of Section 53398.63, at least 20 percent of any new housing units constructed in the district be affordable to persons and families of low or moderate income with at least 6 percent of the new units affordable to very low income households and at least 9 percent of the new units affordable to persons and families of low income. (B) The infrastructure financing plan shall ensure that the requirements of this subdivision are met every 10 years. (4) The use of the revenues derived from the local sales and use tax imposed under the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200) of Division 2 of the Revenue and Taxation Code) or transactions and use taxes imposed in accordance with the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code) pursuant to the infrastructure financing plan is consistent with the purposes for which that tax is imposed. (5) The boundaries of the enhanced infrastructure financing district are coterminous with the city or county that established the district. (d) Notwithstanding Section 53398.52, revenues collected and allocated for the purposes of this section shall not be used for highway or highway interchange improvements. (e) The enhanced infrastructure financing district shall require, by recorded covenants or restrictions, that affordable housing units financed pursuant to this section remain available at affordable housing costs to, and occupied by, very low income households, persons and families of low income, or persons and families of low or moderate income for the longest feasible time, but for not less than 55 years for rental units and 45 years for owner-occupied units. (f) A legislative body shall not adopt an ordinance terminating an enhanced infrastructure financing district created pursuant to this section if the district has not complied with its affordable housing obligations. (g) Paragraph (1) of subdivision (c) of Section 1720 of the Labor Code shall not apply to projects financed by the enhanced infrastructure financing district. (Added by Stats. 2017, Ch. 562, Sec. 2. (AB 1568) Effective January 1, 2018.)
  17. 53398.75.7.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 2.99. Enhanced Infrastructure Financing District [53398.50 - 53398.88] ( Chapter 2.99 added by Stats. 2014, Ch. 785, Sec. 1. ) ## ARTICLE 3. Division of Taxes [53398.75 - 53398.76] ( Article 3 added by Stats. 2014, Ch. 785, Sec. 1. )

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    A city, county, or city and county may allocate tax revenues to an enhanced infrastructure financing district, but the plan must meet housing, transit, notice, protest, reporting, and funding-use rules.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 2.99. Enhanced Infrastructure Financing District [53398.50 - 53398.88] ( Chapter 2.99 added by Stats. 2014, Ch. 785, Sec. 1. ) ## ARTICLE 3. Division of Taxes [53398.75 - 53398.76] ( Article 3 added by Stats. 2014, Ch. 785, Sec. 1. ) ## 53398.75.7. (a) This section shall be known and may be cited as the Second Neighborhood Infill Finance and Transit Improvements Act, or NIFTI-2. (b) (1) At any time before or after the adoption of the infrastructure financing plan, a city, county, or city and county may adopt a resolution to allocate tax revenues of that entity to the district, including revenues derived from local sales and use taxes imposed pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200) of Division 2 of the Revenue and Taxation Code), or transactions and use taxes imposed in accordance with the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code), if all of the following apply: (A) The area to be financed with funds received pursuant to this section is within one-half mile of a major transit stop, as defined in Section 21064.3 of the Public Resources Code. (B) The infrastructure financing plan requires that at least 40 percent of the total funds received by the district pursuant to this section be used for the acquisition, construction, or rehabilitation of housing, including the costs of predevelopment and land acquisition, for households with incomes below 60 percent of area median income for rent or purchase. Predevelopment costs include, but are not limited to, site control, engineering studies, architectural plans, application fees, legal services, permits, bonding, and site preparation. (C) The infrastructure financing plan requires that 50 percent of the housing funds are used to develop housing affordable to and occupied by households with incomes below 60 percent and greater than 30 percent of area median income, and 50 percent of the housing funds are used for either housing affordable to and occupied by households with incomes below 30 percent of area median income or permanent supportive housing to help homeless persons get off the street. (D) The infrastructure financing plan gives first priority for occupancy of housing funded through this plan to income-qualified households displaced from the district through no fault of their own, and secondary priority for occupancy of housing funded through this program is given to households with a member or members employed within two miles of the district. (E) The infrastructure financing plan requires that at least 10 percent of the total funds received by the district pursuant to this section be used for investments in the capital costs of parks, urban forestry, or permanent greening improvements along boulevards, streets, or other public areas within a district, or active transportation capital projects that qualify under the Active Transportation Program (Chapter 8 (commencing with Section 2380) of Division 3 of the Streets and Highways Code), including pedestrian or bicycle facilities or supportive infrastructure, including connectivity to transit stations. (F) The boundaries of the enhanced infrastructure financing district are coterminous with the city or county that established the district. (G) The use of the revenues derived from the local sales and use taxes imposed under the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200) of Division 2 of the Revenue and Taxation Code) or transactions and use taxes imposed in accordance with the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code) pursuant to the infrastructure financing plan is consistent with the purposes for which that tax is imposed. (H) If the infrastructure financing plan proposes to allocate tax revenues of that entity to the district that are derived from the local sales and use taxes imposed pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200) of Division 2 of the Revenue and Taxation Code), the city, county, or city and county has received the consent of any impacted transportation agency that receives tax revenues derived from that any tax adopted pursuant to that law, and has ensured that existing or planned transportation operations and capital projects will not be negatively impacted. (2) This section does not authorize a city, county, or city and county to allocate all, or a portion of any sales and use taxes imposed pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200) of Division 2 of the Revenue and Taxation Code) or transactions and use taxes imposed in accordance with the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code), that was approved by the voters for a special purpose not related to the purposes in paragraph (1). (c) The remaining funds may be used for any of the following: (1) Multifamily affordable housing projects or mixed-use projects with affordable multifamily housing and ground floor commercial uses that support infill and compact development. (2) Transit capital projects, including transit stations and programs supporting transit ridership, including waterborne transit. (3) Transit-oriented development projects, including affordable housing and infrastructure at or near transit stations or connecting those developments to transit stations. (4) Capital projects that implement local complete streets programs. (5) Parking, including detached and decoupled parking structures that provide parking for residents, businesses, or visitors in lieu of onsite parking for proposed developments. These parking structures should provide no more than one space for each residential unit. The ground floors in these parking structures should provide space for pedestrian-oriented commercial or public uses. Revenues from parking may be used to implement transportation demand management programs to reduce automobile trips to and from the district. (6) Other projects or programs designed to reduce greenhouse gas emissions and other criteria air pollutants by reducing automobile trips and vehicle miles traveled within a community. (d) The infrastructure financing plan shall ensure that the requirements of this section are met every 10 years. (e) (1) Sections 53398.66 and 53398.67 shall not apply to the adoption of an enhanced infrastructure financing plan that includes the allocation of tax revenues pursuant to this section. (2) (A) The public financing authority shall consider adoption of the enhanced infrastructure financing plan at three public hearings that shall take place at least 30 days apart. (B) At the first public hearing, the public financing authority shall hear all written and oral comments, but take no action. (C) At the second public hearing, the public financing authority shall consider any additional written and oral comments and take action to modify or reject the enhanced infrastructure financing plan. If the enhanced infrastructure financing plan is not rejected at the second public hearing, then the public financing authority shall conduct a protest proceeding at the third public hearing to consider whether the landowners and residents within the enhanced infrastructure financing plan area wish to present oral or written protests against the adoption of the enhanced infrastructure financing plan. (3) The draft enhanced infrastructure financing plan shall be made available to the public and to each landowner within the area at a meeting held at least 30 days prior to the notice given for the first public hearing. The purposes of the meeting shall be to allow the staff of the public financing authority to present the draft enhanced infrastructure financing plan, answer questions about the enhanced infrastructure financing plan, and consider comments about the enhanced infrastructure financing plan. (4) (A) Notice of the meeting required by paragraph (3) and the public hearings required by this paragraph shall be given in accordance with paragraph (11). The notice shall do all of the following, as applicable: (i) Describe specifically the boundaries of the proposed area. (ii) Describe the purpose of the enhanced infrastructure financing plan. (iii) State the day, hour, and place when and where any and all persons having any comments on the proposed enhanced infrastructure financing plan may appear to provide written or oral comments to the enhanced infrastructure financing district. (iv) Notice of the second public hearing shall include a summary of the changes made to the enhanced infrastructure financing plan as a result of the oral and written testimony received at or before the public hearing and shall identify a location accessible to the public where the enhanced infrastructure financing plan proposed to be presented and adopted at the second public hearing can be reviewed. (v) Notice of the third public hearing to consider any written or oral protests shall contain a copy of the enhanced infrastructure financing plan adopted pursuant to paragraph (2), and shall inform the landowner and resident of his or her right to submit an oral or written protest before the close of the public hearing. The protest may state that the landowner or resident objects to the public financing authority taking action to implement the enhanced infrastructure financing plan. (B) At the third public hearing, the public financing authority shall consider all written and oral protests received prior to the close of the public hearing and shall terminate the proceedings or adopt the enhanced infrastructure financing plan subject to confirmation by the voters at an election called for that purpose. The public financing authority shall terminate the proceedings if there is a majority protest. A majority protest exists if protests have been filed representing over 50 percent of the combined number of landowners and residents in the area who are at least 18 years of age. An election shall be called if between 25 percent and 50 percent of the combined number of landowners and residents in the area who are at least 18 years of age file a protest. (5) An election required pursuant to subparagraph (B) of paragraph (4) shall be held within 90 days of the public hearing and may be held by mail-in ballot. The public financing authority shall adopt, at a duly noticed public hearing, procedures for this election. (6) If a majority of the landowners and residents vote against the enhanced infrastructure financing plan, then the public financing authority shall not take any further action to implement the proposed enhanced infrastructure financing plan. The public financing authority shall not propose a new or revised enhanced infrastructure financing plan to the affected landowners and residents for at least one year following the date of an election in which the enhanced infrastructure financing plan was rejected. (7) At the hour set in the notice required by paragraph (2), the public financing authority shall consider all written and oral comments. (8) If less than 25 percent of the combined number of landowners and residents in the area who are at least 18 years of age file a protest, the public financing authority may adopt the enhanced infrastructure financing plan at the conclusion of the third public hearing by ordinance. The ordinance adopting the enhanced infrastructure financing plan shall be subject to referendum as prescribed by law. (9) For the purposes of this chapter, the enhanced infrastructure financing plan shall be the enhanced infrastructure financing plan adopted pursuant to this section. (10) The public financing authority shall consider and adopt an amendment or amendments to an enhanced infrastructure financing plan in accordance with the provisions of this section. (11) The public financing authority shall post notice of each meeting or public hearing required by this section in an easily identifiable and accessible location on the enhanced infrastructure financing district’s Internet Web site and shall mail a written notice of the meeting or public hearing to each landowner, each resident, and each taxing entity at least 10 days prior to the meeting or public hearing. (A) Notice of the first public hearing shall also be published not less than once a week for four successive weeks prior to the first public hearing in a newspaper of general circulation published in the county in which the area lies. The notice shall state that the district will be used to finance public facilities or development, briefly describe the public facilities or development, briefly describe the proposed financial arrangements, including the proposed commitment of incremental tax revenue, including revenues derived from local sales and use taxes imposed pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200) of Division 2 of the Revenue and Taxation Code), or transactions and use taxes imposed in accordance with the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code), describe the boundaries of the proposed district, and state the day, hour, and place when and where any persons having any objections to the proposed infrastructure financing plan, or the regularity of any of the prior proceedings, may appear before the public financing authority and object to the adoption of the proposed plan by the public financing authority. (B) Notice of the second public hearing shall also be published not less than 10 days prior to the second public hearing in a newspaper of general circulation in the county in which the area lies. The notice shall state that the district will be used to finance public facilities or development, briefly describe the public facilities or development, briefly describe the proposed financial arrangements, including the proposed commitment of incremental tax revenue, including revenues derived from local sales and use taxes imposed pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200) of Division 2 of the Revenue and Taxation Code), or transactions and use taxes imposed in accordance with the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code), describe the boundaries of the proposed district, and state the day, hour, and place when and where any persons having any objections to the proposed infrastructure financing plan, or the regularity of any of the prior proceedings, may appear before the public financing authority and object to the adoption of the proposed plan by the public financing authority. (C) Notice of the third public hearing shall also be published not less than 10 days prior to the third public hearing in a newspaper of general circulation in the county in which the area lies. The notice shall state that the district will be used to finance public facilities or development, briefly describe the public facilities or development, briefly describe the proposed financial arrangements, including the proposed commitment of incremental tax revenue, including revenues derived from local sales and use taxes imposed pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200) of Division 2 of the Revenue and Taxation Code), or transactions and use taxes imposed in accordance with the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code), describe the boundaries of the proposed district, and state the day, hour, and place when and where any persons having any objections to the proposed infrastructure financing plan, or the regularity of any of the prior proceedings, may appear before the public financing authority and object to the adoption of the proposed plan by the public financing authority. (f) (1) The public financing authority shall review the enhanced infrastructure financing plan at least annually and make any amendments that are necessary and appropriate in accordance with the procedures set forth in paragraph (5) and shall require the preparation of an annual independent financial audit paid for from revenues of the enhanced infrastructure financing district. (2) A public financing authority shall adopt an annual report on or before June 30 of each year after holding a public hearing. Written copies of the draft report shall be made available to the public 30 days prior to the public hearing. The public financing authority shall cause the draft report to be posted in an easily identifiable and accessible location on the enhanced infrastructure financing district’s Internet Web site and shall mail a written notice of the availability of the draft report on the Internet Web site to each owner of land and each resident within the area covered by the enhanced infrastructure financing plan and to each taxing entity that has adopted a resolution pursuant to Section 53398.68. The notice shall be mailed by first-class mail, but may be addressed to “occupant.” (3) The annual report shall contain all of the following: (A) A description of the projects undertaken in the fiscal year, including any rehabilitation of structures, and a comparison of the progress expected to be made on those projects compared to the actual progress. (B) A chart comparing the actual revenues and expenses, including administrative costs, of the public financing authority to the budgeted revenues and expenses. (C) The amount of tax increment revenues received. (D) The amount of revenues expended for housing meeting the requirements of this section. (E) An assessment of the status regarding completion of the enhanced infrastructure financing district’s projects. (F) The amount of revenues expended to assist private businesses. (4) If the public financing authority fails to provide the annual report required by paragraph (1), the public financing authority shall not spend any funds received pursuant to a resolution adopted pursuant to this section until the public financing authority has provided the report. (5) Every 10 years, at the public hearing held pursuant to paragraph (2), the public financing authority shall conduct a protest proceeding to consider whether the landowners and residents within the enhanced infrastructure financing district wish to present oral or written protests against the enhanced infrastructure financing district. Notice of this protest proceeding shall be included in the written notice of the hearing on the annual report and shall inform the landowner and resident of his or her right to submit an oral or written protest before the close of the public hearing. The protest may state that the landowner or resident objects to the public financing authority taking action to implement the enhanced infrastructure financing plan on and after the date of the election described in paragraph (6). The public financing authority shall consider all written and oral protests received prior to the close of the public hearing. (6) If there is a majority protest, the public financing authority shall not take any further action to implement the enhanced infrastructure financing plan on and after the date the existence of a majority protest is determined. If between 25 percent and 50 percent of the landowners and residents file protests, then the public financing authority shall call an election of the landowners and residents in the area covered by the enhanced infrastructure financing plan, and shall not initiate or authorize any new projects until the election is held. A majority protest exists if protests have been filed representing over 50 percent of the combined number of landowners and residents at least 18 years of age or older in the area. (7) An election required pursuant to paragraph (6) shall be held within 90 days of the public hearing and may be held by mail-in ballot. The public financing authority shall adopt, at a duly noticed public hearing, procedures for holding this election. (8) If a majority of the landowners and residents vote against the enhanced infrastructure financing plan, then the public financing authority shall not take any further action to implement the enhanced infrastructure financing plan on and after the date of the election held pursuant to paragraph (5). This subdivision shall not prevent the public financing authority from taking any and all actions and appropriating and expending funds, including, but not limited to, any and all payments on bonded or contractual indebtedness, to carry out and complete projects for which expenditures of any kind had been made prior to the date of the election. (g) Notwithstanding Section 53398.52, revenues collected and allocated for the purposes of this section shall not be used for highway or highway interchange improvements. (h) The district shall require, by recorded covenants or restrictions, that affordable housing units financed pursuant to this section remain permanently available at affordable housing costs to, and occupied by, very low income households, persons and families of low income, or persons and families of low or moderate income for the longest feasible time, but for not less than 55 years for rental units and 45 years for owner-occupied units. (i) A legislative body shall not adopt an ordinance terminating an enhanced infrastructure financing district created pursuant to this section if the district has not complied with its affordable housing obligations. (j) Notwithstanding Article 4 (commencing with Section 53398.77), bonds issued by a district pursuant to this section may be issued without voter approval. (k) Paragraph (1) of subdivision (c) of Section 1720 of the Labor Code shall not apply to projects financed by the enhanced infrastructure financing district. (Added by Stats. 2018, Ch. 559, Sec. 2. (SB 961) Effective January 1, 2019.)
  18. 53398.75.8.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 2.99. Enhanced Infrastructure Financing District [53398.50 - 53398.88] ( Chapter 2.99 added by Stats. 2014, Ch. 785, Sec. 1. ) ## ARTICLE 3. Division of Taxes [53398.75 - 53398.76] ( Article 3 added by Stats. 2014, Ch. 785, Sec. 1. )

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    The City of Sacramento or the County of Sacramento may create a California Capital City Downtown Revitalization District, and the district may accept state funds after it is created.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 2.99. Enhanced Infrastructure Financing District [53398.50 - 53398.88] ( Chapter 2.99 added by Stats. 2014, Ch. 785, Sec. 1. ) ## ARTICLE 3. Division of Taxes [53398.75 - 53398.76] ( Article 3 added by Stats. 2014, Ch. 785, Sec. 1. ) ## 53398.75.8. (a) This section shall be known, and may be cited, as the California Capital City Downtown Revitalization Act. (b) The City of Sacramento or the County of Sacramento may create a California Capital City Downtown Revitalization District. Unless explicitly specified otherwise in this section, a California Capital City Downtown Revitalization District is an enhanced infrastructure financing district subject to the provisions of this chapter. (c) The area to be financed with funds received pursuant to this section is within the downtown Sacramento geographic area, defined by the Sacramento River, the American River, Broadway, and Alhambra Boulevard. (d) An affected taxing entity located entirely, or in part, in the County of Sacramento may opt in to a California Capital City Downtown Revitalization District pursuant to Section 53398.68. (e) Upon its creation, a California Capital City Downtown Revitalization District may accept any state funds pursuant to Section 53398.75. (Added by Stats. 2025, Ch. 769, Sec. 2. (SB 516) Effective January 1, 2026.)
  19. 53398.76.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 2.99. Enhanced Infrastructure Financing District [53398.50 - 53398.88] ( Chapter 2.99 added by Stats. 2014, Ch. 785, Sec. 1. ) ## ARTICLE 3. Division of Taxes [53398.75 - 53398.76] ( Article 3 added by Stats. 2014, Ch. 785, Sec. 1. )

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    A district must pay the county’s costs connected to dividing taxes under Section 53398.75.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 2.99. Enhanced Infrastructure Financing District [53398.50 - 53398.88] ( Chapter 2.99 added by Stats. 2014, Ch. 785, Sec. 1. ) ## ARTICLE 3. Division of Taxes [53398.75 - 53398.76] ( Article 3 added by Stats. 2014, Ch. 785, Sec. 1. ) ## 53398.76. All costs incurred by a county in connection with the division of taxes pursuant to Section 53398.75 for a district shall be paid by that district. (Added by Stats. 2014, Ch. 785, Sec. 1. (SB 628) Effective January 1, 2015.)
  20. 53398.77.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 2.99. Enhanced Infrastructure Financing District [53398.50 - 53398.88] ( Chapter 2.99 added by Stats. 2014, Ch. 785, Sec. 1. ) ## ARTICLE 4. Tax Increment Bonds [53398.77 - 53398.88] ( Article 4 added by Stats. 2014, Ch. 785, Sec. 1. )

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    The public financing authority may issue bonds by majority vote if it adopts a resolution containing the required bond details.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 2.99. Enhanced Infrastructure Financing District [53398.50 - 53398.88] ( Chapter 2.99 added by Stats. 2014, Ch. 785, Sec. 1. ) ## ARTICLE 4. Tax Increment Bonds [53398.77 - 53398.88] ( Article 4 added by Stats. 2014, Ch. 785, Sec. 1. ) ## 53398.77. The public financing authority may, by majority vote, issue bonds pursuant to this chapter by adopting a resolution that includes all of the following: (a) A description of the facilities or developments to be financed with the proceeds of the proposed bond issue. (b) The estimated cost of the facilities or developments, the estimated cost of preparing and issuing the bonds, and the principal amount of the bond issuance. (c) The maximum interest rate and discount on the bond issuance. (d) A determination of the amount of tax revenue available or estimated to be available, for the payment of the principal of, and interest on, the bonds. (e) A finding that the amount necessary to pay the principal of, and interest on, the bond issuance will be less than, or equal to, the amount determined pursuant to subdivision (d). (f) The issuance of the bonds in one or more series. (g) The principal amount of the bonds that shall be consistent with the amount specified in subdivision (b). (h) The date the bonds will bear. (i) The date of maturity of the bonds. (j) The denomination of the bonds. (k) The form of the bonds. (l) The manner of execution of the bonds. (m) The medium of payment in which the bonds are payable. (n) The place or manner of payment and any requirements for registration of the bonds. (o) The terms of call or redemption, with or without premium. (Amended by Stats. 2019, Ch. 656, Sec. 6. (AB 116) Effective January 1, 2020.)
  21. 53398.78.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 2.99. Enhanced Infrastructure Financing District [53398.50 - 53398.88] ( Chapter 2.99 added by Stats. 2014, Ch. 785, Sec. 1. ) ## ARTICLE 4. Tax Increment Bonds [53398.77 - 53398.88] ( Article 4 added by Stats. 2014, Ch. 785, Sec. 1. )

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    Before issuing certain port or harbor infrastructure bonds, the public financing authority must submit the bond resolution to the affected harbor agency for preliminary approval, and later steps depend on approvals by the harbor agency and the State Lands Commission.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 2.99. Enhanced Infrastructure Financing District [53398.50 - 53398.88] ( Chapter 2.99 added by Stats. 2014, Ch. 785, Sec. 1. ) ## ARTICLE 4. Tax Increment Bonds [53398.77 - 53398.88] ( Article 4 added by Stats. 2014, Ch. 785, Sec. 1. ) ## 53398.78. (a) If the public financing authority adopts a resolution to issue bonds pursuant to Section 53398.77 for port or harbor infrastructure, it shall, before issuing the bonds, submit the resolution to issue bonds to the affected harbor agency pursuant to Section 1713 of the Harbors and Navigation Code for its preliminary approval. (b) If the harbor agency grants preliminary approval, the proposal shall be considered by the State Lands Commission for final approval pursuant to Section 1714 of the Harbors and Navigation Code. (c) If the State Lands Commission votes in favor of the issuance of the bonds as provided in Section 1714 of the Harbors and Navigation Code, the public financing authority may issue bonds pursuant to Section 53398.77. (Added by renumbering Section 53398.80.5 by Stats. 2019, Ch. 656, Sec. 10. (AB 116) Effective January 1, 2020.)
  22. 53398.8.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 2.9. Infrastructure Financing Districts in the Border Development Zone [53398 - 53398.47] ( Chapter 2.9 added by Stats. 1999, Ch. 773, Sec. 1. ) ## ARTICLE 1. General Provisions [53398 - 53398.8] ( Article 1 added by Stats. 1999, Ch. 773, Sec. 1. )

    Verify source ↗

    An infrastructure financing district in the border development zone is treated as a “district” for the cited constitutional provision.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 2.9. Infrastructure Financing Districts in the Border Development Zone [53398 - 53398.47] ( Chapter 2.9 added by Stats. 1999, Ch. 773, Sec. 1. ) ## ARTICLE 1. General Provisions [53398 - 53398.8] ( Article 1 added by Stats. 1999, Ch. 773, Sec. 1. ) ## 53398.8. An infrastructure financing district in the border development zone is a “district” within the meaning of Section 1 of Article XIII A of the California Constitution. (Added by Stats. 1999, Ch. 773, Sec. 1. Effective January 1, 2000.)
  23. 53398.83.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 2.99. Enhanced Infrastructure Financing District [53398.50 - 53398.88] ( Chapter 2.99 added by Stats. 2014, Ch. 785, Sec. 1. ) ## ARTICLE 4. Tax Increment Bonds [53398.77 - 53398.88] ( Article 4 added by Stats. 2014, Ch. 785, Sec. 1. )

    Verify source ↗

    The public financing authority may vote to refund bonds, but it cannot issue refunding bonds if the refunding cost test is exceeded, and it cannot extend the bonds’ maturity.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 2.99. Enhanced Infrastructure Financing District [53398.50 - 53398.88] ( Chapter 2.99 added by Stats. 2014, Ch. 785, Sec. 1. ) ## ARTICLE 4. Tax Increment Bonds [53398.77 - 53398.88] ( Article 4 added by Stats. 2014, Ch. 785, Sec. 1. ) ## 53398.83. The public financing authority may, by majority vote, provide for refunding of bonds issued pursuant to this chapter. However, refunding bonds shall not be issued if the total net interest cost to maturity on the refunding bonds plus the principal amount of the refunding bonds exceeds the total net interest cost to maturity on the bonds to be refunded. The public financing authority may not extend the time to maturity of the bonds. (Added by Stats. 2014, Ch. 785, Sec. 1. (SB 628) Effective January 1, 2015.)
  24. 53398.84.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 2.99. Enhanced Infrastructure Financing District [53398.50 - 53398.88] ( Chapter 2.99 added by Stats. 2014, Ch. 785, Sec. 1. ) ## ARTICLE 4. Tax Increment Bonds [53398.77 - 53398.88] ( Article 4 added by Stats. 2014, Ch. 785, Sec. 1. )

    Verify source ↗

    The public financing authority and people who execute the bonds are not personally liable for them, and the bonds are payable only from district funds or property.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 2.99. Enhanced Infrastructure Financing District [53398.50 - 53398.88] ( Chapter 2.99 added by Stats. 2014, Ch. 785, Sec. 1. ) ## ARTICLE 4. Tax Increment Bonds [53398.77 - 53398.88] ( Article 4 added by Stats. 2014, Ch. 785, Sec. 1. ) ## 53398.84. The public financing authority or any person executing the bonds shall not be personally liable on the bonds by reason of their issuance. The bonds and other obligations of a district issued pursuant to this chapter are not a debt of the city, county, or state or of any of its political subdivisions, other than the district, and none of those entities, other than the district, shall be liable on the bonds and the bonds or obligations shall be payable exclusively from funds or properties of the district. The bonds shall contain a statement to this effect on their face. The bonds do not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation. (Added by Stats. 2014, Ch. 785, Sec. 1. (SB 628) Effective January 1, 2015.)
  25. 53398.85.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 2.99. Enhanced Infrastructure Financing District [53398.50 - 53398.88] ( Chapter 2.99 added by Stats. 2014, Ch. 785, Sec. 1. ) ## ARTICLE 4. Tax Increment Bonds [53398.77 - 53398.88] ( Article 4 added by Stats. 2014, Ch. 785, Sec. 1. )

