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HomeEducation CodeCh. 11Art. 3§ 19976 Bond Fund Withdrawal Authority

§ 19976 Bond Fund Withdrawal Authority

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

§ 19976 Bond Fund Withdrawal Authority

Key Takeaways

  • •The state can borrow money from the General Fund if they haven't sold all the bonds they planned to sell for a project.
  • •The borrowed money must be paid back with interest when the bonds are finally sold.
  • •The interest rate is the same as what the state earns from its investment account.

Example

Imagine the state wants to build a new school but hasn't sold all the bonds yet to pay for it.

The state can take some money from the General Fund to start building the school. Later, when they sell the bonds, they have to pay back the borrowed money plus a little extra (interest).

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

Official Source
View on CA.gov

§ 19976 Bond Fund Withdrawal Authority

For the purposes of carrying out this chapter, the Director of Finance may authorize the withdrawal from the General Fund of an amount or amounts not to exceed the amount of the unsold bonds which have been authorized to be sold for the purpose of carrying out this chapter. Any amounts withdrawn shall be deposited in the fund. Any money made available under this section shall be returned to the General Fund, with interest at the rate earned by the money in the Pooled Money Investment Account during the time the money was withdrawn from the General Fund pursuant to this section from money received from the sale of bonds for the purpose of carrying out this chapter. (Added by Stats. 1988, Ch. 49, Sec. 1. Approved in Proposition 85 at the November 8, 1988, election.)

Last verified: January 23, 2026

Key Terms

Director of FinanceGeneral Fundunsold bondsPooled Money Investment Account

Related Statutes

  • § 20006 General Fund Withdrawal Authority
  • § 100440 Bond Fund Withdrawal Authority
  • § 100640 School Bond Fund Withdrawal
  • § 100840 School Bond Fund Withdrawal
  • § 101028 School Bond Fund Withdrawal

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Education Code. Section 19976.
View Official Source