§ 101058 University Bond Interest Transfers

This rule says that any extra money the university gets from bond premiums and interest must stay in a special fund and can be moved to the main budget to help pay the interest on those bonds.

Key Takeaways

•Extra money from bond premiums and interest must stay in the designated fund.
•The money can be transferred to the General Fund.
•When transferred, it counts as a credit that reduces the cost of paying bond interest.

Example

The university sells a bond for $1,010 instead of $1,000 and later earns $5 in interest. That $15 extra goes into the 2006 University Capital Outlay Bond Fund.

The $15 stays in that fund, but the university can later move it to the General Fund to lower the amount it has to spend on bond interest payments.

All money deposited in the 2006 University Capital Outlay Bond Fund that is derived from premium and accrued interest on bonds sold shall be reserved in the fund and shall be available for transfer to the General Fund as a credit to expenditures for bond interest. (Added by Stats. 2006, Ch. 35, Sec. 16. Approved in Proposition 1D at the November 7, 2006, election.)

This rule says that any extra money the university gets from bond premiums and interest must stay in a special fund and can be moved to the main budget to help pay the interest on those bonds.

Key Takeaways

•Extra money from bond premiums and interest must stay in the designated fund.
•The money can be transferred to the General Fund.
•When transferred, it counts as a credit that reduces the cost of paying bond interest.

Example

The university sells a bond for $1,010 instead of $1,000 and later earns $5 in interest. That $15 extra goes into the 2006 University Capital Outlay Bond Fund.

The $15 stays in that fund, but the university can later move it to the General Fund to lower the amount it has to spend on bond interest payments.

Key Takeaways

Example

Key Terms

References

§ 101058 University Bond Interest Transfers

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References