    Verify source ↗

    The bonds may be sold at a discount of up to 5% at public sale, and may be sold to the federal government at private sale for not less than par without public advertisement.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 2.99. Enhanced Infrastructure Financing District [53398.50 - 53398.88] ( Chapter 2.99 added by Stats. 2014, Ch. 785, Sec. 1. ) ## ARTICLE 4. Tax Increment Bonds [53398.77 - 53398.88] ( Article 4 added by Stats. 2014, Ch. 785, Sec. 1. ) ## 53398.85. The bonds may be sold at discount not to exceed 5 percent of par at public sale. At least five days prior to the sale, notice shall be published, pursuant to Section 6061, in a newspaper of general circulation and in a financial newspaper published in the City and County of San Francisco and in the City of Los Angeles. The bonds may be sold at not less than par to the federal government at private sale without any public advertisement. (Added by Stats. 2014, Ch. 785, Sec. 1. (SB 628) Effective January 1, 2015.)
  26. 53398.86.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 2.99. Enhanced Infrastructure Financing District [53398.50 - 53398.88] ( Chapter 2.99 added by Stats. 2014, Ch. 785, Sec. 1. ) ## ARTICLE 4. Tax Increment Bonds [53398.77 - 53398.88] ( Article 4 added by Stats. 2014, Ch. 785, Sec. 1. )

    Verify source ↗

    A bond signature by a public financing authority member remains effective even if the person leaves office before the bonds are delivered.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 2.99. Enhanced Infrastructure Financing District [53398.50 - 53398.88] ( Chapter 2.99 added by Stats. 2014, Ch. 785, Sec. 1. ) ## ARTICLE 4. Tax Increment Bonds [53398.77 - 53398.88] ( Article 4 added by Stats. 2014, Ch. 785, Sec. 1. ) ## 53398.86. If any member of the public financing authority whose signature appears on bonds ceases to be a member of the public financing authority before delivery of the bonds, his or her signature is as effective as if he or she had remained in office. Bonds issued pursuant to this chapter are fully negotiable. (Added by Stats. 2014, Ch. 785, Sec. 1. (SB 628) Effective January 1, 2015.)
  27. 53398.87.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 2.99. Enhanced Infrastructure Financing District [53398.50 - 53398.88] ( Chapter 2.99 added by Stats. 2014, Ch. 785, Sec. 1. ) ## ARTICLE 4. Tax Increment Bonds [53398.77 - 53398.88] ( Article 4 added by Stats. 2014, Ch. 785, Sec. 1. )

    Verify source ↗

    A city, county, or special district may lend money to a district if its governing board approves.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 2.99. Enhanced Infrastructure Financing District [53398.50 - 53398.88] ( Chapter 2.99 added by Stats. 2014, Ch. 785, Sec. 1. ) ## ARTICLE 4. Tax Increment Bonds [53398.77 - 53398.88] ( Article 4 added by Stats. 2014, Ch. 785, Sec. 1. ) ## 53398.87. Upon the approval of its governing board, a city, county, or special district that contains territory within the boundaries of a district, may loan moneys to the district to fund those activities described in the infrastructure financing plan approved and adopted pursuant to Section 53398.69. Moneys loaned pursuant to this provision may be repaid at an interest rate that does not exceed the Local Agency Investment Fund rate that is in effect on the date that the loan is approved by the governing board. Notwithstanding any other provision of law it is the intent of the Legislature that any loan issued to a public financing authority by a governmental entity shall be repaid fully unless agreed to otherwise between the authority and the governmental entity. (Added by Stats. 2014, Ch. 785, Sec. 1. (SB 628) Effective January 1, 2015.)
  28. 53398.88.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 2.99. Enhanced Infrastructure Financing District [53398.50 - 53398.88] ( Chapter 2.99 added by Stats. 2014, Ch. 785, Sec. 1. ) ## ARTICLE 4. Tax Increment Bonds [53398.77 - 53398.88] ( Article 4 added by Stats. 2014, Ch. 785, Sec. 1. )

    Verify source ↗

    The district must hire an independent financial and performance audit every two years after issuing debt under Section 53398.77, follow Controller guidelines, and send the completed audit to specified state bodies.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 2.99. Enhanced Infrastructure Financing District [53398.50 - 53398.88] ( Chapter 2.99 added by Stats. 2014, Ch. 785, Sec. 1. ) ## ARTICLE 4. Tax Increment Bonds [53398.77 - 53398.88] ( Article 4 added by Stats. 2014, Ch. 785, Sec. 1. ) ## 53398.88. (a) Every two years after the issuance of debt pursuant to Section 53398.77, the district shall contract for an independent financial and performance audit. The audit shall be conducted according to guidelines established by the Controller. A copy of the completed audit shall be provided to the Controller, the Director of Finance, and to the Joint Legislative Budget Committee. (b) Upon the request of the Governor or of the Legislature, the Bureau of State Audits shall be authorized to conduct financial and performance audits of districts. The results of the audits shall be provided to the district, the Controller, the Director of Finance, and the Joint Legislative Budget Committee. (Amended by Stats. 2019, Ch. 656, Sec. 13. (AB 116) Effective January 1, 2020.)
  29. 534.

    ## Government Code - GOV ## TITLE 1. GENERAL [100 - 7931.000] ( Title 1 enacted by Stats. 1943, Ch. 134. ) ## DIVISION 3. SEAT OF GOVERNMENT, POLITICAL DIVISIONS, AND LEGAL DISTANCES [450 - 559] ( Division 3 enacted by Stats. 1943, Ch. 134. ) ## CHAPTER 6. Legal Distances [500 - 559] ( Chapter 6 enacted by Stats. 1943, Ch. 134. )

    Verify source ↗

    The county seat of Riverside County is 512 miles from Sacramento.

    ## Government Code - GOV ## TITLE 1. GENERAL [100 - 7931.000] ( Title 1 enacted by Stats. 1943, Ch. 134. ) ## DIVISION 3. SEAT OF GOVERNMENT, POLITICAL DIVISIONS, AND LEGAL DISTANCES [450 - 559] ( Division 3 enacted by Stats. 1943, Ch. 134. ) ## CHAPTER 6. Legal Distances [500 - 559] ( Chapter 6 enacted by Stats. 1943, Ch. 134. ) ## 534. From the county seat of Riverside County to Sacramento it is five hundred and twelve (512) miles. (Enacted by Stats. 1943, Ch. 134.)
  30. 53400.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 1. Unsold Bonds [53400 - 53401] ( Article 1 added by Stats. 1949, Ch. 81. )

    Verify source ↗

    A county, city, district, or political subdivision may sell unsold bonds authorized by the electors, so long as the sale price does not net the purchaser more than 8% a year on par value, payable semiannually.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 1. Unsold Bonds [53400 - 53401] ( Article 1 added by Stats. 1949, Ch. 81. ) ## 53400. A county, city, district, or political subdivision may sell any of its bonds, authorized by the electors and unsold, at a price which will net the purchaser not more than 8 percent a year, payable semiannually, on the par value of the bonds. (Amended by Stats. 1975, Ch. 130.)
  31. 53401.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 1. Unsold Bonds [53400 - 53401] ( Article 1 added by Stats. 1949, Ch. 81. )

    Verify source ↗

    This article does not apply to certain bonds sold under a law that allows the sale to net the purchaser more than 6 percent.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 1. Unsold Bonds [53400 - 53401] ( Article 1 added by Stats. 1949, Ch. 81. ) ## 53401. This article does not apply to bonds authorized under a law permitting their sale at a price netting the purchaser more than 6 percent. (Added by Stats. 1949, Ch. 81.)
  32. 53410.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 1.5. Bond Accountability [53410 - 53412] ( Article 1.5 added by Stats. 2000, Ch. 535, Sec. 5. )

    Verify source ↗

    Certain local bond measures must include accountability measures.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 1.5. Bond Accountability [53410 - 53412] ( Article 1.5 added by Stats. 2000, Ch. 535, Sec. 5. ) ## 53410. On or after January 1, 2001, any local bond measure that is subject to voter approval that would provide for the sale of bonds by a local agency shall provide accountability measures that include, but are not limited to, all of the following: (a) A statement indicating the specific purposes of the bond. (b) A requirement that the proceeds be applied only to the specific purposes identified pursuant to subdivision (a). (c) The creation of an account into which the proceeds shall be deposited. (d) An annual report pursuant to Section 53411. (Amended by Stats. 2001, Ch. 176, Sec. 14. Effective January 1, 2002.)
  33. 53411.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 1.5. Bond Accountability [53410 - 53412] ( Article 1.5 added by Stats. 2000, Ch. 535, Sec. 5. )

    Verify source ↗

    The chief fiscal officer of the issuing local agency must file a report with the agency’s governing body by January 1, 2002, and then at least annually.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 1.5. Bond Accountability [53410 - 53412] ( Article 1.5 added by Stats. 2000, Ch. 535, Sec. 5. ) ## 53411. The chief fiscal officer of the issuing local agency shall file a report with its governing body no later than January 1, 2002, and at least once a year thereafter. The annual report shall contain all of the following: (a) The amount of funds collected and expended. (b) The status of any project required or authorized to be funded as identified in subdivision (a) of Section 53410. (Added by Stats. 2000, Ch. 535, Sec. 5. Effective January 1, 2001.)
  34. 53412.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 1.5. Bond Accountability [53410 - 53412] ( Article 1.5 added by Stats. 2000, Ch. 535, Sec. 5. )

    Verify source ↗

    This section defines “local agency,” “special district,” and “bond” for this article.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 1.5. Bond Accountability [53410 - 53412] ( Article 1.5 added by Stats. 2000, Ch. 535, Sec. 5. ) ## 53412. As used in this article: (a) “Local agency” means any county, city, city and county, including a charter city or county, or any special district. (b) “Special district” means an agency of the state, formed pursuant to general law or a special act, for the performance of governmental or proprietary functions, with limited geographic boundaries, including, but not limited to, a school district and a community college district. (c) “Bond” means any bonded indebtedness regardless of state law or charter that requires voter approval, including, but not limited to, general obligation bonds, revenue bonds, and bonds issued pursuant to the Mello-Roos Community Facilities Act (Chapter 2.5 (commencing with Section 53311)). (Added by Stats. 2000, Ch. 535, Sec. 5. Effective January 1, 2001.)
  35. 53430.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Mutilated or Defaced Bonds [53430 - 53440] ( Article 2 added by Stats. 1949, Ch. 81. )

    Verify source ↗

    This section defines “bond” and “local agency” for this article.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Mutilated or Defaced Bonds [53430 - 53440] ( Article 2 added by Stats. 1949, Ch. 81. ) ## 53430. As used in this article: (a) “Bond” includes warrant or other evidence of indebtedness. (b) “Local agency” means county, city, irrigation district, reclamation district, school district, or other municipal corporation. (Added by Stats. 1949, Ch. 81.)
  36. 53431.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Mutilated or Defaced Bonds [53430 - 53440] ( Article 2 added by Stats. 1949, Ch. 81. )

    Verify source ↗

    If a local agency bond is mutilated or defaced and the listed conditions are met, the legislative body must issue a duplicate.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Mutilated or Defaced Bonds [53430 - 53440] ( Article 2 added by Stats. 1949, Ch. 81. ) ## 53431. When a bond of a local agency is mutilated or defaced the legislative body shall issue a duplicate if all of the following conditions exist: (a) It appears by clear and unequivocal proof that the bond is so mutilated or defaced as to impair its value to the owner. (b) There is no bad faith on the part of the owner. (c) The bond is identifiable by number and description. (d) The regulations, including restrictions as to time and retention for security or otherwise, prescribed by the legislative body are met. (Added by Stats. 1949, Ch. 81.)
  37. 53432.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Mutilated or Defaced Bonds [53430 - 53440] ( Article 2 added by Stats. 1949, Ch. 81. )

    Verify source ↗

    A duplicate bond must have the same time to run, the same interest, and the same number as the mutilated or defaced bond.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Mutilated or Defaced Bonds [53430 - 53440] ( Article 2 added by Stats. 1949, Ch. 81. ) ## 53432. The duplicate shall have the same time to run, bear like interest, and have the same number, as the mutilated or defaced bond. (Added by Stats. 1949, Ch. 81.)
  38. 53433.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Mutilated or Defaced Bonds [53430 - 53440] ( Article 2 added by Stats. 1949, Ch. 81. )

    Verify source ↗

    If the owner wants a duplicate bond, they must make a written application to the legislative body and state the facts required by this article.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Mutilated or Defaced Bonds [53430 - 53440] ( Article 2 added by Stats. 1949, Ch. 81. ) ## 53433. The owner of the bond desiring a duplicate shall make a written application to the legislative body, stating the facts required by this article. (Added by Stats. 1949, Ch. 81.)
  39. 53434.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Mutilated or Defaced Bonds [53430 - 53440] ( Article 2 added by Stats. 1949, Ch. 81. )

    Verify source ↗

    The owner must submit an application together with a money deposit covering the legislative body’s required costs for preparing and issuing the duplicate.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Mutilated or Defaced Bonds [53430 - 53440] ( Article 2 added by Stats. 1949, Ch. 81. ) ## 53434. The owner shall accompany his application with a deposit of money required by the legislative body for the cost of printing, lithographing or otherwise preparing the duplicate, and all other expenses connected with the issuance of the duplicate. (Added by Stats. 1949, Ch. 81.)
  40. 53435.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Mutilated or Defaced Bonds [53430 - 53440] ( Article 2 added by Stats. 1949, Ch. 81. )

    Verify source ↗

    If the legislative body requires it, the owner must file a bond with the application.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Mutilated or Defaced Bonds [53430 - 53440] ( Article 2 added by Stats. 1949, Ch. 81. ) ## 53435. If required by the legislative body, the owner shall also file with his application a bond in the required sum with good and sufficient sureties, to be approved by the legislative body, and conditioned to indemnify the local agency for any claim upon the mutilated or defaced bond. (Added by Stats. 1949, Ch. 81.)
  41. 53436.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Mutilated or Defaced Bonds [53430 - 53440] ( Article 2 added by Stats. 1949, Ch. 81. )

    Verify source ↗

    When an application is received, the legislative body must adopt a resolution.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Mutilated or Defaced Bonds [53430 - 53440] ( Article 2 added by Stats. 1949, Ch. 81. ) ## 53436. Upon receipt of the application, the legislative body shall adopt a resolution: (a) Stating the receipt of the application. (b) Stating the compliance with the conditions prescribed in this article and any other conditions required by the legislative body in accordance with this article. (c) Directing the officer in charge of preparing the original bond to cause a duplicate to be issued. (Added by Stats. 1949, Ch. 81.)
  42. 53437.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Mutilated or Defaced Bonds [53430 - 53440] ( Article 2 added by Stats. 1949, Ch. 81. )

    Verify source ↗

    A duplicate bond must be signed by the same officers and issued, as nearly as possible, in the same way as the original bond.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Mutilated or Defaced Bonds [53430 - 53440] ( Article 2 added by Stats. 1949, Ch. 81. ) ## 53437. The duplicate bond shall be signed by the same officers and as nearly as possible shall be issued in the manner of the original. (Added by Stats. 1949, Ch. 81.)
  43. 53438.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Mutilated or Defaced Bonds [53430 - 53440] ( Article 2 added by Stats. 1949, Ch. 81. )

    Verify source ↗

    The duplicate must be delivered in exchange for the original bond.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Mutilated or Defaced Bonds [53430 - 53440] ( Article 2 added by Stats. 1949, Ch. 81. ) ## 53438. The duplicate shall be delivered in exchange for the original bond. (Added by Stats. 1949, Ch. 81.)
  44. 53439.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Mutilated or Defaced Bonds [53430 - 53440] ( Article 2 added by Stats. 1949, Ch. 81. )

    Verify source ↗

    An exchange cannot be made unless the defaced or mutilated bond, with any attached coupons, can be identified and has first been surrendered by the owner.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Mutilated or Defaced Bonds [53430 - 53440] ( Article 2 added by Stats. 1949, Ch. 81. ) ## 53439. An exchange shall not be made unless the defaced or mutilated bond with any coupons attached is identifiable and is first surrendered by the owner. (Added by Stats. 1949, Ch. 81.)
  45. 53440.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Mutilated or Defaced Bonds [53430 - 53440] ( Article 2 added by Stats. 1949, Ch. 81. )

    Verify source ↗

    If the original bond is surrendered, the legislative body must record its cancellation, and the duplicate then has the same validity as the original.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Mutilated or Defaced Bonds [53430 - 53440] ( Article 2 added by Stats. 1949, Ch. 81. ) ## 53440. When the original is surrendered, the legislative body shall cause proper record to be made of its cancellation and thereafter the duplicate has the validity of the original. (Added by Stats. 1949, Ch. 81.)
  46. 53460.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 3. Lost or Destroyed Bonds [53460 - 53466] ( Article 3 added by Stats. 1949, Ch. 81. )

    Verify source ↗

    This section defines “local agency” and “bond” for the article.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 3. Lost or Destroyed Bonds [53460 - 53466] ( Article 3 added by Stats. 1949, Ch. 81. ) ## 53460. As used in this article: (a) “Local agency” means county, city, irrigation district, reclamation district, school district, sanitary district, or other municipal or public corporation. (b) “Bond” includes warrant or other evidence of indebtedness. (Added by Stats. 1949, Ch. 81.)
  47. 53461.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 3. Lost or Destroyed Bonds [53460 - 53466] ( Article 3 added by Stats. 1949, Ch. 81. )

    Verify source ↗

    A local agency’s legislative body may issue a replacement bond if the original bond is proven lost or destroyed and the owner provides indemnity and pays issuance costs.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 3. Lost or Destroyed Bonds [53460 - 53466] ( Article 3 added by Stats. 1949, Ch. 81. ) ## 53461. The legislative body of a local agency may issue a new bond similar to the original to replace it if: (a) By competent proof it is made to appear to the legislative body that a bond issued by the local agency is lost or destroyed. (b) The owner gives an undertaking approved by the legislative body to indemnify the local agency against any loss incurred on account of the bond. (c) The owner pays all cost of the issuance of the new bond. (Amended by Stats. 1982, Ch. 517, Sec. 257.)
  48. 53462.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 3. Lost or Destroyed Bonds [53460 - 53466] ( Article 3 added by Stats. 1949, Ch. 81. )

    Verify source ↗

    If a legislative body refuses to issue a new bond, the owner of a lost or destroyed bond may ask the county superior court for an order to show cause.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 3. Lost or Destroyed Bonds [53460 - 53466] ( Article 3 added by Stats. 1949, Ch. 81. ) ## 53462. If the legislative body refuses to issue a new bond, the owner of any lost or destroyed bond may apply to the superior court of the county in which the local agency is situated for an order requiring the legislative body to show cause why it should not be required to issue a new bond or cause it to be issued. (Added by Stats. 1949, Ch. 81.)
  49. 53463.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 3. Lost or Destroyed Bonds [53460 - 53466] ( Article 3 added by Stats. 1949, Ch. 81. )

    Verify source ↗

    A petition copy must be served on the legislative body at least 10 days before the hearing.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 3. Lost or Destroyed Bonds [53460 - 53466] ( Article 3 added by Stats. 1949, Ch. 81. ) ## 53463. The application shall be by petition a copy of which shall be served upon the legislative body not later than ten days prior to the time set for the hearing. (Added by Stats. 1949, Ch. 81.)
  50. 53464.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 3. Lost or Destroyed Bonds [53460 - 53466] ( Article 3 added by Stats. 1949, Ch. 81. )

    Verify source ↗

    The court must examine the petition and, if the stated conditions are met, order the legislative body to issue a new bond to the petitioner.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 3. Lost or Destroyed Bonds [53460 - 53466] ( Article 3 added by Stats. 1949, Ch. 81. ) ## 53464. The court shall inquire into the truth of the facts stated in the petition and hear the proofs and allegations of the petition. If satisfied that the petitioner is the lawful owner of the bond described in the petition, that it has been lost or destroyed and can not after due diligence be found, and that no sufficient cause has been shown why a new bond to replace it should not be issued, the court shall make an order requiring the legislative body to issue and deliver, or cause to be issued and delivered, to the petitioner a new bond in place of the lost or destroyed bond, upon the petitioner giving such an undertaking to the legislative body as the court directs. (Amended by Stats. 1982, Ch. 517, Sec. 258.)
  51. 53465.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 3. Lost or Destroyed Bonds [53460 - 53466] ( Article 3 added by Stats. 1949, Ch. 81. )

    Verify source ↗

    A bond and its attached coupon, when issued as a replacement for a lost or destroyed bond, must say that on its face.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 3. Lost or Destroyed Bonds [53460 - 53466] ( Article 3 added by Stats. 1949, Ch. 81. ) ## 53465. Each bond and attached coupon so issued shall state upon its face: (a) The number and denomination of the bond for which it is issued. (b) That it is issued in the place of the bond claimed to have been lost or destroyed. (c) That it is issued as a duplicate. (d) That only one is to be paid. (Added by Stats. 1949, Ch. 81.)
  52. 53466.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 3. Lost or Destroyed Bonds [53460 - 53466] ( Article 3 added by Stats. 1949, Ch. 81. )

    Verify source ↗

    An approved undertaking under this article must be filed with the clerk or treasurer of the issuing local agency, as directed by the legislative body.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 3. Lost or Destroyed Bonds [53460 - 53466] ( Article 3 added by Stats. 1949, Ch. 81. ) ## 53466. The undertaking required by this article, duly indorsed as approved, shall be filed in the office of the clerk or the treasurer of the issuing local agency as the legislative body directs. (Amended by Stats. 1982, Ch. 517, Sec. 259.)
  53. 535.

    ## Government Code - GOV ## TITLE 1. GENERAL [100 - 7931.000] ( Title 1 enacted by Stats. 1943, Ch. 134. ) ## DIVISION 3. SEAT OF GOVERNMENT, POLITICAL DIVISIONS, AND LEGAL DISTANCES [450 - 559] ( Division 3 enacted by Stats. 1943, Ch. 134. ) ## CHAPTER 6. Legal Distances [500 - 559] ( Chapter 6 enacted by Stats. 1943, Ch. 134. )

    Verify source ↗

    The distance from the county seat of Sacramento to the State Capitol is one mile.

    ## Government Code - GOV ## TITLE 1. GENERAL [100 - 7931.000] ( Title 1 enacted by Stats. 1943, Ch. 134. ) ## DIVISION 3. SEAT OF GOVERNMENT, POLITICAL DIVISIONS, AND LEGAL DISTANCES [450 - 559] ( Division 3 enacted by Stats. 1943, Ch. 134. ) ## CHAPTER 6. Legal Distances [500 - 559] ( Chapter 6 enacted by Stats. 1943, Ch. 134. ) ## 535. From the county seat of Sacramento to the State Capitol it is one (1) mile. (Enacted by Stats. 1943, Ch. 134.)
  54. 53500.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 4. Pledge and Use of Revenues to Pay and Secure General Obligation Bonds [53500 - 53505] ( Article 4 added by Stats. 1961, Ch. 1157. )

    Verify source ↗

    This section defines several terms used in the article, including “local agency,” “general obligation bonds,” “legislative body,” “revenue-producing facility,” and “pledge.”

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 4. Pledge and Use of Revenues to Pay and Secure General Obligation Bonds [53500 - 53505] ( Article 4 added by Stats. 1961, Ch. 1157. ) ## 53500. As used in this article: (a) “Local agency” means county, city, city and county, public district, or other public or municipal corporation. (b) “General obligation bonds” means bonds, warrants, notes or other evidence of indebtedness of a local agency payable, both principal and interest, from the proceeds of ad valorem taxes or ad valorem assessments which may be levied without limitation as to rate or amount upon property in the local agency subject to taxation or assessment. (c) “Legislative body” means the legislative body of the local agency as defined in Section 53000. (d) “Revenue-producing facility” means an improvement, works, system or facility furnishing or providing services or products for which the local agency is authorized to impose a charge. (e) “Pledge” means pledge, assign, place a charge upon and place a lien upon. (Added by Stats. 1961, Ch. 1157.)
  55. 53501.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 4. Pledge and Use of Revenues to Pay and Secure General Obligation Bonds [53500 - 53505] ( Article 4 added by Stats. 1961, Ch. 1157. )

    Verify source ↗

    This article applies to local agencies that may issue general obligation bonds to acquire, construct, or finance a revenue-producing facility.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 4. Pledge and Use of Revenues to Pay and Secure General Obligation Bonds [53500 - 53505] ( Article 4 added by Stats. 1961, Ch. 1157. ) ## 53501. This article applies to all local agencies which have the power to issue general obligation bonds to acquire, construct or finance a revenue-producing facility. (Added by Stats. 1961, Ch. 1157.)
  56. 53502.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 4. Pledge and Use of Revenues to Pay and Secure General Obligation Bonds [53500 - 53505] ( Article 4 added by Stats. 1961, Ch. 1157. )

    Verify source ↗

    A local agency’s legislative body may pledge facility revenues to pay or secure its general obligation bonds and interest, if the bonds are issued for a qualifying revenue-producing facility project.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 4. Pledge and Use of Revenues to Pay and Secure General Obligation Bonds [53500 - 53505] ( Article 4 added by Stats. 1961, Ch. 1157. ) ## 53502. In any ordinance, resolution, order or indenture providing for the issuance of general obligation bonds of a local agency to provide funds for the acquisition, construction or financing of a revenue producing facility or any addition to, or extension or improvement of a revenue-producing facility, the legislative body of the local agency may pledge all or any part of the revenues of such facility to the payment or security of such general obligation bonds and the interest thereon in such manner and upon such terms as the legislative body may deem advisable. (Added by Stats. 1961, Ch. 1157.)
  57. 53503.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 4. Pledge and Use of Revenues to Pay and Secure General Obligation Bonds [53500 - 53505] ( Article 4 added by Stats. 1961, Ch. 1157. )

    Verify source ↗

    The legislative body may include covenants and related provisions in the pledge, and it has the powers needed for that purpose.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 4. Pledge and Use of Revenues to Pay and Secure General Obligation Bonds [53500 - 53505] ( Article 4 added by Stats. 1961, Ch. 1157. ) ## 53503. In connection with such pledge the legislative body may provide in such ordinance, resolution, order or indenture such covenants, promises, restrictions and provisions as it may deem necessary or desirable including, but not limited to, covenants, promises, restrictions and provisions relating to the use of bond proceeds, the maintenance, operation and preservation of such facility, the rates and charges to be established and collected for the services or products furnished or provided by such facility, the incurring of additional indebtedness payable from such revenues, and the establishment, maintenance and use of reserve funds, sinking funds, interest and redemption funds, maintenance and operation funds and other special funds for the payment or security of the bonds and the interest thereon. In connection with such pledge and in connection with such covenants, promises, restrictions and provisions the legislative body shall have, but shall not be limited to, the powers specified in the Revenue Bond Law of 1941 (Chapter 6 of this part). (Added by Stats. 1961, Ch. 1157.)
  58. 53504.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 4. Pledge and Use of Revenues to Pay and Secure General Obligation Bonds [53500 - 53505] ( Article 4 added by Stats. 1961, Ch. 1157. )

    Verify source ↗

    This section says the article’s pledge and bond payment/security provisions are additional to, and do not override, other laws, charters, or constitutional rules about paying general obligation bonds from ad valorem taxes or assessments and collecting those taxes or assessments.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 4. Pledge and Use of Revenues to Pay and Secure General Obligation Bonds [53500 - 53505] ( Article 4 added by Stats. 1961, Ch. 1157. ) ## 53504. The pledge and the payment and security provisions authorized by this article shall be in addition to, and not in derogation of, any provisions permitted or required by law, charter or the Constitution of the State of California relating to payment of general obligation bonds from the proceeds of ad valorem taxes or ad valorem assessments and relating to the levy and collection of such taxes or assessments. (Added by Stats. 1961, Ch. 1157.)
  59. 53505.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 4. Pledge and Use of Revenues to Pay and Secure General Obligation Bonds [53500 - 53505] ( Article 4 added by Stats. 1961, Ch. 1157. )

