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HomeEducation CodeDiv. 14Pt. 70Ch. 3Art. 3§ 101149 Bond Refunding Authorization

§ 101149 Bond Refunding Authorization

Education Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 101149 Bond Refunding Authorization

This law lets the state replace old bonds with new ones, and the voters who approved the original bonds also gave permission for any replacement bonds.

Key Takeaways

  • •Old bonds can be swapped for new bonds using the refunding rules in the State General Obligation Bond Law.
  • •Voter approval for the original bonds automatically includes approval for any replacement (refunding) bonds.
  • •If allowed by the original resolution, a refunded bond can be "defeased," meaning the state can remove the bond from its books in a specific legal way.

Example

The state sold bonds to build a new highway. A few years later, interest rates drop, so the state wants to swap those old bonds for new, cheaper ones.

Because the voters already approved the original highway bonds, they also approved the new bonds that replace the old ones, so the swap can happen under this law.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 101149 Bond Refunding Authorization

The bonds issued and sold pursuant to this chapter may be refunded in accordance with Article 6 (commencing with Section 16780) of Chapter 4 of Part 3 of Division 4 of Title 2 of the Government Code, which is a part of the State General Obligation Bond Law. Approval by the voters of the state for the issuance of the bonds described in this chapter includes the approval of the issuance of any bonds issued to refund any bonds originally issued under this chapter or any previously issued refunding bonds. Any bond refunded with the proceeds of refunding bonds as authorized by this section may be legally defeased to the extent permitted by law in the manner and to the extent set forth in the resolution, as amended from time to time, authorizing such refunded bond. (Added November 8, 2016, by initiative Proposition 51, Sec. 3.)

Last verified: January 10, 2026

Key Terms

bondsrefundedState General Obligation Bond Lawlegally defeased

Related Statutes

  • § 101451 Bond Refunding Authorization
  • § 100555 Bond Refunding Approval
  • § 101140 Bond Refunding Authorization
  • § 101430 Bond Refunding Authorization
  • § 101034 Bond Issuance Authorization Limits

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Education Code. Section 101149.
View Official Source