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HomeEducation CodeCh. 18§ 17185 Revenue Bond Liability Limitation

§ 17185 Revenue Bond Liability Limitation

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

§ 17185 Revenue Bond Liability Limitation

Key Takeaways

  • •The state or local government won't pay back these special bonds if the agency that issued them can't.
  • •The bonds are only paid back using the money the agency makes, not from taxes or other government money.
  • •The bonds must clearly say that the state or local government isn't responsible for paying them back.

Example

A city agency sells bonds to build a new toll bridge.

If the bridge doesn't make enough money from tolls, the state or city won't use tax money to pay back the bonds. Only the toll money can be used.

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

Official Source
View on CA.gov

§ 17185 Revenue Bond Liability Limitation

(a) Notwithstanding any other provision of law, revenue bonds issued under this chapter are not and shall not be deemed to constitute a debt or liability of the state, or any political subdivision thereof, and are not and shall not be deemed to be a pledge of the faith and credit of the state, or any political subdivision thereof, other than the authority. Revenue bonds of the authority shall be payable solely from funds provided under this chapter. (b) Each revenue bond of the authority shall include a statement on the face of the bond that neither the State of California nor the authority is obligated to pay the principal or interest thereon, except from revenues of the authority, and shall also include a statement that neither the faith or credit, nor the taxing power of the State of California, or any political subdivision, is pledged to the payment of the principal or interest of the bonds. (c) The issuance of revenue bonds under this chapter shall not directly, indirectly, or contingently obligate the state, or any political subdivision thereof, to levy or pledge any form of taxation, or make any appropriation for their payment. (Amended by Stats. 2006, Ch. 325, Sec. 7. Effective January 1, 2007.)

Last verified: January 23, 2026

Key Terms

revenue bondsdebt or liabilityfaith and credittaxing powerappropriation

Related Statutes

  • § 17184 Revenue Bond Security
  • § 17186 Bondholder Enforcement Rights
  • § 17191 State Bondholder Protection Pledge
  • § 17193 Project Rent Setting And Collection
  • § 17196 Alternative Bond Financing Method

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Education Code. Section 17185.
View Official Source