    Verify source ↗

    If a legislative body wants to use these bond powers, it must state that intention in the ordinance, resolution, or order calling or providing for the election.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 4. Pledge and Use of Revenues to Pay and Secure General Obligation Bonds [53500 - 53505] ( Article 4 added by Stats. 1961, Ch. 1157. ) ## 53505. If the legislative body intends to exercise the powers granted by this article it shall make a statement of such intention in any ordinance, resolution or order calling or providing for an election to authorize the general obligation bonds for a revenue producing facility. Such statement may be general only or it may give such detail as the legislative body may deem proper. If any such statement is made, the ordinance, resolution, order or indenture providing for the issuance of such bonds shall be substantially in accord with such statement. (Added by Stats. 1961, Ch. 1157.)
  60. 53506.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 4.5. General Obligation Bonds [53506 - 53509.5] ( Article 4.5 added by Stats. 1993, Ch. 841, Sec. 1. )

    Verify source ↗

    This section gives specified local public entities authority to issue bonds or refunding bonds secured by ad valorem taxes, subject to constitutional, charter, or principal-act requirements.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 4.5. General Obligation Bonds [53506 - 53509.5] ( Article 4.5 added by Stats. 1993, Ch. 841, Sec. 1. ) ## 53506. (a) This article is full authority for the issuance of bonds or refunding bonds by any city, county, city and county, school district, community college district, or special district, secured by the levy of ad valorem taxes, authorized in accordance with the Constitution and, in the case of a chartered city, county, or city and county, with the charter thereof, or in the case of a special district, with the district’s principal act. (b) This article is intended to provide a complete additional and alternative method for doing the things authorized by this article. The powers conferred by this article are supplemental and additional to the powers conferred by any other laws, and the limitations imposed by this article do not affect the powers conferred by any other law. (Added by Stats. 1993, Ch. 841, Sec. 1. Effective January 1, 1994.)
  61. 53506.5.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 4.5. General Obligation Bonds [53506 - 53509.5] ( Article 4.5 added by Stats. 1993, Ch. 841, Sec. 1. )

    Verify source ↗

    This article should be read broadly to carry out its purposes, and it controls if it conflicts with another law.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 4.5. General Obligation Bonds [53506 - 53509.5] ( Article 4.5 added by Stats. 1993, Ch. 841, Sec. 1. ) ## 53506.5. This article shall be liberally construed to promote its objectives. If inconsistent with any other law, this article shall be controlling. (Added by Stats. 1993, Ch. 841, Sec. 1. Effective January 1, 1994.)
  62. 53507.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 4.5. General Obligation Bonds [53506 - 53509.5] ( Article 4.5 added by Stats. 1993, Ch. 841, Sec. 1. )

    Verify source ↗

    This section defines key terms used in the article on general obligation bonds.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 4.5. General Obligation Bonds [53506 - 53509.5] ( Article 4.5 added by Stats. 1993, Ch. 841, Sec. 1. ) ## 53507. As used in this article, the following terms shall have the meanings assigned to them in this section. (a) “Bonds” means bonds, notes, warrants, or other evidence of indebtedness payable, both principal and interest, from the proceeds of ad valorem taxes that may be levied without limitation as to rate or amount upon property subject to taxation by the legislative body. (b) “Issuer” means a city, county, city and county, school district, community college district, or special district, secured by the levy of ad valorem taxes, authorized to issue bonds pursuant to this article. (c) “Legislative body” means the governing body of the issuer. (Added by Stats. 1993, Ch. 841, Sec. 1. Effective January 1, 1994.)
  63. 53507.5.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 4.5. General Obligation Bonds [53506 - 53509.5] ( Article 4.5 added by Stats. 1993, Ch. 841, Sec. 1. )

    Verify source ↗

    A legislative body may authorize bond issuance by resolution, and the resolution must say the bonds are being issued under this article.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 4.5. General Obligation Bonds [53506 - 53509.5] ( Article 4.5 added by Stats. 1993, Ch. 841, Sec. 1. ) ## 53507.5. (a) The legislative body may, by resolution, provide for the issuance of bonds pursuant to this article. (b) The resolution shall state that the bonds are being issued pursuant to this article. (Added by Stats. 1993, Ch. 841, Sec. 1. Effective January 1, 1994.)
  64. 53508.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 4.5. General Obligation Bonds [53506 - 53509.5] ( Article 4.5 added by Stats. 1993, Ch. 841, Sec. 1. )

    Verify source ↗

    A bond authorizing resolution may set many bond terms, but the annual interest rate cannot exceed the maximum allowed by Section 53531 or 53532, and maturity cannot be more than 40 years from the bond’s date.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 4.5. General Obligation Bonds [53506 - 53509.5] ( Article 4.5 added by Stats. 1993, Ch. 841, Sec. 1. ) ## 53508. The resolution authorizing any bonds or any issue of bonds may provide for any of the following: (a) The form of the bonds to be issued as serial bonds, or sinking fund bonds, with serial or term maturities, or any combination thereof. (b) The number of series in which the bonds are to be issued. (c) The form of the bonds as coupon, registered, or book entry. (d) The interest on the bonds, either fixed or variable, and the interest rate or rates, payable at the times and in the manner specified therein, and whether all or part of any series of the bonds shall be issued as zero coupon or capital appreciation bonds; provided, however, that under no conditions may the annual interest rate, whether fixed or variable, exceed the maximum rate permitted by Section 53531 or 53532. (e) The time, medium, and place or places of payment. (f) The time or times of maturity of the bonds, not exceeding 40 years from their respective dates. (g) The date or dates to be borne by the bonds of each series. (h) The denomination of the bonds. (i) The registration and conversion privileges of the bonds. (j) The manner in which the bonds are to be executed. (k) The terms of redemption, with or without premium. (l) Other terms and conditions of the bonds and of their execution, issuance, and sale deemed necessary and appropriate by the legislative body. (Added by Stats. 1993, Ch. 841, Sec. 1. Effective January 1, 1994.)
  65. 53508.3.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 4.5. General Obligation Bonds [53506 - 53509.5] ( Article 4.5 added by Stats. 1993, Ch. 841, Sec. 1. )

    Verify source ↗

    A bond cannot be required to be tendered for purchase or redemption before its fixed maturity date unless it says so. Protected bonds may also set terms for the issuer to sell or transfer its right to require tender.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 4.5. General Obligation Bonds [53506 - 53509.5] ( Article 4.5 added by Stats. 1993, Ch. 841, Sec. 1. ) ## 53508.3. (a) No bond shall be subject to mandatory tender for purchase or redemption prior to its fixed maturity date unless it contains a recital to that effect. (b) Any bond protected by its terms or by the terms of this section from mandatory tender for purchase or redemption prior to its fixed maturity date or for a specified period of time after issuance, may specify terms upon which the issuer may sell or transfer its right to require the bond to be tendered for purchase or redemption prior to its fixed maturity date. (Added by Stats. 1993, Ch. 841, Sec. 1. Effective January 1, 1994.)
  66. 53508.5.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 4.5. General Obligation Bonds [53506 - 53509.5] ( Article 4.5 added by Stats. 1993, Ch. 841, Sec. 1. )

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    School districts and community college districts issuing certain interest-compounding bonds must follow specified Education Code requirements, unless Section 53508.6 applies.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 4.5. General Obligation Bonds [53506 - 53509.5] ( Article 4.5 added by Stats. 1993, Ch. 841, Sec. 1. ) ## 53508.5. Notwithstanding any other law and except as provided in Section 53508.6, a school district or community college district that intends to issue bonds that allow for the compounding of interest, including, but not limited to, capital appreciation bonds, pursuant to this article shall comply with the requirements of Sections 15143, 15144, 15144.1, and 15144.2, and subdivisions (b) and (c) of Section 15146, of the Education Code. (Added by Stats. 2013, Ch. 477, Sec. 6. (AB 182) Effective January 1, 2014.)
  67. 53508.6.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 4.5. General Obligation Bonds [53506 - 53509.5] ( Article 4.5 added by Stats. 1993, Ch. 841, Sec. 1. )

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    A school district or community college district may issue certain non-compounding bonds with maturities over 30 years and up to 40 years if it meets specified Education Code requirements and makes the required useful-life finding.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 4.5. General Obligation Bonds [53506 - 53509.5] ( Article 4.5 added by Stats. 1993, Ch. 841, Sec. 1. ) ## 53508.6. Notwithstanding any other law, a school district or community college district may, pursuant to this article, issue bonds that do not allow for the compounding of interest and that have a maturity greater than 30 years, but not greater than 40 years, if the school district or community college district does both of the following: (a) Complies with the requirements of subdivisions (b) and (c) of Section 15146 of the Education Code. (b) Makes a finding that the useful life of the facility financed with the bonds that do not allow for the compounding of interest and that have a maturity greater than 30 years, but not greater than 40 years, equals or exceeds the maturity date of those bonds. (Added by Stats. 2013, Ch. 477, Sec. 7. (AB 182) Effective January 1, 2014.)
  68. 53508.7.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 4.5. General Obligation Bonds [53506 - 53509.5] ( Article 4.5 added by Stats. 1993, Ch. 841, Sec. 1. )

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    The legislative body may set the bond sale price, including at, above, or below par, and bonds may be sold at public or private sale.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 4.5. General Obligation Bonds [53506 - 53509.5] ( Article 4.5 added by Stats. 1993, Ch. 841, Sec. 1. ) ## 53508.7. (a) The bonds shall be sold at a public or private sale and at a price at, above, or below par, as the legislative body determines. (b) Any bonds sold at a discount below the par value of the bonds shall be sold in compliance with the provisions of Section 53532. (c) The private sale of bonds is limited to the sale of school districts’ and community college districts’ bonds pursuant to Sections 15140 or 15146 of the Education Code. (Amended by Stats. 1999, Ch. 667, Sec. 10. Effective January 1, 2000.)
  69. 53508.9.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 4.5. General Obligation Bonds [53506 - 53509.5] ( Article 4.5 added by Stats. 1993, Ch. 841, Sec. 1. )

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    A local agency may sell bonds in a negotiated sale at, above, or below par value, but only if its legislative body first adopts a public-meeting resolution with the required disclosures and approvals.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 4.5. General Obligation Bonds [53506 - 53509.5] ( Article 4.5 added by Stats. 1993, Ch. 841, Sec. 1. ) ## 53508.9. (a) Notwithstanding Section 53508.7, a local agency may sell bonds at a negotiated sale for a price at, above, or below par value, as authorized by the legislative body, without further approval, if the legislative body adopts a resolution before the negotiated sale, as an agenda item at a public meeting, that includes all of the following: (1) Express approval of the negotiated method of sale. (2) Statement of the reasons for selecting the negotiated method of sale. (3) Disclosure of the identity of the bond counsel. (4) Disclosure of the identity of the bond underwriter and the financial adviser, if used for the negotiated bond sale. If a bond underwriter or financial adviser has not been selected at the time the legislative body adopts the resolution, the legislative body shall disclose the identity at the public meeting first occurring after the bond underwriter or financial adviser has been selected. (5) Estimate of the costs associated with the bond issuance. (b) For purposes of this section, the following definitions shall apply: (1) “Legislative body” means the governing body of a local agency. (2) “Local agency” means a city, county, city and county, and special district. “Special district” means an agency of the state formed for the performance of governmental or proprietary functions within limited geographic boundaries, and shall not include a school district or community college district. (Added by Stats. 2009, Ch. 529, Sec. 2. (AB 1388) Effective January 1, 2010.)
  70. 53509.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 4.5. General Obligation Bonds [53506 - 53509.5] ( Article 4.5 added by Stats. 1993, Ch. 841, Sec. 1. )

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    Bonds issued under this article may be refunded, but refunding bonds cannot be issued if the refunding transaction costs more than the bonds being refunded.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 4.5. General Obligation Bonds [53506 - 53509.5] ( Article 4.5 added by Stats. 1993, Ch. 841, Sec. 1. ) ## 53509. (a) Any bond issued under the authority of this article may be refunded pursuant to this or any other applicable law. Any bond may be refunded pursuant to this article regardless of whether the bond or the legislation under which its issuance was authorized explicitly provides that the bond may be refunded. (b) Refunding bonds shall not be issued if the total net interest cost to maturity on the refunding bonds plus the principal amount of the refunding bonds exceeds the total net interest cost to maturity on the bonds to be refunded plus the principal amount of the bonds to be refunded. Subject to that limitation, the principal amount of the refunding bonds may be more than, less than, or the same as the principal amount of the bonds to be refunded. (Added by Stats. 1993, Ch. 841, Sec. 1. Effective January 1, 1994.)
  71. 53509.3.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 4.5. General Obligation Bonds [53506 - 53509.5] ( Article 4.5 added by Stats. 1993, Ch. 841, Sec. 1. )

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    This section says the article does not restrict the legislative body’s authority to enter contracts related to bond issuance, so long as the contracts are ones Section 5922 permits.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 4.5. General Obligation Bonds [53506 - 53509.5] ( Article 4.5 added by Stats. 1993, Ch. 841, Sec. 1. ) ## 53509.3. Nothing in this article shall limit the authority of the legislative body to enter into any contract in connection with the issuance of the bonds which it is permitted by Section 5922 to enter into. (Added by Stats. 1993, Ch. 841, Sec. 1. Effective January 1, 1994.)
  72. 53509.5.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 4.5. General Obligation Bonds [53506 - 53509.5] ( Article 4.5 added by Stats. 1993, Ch. 841, Sec. 1. )

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    After selling bonds under this article, the legislative body must present actual cost information at its next scheduled public meeting and submit an itemized summary of bond sale costs to the California Debt and Investment Advisory Commission.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 4.5. General Obligation Bonds [53506 - 53509.5] ( Article 4.5 added by Stats. 1993, Ch. 841, Sec. 1. ) ## 53509.5. After the sale of bonds issued under the authority of this article, the legislative body shall do both of the following: (a) Present actual cost information for the sale at its next scheduled public meeting. (b) Submit an itemized summary of the costs of the bond sale to the California Debt and Investment Advisory Commission. (Added by Stats. 2009, Ch. 529, Sec. 3. (AB 1388) Effective January 1, 2010.)
  73. 53510.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 5. Validating Proceedings [53510 - 53511] ( Article 5 added by Stats. 1963, Ch. 2118. )

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    This section defines “local agency” for this article.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 5. Validating Proceedings [53510 - 53511] ( Article 5 added by Stats. 1963, Ch. 2118. ) ## 53510. As used in this article “local agency” means county, city, city and county, public district or any public or municipal corporation, public agency or public authority. (Added by Stats. 1963, Ch. 2118.)
  74. 53511.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 5. Validating Proceedings [53510 - 53511] ( Article 5 added by Stats. 1963, Ch. 2118. )

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    A local agency may file an action to test the validity of its own bonds and related obligations, and a qualifying local agency may file one action for certain other local agencies’ obligations.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 5. Validating Proceedings [53510 - 53511] ( Article 5 added by Stats. 1963, Ch. 2118. ) ## 53511. (a) A local agency may bring an action to determine the validity of its bonds, warrants, contracts, obligations or evidences of indebtedness pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure. (b) A local agency that issues bonds, notes, or other obligations the proceeds of which are to be used to purchase, or to make loans evidenced or secured by, the bonds, warrants, contracts, obligations, or evidences of indebtedness of other local agencies, may bring a single action in the superior court of the county in which that local agency is located to determine the validity of the bonds, warrants, contracts, obligations, or evidences of indebtedness of the other local agencies, pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure. (Amended by Stats. 2004, Ch. 470, Sec. 3. Effective January 1, 2005.)
  75. 53515.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 5.5. Lien for General Obligation Bonds [53515- 53515.] ( Article 5.5 added by Stats. 2015, Ch. 78, Sec. 2. )

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    General obligation bonds issued by or for a local agency are automatically secured by a statutory lien on tax revenues.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 5.5. Lien for General Obligation Bonds [53515- 53515.] ( Article 5.5 added by Stats. 2015, Ch. 78, Sec. 2. ) ## 53515. (a) General obligation bonds issued and sold by or on behalf of a local agency shall be secured by a statutory lien on all revenues received pursuant to the levy and collection of the tax. The lien shall automatically arise without the need for any action or authorization by the local agency or its governing body. The lien shall be valid and binding from the time the bonds are executed and delivered. The revenues received pursuant to the levy and collection of the tax shall be immediately subject to the lien, and the lien shall immediately attach to the revenues and be effective, binding, and enforceable against the local agency, its successors, transferees, and creditors, and all others asserting rights therein, irrespective of whether those parties have notice of the lien and without the need for any physical delivery, recordation, filing, or further act. (b) This section is not intended to supplement or limit a local agency’s power to issue general obligation bonds conferred by any other law. (c) For purposes of this section, both of the following definitions apply: (1) “General obligation bonds” means bonds, warrants, notes, or other evidence of indebtedness of a local agency payable, both principal and interest, from the proceeds of ad valorem taxes that may be levied pursuant to paragraphs (2) and (3) of subdivision (b) of Section 1 of Article XIII A of the California Constitution. (2) “Local agency” means any city, county, city and county, school district, community college district, authority, or special district. (Amended by Stats. 2016, Ch. 86, Sec. 164. (SB 1171) Effective January 1, 2017.)
  76. 53520.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 6. Notice by Mail [53520 - 53523] ( Article 6 added by Stats. 1963, Ch. 1065. )

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    This section defines “local agency” for this article.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 6. Notice by Mail [53520 - 53523] ( Article 6 added by Stats. 1963, Ch. 1065. ) ## 53520. As used in this article “local agency” means county, city, city and county, public district or any public or municipal corporation, public agency or public authority. (Added by Stats. 1963, Ch. 1065.)
  77. 53521.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 6. Notice by Mail [53520 - 53523] ( Article 6 added by Stats. 1963, Ch. 1065. )

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    A local agency may send additional hearing notice by mail, and if it does, the notice must be mailed at least 15 days before the hearing.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 6. Notice by Mail [53520 - 53523] ( Article 6 added by Stats. 1963, Ch. 1065. ) ## 53521. Whenever by any law of this state a local agency is required to give notice by posting or publication of a hearing on the formation of a local agency or an improvement district, zone, special assessment district or special taxing district within a local agency, or on the consolidation or dissolution of such local agency or the annexation or detachment of territory to or from any of the foregoing, or on the issuance of bonds or other evidences of indebtedness by or for any of the foregoing, the local agency may, in its discretion, cause additional notice of such hearing to be given by mail as follows: (a) By mailing such notice, postage prepaid, to all persons owning real property which will be within such local agency, improvement district, zone, special assessment district or other special taxing district when the same is formed, consolidated or dissolved, or within territory proposed to be annexed or detached therefrom or which will or may be taxed or assessed for the payment of bonds or other evidences of indebtedness issued by or for any thereof, whose names and addresses appear on the last equalized county assessment roll (including the roll of state-assessed property) or are known to the clerk or secretary of the local agency. (b) Such notice shall be mailed at least fifteen (15) days prior to the date fixed for the hearing. (Amended by Stats. 1965, Ch. 1918.)
  78. 53522.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 6. Notice by Mail [53520 - 53523] ( Article 6 added by Stats. 1963, Ch. 1065. )

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    The clerk or secretary of a local agency must file an affidavit with the local agency’s legislative body after mailing the notice, stating when and how it was mailed.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 6. Notice by Mail [53520 - 53523] ( Article 6 added by Stats. 1963, Ch. 1065. ) ## 53522. The clerk or secretary of the local agency shall, upon the completion of the mailing of the notice, file with the legislative body of the local agency an affidavit setting forth the time and manner of such mailing. (Added by Stats. 1963, Ch. 1065.)
  79. 53523.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 6. Notice by Mail [53520 - 53523] ( Article 6 added by Stats. 1963, Ch. 1065. )

    Verify source ↗

    If a mailed notice is not received by the addressee, that does not invalidate the proceedings or stop the local agency’s legislative body from continuing with the noticed hearing.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 6. Notice by Mail [53520 - 53523] ( Article 6 added by Stats. 1963, Ch. 1065. ) ## 53523. The failure of any addressee of any mailed notice to receive the same shall not affect in any way whatsoever the validity of the proceedings including such hearing nor prevent the legislative body of the local agency from proceeding with any hearing so noticed. (Added by Stats. 1963, Ch. 1065.)
  80. 53530.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 7. Interest Rates on Bonds [53530 - 53534] ( Article 7 added by Stats. 1969, Ch. 600. )

    Verify source ↗

    This section defines “local agency” and “bonds” for this article.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 7. Interest Rates on Bonds [53530 - 53534] ( Article 7 added by Stats. 1969, Ch. 600. ) ## 53530. As used in this article: (a) “Local agency” means county, city, city and county, public district, public entity or authority, or other public or municipal corporation, including redevelopment agencies, housing authorities, and industrial development authorities. (b) “Bonds” means bonds, warrants, notes or other evidences of indebtedness of a local agency or zone or improvement district thereof. (Amended by Stats. 1981, Ch. 1098, Sec. 2.)
  81. 53531.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 7. Interest Rates on Bonds [53530 - 53534] ( Article 7 added by Stats. 1969, Ch. 600. )

    Verify source ↗

    Bonds may bear interest at coupon rates set by the legislative body, but the rate cannot exceed 12% per year unless a higher rate is allowed by law.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 7. Interest Rates on Bonds [53530 - 53534] ( Article 7 added by Stats. 1969, Ch. 600. ) ## 53531. Any provision of law specifying the maximum interest rate on bonds to the contrary notwithstanding, bonds may bear interest at a coupon rate or rates as determined by the legislative body in its discretion but not to exceed 12 percent per year payable as permitted by law, unless some higher rate is permitted by law. (Amended (as amended by Stats. 1985, Ch. 579, Sec. 2) by Stats. 1987, Ch. 943, Sec. 4.)
  82. 53531.1.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 7. Interest Rates on Bonds [53530 - 53534] ( Article 7 added by Stats. 1969, Ch. 600. )

    Verify source ↗

    Local agencies may issue bonds with interest set under Section 53531, and this authority is broader than other bond laws unless another law specifically says otherwise.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 7. Interest Rates on Bonds [53530 - 53534] ( Article 7 added by Stats. 1969, Ch. 600. ) ## 53531.1. (a) The Legislature hereby finds and declares that, in enacting and amending Sections 53530 and 53531, the intent has been, and continues to be, to provide general authority to local agencies to issue bonds bearing interest at the coupon rate specified in Section 53531, as amended from time to time. This general authority is intended to be in addition to, and not limited by, specific provisions authorizing bonds of particular local agencies. Due to the general application of Section 53531, it has been unnecessary to amend the numerous statutes which contain their own specific maximum interest rates. This section contains the intent of the Legislature in previously enacting and amending Sections 53530 and 53531 and does not affect Section 53532 or 53533. This section does not constitute a change in, but is declaratory of, the existing law in effect since 1969. (b) All bonds of any local agency issued prior to the effective date of this section, and bearing interest at coupon rates within the maximum rate specified in Section 53531, as in effect at the time of issuance, are legal, valid, and binding obligations of the local agency. (c) The authority provided to all local agencies in Section 53531 to issue bonds bearing interest at a coupon rate in accordance with that section is in addition to, and not limited by, any power or limitation made applicable to local agencies by any other law enacted before or on or after the effective date of this section, unless the other law specifically provides otherwise. (Added by Stats. 1984, Ch. 310, Sec. 1. Effective July 6, 1984.)
  83. 53532.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 7. Interest Rates on Bonds [53530 - 53534] ( Article 7 added by Stats. 1969, Ch. 600. )

    Verify source ↗

    This section says Section 53531 applies only to coupon rates, and it does not limit a local agency’s power to sell bonds below par if allowed by law.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 7. Interest Rates on Bonds [53530 - 53534] ( Article 7 added by Stats. 1969, Ch. 600. ) ## 53532. The provisions of Section 53531 shall apply only to coupon rates and shall not affect the power of a local agency to sell bonds at a discount below par if permitted by law. Any provision of law permitting bonds to be sold at a discount but specifying a maximum interest yield on bonds sold at a discount to the contrary notwithstanding, the bonds may be sold at a price yielding to the purchaser an effective interest rate of not to exceed 12 percent per year, payable as permitted by law, according to standard tables of bond values. (Amended (as amended by Stats. 1985, Ch. 579, Sec. 4) by Stats. 1987, Ch. 943, Sec. 6.)
  84. 53533.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 7. Interest Rates on Bonds [53530 - 53534] ( Article 7 added by Stats. 1969, Ch. 600. )

    Verify source ↗

    Cities, counties, and city and counties may charge a higher interest rate on certain federal-related debt if the rate matches the rate set by the federal government or its agency or instrumentality.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 7. Interest Rates on Bonds [53530 - 53534] ( Article 7 added by Stats. 1969, Ch. 600. ) ## 53533. Notwithstanding Section 53531 or any other provision of law establishing limitations on the rate of interest of any indebtedness or obligation of a city, county, or city and county the rate of interest on any indebtedness or obligation thereof which is payable to the federal government or any agency or instrumentality thereof or any indebtedness or obligation guaranteed by the federal government or any instrumentality thereof may be at a rate higher than the limitations established in any other law if such rate is the rate established by the federal government or any instrumentality thereof. Any such indebtedness or obligation shall be in such form and denomination, have such maturity, and be subject to such conditions as may be prescribed by the federal government or agency or instrumentality thereof. (Added by Stats. 1979, Ch. 29.)
  85. 53534.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 7. Interest Rates on Bonds [53530 - 53534] ( Article 7 added by Stats. 1969, Ch. 600. )

    Verify source ↗

    Cities, counties, and city and counties may enter into interest rate swap or forward payment conversion contracts, but only if the bond/securities rating and written evidence requirements are met.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 7. Interest Rates on Bonds [53530 - 53534] ( Article 7 added by Stats. 1969, Ch. 600. ) ## 53534. Any provision of law to the contrary notwithstanding, a city, county, or city and county may enter into contracts commonly known as “interest rate swap agreements” or “forward payment conversion agreements” with any person providing for the exchange of payments between the person and the city, county, or city and county, including, without limitation, contracts providing for the exchange of fixed interest payments for floating payments or floating interest payments for fixed payments, or a combination thereof. The contracts may be made upon the terms and conditions established by the legislative body of the city, county, or city and county. The authority conferred by this section includes the authority to enter into any and all contracts incident to the exercise of the authority conferred by this section including, without limitation, contracts to obtain credit enhancement devices and contracts for the performance of professional services. However, these contracts may be made only if all securities or bonds included in the contracts are rated in one of the three highest rating categories by two nationally recognized rating agencies selected by the legislative body of the city, county, or city and county, and if there has been receipt, from any rating agency rating the bonds, of written evidence that the contract will not adversely affect the rating. (Amended by Stats. 1993, Ch. 1195, Sec. 13. Effective January 1, 1994.)
  86. 53540.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 8. Issuance, Sale and Cancellation of Bonds [53540 - 53542] ( Article 8 added by Stats. 1969, Ch. 600. )

    Verify source ↗

    This section defines “local agency,” “legislative body,” and “bonds” for this article.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 8. Issuance, Sale and Cancellation of Bonds [53540 - 53542] ( Article 8 added by Stats. 1969, Ch. 600. ) ## 53540. As used in this article: (a) “Local agency” means county, city, city and county, public district, public entity or authority or other public or municipal corporation. (b) “Legislative body” means the legislative body, as defined in Section 53000, of the local agency. (c) The term “bonds” includes bonds, warrants, notes, or other evidences of indebtedness of a local agency, zone or improvement district except those which under Section 18 of Article XI or other provision of the Constitution of the State of California are required to be authorized at an election. (Added by Stats. 1969, Ch. 600.)
  87. 53541.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 8. Issuance, Sale and Cancellation of Bonds [53540 - 53542] ( Article 8 added by Stats. 1969, Ch. 600. )

    Verify source ↗

    The legislative body may issue certain local agency bonds without a voter election if specified conditions are met, and it must cancel matching unissued bonds when it does so.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 8. Issuance, Sale and Cancellation of Bonds [53540 - 53542] ( Article 8 added by Stats. 1969, Ch. 600. ) ## 53541. Any provision of law requiring an election to the contrary notwithstanding, the legislative body without a vote of the electors may issue bonds of the local agency, zone or improvement district if all the following occur: (a) The principal amount of such bonds does not exceed the then unissued balance of the principal amount of bonds of the same type authorized at an election heretofore held in the local agency, or in such zone or improvement district. (b) The bonds are issued for the same purpose as that for which the unissued bonds were authorized. (c) The bonds are issued in accordance with the laws governing the issuance of bonds of the local agency, except for the requirement of a bond election. Bonds issued pursuant to this section may bear interest at a rate or rates not to exceed 12 percent per year. When bonds are issued pursuant to this section, unissued bonds as referred to in subdivisions (a) and (b) in a principal amount at least equal to the principal amount of bonds issued pursuant to this section, shall be canceled by order of the legislative body and shall not be issued. (Amended (as amended by Stats. 1985, Ch. 579, Sec. 6) by Stats. 1987, Ch. 943, Sec. 8.)
  88. 53542.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 8. Issuance, Sale and Cancellation of Bonds [53540 - 53542] ( Article 8 added by Stats. 1969, Ch. 600. )

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    The committee must designate areas of chronic economic distress using listed criteria, and the State Treasurer or designee must seek federal approval and certify the designation.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 8. Issuance, Sale and Cancellation of Bonds [53540 - 53542] ( Article 8 added by Stats. 1969, Ch. 600. ) ## 53542. (a) The Housing Bond Credit Committee shall, after consultation with appropriate agencies including, but not limited to, the Department of Business and Economic Development, the Department of Housing and Community Development, the Governor’s Office of Planning and Research, the California Housing Finance Agency, the Senate Office of Research, the Assembly Office of Research, and the Department of Finance, designate areas of chronic economic distress in conformity with paragraph (3) of subdivision (k) of Section 103 (A) of the Internal Revenue Code. Criteria to be used in designating areas of chronic economic distress include: (1) The condition of the housing stock, including the age of the housing and the number of abandoned and substandard residential units. (2) The need of area residents for owner-financing under this section, as indicated by low per capita income, a high percentage of families in poverty, a high number of welfare recipients, and high unemployment rates. (3) The potential for use of owner-financing under this section to improve housing conditions in the area. (4) The existence of a housing assistance plan which provides a displacement program and a public improvements and services program. (b) The committee may evaluate and include other criteria it considers appropriate in determining areas of chronic economic distress, including, but not limited to: (1) Low vacancy rates in residential units. (2) Low volume of mortgage loan activity. (3) The percentage of households paying more than 35 percent of income for rent. (4) The existence of adequate transportation facilities between such designated areas and areas of employment concentration. (c) State agencies and local agencies, including, but not limited to, redevelopment agencies, housing authorities or other local entities authorized by the laws of this state to issue qualified mortgage bonds, may recommend on or before February 15 of each calendar year, the designation of an area of chronic economic distress to the committee. The committee shall review all such proposals in making designations in accordance with paragraph (3) of subdivision (K) of Section 103 (A) of the Internal Revenue Code or any appropriate regulations. The State Treasurer or his or her designee, shall be responsible for seeking approval of that designation by the Secretary of the Treasury and the Secretary of Housing and Urban Development of the United States and providing certification of these designations and is hereby designated as the official to make certifications for purposes of federal law. (Added by Stats. 1982, Ch. 153, Sec. 1. Effective April 9, 1982.)
  89. 53550.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 9. Refunding of Bonded Indebtedness of Local Agencies [53550 - 53569] ( Article 9 added by Stats. 1971, Ch. 1710. )

    Verify source ↗

    This section defines key terms used for local agency refunding bonds.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 9. Refunding of Bonded Indebtedness of Local Agencies [53550 - 53569] ( Article 9 added by Stats. 1971, Ch. 1710. ) ## 53550. The following terms shall have the following meanings: (a) “Local agency” means public district, public corporation, authority, agency, board, commission, county, city and county, city, school district, or other public entity. (b) “Bonds” means bonds, warrants, notes or other evidence of indebtedness of a local agency or any improvement district or zone thereof payable, both principal and interest, from the proceeds of ad valorem taxes or ad valorem assessments which may be levied without limitation as to rate or amount upon property in the local agency or any improvement district or zone thereof subject to taxation or assessment, or any outstanding indebtedness payable to the State Board of Equalization as repayment of the local agency’s share of refunds made as a result of the California Court of Appeal decision in Aerospace Corporation v. State Board of Equalization, 218 Cal. App. 3d 1300, which indebtedness is hereby imposed on all the local agencies that are required to participate in the refund obligations arising from this decision and that are declared and determined to have been imposed by law. (c) “Legislative body” means the board of directors or other governing body of the local agency, unless the context otherwise requires. (d) “Principal act” means the law under which bonds to be refunded were issued. (e) “Costs of issuing the refunding bonds” means those of the following costs and expenses designated by the legislative body in the resolution providing for the issuance of the bonds: (1) All expenses incident to the calling, retiring or paying of the bonds to be refunded and to the issuance of refunding bonds, including the charges of any escrow agent or trustee in connection with the issuance of the refunding bonds or in connection with the redemption or retirement of the bonds to be refunded. (2) Either of the following: (A) Interest upon the refunding bonds from the date of sale thereof to the date of payment of the bonds to be refunded out of the proceeds of the sale of the refunding bonds, or to the date upon which the bonds to be refunded will be paid pursuant to call or agreement with the holders of the bonds. (B) Interest upon the bonds to be refunded from the date of sale of the refunding bonds to the date of payment of the bonds to be refunded or to the date upon which the bonds to be refunded will be paid pursuant to call or agreement with the holders of the bonds. (3) Any premium necessary in the calling or retiring of the bonds to be refunded. (f) “Designated costs of issuing the refunding bonds” means whichever of the items specified in subdivision (e) that are designated by the legislative body in the resolution providing for the issuance of refunding bonds. (g) “Federal securities” means those securities described in Sections 1360 and 1360.1 of the Financial Code. (Amended by Stats. 1992, Ch. 802, Sec. 2. Effective September 22, 1992.)
  90. 53551.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 9. Refunding of Bonded Indebtedness of Local Agencies [53550 - 53569] ( Article 9 added by Stats. 1971, Ch. 1710. )

    Verify source ↗

    A local agency’s legislative body may issue refunding bonds, but it must first determine the bond amount by resolution entered in its minutes.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 9. Refunding of Bonded Indebtedness of Local Agencies [53550 - 53569] ( Article 9 added by Stats. 1971, Ch. 1710. ) ## 53551. The legislative body of any local agency may issue negotiable coupon bonds, to be denominated refunding bonds, for the purpose of refunding any of the indebtedness of the local agency evidenced by bonds, whether due or not due, or which has or may hereafter become payable at the option of such local agency or by consent of the bondholders, or by any lawful means, whether such indebtedness, evidenced by bonds be now existing or may hereafter be created, and there shall not be moneys in a special fund in the treasury of such local agency irrevocably pledged to the payment or redemption of all such bonds; but the amount of such refunding bonds to be issued under the provisions of this article shall first be determined by such legislative body by resolution entered upon the minutes of such legislative body. (Added by Stats. 1971, Ch. 1710.)
  91. 53552.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 9. Refunding of Bonded Indebtedness of Local Agencies [53550 - 53569] ( Article 9 added by Stats. 1971, Ch. 1710. )

    Verify source ↗

    A local agency’s legislative body may issue refunding bonds without a vote if it finds the action is needed for prudent fiscal management.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 9. Refunding of Bonded Indebtedness of Local Agencies [53550 - 53569] ( Article 9 added by Stats. 1971, Ch. 1710. ) ## 53552. Whenever the legislative body of a local agency determines that prudent management of the fiscal affairs of the local agency requires that it issue refunding bonds under the provisions of this article, it may do so without submitting the question of the issuance of the refunding bonds to a vote of the qualified electors of the local agency, unless the legislative body determines to submit the question to a vote, in which case the election shall be held in accordance with the principal act pursuant to which the bonds to be refunded were issued. Refunding bonds shall not be issued if the total net interest cost to maturity on the refunding bonds plus the principal amount of the refunding bonds exceeds the total net interest cost to maturity on the bonds to be refunded plus the principal amount of the bonds to be refunded, provided that this limitation shall not apply to bonds issued to refund indebtedness imposed by subdivision (b) of Section 53550 as a result of the court decision in Aerospace Corporation v. State Board of Equalization, 218 Cal. App. 3d 1300. Subject to this limitation, the principal amount of the refunding bonds may be more than, less than, or the same as the principal amount of the bonds to be refunded. (Amended by Stats. 1992, Ch. 802, Sec. 3. Effective September 22, 1992.)
  92. 53553.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 9. Refunding of Bonded Indebtedness of Local Agencies [53550 - 53569] ( Article 9 added by Stats. 1971, Ch. 1710. )

    Verify source ↗

    If a legislative body decides to issue refunding bonds, it must adopt a resolution that includes specified bond terms and costs.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 9. Refunding of Bonded Indebtedness of Local Agencies [53550 - 53569] ( Article 9 added by Stats. 1971, Ch. 1710. ) ## 53553. When the legislative body determines to issue refunding bonds pursuant to this article, it shall adopt a resolution providing for the issuance of such bonds. Such resolution shall: (a) Describe the bonds being refunded; and the date on which it is anticipated that the exchange, purchase or call and redemption necessary to effect the refunding shall occur; (b) Fix the date of such refunding bonds; (c) Designate the denomination or denominations thereof; (d) Fix the rate or rates of interest to be borne by such refunding bonds, which rate or rates shall not exceed 8 percent per annum, payable semiannually, except that interest for the first year from date of issuance may be payable at the end of said year; (e) Fix the maturity dates of such refunding bonds, which shall not exceed 40 years from the date of such refunding bonds, or the latest maturity date of the bonds being refunded, whichever occurs earlier; (f) Designate the place or places of payment of both principal and interest; (g) Prescribe the form of such refunding bonds; and (h) State the designated costs of issuing the refunding bonds. (Amended by Stats. 1975, Ch. 130.)
  93. 53554.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 9. Refunding of Bonded Indebtedness of Local Agencies [53550 - 53569] ( Article 9 added by Stats. 1971, Ch. 1710. )

    Verify source ↗

    Refunding bonds must be negotiable, identify the issuing local agency, state that they are issued under this article, be executed in the local agency’s name, and be signed and attested by the required local officers.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 9. Refunding of Bonded Indebtedness of Local Agencies [53550 - 53569] ( Article 9 added by Stats. 1971, Ch. 1710. ) ## 53554. Such refunding bonds shall: (a) Be negotiable in form; (b) Recite that they are bonds of the local agency issuing the bonds; (c) Recite that they are issued pursuant to the provisions of this article; (d) Be executed in the name of the local agency; and (e) Be signed by the president or chairman of the legislative body of the local agency, and executed, countersigned or attested by such officer or officers of the local agency as are required to execute, countersign or attest bonds issued pursuant to the principal act, as the case may be. The interest coupons shall be signed in the same manner as interest coupons attached to bonds issued by the local agency pursuant to the principal act. The provisions of the Uniform Facsimile Signatures of Public Officials Act (Chapter 6, (commencing with Section 5500), Division 6, Title 1) apply to refunding bonds issued pursuant to this article. (Added by Stats. 1971, Ch. 1710.)
  94. 53555.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 9. Refunding of Bonded Indebtedness of Local Agencies [53550 - 53569] ( Article 9 added by Stats. 1971, Ch. 1710. )

    Verify source ↗

    Local agencies may exchange or sell refunding bonds, but sale proceeds must go into a funding fund and be used only as this article allows.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 9. Refunding of Bonded Indebtedness of Local Agencies [53550 - 53569] ( Article 9 added by Stats. 1971, Ch. 1710. ) ## 53555. Refunding bonds issued pursuant to this article may be exchanged for the bonds to be refunded on such basis as the legislative body determines is for the benefit of the local agency but in no case on the basis that the principal amount of refunding bonds exceeds the principal amount of the bonds to be refunded plus the costs of issuing the refunding bonds. As an alternative to exchanging the refunding bonds for the bonds to be refunded, the legislative body may sell the refunding bonds at public or private sale for not less than their par value. The proceeds of any sale of refunding bonds for cash shall be placed in the treasury of the local agency to the credit of a fund to be established for the purpose of refunding the bonds to be refunded, which fund shall be designated the “funding fund,” and such proceeds shall be applied only as permitted by this article. (Amended by Stats. 1972, Ch. 531.)
  95. 53556.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 9. Refunding of Bonded Indebtedness of Local Agencies [53550 - 53569] ( Article 9 added by Stats. 1971, Ch. 1710. )

    Verify source ↗

    The designated costs of issuing refunding bonds may be paid by the purchaser or from other legally available sources, and certain local-agency-paid amounts must be added to net interest cost for a Section 53552 test.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 9. Refunding of Bonded Indebtedness of Local Agencies [53550 - 53569] ( Article 9 added by Stats. 1971, Ch. 1710. ) ## 53556. The designated costs of issuing the refunding bonds may be paid by the purchaser of the refunding bonds or may be paid from any other legally available source, including the general fund of the local agency, other available revenues of the local agency under the control of the legislative body, the proceeds of sale of the refunding bonds, the interest or other gain derived from the investment of any of the proceeds of sale of the refunding bonds, any other moneys in escrow or in trust or any combination thereof as the legislative body may determine; provided, however, that any amounts paid by the local agency other than from the proceeds of sale of the refunding bonds or from interest or other gains derived from the investment of such proceeds shall be added to the total net interest cost to maturity on the refunding bonds in determining whether the test of the second sentence of Section 53552 has been met. (Repealed and added by Stats. 1972, Ch. 531.)
  96. 53557.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 9. Refunding of Bonded Indebtedness of Local Agencies [53550 - 53569] ( Article 9 added by Stats. 1971, Ch. 1710. )

    Verify source ↗

    Refunding bond sale proceeds may be placed in escrow or trust and may be invested in federal securities, but they must be secured under the laws that apply to local agency funds.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 9. Refunding of Bonded Indebtedness of Local Agencies [53550 - 53569] ( Article 9 added by Stats. 1971, Ch. 1710. ) ## 53557. Any proceeds of sale of any refunding bonds may be deposited in escrow or trust with any bank or trust company within or without the state, or both within and without the state, and shall be secured in accordance with the laws applicable to funds of the local agency and may (along with any other moneys available for that purpose similarly deposited) be invested or reinvested in federal securities. (Added by Stats. 1972, Ch. 531.)
  97. 53558.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 9. Refunding of Bonded Indebtedness of Local Agencies [53550 - 53569] ( Article 9 added by Stats. 1971, Ch. 1710. )

    Verify source ↗

    Refunding bond proceeds and escrow or trust investments must be certified as sufficient to meet the section’s stated payment requirements.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 9. Refunding of Bonded Indebtedness of Local Agencies [53550 - 53569] ( Article 9 added by Stats. 1971, Ch. 1710. ) ## 53558. Such proceeds and investments in escrow or trust shall be in an amount at the time of issuance of such refunding bonds which is certified by a certified public accountant licensed to practice in this state to be sufficient to meet the requirements of subdivision (a) or paragraph (b) of this section. (a) Such proceeds and investments, together with any interest or other gain to be derived from any such investment, shall be in an amount at least sufficient to pay (i) the principal of and interest and redemption premiums, if any, on the refunded bonds as they become due or at designated dates prior to maturity (in connection with which the legislative body has exercised or has obligated itself to exercise a redemption privilege on behalf of the local agency) and (ii) the designated costs of issuance of the refunding bonds, or (b) Such proceeds and investments, together with any interest or other gain to be derived from any such investment, shall be in an amount at least sufficient to pay (i) the principal of and interest and redemption premiums, if any, on the refunding bonds prior to the maturity of the bonds to be refunded or prior to a designated date or dates before the maturity of the bonds to be refunded (in connection with which the legislative body has exercised or has obligated itself to exercise a redemption privilege on behalf of the local agency), (ii) the principal of and any redemption premiums due on such refunded bonds at maturity or at said designated date or dates and (iii) the designated costs of issuance of the refunding bonds. (Repealed and added by Stats. 1972, Ch. 531.)
  98. 53559.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 9. Refunding of Bonded Indebtedness of Local Agencies [53550 - 53569] ( Article 9 added by Stats. 1971, Ch. 1710. )

    Verify source ↗

    After refunding bonds are issued, the local agency’s legislative body must arrange principal and interest payments; it may also pledge facility revenues as extra security if the pledge matches the extent used for the bonds being refunded.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 9. Refunding of Bonded Indebtedness of Local Agencies [53550 - 53569] ( Article 9 added by Stats. 1971, Ch. 1710. ) ## 53559. Following the issuance of any refunding bonds pursuant to this article, the legislative body of the local agency shall provide for the payment of principal and interest thereon in the same manner and at the same times as it provides for payment of principal and interest on bonds issued pursuant to its principal act and which constitute general obligations of such local agency. The legislative body may provide in the resolution of issuance of such refunding bonds for the pledge of revenues of any revenue-producing facility of the local agency as additional security for the refunding bonds to the same extent that such revenues were pledged as additional security for the bonds to be refunded. (Added by renumbering Section 53557 by Stats. 1972, Ch. 531.)
  99. 53560.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 9. Refunding of Bonded Indebtedness of Local Agencies [53550 - 53569] ( Article 9 added by Stats. 1971, Ch. 1710. )

    Verify source ↗

    This section says how refunding bonds are treated for debt-limit and indebtedness calculations, depending on whether only the refunding bonds remain outstanding or both the refunding and refunded bonds remain outstanding.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 9. Refunding of Bonded Indebtedness of Local Agencies [53550 - 53569] ( Article 9 added by Stats. 1971, Ch. 1710. ) ## 53560. Upon the issuance, sale and delivery or exchange of refunding bonds pursuant to this article: (a) If only the refunding bonds remain outstanding, such refunding bonds shall constitute indebtedness of the local agency issuing such bonds and shall be included in any computation of general obligation indebtedness of such local agency for purposes of any debt limitation applicable to bonds of such local agency under the principal act or for any other lawful purpose; (b) If both the refunding bonds and the bonds to be refunded remain outstanding for any period of time following the date of the issuance, sale and delivery of the refunding bonds, then until the date on which the bonds to be refunded are no longer outstanding; (i) If the local agency has met the test of subdivision (a) of Section 53558 the refunding bonds shall constitute indebtedness of the local agency issuing such bonds and shall be included in any computation of general obligation indebtedness of such local agency for purposes of any debt limitation applicable to bonds of such local agency under the principal act or for any other lawful purpose, but the bonds to be refunded shall no longer be considered outstanding in any computation of the general obligation indebtedness of such local agency; (ii) If the local agency has met the test of subdivision (b) Section 53558 then such refunding bonds shall, until the date on which the refunding bonds are no longer outstanding, constitute a special obligation of the local agency issuing such bonds and shall not be included in any computation of general obligation indebtedness of such local agency for any purpose, and the bonds to be refunded shall be considered outstanding in any computation of the general obligation bonded indebtedness of such local agency; but from and after the date on which the refunded bonds are no longer outstanding the refunding bonds shall constitute indebtedness of the local agency issuing such bonds and shall be included in any computation of general obligation indebtedness. (Added by Stats. 1972, Ch. 531.)
  100. 53561.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 9. Refunding of Bonded Indebtedness of Local Agencies [53550 - 53569] ( Article 9 added by Stats. 1971, Ch. 1710. )

    Verify source ↗

    A local agency may issue refunding bonds and reinvest the proceeds for the article’s purposes, but the article must be read so that no single fiscal year uses tax revenue or other nonpermitted local funds to pay both the refunding bonds and the bonds being refunded.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 9. Refunding of Bonded Indebtedness of Local Agencies [53550 - 53569] ( Article 9 added by Stats. 1971, Ch. 1710. ) ## 53561. It is hereby declared that it is a public purpose for a local agency to issue refunding bonds for the purposes set forth in this article and to invest and reinvest the proceeds thereof, and any other funds legally available therefor, for the purposes set forth herein; provided, however, that it is the intent of this article, and this article shall be so construed, that in no single fiscal year shall a tax be levied or shall funds of a local agency other than those expressly permitted herein be used to pay the principal of and interest and redemption premium, if any, on both the refunding bonds and on the bonds to be refunded. (Added by Stats. 1972, Ch. 531.)
  101. 53562.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 9. Refunding of Bonded Indebtedness of Local Agencies [53550 - 53569] ( Article 9 added by Stats. 1971, Ch. 1710. )

    Verify source ↗

    This article’s powers are additional to other laws, and its limits do not reduce powers granted by other law.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 9. Refunding of Bonded Indebtedness of Local Agencies [53550 - 53569] ( Article 9 added by Stats. 1971, Ch. 1710. ) ## 53562. The powers conferred by this article are in addition and supplemental to, and not in substitution for, and the limitations imposed by this article shall not affect the powers conferred by, any other law. (Amended by Stats. 1973, Ch. 140.)
  102. 53569.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 9. Refunding of Bonded Indebtedness of Local Agencies [53550 - 53569] ( Article 9 added by Stats. 1971, Ch. 1710. )

    Verify source ↗

    Local agencies must publicly advertise refunding bonds and invite sealed bids before sale, unless the bond issue is under $500,000.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 9. Refunding of Bonded Indebtedness of Local Agencies [53550 - 53569] ( Article 9 added by Stats. 1971, Ch. 1710. ) ## 53569. Before selling any refunding bonds subject to the provisions of this article, any local agency shall advertise such bonds for sale at public sale and shall invite sealed bids therefor by publication of a notice once at least 10 days before the date of such public sale in a newspaper of general circulation circulated within the boundaries of each local agency to be aided by the public project to be financed by the issuance of such bonds; provided that, if an issue of bonds is less than five hundred thousand dollars ($500,000), a local agency is not required to advertise such bonds for public sale or to accept bids thereon pursuant to this section. If one or more satisfactory bids are received pursuant to such notice, such bonds shall be awarded to the highest responsible bidder. If no bids are received or if the local agency determines that the bids received are not satisfactory as to price or responsibility of the bidders, the local agency may reject all bids received, if any, and either readvertise or sell such bonds at private sale. (Amended by Stats. 1976, Ch. 247.)
  103. 53570.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 10. Refunding of Revenue Bonds of Local Agencies [53570 - 53572] ( Article 10 added by Stats. 1972, Ch. 531. )

    Verify source ↗

    This section defines “local agency” and “revenue bonds.”

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 10. Refunding of Revenue Bonds of Local Agencies [53570 - 53572] ( Article 10 added by Stats. 1972, Ch. 531. ) ## 53570. The following terms shall have the following meanings: (a) “Local agency” means public district, public corporation, authority, agency, board, commission, county, city and county, city, school district, any other public entity, or any improvement district or zone thereof. (b) “Revenue bonds” means any of the following: (1) Bonds, warrants, notes, or other evidence of indebtedness of a local agency payable from funds other than the proceeds of ad valorem taxes or the proceeds of assessments levied without limitation as to rate or amount by the local agency upon property in the local agency. (2) Bonds, notes, interim certificates, debentures, or other obligations of a redevelopment agency, including, but not limited to, obligations payable in whole or in part from taxes allocated to, and paid into, a special fund of the agency pursuant to Article 6 (commencing with Section 33670) of Chapter 6 of Part 1 of Division 24 of the Health and Safety Code. (Amended by Stats. 1985, Ch. 1033, Sec. 9. Effective September 27, 1985.)
  104. 53571.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 10. Refunding of Revenue Bonds of Local Agencies [53570 - 53572] ( Article 10 added by Stats. 1972, Ch. 531. )

    Verify source ↗

    A local agency may issue refunding bonds for its own revenue bonds or those of a member agency.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 10. Refunding of Revenue Bonds of Local Agencies [53570 - 53572] ( Article 10 added by Stats. 1972, Ch. 531. ) ## 53571. It is hereby declared that it is a public purpose for a local agency to issue bonds for the purpose of refunding any revenue bonds of the local agency or any revenue bonds of a member of the local agency pursuant to Article 11 (commencing with Section 53580), whether due or not due, or that have or that may hereafter become payable at the option of the local agency, by consent of the bondholders, or by any lawful means. Any refunding bonds may be outstanding at the same time as the revenue bonds for which the refunding bonds are issued, subject to any contractual limitations created in the proceedings for the issuance of the revenue bonds, and may be on a parity with, or subordinate to, the revenue bonds. The refunding bonds may be issued pursuant to Article 11 (commencing with Section 53580) or under any applicable revenue bond law, including, but not limited to, the Revenue Bond Law of 1941 (Chapter 6 (commencing with Section 54300)), the Parking Law of 1949 (Part 2 (commencing with Section 32500) of Division 18 of the Streets and Highways Code), the Parking District Law of 1951 (Part 4 (commencing with Section 35100) of Division 18 of the Streets and Highways Code), the joint exercise of powers provisions contained in Article 1 (commencing with Section 6500) and Article 2 (commencing with Section 6540) of Chapter 5 of Division 7 of Title 1, and the Community Redevelopment Law (Part 1 (commencing with Section 33000) of Division 24 of the Health and Safety Code), and shall be deemed issued for a valid public purpose and a proper bond purpose under Article 11 (commencing with Section 53580) or the applicable revenue bond law, and interest upon the refunding bonds or the bonds to be refunded from the date thereof to the date of payment of the bonds to be refunded or the date upon which the bonds to be refunded will be paid pursuant to call or agreement with the holders of the bonds may be paid from the proceeds of the refunding bonds or the investment of the proceeds. (Amended by Stats. 1999, Ch. 649, Sec. 4. Effective January 1, 2000.)
  105. 53572.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 10. Refunding of Revenue Bonds of Local Agencies [53570 - 53572] ( Article 10 added by Stats. 1972, Ch. 531. )

    Verify source ↗

    A local agency may decide how to treat the proceeds of refunding bonds, including treating them as a revenue-producing public facility or holding them in trust to protect bondholders.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 10. Refunding of Revenue Bonds of Local Agencies [53570 - 53572] ( Article 10 added by Stats. 1972, Ch. 531. ) ## 53572. In connection with the issuance of bonds under any law permitting the issuance of refunding bonds, a local agency may declare the proceeds of such refunding bonds to be a revenue producing public facility, including an enterprise under the Revenue Bond Law of 1941, or may declare such proceeds to be part of such revenue producing public facility or enterprise or may otherwise declare such proceeds to be held, in whole or in part, and for such time as the local agency may deem advisable, in trust for the protection of holders of the bonds or of the refunding bonds. (Added by Stats. 1972, Ch. 531.)
  106. 53580.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 11. Provisions Applicable to All Refunding Bonds of All Local Agencies [53580 - 53589.5] ( Article 11 added by Stats. 1975, Ch. 897. )

    Verify source ↗

    This section defines key terms used in the article on refunding bonds.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 11. Provisions Applicable to All Refunding Bonds of All Local Agencies [53580 - 53589.5] ( Article 11 added by Stats. 1975, Ch. 897. ) ## 53580. The following terms shall have the following meanings: (a) The term “local agency” means public district, public corporation, authority, agency, board, commission, county, city and county, city, school district, or other public entity or any improvement district or zone thereof. (b) The term “bonds” as used in this article means: bonds as defined in Section 53550, or revenue bonds as defined in Section 53570. (c) The term “refunding bonds” means bonds issued to refund bonds. (d) The term “federal securities” as used in this article means those securities defined in subdivision (g) of Section 53550 and in subdivision (a) of Section 53651. (Added by Stats. 1975, Ch. 897.)
  107. 53581.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 11. Provisions Applicable to All Refunding Bonds of All Local Agencies [53580 - 53589.5] ( Article 11 added by Stats. 1975, Ch. 897. )

    Verify source ↗

    This article applies to all refunding bonds issued by any local agency, even if another law would otherwise control.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 11. Provisions Applicable to All Refunding Bonds of All Local Agencies [53580 - 53589.5] ( Article 11 added by Stats. 1975, Ch. 897. ) ## 53581. Notwithstanding the provisions of any other law, the provisions of this article shall apply to all refunding bonds of any local agency, regardless of the authority for their issuance. (Added by Stats. 1975, Ch. 897.)
  108. 53582.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 11. Provisions Applicable to All Refunding Bonds of All Local Agencies [53580 - 53589.5] ( Article 11 added by Stats. 1975, Ch. 897. )

    Verify source ↗

    A local agency may not require more deposits than are sufficient to refund the bonds, and federal securities and their interest must be accepted to satisfy cash-type requirements in proceedings before September 19, 1975.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 11. Provisions Applicable to All Refunding Bonds of All Local Agencies [53580 - 53589.5] ( Article 11 added by Stats. 1975, Ch. 897. ) ## 53582. The proceedings of any local agency authorizing the issuance of bonds shall not require the deposit of any more moneys, obligations, and federal securities as are sufficient, taking into account both the principal amount of the moneys, obligations, and securities and the interest to become due thereon, to implement the refunding of those bonds. Federal securities and the interest thereon shall be used to satisfy any requirement of cash, money, specie, or lawful money in any proceeding conducted by a local agency before September 19, 1975. (Amended by Stats. 1985, Ch. 1033, Sec. 11. Effective September 27, 1985.)
  109. 53583.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 11. Provisions Applicable to All Refunding Bonds of All Local Agencies [53580 - 53589.5] ( Article 11 added by Stats. 1975, Ch. 897. )

    Verify source ↗

    Local agencies may issue refunding bonds and choose how to sell them, but public sales require notice and bid procedures, and private or negotiated sales require a written explanation to the California Debt Advisory Commission.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 11. Provisions Applicable to All Refunding Bonds of All Local Agencies [53580 - 53589.5] ( Article 11 added by Stats. 1975, Ch. 897. ) ## 53583. (a) Any local agency may issue bonds pursuant to this article or any revenue bond law under which the local agency is otherwise authorized to issue bonds for the purpose of refunding any revenue bonds of the local agency or, if the local agency is a joint powers authority, any revenue bonds of a member local agency, upon authorization by resolution of that member of the joint powers authority. (b) The proceedings of any local agency authorizing the issuance of any refunding bonds may provide all of the following for those bonds: (1) The form of the bonds to be issued as serial bonds, term bonds, or installment bonds, or any combination thereof. (2) The date or dates to be borne by the bonds. (3) The time or times of maturity of the bonds. (4) The interest, fixed or variable, to be borne by the bonds. (5) The time or times that the bonds shall be payable. (6) The denominations, form, and the registration privileges of the bonds. (7) The manner of execution of the bonds. (8) The place or places the bonds are payable. (9) The terms of redemption. (10) Any other terms and conditions determined necessary by the local agency. (c) (1) The refunding bonds may be sold at public or private sale or on a negotiated sale basis and at the prices, above or below par, as the local agency determines. (2) (A) If the local agency determines to sell the bonds at public sale, the local agency shall advertise the bonds for sale and invite sealed bids on the bonds by publication of a notice once at least 10 days before the date of the public sale in a newspaper of general circulation circulated within the boundaries of each local agency to be aided by the project to be financed by the issuance of the bonds. If one or more satisfactory bids are received pursuant to the notice, the bonds shall be awarded to the highest responsible bidder. If no bids are received or if the local agency determines that the bids received are not satisfactory as to price or responsibility of the bidders, the local agency may reject all bids received, if any, and either readvertise or sell the bonds at private sale or on a negotiated sale basis. (B) If the local agency determines to sell the bonds at private sale or on a negotiated sale basis, the local agency shall send a written statement, within two weeks after the bonds are sold, to the California Debt Advisory Commission explaining the reasons why the local agency determined to sell the bonds at private sale or on a negotiated sale basis instead of at public sale. (Amended by Stats. 1999, Ch. 649, Sec. 5. Effective January 1, 2000.)
  110. 53583.5.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 11. Provisions Applicable to All Refunding Bonds of All Local Agencies [53580 - 53589.5] ( Article 11 added by Stats. 1975, Ch. 897. )

    Verify source ↗

    If certain original bonds are refunded, the refunding bonds must include a regulatory agreement that meets specified Health and Safety Code provisions.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 11. Provisions Applicable to All Refunding Bonds of All Local Agencies [53580 - 53589.5] ( Article 11 added by Stats. 1975, Ch. 897. ) ## 53583.5. If the original bonds to be refunded under this article were issued under Section 33760, 34312, or 52080 of the Health and Safety Code, the refunding bonds shall require a regulatory agreement that complies with subdivision (d) of Section 33760 of, or paragraph (2) of subdivision (d) of Section 34312 of, or subdivision (g) of Section 52080 of, the Health and Safety Code. (Added by Stats. 2007, Ch. 596, Sec. 1.5. Effective January 1, 2008.)
  111. 53584.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 11. Provisions Applicable to All Refunding Bonds of All Local Agencies [53580 - 53589.5] ( Article 11 added by Stats. 1975, Ch. 897. )

    Verify source ↗

    Local agencies may use refunding bond proceeds for specified bond payments and may temporarily hold and invest them in escrow.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 11. Provisions Applicable to All Refunding Bonds of All Local Agencies [53580 - 53589.5] ( Article 11 added by Stats. 1975, Ch. 897. ) ## 53584. The proceeds of refunding bonds may be applied to the purchase, retirement at maturity, or redemption of the bonds to be refunded either at their earliest redemption date or dates, any subsequent redemption date or dates, upon their purchase or retirement maturity, or paid to a third person to assume the local agency’s obligation to make the payments, and may, pending that application, be placed in escrow and invested or reinvested in any obligations or securities, and any interest or other increment earned or realized on any such investment may be applied to the payment of the bonds to be refunded or to the payment of interest on the refunding bonds, as provided in the proceedings of the local agency authorizing the issuance of the refunding bonds. (Repealed and added by Stats. 1985, Ch. 1033, Sec. 14. Effective September 27, 1985.)
  112. 53584.1.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 11. Provisions Applicable to All Refunding Bonds of All Local Agencies [53580 - 53589.5] ( Article 11 added by Stats. 1975, Ch. 897. )

    Verify source ↗

    Orange County’s Board of Supervisors may include in a refunding bond resolution a pledge of specified county revenues and moneys, subject to a use-to-pay condition.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 11. Provisions Applicable to All Refunding Bonds of All Local Agencies [53580 - 53589.5] ( Article 11 added by Stats. 1975, Ch. 897. ) ## 53584.1. In issuing refunding bonds to honor warrants to school districts, community college districts, and other local agencies in settlement of bankruptcy, the Board of Supervisors of Orange County may provide in the resolution authorizing the issuance of those refunding bonds for the pledge of any taxes, income, revenue, cash receipts, rents, or other moneys of Orange County, including moneys deposited in inactive or term deposit accounts, or rights to receive the same, to the extent that the taxes, income, revenue, cash receipts, rents, or other moneys could have been used to pay principal or interest on the refunded bonds. The priority and perfection of the pledge shall be governed by Chapter 5.5 (commencing with Section 5450) of Division 6 of Title 1. (Added by Stats. 1995, 2nd Ex. Sess., Ch. 2, Sec. 1. Effective May 15, 1995.)
  113. 53585.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 11. Provisions Applicable to All Refunding Bonds of All Local Agencies [53580 - 53589.5] ( Article 11 added by Stats. 1975, Ch. 897. )

    Verify source ↗

    A local agency issuing refunding bonds may buy insurance or other credit enhancement and may enter into credit reimbursement or other agreements.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 11. Provisions Applicable to All Refunding Bonds of All Local Agencies [53580 - 53589.5] ( Article 11 added by Stats. 1975, Ch. 897. ) ## 53585. A local agency that issues refunding bonds may obtain insurance or other credit enhancement of the refunding bonds or of the escrow referred to in Section 53584 and may enter into any credit reimbursement agreement or other agreement with any person or entity. The agreement shall contain the terms of the credit reimbursement, interest rate, security, and any other terms the local agency deems necessary or appropriate. (Repealed and added by Stats. 1985, Ch. 1033, Sec. 16. Effective September 27, 1985.)
  114. 53585.1.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 11. Provisions Applicable to All Refunding Bonds of All Local Agencies [53580 - 53589.5] ( Article 11 added by Stats. 1975, Ch. 897. )

    Verify source ↗

    Orange County may elect to guarantee certain refunding bonds, and if it does, it must notify the Controller and follow the notice and payment procedures in this section.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 11. Provisions Applicable to All Refunding Bonds of All Local Agencies [53580 - 53589.5] ( Article 11 added by Stats. 1975, Ch. 897. ) ## 53585.1. (a) In issuing refunding bonds to honor warrants to school districts, community college districts, and other local agencies in settlement of bankruptcy, the Board of Supervisors of Orange County, in the resolution authorizing the issuance of refunding bonds, may provide that Orange County elects to guarantee payment of the refunding bonds in accordance with the following: (1) If Orange County elects to participate under this section, it shall provide notice to the Controller of that election, which notice shall include a schedule for the repayment of principal and interest on the bonds, and identify a refunding bond trustee appointed by Orange County for the purposes of this section. The notice may be provided at the time of issuance of the refunding bonds or at a later date. (2) In the event that, for any reason, the funds available for the payment of principal and interest of the bonds will not be sufficient for that purpose at the time payment on principal, interest, or both, is required as to any one or more of those bonds, Orange County shall so notify the trustee. The trustee shall immediately communicate that information to the affected bondholders and to the Controller. (3) When the Controller receives notice from the trustee as described in paragraph (2) that the funds made available pursuant to this article for the payment of principal and interest of the bonds is not sufficient for that purpose at the time payment on principal, interest, or both, is required as to any one or more of those bonds, the Controller shall make an apportionment to the trustee in the amount of that required payment for the purpose of making that payment. The Controller shall make that payment only from moneys credited to the Motor Vehicle License Fee Account in the Transportation Tax Fund to which Orange County is entitled at that time under Chapter 5 (commencing with Section 11001) of Part 5 of Division 2 of the Revenue and Taxation Code, and shall thereupon reduce, by the amount of the payment, the subsequent allocation or allocations to which Orange County would otherwise be entitled under that chapter. (4) As an alternate to the procedure set forth in paragraphs (2) and (3), Orange County may specify in the notice provided to the Controller pursuant to paragraph (1) a schedule of payments to be made on specified dates to the trustee, and the Controller shall, subject to the limitation in the second sentence of paragraph (3), make apportionments to the trustee in the amount of the required payments on the specified dates. (b) This section shall not be construed to obligate the State of California to make any payment to Orange County from the Motor Vehicle License Fee Account in the Transportation Tax Fund in any amount or pursuant to any particular allocation formula, or to make any other payment to Orange County, including, but not limited to, any payment in satisfaction of any debt or liability incurred or guaranteed by Orange County in accordance with this section. (Added by Stats. 1995, 2nd Ex. Sess., Ch. 2, Sec. 2. Effective May 15, 1995.)
  115. 53586.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 11. Provisions Applicable to All Refunding Bonds of All Local Agencies [53580 - 53589.5] ( Article 11 added by Stats. 1975, Ch. 897. )

    Verify source ↗

    This section allows certain San Bernardino redevelopment bonds to be refunded on specified call dates or maturity dates.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 11. Provisions Applicable to All Refunding Bonds of All Local Agencies [53580 - 53589.5] ( Article 11 added by Stats. 1975, Ch. 897. ) ## 53586. Notwithstanding Section 53583, the outstanding bonds of the project areas of the redevelopment agency of the City of San Bernardino, which were merged into one and designated Central City by Chapter 1227 of the Statutes of 1983, may be refunded on the first date on which the bonds may legally be called, or on any date or dates thereafter, or at the maturity date or dates of the outstanding bonds without regard to the dates on which the outstanding bonds may legally be called. Nothing in this section shall be construed as modifying the requirements for low- and moderate-income housing set forth in Section 33471.5 of the Health and Safety Code. (Added by Stats. 1984, Ch. 1291, Sec. 1.)
  116. 53587.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 11. Provisions Applicable to All Refunding Bonds of All Local Agencies [53580 - 53589.5] ( Article 11 added by Stats. 1975, Ch. 897. )

    Verify source ↗

    A local agency may include specified issuance and refunding costs when calculating the amount of refunding bonds.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 11. Provisions Applicable to All Refunding Bonds of All Local Agencies [53580 - 53589.5] ( Article 11 added by Stats. 1975, Ch. 897. ) ## 53587. In determining the amount of refunding bonds to be issued, the local agency may include all costs of issuing the refunding bonds and of refunding the bonds to be refunded, including the amount of any premium required to be paid to redeem any of the bonds to be refunded, any capitalized interest or bond reserve funds which the local agency determines to be reasonably required, and the cost of any insurance or other credit enhancement authorized by Section 53585. (Added by Stats. 1985, Ch. 1033, Sec. 17. Effective September 27, 1985.)
  117. 53588.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 11. Provisions Applicable to All Refunding Bonds of All Local Agencies [53580 - 53589.5] ( Article 11 added by Stats. 1975, Ch. 897. )

    Verify source ↗

    Bonds issued by a local agency under this article are exempt from taxation, and the local agency does not have to pay taxes on income earned from investing bond proceeds in escrow or otherwise.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 11. Provisions Applicable to All Refunding Bonds of All Local Agencies [53580 - 53589.5] ( Article 11 added by Stats. 1975, Ch. 897. ) ## 53588. The issuance, transfer, and interest income earned on any bonds issued by a local agency under this article is exempt from taxation of every kind by any state or local entity. The local agency shall not be required to pay any taxes on, or with respect to, the income earned on the investment of proceeds of the bonds placed in escrow or otherwise. (Added by Stats. 1985, Ch. 1033, Sec. 18. Effective September 27, 1985.)
  118. 53589.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 11. Provisions Applicable to All Refunding Bonds of All Local Agencies [53580 - 53589.5] ( Article 11 added by Stats. 1975, Ch. 897. )

    Verify source ↗

    This section lets local agencies use this article as an additional and alternative method for bond-related actions, and generally exempts those actions from other applicable legal requirements.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 11. Provisions Applicable to All Refunding Bonds of All Local Agencies [53580 - 53589.5] ( Article 11 added by Stats. 1975, Ch. 897. ) ## 53589. This article provides a complete, additional, and alternative method for doing the things authorized by this article and shall be regarded as supplemental and additional to the powers conferred by any other laws. The issuance of bonds and the entering into any credit reimbursement or other agreement under this article does not need to comply with the requirements of any other law applicable to the local agency or the issuance of bonds or the incurring of indebtedness, except that bonds which were subject to investigations, reports, and approval or certification by the Treasurer pursuant to the District Securities Investigation Law of 1965, Chapter 2.5 (commencing with Section 58750) of Division 2 of Title 6, and the Districts Securities Law, Chapter 1 (commencing with Section 20000) of Division 10 of the Water Code prior to the adoption of this article shall continue to be subject to the investigations, reports, and approval or certification. (Amended by Stats. 1986, Ch. 1388, Sec. 3. Effective September 30, 1986.)
  119. 53589.5.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 11. Provisions Applicable to All Refunding Bonds of All Local Agencies [53580 - 53589.5] ( Article 11 added by Stats. 1975, Ch. 897. )

    Verify source ↗

    An action may be brought to challenge the validity of refunding bonds and related proceedings for a local agency.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 11. Provisions Applicable to All Refunding Bonds of All Local Agencies [53580 - 53589.5] ( Article 11 added by Stats. 1975, Ch. 897. ) ## 53589.5. An action may be brought pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure to determine the validity of any issuance or proposed issuance of refunding bonds under this article, and the legality and validity of all proceedings previously taken or proposed to be taken in a resolution or ordinance adopted by the local agency for the authorization, issuance, sale, and delivery of the bonds, for entering into any credit reimbursement or other agreement in connection therewith, for the use of the proceeds of the bonds, and for the payment of the principal of, and interest on, the bonds. (Added by renumbering Section 53590 (as added by Stats. 1985, Ch. 1033, Sec. 20) by Stats. 1987, Ch. 56, Sec. 85.)
  120. 53590.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 12. Financial Advisers and Bond Counsel [53590 - 53594] ( Article 12 added by Stats. 1985, Ch. 1033, Sec. 21. )

    Verify source ↗

    This section defines terms used in the article about financial advisers and bond counsel.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 12. Financial Advisers and Bond Counsel [53590 - 53594] ( Article 12 added by Stats. 1985, Ch. 1033, Sec. 21. ) ## 53590. The following terms shall have the following meanings for purposes of this article: (a) “Bond counsel” means any attorney or firm of attorneys that represents the issuer of a new issue of bonds with respect to the issuance of the bonds and that renders a written legal opinion to, or as counsel for, the issuer with respect to the validity of the bonds. (b) “Bond” means any bonds, notes, or other evidences of indebtedness issued by any local agency or certificates of participation in any lease, sale, or other obligations of any local agency. “New issue of bonds” means the original issuance of bonds, including refunding bonds, by the issuer to one or more purchasers until, in the case of underwriters, the end of the underwriting period. In the case of bonds with a tender or put option feature, or commercial paper, “new issue of bonds” means only the original issuance and not any remarketing, rollover, or reissuance. (c) A “financial advisory relationship” exists when an investment firm, or other person or firm in the business of providing financial advisory or financial consulting services to issuers with respect to municipal securities, renders, or enters into an agreement to render, financial advisory or financial consultant services to, or on behalf of, an issuer with respect to a new issue or issues of bonds, including advice with respect to the structure, timing, terms, and other similar matters concerning the issue or issues, for a fee or other compensation or in expectation of such compensation for the rendering of those services. However, a financial advisory relationship does not exist when, in the course of acting as an underwriter, an investment firm renders advice to an issuer, including advice with respect to the structure, timing, terms, and other similar matters concerning a new issue of bonds or when, for any new issuer of bonds, an investment firm advises and assists an issuer with respect to obtaining consent from holders of previously issued bonds in connection with, among other things, amendments of covenants or defaults. (d) “Investment firm” means any bank, investment bank, partnership, corporation, association, or other firm engaged in the business of buying and selling bonds for its own account or for the account of others as part of its regular business. (e) “Local agency” means a public district, public corporation, authority, agency, board, commission, county, city and county, city, school district, or other local public entity. (Added by Stats. 1985, Ch. 1033, Sec. 21. Effective September 27, 1985.)
  121. 53591.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 12. Financial Advisers and Bond Counsel [53590 - 53594] ( Article 12 added by Stats. 1985, Ch. 1033, Sec. 21. )

    Verify source ↗

    An investment firm with a financial advisory relationship to a new issue of bonds generally may not buy that issue as principal or arrange for related parties to do so, unless the bonds are sold by competitive bid and the issuer gives prior written consent.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 12. Financial Advisers and Bond Counsel [53590 - 53594] ( Article 12 added by Stats. 1985, Ch. 1033, Sec. 21. ) ## 53591. No investment firm that has, or has had, a financial advisory relationship with respect to a new issue of bonds shall acquire as principal either alone or as a participant in a syndicate or other similar account formed for the purpose of purchasing, directly or indirectly, from the issuer all or any portion of the issue, or arrange for the acquisition or participation by a person controlling, controlled by, or under common control with the investment firm, unless the issue is to be sold by the issuer at competitive bid and the issuer has, prior to the bid, expressly consented in writing to the acquisition or participation. The limitations and requirements set forth in this section also apply to any investment firm controlling, controlled by, or under common control with the investment firm having a financial advisory relationship. The use of the term “indirectly” in this section does not preclude any investment firm which has a financial advisory relationship with respect to a new issue of bonds from purchasing any of those bonds from an underwriter, either for its own trading account or for the account of its customers, except to the extent that the purchase is made to contravene the purpose and intent of this section. (Added by Stats. 1985, Ch. 1033, Sec. 21. Effective September 27, 1985.)
  122. 53592.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 12. Financial Advisers and Bond Counsel [53590 - 53594] ( Article 12 added by Stats. 1985, Ch. 1033, Sec. 21. )

    Verify source ↗

    Financial advisory relationships must be documented in writing, and the written document must state compensation terms.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 12. Financial Advisers and Bond Counsel [53590 - 53594] ( Article 12 added by Stats. 1985, Ch. 1033, Sec. 21. ) ## 53592. Each financial advisory relationship shall be evidenced by a written document executed prior to, upon, or promptly after the inception of the financial advisory relationship, or promptly after the creation or selection of the issuer if the issuer does not exist or has not been determined at the time the relationship commences. That written document shall set forth the basis of compensation for the financial advisory services to be rendered, which, except for bonds issued prior to January 1, 1988, to finance single-family or multifamily housing, shall be on a basis other than as a percentage of the amount of the bonds to be sold. (Added by Stats. 1985, Ch. 1033, Sec. 21. Effective September 27, 1985.)
  123. 53593.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 12. Financial Advisers and Bond Counsel [53590 - 53594] ( Article 12 added by Stats. 1985, Ch. 1033, Sec. 21. )

    Verify source ↗

    Bond counsel for a new bond issue cannot also serve as counsel to the underwriter or other initial purchaser for that same issue.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 12. Financial Advisers and Bond Counsel [53590 - 53594] ( Article 12 added by Stats. 1985, Ch. 1033, Sec. 21. ) ## 53593. No bond counsel with respect to a new issue of bonds shall also be counsel, with respect to that new issue of bonds, to the underwriter or other initial purchaser of the bonds. This section does not preclude the bond counsel from rendering one or more opinions to the underwriter or purchaser with respect to the bonds, the documents or laws pursuant to which the bonds are issued, the official statement, offering circular, or other disclosure document describing the bonds, or any related matter, if the opinion is rendered as bond counsel and not as counsel to the underwriter or purchaser. (Added by Stats. 1985, Ch. 1033, Sec. 21. Effective September 27, 1985.)
  124. 53594.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 12. Financial Advisers and Bond Counsel [53590 - 53594] ( Article 12 added by Stats. 1985, Ch. 1033, Sec. 21. )

    Verify source ↗

    Injunctions may be used to stop violations of this article, at the court’s discretion, and violations do not affect the authority, validity, or enforceability of bonds.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 12. Financial Advisers and Bond Counsel [53590 - 53594] ( Article 12 added by Stats. 1985, Ch. 1033, Sec. 21. ) ## 53594. Injunctive relief shall be available, subject to judicial discretion, to prohibit or enjoin any violation of this article, but no violation shall affect the authority, validity, or enforceability of bonds. (Added by Stats. 1985, Ch. 1033, Sec. 21. Effective September 27, 1985.)
  125. 53595.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 13. Collateralized Borrowing [53595 - 53595.55] ( Article 13 added by Stats. 1993, Ch. 902, Sec. 1. )

    Verify source ↗

    This section defines key terms used in the article on collateralized borrowing.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 13. Collateralized Borrowing [53595 - 53595.55] ( Article 13 added by Stats. 1993, Ch. 902, Sec. 1. ) ## 53595. As used in this article: (a) “Debt instruments” means bonds, notes, certificates of participation, or other evidences of indebtedness issued by a local agency pursuant to this article. (b) “Indenture” means the instrument providing the terms and conditions for the issuance of the debt instruments, and may be a resolution, order, agreement, or other instrument. (c) “Legislative body” means the city council, board of supervisors, or other legislative or governing body of a local agency. (d) “Local agency” means any city, county, city and county, district, including, but not limited to, a school district or other public entity authorized to enter into a tax increment agreement. (e) “Redevelopment agency” means a redevelopment agency established pursuant to Part 1 (commencing with Section 33000) of Division 24 of the Health and Safety Code and includes a community development commission exercising the powers granted to a redevelopment agency pursuant to Section 34141 of the Health and Safety Code. (f) “Tax increment” means that portion of tax revenues allocated to a redevelopment agency pursuant to subdivision (b) of Section 33670 of the Health and Safety Code. (g) “Tax increment agreement” means any agreement between a local agency and a redevelopment agency which allocates tax increment to the local agency pursuant to Section 33401 of the Health and Safety Code. (h) “Tax increment revenues” means tax increment received or receivable by a local agency pursuant to a tax increment agreement. (Added by Stats. 1993, Ch. 902, Sec. 1. Effective October 8, 1993.)
  126. 53595.10.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 13. Collateralized Borrowing [53595 - 53595.55] ( Article 13 added by Stats. 1993, Ch. 902, Sec. 1. )

    Verify source ↗

    A local agency may dispose of tax increment revenues for any purpose that its general funds may be used for.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 13. Collateralized Borrowing [53595 - 53595.55] ( Article 13 added by Stats. 1993, Ch. 902, Sec. 1. ) ## 53595.10. A local agency may pledge, sell, transfer, assign, or otherwise dispose of tax increment revenues for any purpose for which the general funds of the local agency may be expended. (Added by Stats. 1993, Ch. 902, Sec. 1. Effective October 8, 1993.)
  127. 53595.15.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 13. Collateralized Borrowing [53595 - 53595.55] ( Article 13 added by Stats. 1993, Ch. 902, Sec. 1. )

    Verify source ↗

    A local agency’s pledge of tax increment revenues is valid and binding, and the pledged revenues are subject to the lien when received. The pledge stays in place until the secured debt is no longer outstanding.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 13. Collateralized Borrowing [53595 - 53595.55] ( Article 13 added by Stats. 1993, Ch. 902, Sec. 1. ) ## 53595.15. (a) A pledge by a local agency of tax increment revenues received pursuant to a tax increment agreement shall be valid and binding upon the local agency from the time the pledge is made for the benefit of pledgees and successors in interest thereof. The tax increment revenues pledged by the local agency or its assignees shall immediately, upon receipt by the local agency from the redevelopment agency, be subject to the lien of the pledge without physical delivery or further act. (b) Except as otherwise specified in this section, the lien of the pledge shall be valid and binding against all parties, irrespective of whether the parties have notice of the claim. The indenture by which the pledge is created need not be recorded. The pledge shall remain a valid and binding pledge until the debt instruments secured by the pledge are no longer outstanding. (c) Nothing in this article affects the rights, duties, or obligations of a redevelopment agency with regard to the allocation of tax increment by a redevelopment agency to a local agency pursuant to a tax increment agreement, the terms of which shall exclusively govern the rights, duties, and obligations of the redevelopment agency. This article does not vest in any pledgee, holder of debt instruments, successor in interest thereof, or any person, other than the local agency, any lien, right, claim, interest, or cause of action against a redevelopment agency for tax increment revenues held by, or to be received by, the redevelopment agency. (Added by Stats. 1993, Ch. 902, Sec. 1. Effective October 8, 1993.)
  128. 53595.20.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 13. Collateralized Borrowing [53595 - 53595.55] ( Article 13 added by Stats. 1993, Ch. 902, Sec. 1. )

    Verify source ↗

    A local agency may issue negotiable debt instruments backed by tax increment revenues, but the proceeds cannot be used for salary or benefit increases for local agency officers or employees.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 13. Collateralized Borrowing [53595 - 53595.55] ( Article 13 added by Stats. 1993, Ch. 902, Sec. 1. ) ## 53595.20. (a) A local agency may, from time to time, issue its negotiable debt instruments payable from, secured by, collateralized by, or representing interests in, tax increment revenues. The debt instruments may be issued to provide funds for capital expenditures, payment of rent or debt service, purchases of fixed assets, deposits into reserves created to improve the financial condition of the local agency, or other similar expenditures. The debt instrument proceeds may also be used to pay operating costs of the local agency if that use has been approved by a four-fifths vote of all the members of the governing body of the local agency. In no case, however, shall the proceeds of any debt instrument be used to pay for increased salary or benefit for officers or employees of a local agency. (b) (1) The debt instruments may be issued as serial debt instruments, term debt instruments, or both, and may be issued in those series or classes as the legislative body of the local agency may determine. The debt instruments shall bear the date or dates, mature at the time or times, bear interest at the rate or rates, fixed or variable, be payable at the time or times, be in the denominations, be in the form, either coupon or registered, carry the registration privileges, be executed in the manner, be payable in lawful money of the United States of America at the place or places, and be subject to terms of redemption, as the indenture relating to the debt instruments may provide. (2) The debt instruments may be sold at public or private sale, for the price or prices and upon these terms and conditions as the legislative body of the local agency shall determine. The local agency may sell the debt instruments at a price below the par value thereof. Pending preparation of the definitive debt instruments, the local agency may issue interim receipts or certificates or temporary debt instruments which shall be exchanged for the definitive debt instruments. The recitals of regularity of proceedings in any debt instrument issued or sold under this article shall be conclusive evidence of compliance with this article and of the validity of the debt instrument. (c) The debt instruments shall be signed by the chairperson of the legislative body and by any authorized officer of the local agency by manual or facsimile signature. Neither the members of the legislative body of a local agency nor any person executing the debt instruments shall be personally liable on the debt instruments or be subject to any personal liability or accountability by reason of the issuance or execution thereof. (d) The local agency shall have the power to purchase its debt instruments out of any funds available therefor. The local agency may hold, pledge, cancel, or resell the debt instruments, subject to, and in accordance with, agreements with holders of debt instruments. (Added by Stats. 1993, Ch. 902, Sec. 1. Effective October 8, 1993.)
  129. 53595.25.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 13. Collateralized Borrowing [53595 - 53595.55] ( Article 13 added by Stats. 1993, Ch. 902, Sec. 1. )

    Verify source ↗

    A local agency may issue refunding debt instruments and manage the proceeds through purchase, redemption, escrow, investment, and repayment uses.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 13. Collateralized Borrowing [53595 - 53595.55] ( Article 13 added by Stats. 1993, Ch. 902, Sec. 1. ) ## 53595.25. (a) A local agency may provide for the issuance of debt instruments for the purpose of refunding any debt instruments or any class, series, or issue of debt instruments of the local agency then outstanding, including the payment of any redemption premium thereon and any interest accrued or to accrue to the date of redemption, purchase, or maturity of debt instruments. (b) The proceeds of any debt instruments issued for the purpose of refunding of outstanding debt instruments may, in the discretion of the local agency, be (1) applied to the purchase, redemption prior to maturity, or retirement at maturity of any outstanding debt instruments on their redemption date or dates, or (2) paid to a third person to assume the local agency’s obligation to make the payments, and may, pending that application, be placed in escrow to be reapplied to the purchase, retirement at maturity, or redemption on the date or dates determined by the local agency. (c) Any proceeds placed in escrow may, pending their use, be invested and reinvested in obligations or securities authorized by resolutions of the legislative body of the local agency, payable or maturing at the time or times as are appropriate to ensure the prompt payment of the principal, interest, and redemption premium if any, of the outstanding debt instruments to be refunded. The interest, income, and profits, if any, earned or realized on this investment may also be applied to the payment of the outstanding debt instruments to be refunded or to the payment of interest on the refunding debt instruments. After the terms of the escrow have been fully satisfied and carried out, any balance of the proceeds and interest, income, and profits, if any, earned or realized on the investment thereof may be returned to the local agency for use by the local agency. (d) All of the refunding debt instruments are subject to this article in the same manner, and to the same extent, as other debt instruments issued pursuant to this article. (Added by Stats. 1993, Ch. 902, Sec. 1. Effective October 8, 1993.)
  130. 53595.30.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 13. Collateralized Borrowing [53595 - 53595.55] ( Article 13 added by Stats. 1993, Ch. 902, Sec. 1. )

    Verify source ↗

    Money received under this article and pledged to debt instruments must be treated as trust funds, and the depositary officer or bank/trust company must act as trustee and manage the money for this article’s purposes.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 13. Collateralized Borrowing [53595 - 53595.55] ( Article 13 added by Stats. 1993, Ch. 902, Sec. 1. ) ## 53595.30. (a) All moneys received pursuant to this article and pledged to the payment of any class, series, or issue of debt instruments, whether as tax increment revenues or from any other source, shall be deemed to be trust funds to be held and applied solely as provided in this article. Until the funds are applied as provided by this article, and notwithstanding any other provision of law, the moneys may be invested in obligations or securities authorized by resolutions of the legislative body of the local agency authorizing the issuance of debt instruments. (b) Any officer with whom, or any bank or trust company with which, the moneys are deposited shall act as trustee of the moneys and shall hold and apply the moneys for the purpose of this article, subject to any regulations of the local agency adopted pursuant to this article and the indenture securing the bonds. (Added by Stats. 1993, Ch. 902, Sec. 1. Effective October 8, 1993.)
  131. 53595.35.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 13. Collateralized Borrowing [53595 - 53595.55] ( Article 13 added by Stats. 1993, Ch. 902, Sec. 1. )

    Verify source ↗

    Local agencies may secure debt instruments with an indenture, and holders or trustees may enforce related rights and duties.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 13. Collateralized Borrowing [53595 - 53595.55] ( Article 13 added by Stats. 1993, Ch. 902, Sec. 1. ) ## 53595.35. (a) In the discretion of the legislative body of a local agency, any debt instruments issued under this article may be secured by an indenture by and between the local agency and a corporate trustee or trustees, which may be any trust company or bank having the powers of a trust company within or without the state. The indenture or resolution providing for the issuance of the debt instruments may pledge or assign the tax increment revenues or the interest of the local agency therein. The indenture may contain provisions for protecting and enforcing the rights and remedies of the holders of debt instruments as may be reasonable and proper and not in violation of law, including particular provisions specifically authorized by law to be included in any indenture of the local agency authorizing debt instruments pursuant to this article. The indenture may set forth the rights and remedies of the holders of debt instruments and of the trustee or trustees, and may restrict rights of action of holders of debt instruments. In addition to the foregoing, the indenture may contain other provisions as the local agency may deem necessary or desirable to facilitate the issuance and sale of the debt instruments or for the protection and security of the holders of debt instruments. (b) Any holder of debt instruments issued under this article or any of the coupons appertaining thereto, and the trustee or trustees under any indenture, except to the extent the rights herein given may be restricted by any indenture securing the debt instruments, may, either at law or in equity, by suit, action, mandamus, or other proceeding, protect and enforce any and all rights under the laws of the state or granted by this article or under indenture, and may enforce and compel the performance of all duties required by this article or by the indenture to be performed by the local agency or by any officer, employee, or agent thereof. (Added by Stats. 1993, Ch. 902, Sec. 1. Effective October 8, 1993.)
  132. 53595.40.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 13. Collateralized Borrowing [53595 - 53595.55] ( Article 13 added by Stats. 1993, Ch. 902, Sec. 1. )

    Verify source ↗

    Debt instruments under this article must be paid only from tax increment revenues, and they must not pledge the state’s or other local governments’ faith, credit, taxes, or appropriations.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 13. Collateralized Borrowing [53595 - 53595.55] ( Article 13 added by Stats. 1993, Ch. 902, Sec. 1. ) ## 53595.40. (a) Debt instruments issued under this article shall be payable solely from the tax increment revenues herein provided and not from any other assets or revenues of the issuing local agency. (b) The local agency issuing the debt instruments shall not pledge the faith or credit of the state or of any municipality or political subdivision thereof to secure the debt instruments. All debt instruments shall contain on the face thereof a statement to the effect that neither the State of California nor the local agency issuing the debt instruments shall be obligated to pay the principal of, premium, if any, or interest on the debt instruments, except from the revenues of the local agency pledged for payment, and that neither the faith and credit nor the taxing power of the State of California nor of any municipality or political subdivision thereof is pledged to the payment of the principal of, premium, if any, or interest on the debt instruments. (c) The issuance of debt instruments under this article shall not directly or indirectly or contingently obligate the state, a municipality, or any political subdivision of the state to levy or pledge any form of taxation whatever therefor or to make any appropriation for the payment thereof. (Added by Stats. 1993, Ch. 902, Sec. 1. Effective October 8, 1993.)
  133. 53595.45.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 13. Collateralized Borrowing [53595 - 53595.55] ( Article 13 added by Stats. 1993, Ch. 902, Sec. 1. )

    Verify source ↗

    Debt instruments issued by a local agency under this article are treated as securities that certain financial and fiduciary actors may invest in or deposit with public officers and agencies, subject to the stated conditions.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 13. Collateralized Borrowing [53595 - 53595.55] ( Article 13 added by Stats. 1993, Ch. 902, Sec. 1. ) ## 53595.45. (a) Debt instruments issued by a local agency under this article are hereby made securities in which all (1) banks, bankers, savings banks, trust companies, and other persons carrying on a banking business, (2) all insurance companies, insurance associations, and other persons carrying on an insurance business, (3) all administrators, executors, guardians, trustees, and other fiduciaries, and (4) all other persons whatsoever who now are or may hereafter be authorized to invest in debt instruments or other obligations of the state, may properly and legally invest any funds, including capital belonging to them or within their control. (b) The debt instruments are hereby made securities which may properly and legally be deposited with, and received by, any state or municipal officers or agency of the state or municipality or political subdivision thereof for any purpose for which the deposit of debt instruments or other obligations of the state is now, or may hereafter be, authorized by law. (Added by Stats. 1993, Ch. 902, Sec. 1. Effective October 8, 1993.)
  134. 53595.5.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 13. Collateralized Borrowing [53595 - 53595.55] ( Article 13 added by Stats. 1993, Ch. 902, Sec. 1. )

    Verify source ↗

    This article applies only to local agencies in counties with more than 4,000,000 people.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 13. Collateralized Borrowing [53595 - 53595.55] ( Article 13 added by Stats. 1993, Ch. 902, Sec. 1. ) ## 53595.5. This article shall apply only to local agencies located within a county with a population of over 4,000,000 persons. (Added by Stats. 1993, Ch. 902, Sec. 1. Effective October 8, 1993.)
  135. 53595.50.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 13. Collateralized Borrowing [53595 - 53595.55] ( Article 13 added by Stats. 1993, Ch. 902, Sec. 1. )

    Verify source ↗

    Debt instruments issued under this article, their transfer, and related income are exempt from taxation by the state and local governments.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 13. Collateralized Borrowing [53595 - 53595.55] ( Article 13 added by Stats. 1993, Ch. 902, Sec. 1. ) ## 53595.50. Any debt instruments issued under this article, their transfer, and in the income therefrom shall at all times be free from taxation of every kind by the state and by all municipalities and political subdivisions in the state. (Added by Stats. 1993, Ch. 902, Sec. 1. Effective October 8, 1993.)
  136. 53595.55.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 13. Collateralized Borrowing [53595 - 53595.55] ( Article 13 added by Stats. 1993, Ch. 902, Sec. 1. )

    Verify source ↗

    This article is treated as an additional and alternative method for authorized actions, is to be read liberally, and controls if it conflicts with other general or special laws.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 3. Bonds [53400 - 53595.55] ( Chapter 3 added by Stats. 1949, Ch. 81. ) ## ARTICLE 13. Collateralized Borrowing [53595 - 53595.55] ( Article 13 added by Stats. 1993, Ch. 902, Sec. 1. ) ## 53595.55. This article shall be deemed to provide a complete, additional, and alternative method for doing the things authorized hereby and shall be regarded as supplemental and additional to powers conferred by other laws. This article shall be liberally construed so as to effectuate its purposes. To the extent that this article is inconsistent with any other general statute or special act or parts thereof, this article shall be deemed controlling. (Added by Stats. 1993, Ch. 902, Sec. 1. Effective October 8, 1993.)
  137. 536.

    ## Government Code - GOV ## TITLE 1. GENERAL [100 - 7931.000] ( Title 1 enacted by Stats. 1943, Ch. 134. ) ## DIVISION 3. SEAT OF GOVERNMENT, POLITICAL DIVISIONS, AND LEGAL DISTANCES [450 - 559] ( Division 3 enacted by Stats. 1943, Ch. 134. ) ## CHAPTER 6. Legal Distances [500 - 559] ( Chapter 6 enacted by Stats. 1943, Ch. 134. )

    Verify source ↗

    The distance from the county seat of San Benito County to Sacramento is 173 miles.

    ## Government Code - GOV ## TITLE 1. GENERAL [100 - 7931.000] ( Title 1 enacted by Stats. 1943, Ch. 134. ) ## DIVISION 3. SEAT OF GOVERNMENT, POLITICAL DIVISIONS, AND LEGAL DISTANCES [450 - 559] ( Division 3 enacted by Stats. 1943, Ch. 134. ) ## CHAPTER 6. Legal Distances [500 - 559] ( Chapter 6 enacted by Stats. 1943, Ch. 134. ) ## 536. From the county seat of San Benito County to Sacramento it is one hundred and seventy-three (173) miles. (Enacted by Stats. 1943, Ch. 134.)
  138. 53600.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 1. Investment of Surplus [53600 - 53610] ( Article 1 added by Stats. 1949, Ch. 81. )

    Verify source ↗

    This section defines “local agency” for this article.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 1. Investment of Surplus [53600 - 53610] ( Article 1 added by Stats. 1949, Ch. 81. ) ## 53600. As used in this article, “local agency” means county, city, city and county, including a chartered city or county, school district, community college district, public district, county board of education, county superintendent of schools, or any public or municipal corporation. (Amended by Stats. 1987, Ch. 887, Sec. 2.)
  139. 53600.3.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 1. Investment of Surplus [53600 - 53610] ( Article 1 added by Stats. 1949, Ch. 81. )

    Verify source ↗

    Local agency investment decision-makers are treated as fiduciaries and must use prudent-investor care, skill, prudence, and diligence when handling public funds; they may acquire investments only as authorized by law.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 1. Investment of Surplus [53600 - 53610] ( Article 1 added by Stats. 1949, Ch. 81. ) ## 53600.3. Except as provided in subdivision (a) of Section 27000.3, all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law. (Amended by Stats. 1996, Ch. 749, Sec. 4. Effective January 1, 1997.)
  140. 53600.5.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 1. Investment of Surplus [53600 - 53610] ( Article 1 added by Stats. 1949, Ch. 81. )

    Verify source ↗

    A trustee managing public funds must prioritize preserving principal, then meeting liquidity needs, and then earning a return.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 1. Investment of Surplus [53600 - 53610] ( Article 1 added by Stats. 1949, Ch. 81. ) ## 53600.5. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, the primary objective of a trustee shall be to safeguard the principal of the funds under its control. The secondary objective shall be to meet the liquidity needs of the depositor. The third objective shall be to achieve a return on the funds under its control. (Amended by Stats. 1996, Ch. 749, Sec. 5. Effective January 1, 1997.)
  141. 53600.6.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 1. Investment of Surplus [53600 - 53610] ( Article 1 added by Stats. 1949, Ch. 81. )

    Verify source ↗

    The Legislature says local officials and local agencies’ deposit and investment of public funds is a matter of statewide concern.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 1. Investment of Surplus [53600 - 53610] ( Article 1 added by Stats. 1949, Ch. 81. ) ## 53600.6. The Legislature hereby finds that the solvency and creditworthiness of each individual local agency can impact the solvency and creditworthiness of the state and other local agencies within the state. Therefore, to protect the solvency and creditworthiness of the state and all of its political subdivisions, the Legislature hereby declares that the deposit and investment of public funds by local officials and local agencies is an issue of statewide concern. (Added by Stats. 1995, Ch. 784, Sec. 13. Effective January 1, 1996.)
  142. 53601.1.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 1. Investment of Surplus [53600 - 53610] ( Article 1 added by Stats. 1949, Ch. 81. )

    Verify source ↗

    A local agency may invest surplus funds under Section 53601, and this includes financial futures and financial option contracts within that section’s investment categories.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 1. Investment of Surplus [53600 - 53610] ( Article 1 added by Stats. 1949, Ch. 81. ) ## 53601.1. The authority of a local agency to invest funds pursuant to Section 53601 includes, in addition thereto, authority to invest in financial futures or financial option contracts in any of the investment categories enumerated in that section. (Added by Stats. 1983, Ch. 534, Sec. 3.)
  143. 53601.2.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 1. Investment of Surplus [53600 - 53610] ( Article 1 added by Stats. 1949, Ch. 81. )

    Verify source ↗

    In this article, “corporation” includes a limited liability company.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 1. Investment of Surplus [53600 - 53610] ( Article 1 added by Stats. 1949, Ch. 81. ) ## 53601.2. As used in this article, “corporation” includes a limited liability company. (Added by Stats. 2004, Ch. 118, Sec. 18. Effective January 1, 2005.)
  144. 53601.5.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 1. Investment of Surplus [53600 - 53610] ( Article 1 added by Stats. 1949, Ch. 81. )

    Verify source ↗

    A local agency buying certain authorized investments must buy them from listed types of financial institutions unless the investment is bought directly from the issuer.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 1. Investment of Surplus [53600 - 53610] ( Article 1 added by Stats. 1949, Ch. 81. ) ## 53601.5. The purchase by a local agency of any investment authorized pursuant to Section 53601 or 53601.1, not purchased directly from the issuer, shall be purchased either from an institution licensed by the state as a broker-dealer, as defined in Section 25004 of the Corporations Code, or from a member of a federally regulated securities exchange, from a national or state-chartered bank, from a savings association or federal association (as defined by Section 5102 of the Financial Code) or from a brokerage firm designated as a primary government dealer by the Federal Reserve bank. (Amended by Stats. 2001, Ch. 57, Sec. 2. Effective January 1, 2002.)
  145. 53602.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 1. Investment of Surplus [53600 - 53610] ( Article 1 added by Stats. 1949, Ch. 81. )

    Verify source ↗

    The legislative body may invest surplus funds only in specified safe investment instruments, with a county board of supervisors allowed a limited exception by four-fifths vote.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 1. Investment of Surplus [53600 - 53610] ( Article 1 added by Stats. 1949, Ch. 81. ) ## 53602. The legislative body shall invest only in notes, bonds, bills, certificates of indebtedness, warrants, or registered warrants which are legal investments for savings banks in the State, provided, that the board of supervisors of a county may, by a four-fifths vote thereof, invest in notes, warrants or other evidences of indebtedness of public districts wholly or partly within the county, whether or not such notes, warrants, or other evidences of indebtedness are legal investments for savings banks. (Amended by Stats. 1954, 1st Ex. Sess., Ch. 10.)
  146. 53603.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 1. Investment of Surplus [53600 - 53610] ( Article 1 added by Stats. 1949, Ch. 81. )

    Verify source ↗

    The legislative body may invest by directly purchasing eligible securities when they are originally sold or after issuance.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 1. Investment of Surplus [53600 - 53610] ( Article 1 added by Stats. 1949, Ch. 81. ) ## 53603. The legislative body may make the investment by direct purchase of any issue of eligible securities at their original sale or after they have been issued. (Amended by Stats. 1953, Ch. 537.)
  147. 53604.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 1. Investment of Surplus [53600 - 53610] ( Article 1 added by Stats. 1949, Ch. 81. )

    Verify source ↗

    The legislative body may sell the securities it purchased, exchange them for other eligible securities, and reinvest the proceeds.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 1. Investment of Surplus [53600 - 53610] ( Article 1 added by Stats. 1949, Ch. 81. ) ## 53604. The legislative body may sell, or exchange for other eligible securities, and reinvest the proceeds of, the securities purchased. (Amended by Stats. 1953, Ch. 537.)
  148. 53605.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 1. Investment of Surplus [53600 - 53610] ( Article 1 added by Stats. 1949, Ch. 81. )

    Verify source ↗

    The legislative body must sell securities from time to time, and the proceeds may be used for the purposes tied to the original purchase money in the sinking fund or treasury of the local agency.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 1. Investment of Surplus [53600 - 53610] ( Article 1 added by Stats. 1949, Ch. 81. ) ## 53605. From time to time, the legislative body shall sell the securities so that the proceeds may be applied to the purposes for which the original purchase money was placed in the sinking fund or the treasury of the local agency. (Amended by Stats. 1953, Ch. 537.)
  149. 53606.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 1. Investment of Surplus [53600 - 53610] ( Article 1 added by Stats. 1949, Ch. 81. )

    Verify source ↗

    Bonds purchased from the purchaser may be canceled, including for sinking fund or satisfaction purposes, and uncanceled bonds may be resold if the legislative body keeps them uncanceled.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 1. Investment of Surplus [53600 - 53610] ( Article 1 added by Stats. 1949, Ch. 81. ) ## 53606. The bonds purchased, which were issued by the purchaser, may be canceled either in satisfaction or sinking fund obligations or otherwise. When canceled, they are no longer outstanding, unless in its discretion, the legislative body holds then uncanceled. While held uncanceled, the bonds may be resold. (Added by Stats. 1949, Ch. 81.)
  150. 53607.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 1. Investment of Surplus [53600 - 53610] ( Article 1 added by Stats. 1949, Ch. 81. )

    Verify source ↗

    The legislative body may delegate investment-related authority to the local agency treasurer for one year, and the treasurer must report those transactions monthly.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 1. Investment of Surplus [53600 - 53610] ( Article 1 added by Stats. 1949, Ch. 81. ) ## 53607. The authority of the legislative body to invest or to reinvest funds of a local agency, or to sell or exchange securities so purchased, may be delegated for a one-year period by the legislative body to the treasurer of the local agency, who shall thereafter assume full responsibility for those transactions until the delegation of authority is revoked or expires, and shall make a monthly report of those transactions to the legislative body. Subject to review, the legislative body may renew the delegation of authority pursuant to this section each year. (Amended by Stats. 1996, Ch. 749, Sec. 6. Effective January 1, 1997.)
  151. 53608.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 1. Investment of Surplus [53600 - 53610] ( Article 1 added by Stats. 1949, Ch. 81. )

    Verify source ↗

    A local agency’s legislative body may place certain investment securities in safekeeping with specified financial institutions and must obtain a receipt.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 1. Investment of Surplus [53600 - 53610] ( Article 1 added by Stats. 1949, Ch. 81. ) ## 53608. The legislative body of a local agency may deposit for safekeeping with a federal or state association (as defined by Section 5102 of the Financial Code), a trust company or a state or national bank located within this state or with the Federal Reserve Bank of San Francisco or any branch thereof within this state, or with any Federal Reserve bank or with any state or national bank located in any city designated as a reserve city by the Board of Governors of the Federal Reserve System, the bonds, notes, bills, debentures, obligations, certificates of indebtedness, warrants, or other evidences of indebtedness in which the money of the local agency is invested pursuant to this article or pursuant to other legislative authority. The local agency shall take from such financial institution a receipt for securities so deposited. The authority of the legislative body to deposit for safekeeping may be delegated by the legislative body to the treasurer of the local agency; the treasurer shall not be responsible for securities delivered to and receipted for by a financial institution until they are withdrawn from the financial institution by the treasurer. (Amended by Stats. 1985, Ch. 983, Sec. 17. Effective September 26, 1985.)
  152. 53609.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 1. Investment of Surplus [53600 - 53610] ( Article 1 added by Stats. 1949, Ch. 81. )

    Verify source ↗

    A local agency may invest deferred compensation funds if they are held under a written employee agreement and a governing-body-approved deferral plan, but not in any investment barred by the Constitution.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 1. Investment of Surplus [53600 - 53610] ( Article 1 added by Stats. 1949, Ch. 81. ) ## 53609. Notwithstanding the provisions of this chapter or any other provisions of this code, funds held by a local agency pursuant to a written agreement between the agency and employees of the agency to defer a portion of the compensation otherwise receivable by the agency’s employees and pursuant to a plan for such deferral as adopted by the governing body of the agency, may be invested in the types of investments set forth in Sections 53601 and 53602 of this code, and may additionally be invested in corporate stocks, bonds, and securities, mutual funds, savings and loan accounts, credit union accounts, life insurance policies, annuities, mortgages, deeds of trust, or other security interests in real or personal property. Nothing herein shall be construed to permit any type of investment prohibited by the Constitution. Deferred compensation funds are public pension or retirement funds for the purposes of Section 17 of Article XVI of the Constitution. (Amended by Stats. 1979, Ch. 373.)
  153. 53610.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 1. Investment of Surplus [53600 - 53610] ( Article 1 added by Stats. 1949, Ch. 81. )

    Verify source ↗

    This section defines “Proposition 1A receivable,” allows a local agency to buy those receivables with its revenue, and forbids a purchaser from reselling them under Section 6588.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 1. Investment of Surplus [53600 - 53610] ( Article 1 added by Stats. 1949, Ch. 81. ) ## 53610. (a) For purposes of this section, “Proposition 1A receivable” means the right to payment of moneys due or to become due to a local agency, pursuant to clause (iii) of subparagraph (B) of paragraph (1) of subdivision (a) of Section 25.5 of Article XIII of the California Constitution and Section 100.06 of the Revenue and Taxation Code. (b) Notwithstanding any other law, a local agency may purchase, with its revenue, Proposition 1A receivables sold pursuant to Section 53999. (c) A purchaser of Proposition 1A receivables pursuant to this section shall not offer them for sale pursuant to Section 6588. (Added by Stats. 2009, Ch. 634, Sec. 5. (SB 67) Effective October 19, 2009.)
  154. 53620.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 1.5. Health Fund Investments [53620 - 53622] ( Article 1.5 added by Stats. 1998, Ch. 996, Sec. 7. )

    Verify source ↗

    A local agency’s governing body may invest retiree health benefit funds in any investment it deems prudent, subject to Section 53622.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 1.5. Health Fund Investments [53620 - 53622] ( Article 1.5 added by Stats. 1998, Ch. 996, Sec. 7. ) ## 53620. Notwithstanding Section 53601 or 53635, the governing body of a local agency may invest funds designated for the payment of employee retiree health benefits in any form or type of investment deemed prudent by the governing body pursuant to Section 53622. (Added by Stats. 1998, Ch. 996, Sec. 7. Effective January 1, 1999.)
  155. 53621.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 1.5. Health Fund Investments [53620 - 53622] ( Article 1.5 added by Stats. 1998, Ch. 996, Sec. 7. )

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    A governing body may delegate to designated officers the authority to invest or reinvest retiree health benefit funds, or to sell or exchange securities bought for that purpose.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 1.5. Health Fund Investments [53620 - 53622] ( Article 1.5 added by Stats. 1998, Ch. 996, Sec. 7. ) ## 53621. The authority of the governing body to invest or to reinvest funds intended for the payment of employee retiree health benefits, or to sell or exchange securities purchased for that purpose, may be delegated by the governing body to designated officers. (Added by Stats. 1998, Ch. 996, Sec. 7. Effective January 1, 1999.)
  156. 53622.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 1.5. Health Fund Investments [53620 - 53622] ( Article 1.5 added by Stats. 1998, Ch. 996, Sec. 7. )

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    Retiree health benefit funds must be used only for plan benefits and administration, and the governing body or designated officer must manage the investments prudently.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 1.5. Health Fund Investments [53620 - 53622] ( Article 1.5 added by Stats. 1998, Ch. 996, Sec. 7. ) ## 53622. (a) Funds intended for the payment of employee retiree health benefits shall only be held for the purpose of providing benefits to participants in the retiree health benefit plan and defraying reasonable expenses of administering that plan. (b) The governing body or designated officer, when making investments of the funds, shall discharge its duties with respect to the investment of the funds. (1) Solely in the interest of, and for the exclusive purposes of providing benefits to, participants in the retiree health benefit plan, minimizing employer contributions thereto, and defraying reasonable expenses of administering the plan. (2) With the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with these matters would use in the conduct of an enterprise of a like character and with like aims. (3) Shall diversify the investments of the funds so as to minimize the risk of loss and to maximize the rate of return, unless under the circumstances it is clearly prudent not to do so. (Added by Stats. 1998, Ch. 996, Sec. 7. Effective January 1, 1999.)
  157. 53630.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. )

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    This section defines terms used in the article on deposit of funds.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. ) ## 53630. As used in this article: (a) “Local agency” means county, city, city and county, including a chartered city or county, a community college district, or other public agency or corporation in this state. (b) “Treasurer” means treasurer of the local agency. (c) “Depository” means a state or national bank, savings association or federal association, a state or federal credit union, or a federally insured industrial loan company, in this state in which the moneys of a local agency are deposited. (d) “Agent of depository” means a trust company or trust department of a state or national bank located in this state, including the trust department of a depository where authorized, and the Federal Home Loan Bank of San Francisco, which is authorized to act as an agent of depository for the purposes of this article pursuant to Section 53657. (e) “Security” means any of the eligible securities or obligations listed in Section 53651. (f) “Pooled securities” means eligible securities held by an agent of depository for a depository and securing deposits of one or more local agencies. (g) “Administrator” means the Administrator of Local Agency Security of the State of California. (h) “Savings association or federal association” means a savings association, savings and loan association, or savings bank as defined by Section 5102 of the Financial Code. (i) “Federally insured industrial loan company” means an industrial loan company licensed under Division 7 (commencing with Section 18000) of the Financial Code, the investment certificates of which are insured by the Federal Deposit Insurance Corporation. (j) “Corporation” includes a limited liability company. (Amended by Stats. 2004, Ch. 118, Sec. 19.7. Effective January 1, 2005.)
  158. 53630.1.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. )

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    The Legislature states that local agencies’ deposit and investment of public funds is a matter of statewide concern because it can affect solvency and creditworthiness.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. ) ## 53630.1. The Legislature hereby finds that the solvency and creditworthiness of each individual local agency can impact the solvency and creditworthiness of the state and other local agencies within the state. Therefore, to protect the solvency and creditworthiness of the state and all of its political subdivisions, the Legislature hereby declares that the deposit and investment of public funds by local officials and local agencies is an issue of statewide concern. (Added by Stats. 1995, Ch. 784, Sec. 16. Effective January 1, 1996.)
  159. 53630.5.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. )

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    This section says certain Financial Code definitions apply here and expands the meaning of several bank phrases for local-agency depository purposes.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. ) ## 53630.5. (a) The definitions in Section 1670 of, and Chapter 1 (commencing with Section 99) of Division 1 of, the Financial Code apply to this section. (b) In this article, for purposes of being a depository of moneys belonging to or being in the custody of a local agency, the phrases “state or national bank located in this state,” “state or national bank,” “state or national bank in this state,” and “state or national banks in the state” include, without limitation, any of the following: (1) A California branch office of a foreign (other state) state bank that the bank is authorized to maintain under the law of its domicile and federal law. (2) A California branch office of a foreign (other state) national bank that the bank is authorized to maintain under federal law. (3) A California branch office of a foreign (other nation) bank that the bank is licensed to maintain under Article 3 (commencing with Section 1800) of Chapter 20 of Division 1.1 of the Financial Code. (4) A California federal branch of a foreign (other nation) bank that the bank is authorized to maintain under federal law. (Amended by Stats. 2018, Ch. 92, Sec. 113. (SB 1289) Effective January 1, 2019.)
  160. 53631.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. )

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    A local agency treasurer may open bank accounts and deposit money there, with legislative body approval and subject to conditions the treasurer sets, when needed to pay bond debt, presented warrants, or electronic disbursements.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. ) ## 53631. Under those conditions as the treasurer of a local agency fixes with the approval of the legislative body, he or she may establish accounts at banks within or without the state and deposit money in those accounts to the extent necessary to pay the principal and interest of bonds to pay any warrant that has been presented for payment, or to fund any electronic disbursement of funds from the treasury of the local agency. This article does not apply to deposits for those purposes. (Amended by Stats. 2001, Ch. 176, Sec. 15. Effective January 1, 2002.)
  161. 53632.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. )

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    This section says there are three classes of deposits: inactive deposits, active deposits, and interest-bearing active deposits.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. ) ## 53632. There are three classes of deposits: (a) Inactive deposits. (b) Active deposits. (c) Interest-bearing active deposits. (Amended by Stats. 1983, Ch. 105, Sec. 1.5.)
  162. 53632.5.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. )

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    This section says there are three classes of securities that may be used for deposits.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. ) ## 53632.5. There are three classes of security for deposits: (a) Securities described in subdivision (m) of Section 53651. (b) Securities described in subdivision (p) of Section 53651. (c) Securities enumerated in Section 53651, except for those described in subdivisions (m) and (p) of that section. (Amended by Stats. 1986, Ch. 1132, Sec. 2.)
  163. 53633.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. )

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    The treasurer must determine how much money is to be deposited as inactive, active, and interest-bearing active deposits, unless Section 53679 provides otherwise.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. ) ## 53633. The treasurer shall determine the amounts of money to be deposited as inactive, active, and interest-bearing active deposits, except as otherwise provided in Section 53679. (Amended by Stats. 1983, Ch. 105, Sec. 3.)
  164. 53634.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. )

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    The treasurer may move money from inactive deposits to active deposits when current demands require it.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. ) ## 53634. The treasurer may call in money from inactive deposits and place it in active deposits as current demands require. When there is money in his possession for which there is no demand as inactive deposits, he may place it as active deposits. (Added by Stats. 1949, Ch. 81.)
  165. 53635.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. )

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    Some local agencies may invest in commercial paper, but they must stay within two concentration limits.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. ) ## 53635. (a) This section shall apply to a local agency that is a county, a city and county, or other local agency that pools money in deposits or investments with other local agencies, including local agencies that have the same governing body. However, Section 53601 shall apply to all local agencies that pool money in deposits or investments exclusively with local agencies that have the same governing body. This section shall be interpreted in a manner that recognizes the distinct characteristics of investment pools and the distinct administrative burdens on managing and investing funds on a pooled basis pursuant to Article 6 (commencing with Section 27130) of Chapter 5 of Division 2 of Title 3. A local agency that is a county, a city and county, or other local agency that pools money in deposits or investments with other agencies may invest in commercial paper pursuant to subdivision (h) of Section 53601, except that the local agency shall be subject to the following concentration limits: (1) No more than 40 percent of the local agency’s money may be invested in eligible commercial paper. (2) No more than 10 percent of the total assets of the investments held by a local agency may be invested in any one issuer’s commercial paper. (b) Notwithstanding Section 53601, the City of Los Angeles shall be subject to the concentration limits of this section for counties and for cities and counties with regard to the investment of money in eligible commercial paper. (c) A local agency subject to this section may invest in commercial paper, debt securities, or other obligations of a public bank, as defined in Section 57600. (Amended by Stats. 2019, Ch. 442, Sec. 12. (AB 857) Effective January 1, 2020.)
  166. 53635.2.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. )

    Verify source ↗

    Local agency money should be deposited for safekeeping in selected eligible financial institutions, and eligible institutions must meet a minimum satisfactory federal evaluation rating.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. ) ## 53635.2. As far as possible, all money belonging to, or in the custody of, a local agency, including money paid to the treasurer or other official to pay the principal, interest, or penalties of bonds, shall be deposited for safekeeping in state or national banks, public banks, savings associations, federal associations, credit unions, or federally insured industrial loan companies in this state selected by the treasurer or other official having legal custody of the money; or may be invested in the investments set forth in Section 53601. To be eligible to receive local agency money, a bank, savings association, federal association, or federally insured industrial loan company shall have received an overall rating of not less than “satisfactory” in its most recent evaluation by the appropriate federal financial supervisory agency of its record of meeting the credit needs of California’s communities, including low- and moderate-income neighborhoods, pursuant to Section 2906 of Title 12 of the United States Code. Sections 53601.5 and 53601.6 shall apply to all investments that are acquired pursuant to this section. (Amended by Stats. 2019, Ch. 442, Sec. 13. (AB 857) Effective January 1, 2020.)
  167. 53635.7.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. )

    Verify source ↗

    If a local agency’s legislative body makes a borrowing decision of $100,000 or more, it must treat the decision as a separate agenda item and discuss, consider, and deliberate it at the meeting.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. ) ## 53635.7. In making any decision that involves borrowing in the amount of one hundred thousand dollars ($100,000) or more, the legislative body of the local agency shall discuss, consider, and deliberate each decision as a separate item of business on the agenda of its meeting as prescribed in Chapter 9 (commencing with Section 54950). As used in this section, “borrowing” does not include bank overdrafts or security lending. (Amended by Stats. 2001, Ch. 176, Sec. 16. Effective January 1, 2002.)
  168. 53635.8.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. )

    Verify source ↗

    A local agency may invest surplus funds through a selected depository institution, but several bank, insurance, custody, reporting, and concentration rules apply.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. ) ## 53635.8. Notwithstanding any other provision of this code, a local agency that has the authority under law to invest funds, at its discretion, may invest a portion of its surplus funds in deposits at a commercial bank, savings bank, savings and loan association, or credit union that uses a private sector entity that assists in the placement of deposits. The following conditions shall apply: (a) The local agency shall choose a nationally or state-chartered commercial bank, savings bank, savings and loan association, or credit union in this state to invest the funds, which shall be known as the “selected” depository institution. (b) The selected depository institution may use a private sector entity to help place local agency deposits with one or more commercial banks, savings banks, savings and loan associations, or credit unions that are located in the United States and are within the network used by the private sector entity for this purpose. (c) The selected depository institution shall request that the local agency inform it of depository institutions at which the local agency has other deposits, and the selected depository institution shall provide that information to the private sector entity. (d) Any private sector entity used by a selected depository institution to help place its local agency deposits shall maintain policies and procedures requiring all of the following: (1) The full amount of each deposit placed pursuant to subdivision (b) and the interest that may accrue on each such deposit shall at all times be insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration. (2) Every depository institution where funds are placed shall be capitalized at a level that is sufficient, and be otherwise eligible, to receive such deposits pursuant to regulations of the Federal Deposit Insurance Corporation or the National Credit Union Administration, as applicable. (3) At the time of the local agency’s investment with a selected depository institution and no less than monthly thereafter, the private sector entity shall ensure that the local agency is provided with an inventory of all depository institutions in which deposits have been placed on the local agency’s behalf, that are within the private sector entity’s network. (4) Within its network, the private sector entity shall ensure that it does not place additional deposits from a particular local agency with any depository institution identified pursuant to subdivision (c) as holding that local agency’s deposits if those additional deposits would result in that local agency’s total amount on deposit at that depository institution exceeding the Federal Deposit Insurance Corporation or the National Credit Union Administration insurance limit. (e) If a selected depository uses two or more private sector entities to assist in the placement of a local agency’s deposits, the selected depository shall ensure that it does not place additional deposits from a particular local agency with a depository institution if those additional deposits would result in that local agency’s total amount on deposit at that depository institution exceeding the Federal Deposit Insurance Corporation or the National Credit Union Administration insurance limit. (f) The selected depository institution shall serve as a custodian for each such deposit. (g) On the same date that the local agency’s funds are placed pursuant to subdivision (b) by the private sector entity, the selected depository institution shall receive an amount of insured deposits from other financial institutions that, in total, are equal to, or greater than, the full amount of the principal that the local agency initially deposited through the selected depository institution for investment pursuant to subdivision (b). (h) Notwithstanding subdivisions (a) to (g), inclusive, a credit union shall not act as a selected depository institution under this section unless both of the following conditions are satisfied: (1) The credit union offers federal depository insurance through the National Credit Union Administration. (2) The credit union is in possession of written guidance or other written communication from the National Credit Union Administration authorizing participation of federally insured credit unions in one or more deposit placement services and affirming that the moneys held by those credit unions while participating in a deposit placement service will at all times be insured by the federal government. (i) It is the intent of the Legislature that this section shall not restrict competition among private sector entities that provide placement services pursuant to this section. (j) The deposits placed pursuant to this section shall be subject to Section 53638 and shall not, in total, exceed 30 percent of the agency’s funds that may be invested for this purpose. (Amended (as amended by Stats. 2015, Ch. 181, Sec. 3) by Stats. 2019, Ch. 619, Sec. 4. (AB 945) Effective January 1, 2020.)
  169. 53636.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. )

    Verify source ↗

    Money deposited under this article is treated as money in the treasury of the local agency.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. ) ## 53636. Money so deposited is deemed to be in the treasury of the local agency. (Added by Stats. 1949, Ch. 81.)
  170. 53637.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. )

    Verify source ↗

    Money must be deposited in an approved financial institution to maximize return and stay prudent, but it cannot be placed in a state or federal credit union if certain local agency officials also serve on that credit union’s governing or committee bodies.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. ) ## 53637. The money shall be deposited in any bank, savings association or federal association, state or federal credit union, or federally insured industrial loan company with the objective of realizing maximum return, consistent with prudent financial management, except that money shall not be deposited in any state or federal credit union if a member of the legislative body of a local agency, or any person with investment decisionmaking authority of the administrative office, manager’s office, budget office, auditor-controller’s office, or treasurer’s office of the local agency, also serves on the board of directors, or any committee appointed by the board of directors, or the credit committee or supervisory committee, of the state or federal credit union. (Amended by Stats. 1998, Ch. 81, Sec. 2. Effective January 1, 1999.)
  171. 53638.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. )

    Verify source ↗

    Deposits made under this section are capped by the financial strength of the receiving institution, with a $500,000 exception in some cases if the deposit is insured, guaranteed, or secured as required.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. ) ## 53638. (a) The deposit shall not exceed the shareholder’s equity of any depository bank. For the purposes of this subdivision, shareholder’s equity shall be determined in accordance with Section 463 of the Financial Code, but shall be deemed to include capital notes and debentures. (b) The deposit shall not exceed the total of the net worth of any depository savings association or federal association, except that deposits not exceeding a total of five hundred thousand dollars ($500,000) may be made to a savings association or federal association without regard to the net worth of that depository, if such deposits are insured or secured as required by law. (c) The deposit to the share accounts of any regularly chartered credit union shall not exceed the total of the unimpaired capital and surplus of the credit union, as defined by rule of the Commissioner of Financial Protection and Innovation, except that the deposit to any credit union share account in an amount not exceeding five hundred thousand dollars ($500,000) may be made if the share accounts of that credit union are insured or guaranteed pursuant to Section 14858 of the Financial Code or are secured as required by law. (d) The deposit in investment certificates of a federally insured industrial loan company shall not exceed the total of the unimpaired capital and surplus of the insured industrial loan company. (Amended by Stats. 2022, Ch. 452, Sec. 187. (SB 1498) Effective January 1, 2023.)
  172. 53639.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. )

    Verify source ↗

    The depository must pay money-transportation expenses unless Section 53682 says otherwise. If a contract shifts that expense away from the depository, the treasurer must arrange the transportation by separate agreement or contract.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. ) ## 53639. (a) Except as otherwise provided in Section 53682, the depository shall bear the expenses of transportation of money to and from the depository. If, pursuant to a contract between the treasurer and the depository, the depository is not required to bear the expense of transportation of money to and from the depository, the treasurer shall secure those transportation services by separate agreement or contract. (b) (1) A separate agreement or contract for transportation services includes an agreement to procure bank courier or armored car transport services and a contract for the pickup and transportation of moneys received by the treasurer or any other department requiring secure transportation. (2) The terms of a separate agreement or contract for transportation services may include, but are not limited to, a specification of costs, frequency of pickup, locations of pickup, and any other transportation services that are necessary for the conduct of the treasurer’s office. (Amended by Stats. 2019, Ch. 258, Sec. 1. (SB 789) Effective January 1, 2020.)
  173. 53640.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. )

    Verify source ↗

    The depository must handle, collect, and pay checks, drafts, and other exchange for the local agency without charging a cost, unless Section 53682 says otherwise.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. ) ## 53640. Except as otherwise provided in Section 53682, the depository shall handle, collect, and pay all checks, drafts, and other exchange without cost to the local agency. (Amended by Stats. 1986, Ch. 248, Sec. 92.)
  174. 53641.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. )

    Verify source ↗

    When money is deposited in a depository, the treasurer or other authorized official must keep a receipt, certificate of deposit, or other proof of the deposit.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. ) ## 53641. When money is deposited in a depository, the treasurer or other authorized official shall take and preserve a receipt, certificate of deposit, or other evidence of the deposit as he or she requires. (Amended by Stats. 1986, Ch. 248, Sec. 93.)
  175. 53642.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. )

    Verify source ↗

    Money deposited may be withdrawn by check or order of the treasurer or another official authorized to make the deposit.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. ) ## 53642. The money deposited may be drawn out by check or order of the treasurer or other official authorized to make such deposit. (Amended by Stats. 1953, Ch. 670.)
  176. 53643.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. )

    Verify source ↗

    The treasurer may deposit any part of the money if the treasurer and the depository agree.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. ) ## 53643. The treasurer may deposit any part of the money as agreed upon between the treasurer and the depository. (Amended by Stats. 1986, Ch. 248, Sec. 94.)
  177. 53644.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. )

    Verify source ↗

    If no agreement is made, active deposits and interest may be withdrawn on demand by the treasurer or another authorized official, and inactive deposits require at least 30 days’ notice before withdrawal.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. ) ## 53644. If an agreement is not made: (a) Active deposits and interest thereon are subject to withdrawal upon the demand of the treasurer or other authorized official, subject to any penalties which may be prescribed by federal law or regulation. (b) Inactive deposits are subject to notice of at least thirty days before withdrawal. (Amended by Stats. 1983, Ch. 105, Sec. 7.)
  178. 53645.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. )

    Verify source ↗

    The depository must compute and pay interest on deposits, with different methods for active and inactive deposits.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. ) ## 53645. Interest shall be computed and paid by the depository, as follows: (a) For active deposits upon which interest is payable, interest shall be computed on the average daily balance for the calendar quarter, and shall be paid quarterly. (b) For inactive deposits, interest shall be computed on a 360-day basis, and shall be paid quarterly. (Amended by Stats. 1992, Ch. 523, Sec. 5.3. Effective January 1, 1993.)
  179. 53646.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. )

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    Local agency treasurers or chief fiscal officers must provide investment reports and related information on a set schedule, and county or local governing bodies must review or consider investment policy statements at public meetings.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. ) ## 53646. (a) (1) In the case of county government, the treasurer may annually render to the board of supervisors and any oversight committee a statement of investment policy, which the board shall review and approve at a public meeting. Any change in the policy shall also be reviewed and approved by the board at a public meeting. (2) In the case of any other local agency, the treasurer or chief fiscal officer of the local agency may annually render to the legislative body of that local agency and any oversight committee of that local agency a statement of investment policy, which the legislative body of the local agency shall consider at a public meeting. Any change in the policy shall also be considered by the legislative body of the local agency at a public meeting. (b) (1) The treasurer or chief fiscal officer may render a quarterly report to the chief executive officer, the internal auditor, and the legislative body of the local agency. The quarterly report shall be so submitted within 45 days following the end of the quarter covered by the report. Except as provided in subdivisions (e) and (f), this report shall include the type of investment, issuer, date of maturity, par and dollar amount invested on all securities, investments and moneys held by the local agency, and shall additionally include a description of any of the local agency’s funds, investments, or programs, that are under the management of contracted parties, including lending programs. With respect to all securities held by the local agency, and under management of any outside party that is not also a local agency or the State of California Local Agency Investment Fund, the report shall also include a current market value as of the date of the report, and shall include the source of this same valuation. (2) The quarterly report shall state compliance of the portfolio to the statement of investment policy, or manner in which the portfolio is not in compliance. (3) The quarterly report shall include a statement denoting the ability of the local agency to meet its pool’s expenditure requirements for the next six months, or provide an explanation as to why sufficient money shall, or may, not be available. (4) In the quarterly report, a subsidiary ledger of investments may be used in accordance with accepted accounting practices. (c) Pursuant to subdivision (b), the treasurer or chief fiscal officer shall report whatever additional information or data may be required by the legislative body of the local agency. (d) The legislative body of a local agency may elect to require the report specified in subdivision (b) to be made on a monthly basis instead of quarterly. (e) For local agency investments that have been placed in the Local Agency Investment Fund, created by Section 16429.1, in National Credit Union Share Insurance Fund-insured accounts in a credit union, in accounts insured or guaranteed pursuant to Section 14858 of the Financial Code, or in Federal Deposit Insurance Corporation-insured accounts in a bank or savings and loan association, in a county investment pool, or any combination of these, the treasurer or chief fiscal officer may supply to the governing body, chief executive officer, and the auditor of the local agency the most recent statement or statements received by the local agency from these institutions in lieu of the information required by paragraph (1) of subdivision (b) regarding investments in these institutions. (f) The treasurer or chief fiscal officer shall not be required to render a quarterly report, as required by subdivision (b), to a legislative body or any oversight committee of a school district or county office of education for securities, investments, or moneys held by the school district or county office of education in individual accounts that are less than twenty-five thousand dollars ($25,000). (g) In recognition of the state and local interests served by the actions made optional in subdivisions (a) and (b), the Legislature encourages the local agency officials to continue taking the actions formerly mandated by this section. However, nothing in this subdivision may be construed to impose any liability on a local agency that does not continue to take the formerly mandated action. (Amended by Stats. 2022, Ch. 427, Sec. 10. (SB 1489) Effective January 1, 2023.)
  180. 53647.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. )

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    Interest on deposited money must be paid quarterly to the local agency’s general fund, unless law or the governing body directs it to another fund.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. ) ## 53647. (a) Interest on all money deposited belongs to, and shall be paid quarterly into the general fund of, the local agency represented by the officer making the deposit, unless otherwise directed by law. (b) Notwithstanding the provisions of subdivision (a), and except as otherwise directed by law, if the governing body of the local agency represented by the officer making the deposit so directs, such interest shall be paid to the fund which contains the principal on which the interest accrued. (Amended by Stats. 1978, Ch. 126.)
  181. 53647.5.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. )

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    Interest earned on bail money deposited by a court must be allocated to support that court.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. ) ## 53647.5. Notwithstanding any other provision of law, interest earned on any bail money deposited by a court in a bank account pursuant to Section 1463.1 of the Penal Code and Section 53679 of this code shall be allocated for the support of that court. (Amended by Stats. 2010, Ch. 212, Sec. 7. (AB 2767) Effective January 1, 2011.)
  182. 53648.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. )

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    The treasurer may deposit public money and contract with certain banks, credit unions, and industrial loan companies when a conflicting federal law or rule applies.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. ) ## 53648. Notwithstanding this article, the treasurer may deposit moneys in, and enter into contracts with, a state or national bank, savings association or federal association, federal or state credit union, or federally insured industrial loan company, pursuant to a federal law or a rule of a federal department or agency adopted pursuant to the law if the law or rule conflicts with this article in regulating the payment of interest on deposits of public moneys by any of the following: (a) Banks which are Federal Reserve System members or whose deposits are insured by the Federal Deposit Insurance Corporation. (b) Savings associations or federal associations which are federal home loan bank members or whose deposits are insured by the Federal Savings and Loan Insurance Corporation. (c) State or federal credit unions whose accounts are insured by the National Credit Union Share Insurance Fund or guaranteed by the California Credit Union Share Guaranty Corporation or insured or guaranteed pursuant to Section 14858 of the Financial Code, unless a member of the legislative body of a local agency, or any person with investment decisionmaking authority of the administrative office, manager’s office, budget office, auditor-controller’s office, or treasurer’s office of the local agency, also serves on the board of directors, or any committee appointed by the board of directors, or the credit committee or supervisory committee, of the state or federal credit union. (d) A federally insured industrial loan company. (Amended by Stats. 1998, Ch. 81, Sec. 3. Effective January 1, 1999.)
  183. 53648.5.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. )

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    If federal law removes the conflicting federal law or rule, either party may terminate the agreement between the treasurer or other authorized official and a depository.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. ) ## 53648.5. Upon the removal by federal law of the conflicting federal law or rule the agreement between the treasurer or other authorized official and a depository may be terminated by either party. (Added by Stats. 1986, Ch. 1132, Sec. 11.)
  184. 53649.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. )

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    The treasurer must safeguard money in custody, enter only public-advantage deposit contracts with a depository, and file a copy of each contract with the local agency officer listed in the section.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. ) ## 53649. The treasurer is responsible for the safekeeping of money in his or her custody and shall enter into any contract with a depository relating to any deposit which in his or her judgment is to the public advantage. The depository, and the agent of depository to the extent the agent of depository has been notified of deposits and the amount thereof, are responsible for securing moneys deposited pursuant to such a contract in accordance with Section 53652. One copy of each contract shall be filed with the auditor, controller, secretary, or corresponding officer of the local agency. The contract shall: (a) Fix the duration of deposits, if appropriate. (b) Fix the interest rate, if any. (c) Provide conditions for withdrawal and repayment. (d) Provide for placement of pooled securities in a named agent of depository in accordance with Section 53656. (e) Grant authority for agent of depository to place securities for safekeeping in accordance with Section 53659. (f) Set forth in accordance with Section 53665 the conditions upon which the administrator shall order pooled securities converted into money for the benefit of the local agency, and the procedure therefor. (g) Provide for compliance in all respects with the provisions of this article and other applicable provisions of law. (h) Provide, upon notice to the treasurer from the administrator, that a treasurer may withdraw deposits in the event a depository fails to pay the assessments, fines, or penalties assessed by the administrator or may withdraw authorization for the placement of pooled securities in an agent of depository in the event that the agent of depository fails to pay the fines or penalties assessed by the administrator. (Amended by Stats. 1987, Ch. 841, Sec. 1.)
  185. 53651.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. )

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    This section lists the kinds of securities that count as eligible securities.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. ) ## 53651. Eligible securities are any of the following: (a) United States Treasury notes, bonds, bills or certificates of indebtedness, or obligations for which the faith and credit of the United States are pledged for the payment of principal and interest, including the guaranteed portions of small business administration loans, so long as the loans are obligations for which the faith and credit of the United States are pledged for the payment of principal and interest. (b) Notes or bonds or any obligations of a local public agency (as defined in the United States Housing Act of 1949) or any obligations of a public housing agency (as defined in the United States Housing Act of 1937) for which the faith and credit of the United States are pledged for the payment of principal and interest. (c) Bonds of this state or of any local agency or district of the State of California having the power, without limit as to rate or amount, to levy taxes or assessments to pay the principal and interest of the bonds upon all property within its boundaries subject to taxation or assessment by the local agency or district, and in addition, limited obligation bonds pursuant to Article 4 (commencing with Section 50665) of Chapter 3 of Division 1, senior obligation bonds pursuant to Article 5 (commencing with Section 53387) of Chapter 2.7, and revenue bonds and other obligations payable solely out of the revenues from a revenue-producing property owned, controlled or operated by the state, local agency or district or by a department, board, agency or authority thereof. (d) Bonds of any public housing agency (as defined in the United States Housing Act of 1937, as amended) as are secured by a pledge of annual contributions under an annual contribution contract between the public housing agency and the Public Housing Administration if such contract shall contain the covenant by the Public Housing Administration which is authorized by subsection (b) of Section 22 of the United States Housing Act of 1937, as amended, and if the maximum sum and the maximum period specified in the contract pursuant to that subsection 22(b) shall not be less than the annual amount and the period for payment which are requisite to provide for the payment when due of all installments of principal and interest on the obligations. (e) Registered warrants of this state. (f) Bonds, consolidated bonds, collateral trust debentures, consolidated debentures, or other obligations issued by the United States Postal Service, federal land banks or federal intermediate credit banks established under the Federal Farm Loan Act, as amended, debentures and consolidated debentures issued by the Central Bank for Cooperatives and banks for cooperatives established under the Farm Credit Act of 1933, as amended, consolidated obligations of the federal home loan banks established under the Federal Home Loan Bank Act, bonds, debentures and other obligations of the Federal National Mortgage Association or of the Government National Mortgage Association established under the National Housing Act, as amended, bonds of any federal home loan bank established under that act, bonds, debentures and other obligations of the Federal Home Loan Mortgage Corporation established under the Emergency Home Finance Act of 1970, and obligations of the Tennessee Valley Authority. (g) Notes, tax anticipation warrants or other evidence of indebtedness issued pursuant to Article 7 (commencing with Section 53820), Article 7.5 (commencing with Section 53840) or Article 7.6 (commencing with Section 53850) of this Chapter 4. (h) State of California notes. (i) Bonds, notes, certificates of indebtedness, warrants or other obligations issued by: (1) any state of the United States (except this state), or the Commonwealth of Puerto Rico, or any local agency thereof having the power to levy taxes, without limit as to rate or amount, to pay the principal and interest of such obligations, or (2) any state of the United States (except this state), or the Commonwealth of Puerto Rico, or a department, board, agency or authority thereof except bonds which provide for or are issued pursuant to a law which may contemplate a subsequent legislative appropriation as an assurance of the continued operation and solvency of the department, board, agency or authority but which does not constitute a valid and binding obligation for which the full faith and credit of such state or the Commonwealth of Puerto Rico are pledged, which are payable solely out of the revenues from a revenue-producing source owned, controlled or operated thereby; provided the obligations issued by an entity described in (1), above, are rated in one of the three highest grades, and such obligations issued by an entity described in (2), above, are rated in one of the two highest grades by a nationally recognized investment service organization that has been engaged regularly in rating state and municipal issues for a period of not less than five years. (j) Obligations issued, assumed or guaranteed by the International Bank for Reconstruction and Development, Inter-American Development Bank, the Government Development Bank of Puerto Rico, the Asian Development Bank, the International Finance Corporation, or the African Development Bank. (k) Participation certificates of the Export-Import Bank of the United States. (l) Bonds and notes of the California Housing Finance Agency issued pursuant to Chapter 7 (commencing with Section 51350) of Part 3 of Division 31 of the Health and Safety Code. (m) Promissory notes secured by first mortgages and first trust deeds which comply with Section 53651.2. (n) Any bonds, notes, warrants, or other evidences of indebtedness of a nonprofit corporation issued to finance the construction of a school building or school buildings pursuant to a lease or agreement with a school district entered into in compliance with the provisions of Section 39315 or 81345 of the Education Code, and also any bonds, notes, warrants or other evidences of indebtedness issued to refinance those bonds, notes, warrants, or other evidences of indebtedness as specified in Section 39317 of the Education Code. (o) Any municipal securities, as defined by Section 3(a)(29) of the Securities Exchange Act of June 6, 1934, (15 U.S.C. Sec. 78, as amended), which are issued by this state or any local agency thereof. (p) With the consent of the treasurer, letters of credit issued by the Federal Home Loan Bank of San Francisco which comply with Section 53651.6. (Amended by Stats. 1991, Ch. 1206, Sec. 7.)
  186. 53651.2.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. )

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    This section sets conditions for when promissory notes can count as eligible securities in a pool, and lets the depository exercise, enforce, or waive rights under the note or related mortgage documents.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. ) ## 53651.2. (a) To be an eligible security under subdivision (m) of Section 53651, a promissory note placed in a securities pool on or after January 1, 1987, shall comply with all of the following provisions: (1) Each promissory note shall be secured by a first mortgage or first trust deed on improved 1 to 4 unit residential real property located in California, shall be fully amortized over the term of the note, and shall have a term of no more than 30 years. Any first mortgage or first trust deed which secures a promissory note providing for negative amortization shall be removed from the securities pool and replaced with an eligible security under subdivision (m) of Section 53651 if the loan to value ratio exceeds 85 percent of the original appraised value of the security property as a consequence of negative amortization. (2) Each promissory note shall be eligible for sale to the Federal National Mortgage Association, the Government National Mortgage Association, or the Federal Home Loan Mortgage Corporation; provided, however, that up to 25 percent of the total dollar amount of any promissory note securities pool established pursuant to Section 53658 may consist of promissory notes with loan amounts which exceed the maximum amounts eligible for purchase by the Federal National Mortgage Association, the Government National Mortgage Association, or the Federal Home Loan Mortgage Corporation, but which do not exceed: (i) five hundred thousand dollars ($500,000) in the case of a single family dwelling; (ii) one million dollars ($1,000,000) in the case of a 2, 3, or 4 unit dwelling. (b) The following shall not constitute eligible securities under subdivision (m) of Section 53651: (1) Any promissory note on which any payment is more than 60 days past due. (2) Any promissory note secured by a mortgage or deed of trust as to which there is a lien prior to the mortgage or deed of trust. For the purposes of this paragraph, no lien specified in Section 766 of the Financial Code shall be considered a prior encumbrance unless any installment or payment thereunder (other than a rental or royalty under a lease) is due and delinquent. (3) Any promissory note secured by a mortgage or deed of trust as to which a notice of default has been recorded pursuant to Section 2924 of the Civil Code or an action has been commenced pursuant to Section 725a of the Code of Civil Procedure. (c) The depository may exercise, enforce, or waive any right granted to it by the promissory note, mortgage, or deed of trust. (d) For purposes of this article, the market value of a promissory note which is an eligible security under subdivision (m) of Section 53651, shall be determined in accordance with the regulations adopted by the Treasurer under paragraph (2) of subdivision (m) of Section 53651, as the regulations and statute were in effect on December 31, 1986. However, if and when regulations on the subject are adopted by the administrator, the market value shall be determined in accordance with those regulations of the administrator. (Amended by Stats. 1996, Ch. 1063, Sec. 81. Effective January 1, 1997.)
  187. 53651.4.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. )

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    Certain depositories must file an independent CPA compliance report each year, unless a qualifying state bank elects examination instead; depositories must also provide report copies on request and pay examination fees when examined.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. ) ## 53651.4. (a) A depository that uses eligible securities of the class described in subdivision (m) of Section 53651 shall, within 90 days after the close of each calendar year or within a longer period as the administrator may specify, file with the administrator a report of an independent certified public accountant regarding compliance with this article and with regulations and orders issued by the administrator under this article with respect to eligible securities of that class. The report shall be based upon the audit, shall contain the information, and shall be in the form the administrator may prescribe. The depository shall provide a copy of the report to the treasurer on request. (b) If a depository that is a state bank files with the administrator, not less than 90 days before the beginning of the calendar year, a notice that it elects to be examined by the administrator instead of filing a report of an independent certified public accountant under subdivision (a) for that calendar year, the depository shall be exempt from subdivision (a) for that calendar year and shall for that calendar year be subject to examination by the administrator regarding compliance with this article and with regulations and orders under this article with respect to eligible securities of the class described in subdivision (m) of Section 53651. The administrator shall provide a report to a treasurer with deposits in the examined state bank upon request of the treasurer. (c) A national bank may apply to the administrator to be examined, and the administrator, in his or her discretion, may examine a national bank for the purposes of satisfying the requirements of subdivision (a). The administrator shall provide a report to a treasurer with deposits in the examined national bank upon request of the treasurer. (d) Whenever the administrator examines a depository pursuant to subdivision (b) or (c), the depository shall pay, within 30 days after receipt of a statement from the administrator, a fee of seventy-five dollars ($75) per hour for each examiner engaged in the examination. (Amended by Stats. 1997, Ch. 375, Sec. 18. Effective January 1, 1998.)
  188. 53651.6.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. )

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    A letter of credit must meet the administrator’s prescribed form and terms to qualify as an eligible security.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. ) ## 53651.6. (a) To be an eligible security under subdivision (p) of Section 53651, a letter of credit shall be in such form and shall contain such provisions as the administrator may prescribe, and shall include all of the following terms: (1) The administrator shall be the beneficiary of the letter of credit. (2) The letter of credit shall be clean and irrevocable and shall provide that the administrator may draw upon it up to the total amount in the event of the failure of the depository savings association or federal association or if the depository savings association or federal association refuses to permit the withdrawal of funds by a treasurer. (Added by Stats. 1986, Ch. 1132, Sec. 17.)
  189. 53652.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. )

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    A depository must keep eligible securities in securities pools to secure active or inactive deposits, and the securities must meet specified market-value cushions.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. ) ## 53652. To secure active or inactive deposits a depository shall at all times maintain with the agent of depository eligible securities in securities pools, pursuant to Sections 53656 and 53658, in the amounts specified in this section. Uncollected funds shall be excluded from the amount deposited in the depository when determining the security requirements for the deposits. (a) Eligible securities, except eligible securities of the classes described in subdivisions (m) and (p) of Section 53651, shall have a market value of at least 10 percent in excess of the total amount of all deposits of a depository secured by the eligible securities. (b) Eligible securities of the class described in subdivision (m) of Section 53651 shall have a market value at least 50 percent in excess of the total amount of all deposits of a depository secured by those eligible securities. (c) Eligible securities of the class described in subdivision (p) of Section 53651 shall have a market value of at least 5 percent in excess of the total amount of all deposits of a depository secured by those eligible securities. For purposes of this article, the market value of a letter of credit which is an eligible security under subdivision (p) of Section 53651 shall be the amount of credit stated in the letter of credit. (Repealed and added by Stats. 1986, Ch. 1132, Sec. 19.)
  190. 53653.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. )

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    A treasurer may waive security for insured deposits, and may also waive security for accrued interest if specified conditions are met.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. ) ## 53653. When in his or her discretion local conditions so warrant, the treasurer may waive security for the portion of any deposits as is insured pursuant to federal law, notwithstanding this article. For deposits equivalent to and not less than the maximum amount insured pursuant to federal law for which a treasurer has waived security under this section, a treasurer at his or her discretion may also waive security for the interest accrued on the deposits which, when added to the deposits, would cause the sum of the interest and deposits to exceed the maximum amount insured pursuant to federal law, provided that the interest is computed by the depository on the average daily balance of the deposits, paid monthly and computed on a 360-day basis. (Amended by Stats. 1988, Ch. 156, Sec. 1.)
  191. 53654.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. )

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    The depository may add or replace securities in the pool, but cannot swap security classes without the treasurer’s prior approval. The agent of depository must safeguard and disburse the securities and may release them only under specified statement-and-signature conditions.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. ) ## 53654. (a) The depository may add securities to the pool or substitute securities of equal value for those in the pool at any time, but shall not interchange classes of security, as defined in Section 53632.5, without prior approval of the treasurer. (b) Withdrawal of securities from the pool without replacement at equal value may be ordered only by two duly authorized officers or employees of the depository who satisfy the requirements as may be set by the administrator. (c) The agent of depository is responsible for the safekeeping and disbursement of securities placed in its custody by a depository. It shall release securities only upon presentation by the depository of the most reasonably current statement of the total deposits subject to this article held by the depository, such statement to be verified and countersigned by two duly authorized officers, other than those who ordered the withdrawal of securities. A copy of this statement shall be forwarded to the administrator concurrently by the agent of depository. (Amended by Stats. 1986, Ch. 1132, Sec. 22.)
  192. 53655.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. )

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    A depository’s placement of securities with its agent under this article perfects a security interest in those securities for local agencies with deposits in that depository.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. ) ## 53655. A placement of securities by a depository with an agent of depository pursuant to this article shall have the effect of perfecting a security interest in those securities in the local agencies having deposits in that depository notwithstanding provisions of the Uniform Commercial Code to the contrary and notwithstanding that the agent of depository may be the trust department of the depository. (Repealed and added by Stats. 1969, Ch. 1483.)
  193. 53656.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. )

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    The treasurer must authorize a designated depository agent to hold securities for the local agency deposit, and an agent may not release those securities unless the administrator orders the release under stated conditions.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. ) ## 53656. (a) At the time the treasurer enters into a contract with the depository pursuant to Section 53649, he or she shall authorize the agent of depository designated by the depository, but including the trust department of the depository only when acceptable to both the treasurer and the depository, to hold securities of the depository in accordance with this article to secure the deposit of the local agency. (b) Only those trust companies and trust departments, or the Federal Home Loan Bank of San Francisco, which have been authorized by the administrator pursuant to Section 53657 shall be authorized by treasurers to act as agents of depository. (c) The securities are subject to order of the depository in accordance with Section 53654 except when the provisions of subdivision (i) of Section 53661 and Section 53665 are in effect. (d) An agent of depository shall not release any security held to secure a local agency deposit in a depository unless the administrator issues an order authorizing the release where either of the following occurs: (1) A state or federal regulatory agency has taken possession of the depository. (2) A conservator, receiver, or other legal custodian has been appointed for the depository. (Amended by Stats. 1998, Ch. 1035, Sec. 10. Effective September 30, 1998.)
  194. 53657.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. )

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    A person may act as an agent of depository only if it is a qualifying institution and the administrator authorizes it. Applications must meet the administrator’s requirements, include a $500 filing fee, and approved applicants must file a compliance agreement before authorization is issued.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. ) ## 53657. (a) No person shall act as an agent of depository unless that person is a trust company located in this state, the trust department of a bank located in this state, or the Federal Home Loan Bank of San Francisco, and is authorized by the administrator to act as an agent of depository. (b) (1) An application for authorization shall be in such form, shall contain such information, shall be signed in such manner, and shall (if the administrator so requires) be verified in such manner, as the administrator may prescribe. (2) The fee for filing an application for authorization with the administrator shall be five hundred dollars ($500). (3) If the administrator finds, with respect to an application for authorization, that the applicant is competent to act as an agent of depository and that it is reasonable to believe the applicant will comply with all applicable provisions of this article and of any regulation or order issued under this article, the administrator shall approve the application. If the administrator finds otherwise, the administrator shall deny the application. (4) When an application for authorization has been approved, the applicant shall file with the administrator an agreement to comply with all applicable provisions of this article and of any regulation or order issued under this article. The agreement shall be in such form, shall contain such provisions, and shall be signed in such manner as the administrator may prescribe. (5) When an application for authorization has been approved, the applicant has complied with paragraph (4), and all conditions precedent to authorizing the applicant to act as agent of depository have been fulfilled, the administrator shall authorize the applicant to act as agent of depository. (Amended by Stats. 1996, Ch. 1063, Sec. 82. Effective January 1, 1997.)
  195. 53658.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. )

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    A depository agent may pool securities to secure deposits, but must keep a separate pool for each depository. Each local agency gets an undivided security interest in the pooled securities based on its share of the deposits.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. ) ## 53658. An agent of a depository may hold and pool securities to secure deposits for one or more depositories pursuant to Section 53656, but shall maintain a separate pool for each said depository. Each local agency shall have an undivided security interest in the pooled securities in the proportion that the amount of its deposits bears to the total amount of deposits secured by the pooled securities. (Amended by Stats. 1970, Ch. 84.)
  196. 53659.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. )

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    An agent of a depository may place securities for safekeeping at certain banks or trust companies, if the depository authorizes it and the securities were accepted under Section 53656.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. ) ## 53659. Whenever an agent of depository accepts securities pursuant to Section 53656 it may, with the authorization of the depository, place such securities for safekeeping with a Federal Reserve Bank or branch thereof or with any bank located in a city designated as a reserve city by the Board of Governors of the Federal Reserve System or with the Federal Home Loan Bank of San Francisco or with a trust company located in this state. Authority for such placement together with the names of the banks or, including the Federal Home Loan Bank of San Francisco, trust companies to be so used, shall be contained in the contract between the treasurer and the depository required in Section 53649. (Amended by Stats. 1976, Ch. 349.)
  197. 53660.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. )

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    If a local agency’s deposits are secured by pooled securities, the depository’s agent must make specified information available to the treasurer for review at a mutually agreed time and place.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. ) ## 53660. When deposits of a local agency are secured by pooled securities pursuant to Section 53656, the agent of depository shall make available to the treasurer for review at a mutually agreed upon time and location all of the following information which may be in the form of a copy of the report required in subdivision (e) of Section 53661: (a) A certification that there are securities in the pool in the amounts required by Section 53652 to secure deposits. (b) A certified report of the individual securities then on deposit in the pool with the location and total market value thereof. (c) The total amount of deposits then reported by the depository to be secured by the pool. (Amended by Stats. 1986, Ch. 1132, Sec. 26.)
  198. 53661.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. )

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    The Commissioner of Financial Protection and Innovation serves as the local agency security administrator and can issue rules, require reports, order substitutions, enforce compliance, and impose fines.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. ) ## 53661. (a) The Commissioner of Financial Protection and Innovation shall act as Administrator of Local Agency Security and shall be responsible for the administration of Sections 53638, 53651, 53651.2, 53651.4, 53651.6, 53652, 53654, 53655, 53656, 53657, 53658, 53659, 53660, 53661, 53663, 53664, 53665, 53666, and 53667. (b) The administrator shall have the powers necessary or convenient to administer and enforce the sections specified in subdivision (a). (c) (1) The administrator shall issue regulations consistent with law as the administrator may deem necessary or advisable in executing the powers, duties, and responsibilities assigned by this article. The regulations may include regulations prescribing standards for the valuation, marketability, and liquidity of the eligible securities of the class described in subdivision (m) of Section 53651, regulations prescribing procedures and documentation for adding, withdrawing, substituting, and holding pooled securities, and regulations prescribing the form, content, and execution of any application, report, or other document called for in any of the sections specified in subdivision (a) or in any regulation or order issued under any of those sections. (2) The administrator, for good cause, may waive any provision of any regulation adopted pursuant to paragraph (1) or any order issued under this article, where the provision is not necessary in the public interest. (d) The administrator may enter into any contracts or agreements as may be necessary, including joint underwriting agreements, to sell or liquidate eligible securities securing local agency deposits in the event of the failure of the depository or if the depository fails to pay all or part of the deposits of a local agency. (e) The administrator shall require from every depository a report certified by the agent of depository listing all securities, and the market value thereof, which are securing local agency deposits together with the total deposits then secured by the pool, to determine whether there is compliance with Section 53652. These reports may be required whenever deemed necessary by the administrator, but shall be required at least four times each year at the times designated by the Comptroller of the Currency for reports from national banking associations. These reports shall be filed in the office of the administrator by the depository within 20 business days of the date the administrator calls for the report. (f) The administrator may have access to reports of examination made by the Comptroller of the Currency insofar as the reports relate to national banking association trust department activities which are subject to this article. (g) (1) The administrator shall require the immediate substitution of an eligible security, where the substitution is necessary for compliance with Section 53652, if (i) the administrator determines that a security listed in Section 53651 is not qualified to secure public deposits, or (ii) a treasurer, who has deposits secured by the securities pool, provides written notice to the administrator and the administrator confirms that a security in the pool is not qualified to secure public deposits. (2) The failure of a depository to substitute securities, where the administrator has required the substitution, shall be reported by the administrator promptly to those treasurers having money on deposit in that depository and, in addition, shall be reported as follows: (A) When that depository is a national bank, to the Comptroller of the Currency of the United States. (B) When that depository is a state bank, to the Commissioner of Financial Protection and Innovation. (C) When that depository is a federal association, to the Office of the Comptroller of the Currency. (D) When that depository is a savings association, to the Commissioner of Financial Protection and Innovation. (E) When that depository is a federal credit union, to the National Credit Union Administration. (F) When that depository is a state credit union or a federally insured industrial loan company, to the Commissioner of Financial Protection and Innovation. (h) The administrator may require from each treasurer a registration report and at appropriate times a report stating the amount and location of each deposit together with other information deemed necessary by the administrator for effective operation of this article. The facts recited in any report from a treasurer to the administrator are conclusively presumed to be true for the single purpose of the administrator fulfilling responsibilities assigned to them by this article and for no other purpose. (i) (1) If, after notice and opportunity for hearing, the administrator finds that any depository or agent of depository has violated or is violating, or that there is reasonable cause to believe that any depository or agent of depository is about to violate, any of the sections specified in subdivision (a) or any regulation or order issued under any of those sections, the administrator may order the depository or agent of depository to cease and desist from the violation or may by order suspend or revoke the authorization of the agent of depository. The order may require the depository or agent of depository to take affirmative action to correct any condition resulting from the violation. (2) (A) If the administrator makes any of the findings set forth in paragraph (1) with respect to any depository or agent of depository and, in addition, finds that the violation or the continuation of the violation is likely to seriously prejudice the interests of treasurers, the administrator may order the depository or agent of depository to cease and desist from the violation or may suspend or revoke the authorization of the agent of depository. The order may require the depository or agent of depository to take affirmative action to correct any condition resulting from the violation. (B) Within five business days after an order is issued under subparagraph (A), the depository or agent of depository may file with the administrator an application for a hearing on the order. The administrator shall schedule a hearing at least 30 days, but not more than 40 days, after receipt of an application for a hearing or within a shorter or longer period of time agreed to by a depository or an agent of depository. If the administrator fails to schedule the hearing within the specified or agreed to time period, the order shall be deemed rescinded. Within 30 days after the hearing, the administrator shall affirm, modify, or rescind the order; otherwise, the order shall be deemed rescinded. The right of a depository or agent of depository to which an order is issued under subparagraph (A) to petition for judicial review of the order shall not be affected by the failure of the depository or agent of depository to apply to the administrator for a hearing on the order pursuant to this subparagraph. (3) Whenever the administrator issues a cease and desist order under paragraph (1) or (2), the administrator may in the order restrict the right of the depository to withdraw securities from a security pool; and, in that event, both the depository to which the order is directed and the agent of depository which holds the security pool shall comply with the restriction. (4) In case the administrator issues an order under paragraph (1) or (2) suspending or revoking the authorization of an agent of depository, the administrator may order the agent of depository at its own expense to transfer all pooled securities held by it to such agent of depository as the administrator may designate in the order. The agent of depository designated in the order shall accept and hold the pooled securities in accordance with this article and regulations and orders issued under this article. (j) In the discretion of the administrator, whenever it appears to the administrator that any person has violated or is violating, or that there is reasonable cause to believe that any person is about to violate, any of the sections specified in subdivision (a) or any regulation or order issued thereunder, the administrator may bring an action in the name of the people of the State of California in the superior court to enjoin the violation or to enforce compliance with those sections or any regulation or order issued thereunder. Upon a proper showing a permanent or preliminary injunction, restraining order, or writ of mandate shall be granted, and the court may not require the administrator to post a bond. (k) In addition to other remedies, the administrator shall have the power and authority to impose the following sanctions for noncompliance with the sections specified in subdivision (a) after a hearing if requested by the party deemed in noncompliance. Any fine assessed pursuant to this subdivision shall be paid within 30 days after receipt of the assessment. (1) Assess against and collect from a depository a fine not to exceed two hundred fifty dollars ($250) for each day the depository fails to maintain with the agent of depository securities as required by Section 53652. (2) Assess against and collect from a depository a fine not to exceed one hundred dollars ($100) for each day beyond the time period specified in subdivision (b) of Section 53663 the depository negligently or willfully fails to file in the office of the administrator a written report required by that section. (3) Assess against and collect from a depository a fine not to exceed one hundred dollars ($100) for each day beyond the time period specified in subdivision (e) that a depository negligently or willfully fails to file in the office of the administrator a written report required by that subdivision. (4) Assess and collect from an agent of depository a fine not to exceed one hundred dollars ($100) for each day the agent of depository fails to comply with any of the applicable sections specified in subdivision (a) or any applicable regulation or order issued thereunder. (l) (1) In the event that a depository or agent of depository fails to pay a fine assessed by the administrator pursuant to subdivision (k) within 30 days of receipt of the assessment, the administrator may assess and collect an additional penalty of 5 percent of the fine for each month or part thereof that the payment is delinquent. (2) If a depository fails to pay the fines or penalties assessed by the administrator, the administrator may notify local agency treasurers with deposits in the depository. (3) If an agent of depository fails to pay the fines or penalties assessed by the administrator, the administrator may notify local agency treasurers who have authorized the agent of depository as provided in Sections 53649 and 53656, and may by order revoke the authorization of the agent of depository as provided in subdivision (i). (m) The amendments to this section enacted by the Legislature during the 1999–2000 Regular Session shall become operative on January 1, 2001. (Amended by Stats. 2022, Ch. 452, Sec. 188. (SB 1498) Effective January 1, 2023.)
  199. 53663.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. )

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    Agents of depository must report certain pooled-securities changes to the administrator within two business days, and depositories must file a weekly written report on deposits held.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. ) ## 53663. (a) Each agent of depository shall report in writing to the administrator within two business days after any withdrawal, substitution, or addition of pooled securities and shall state the name and market value of the securities withdrawn, substituted, or added together with the total deposits then secured by the pool. This information shall be available from the administrator to the treasurer upon request. (b) Each depository shall report in writing to the administrator weekly, giving the total amount of all deposits held by the depository pursuant to this article. The report shall be as of close of business on Wednesday of each week and shall be delivered to the office of the administrator, deposited in the United States mail, postage prepaid, or delivered electronically via email, or other electronic means approved by the administrator, addressed to the office of the administrator, within five business days. Where there has occurred no change in the deposits required to be held by the depository pursuant to this article, the report required by this subdivision need only state that fact. (Amended by Stats. 2014, Ch. 214, Sec. 1. (AB 2298) Effective January 1, 2015.)
  200. 53664.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. )

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    The specified individual reports are not public and may not be inspected by the public.

    ## Government Code - GOV ## TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) ## DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) ## PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) ## CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ## ARTICLE 2. Deposit of Funds [53630 - 53686] ( Article 2 added by Stats. 1949, Ch. 81. ) ## 53664. The individual reports specified in Sections 53654, 53660, 53661, and 53663 are not public documents and are not open to inspection by the public. (Amended by Stats. 1987, Ch. 841, Sec. 5.)

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