§ 26339 Bond Call Provisions

Key Takeaways

•Some bonds can be paid back early by the people who issued them, but only if they follow certain rules.
•The rules for paying back early include things like how much extra money (premium) they have to pay and how much notice they have to give.
•No bond can be paid back early unless it says right on the bond that it can be.

Example

Imagine you lend money to a friend, and they give you a paper saying they will pay you back in 10 years. But the paper also says they can pay you back early if they give you extra money and tell you ahead of time.

This law is like that paper. It says that if the people who borrowed money (by selling bonds) want to pay it back early, they have to follow the rules written on the bond, like paying extra money and giving notice.

Bonds may be callable upon such terms, conditions, and upon such notice as the board may determine, and upon the payment of the premium fixed by the board in the proceedings for the issuance of the bonds. No bond is subject to call or redemption prior to its fixed maturity date unless the right to exercise such call is expressly stated on the face of the bond. (Added by Stats. 1947, Ch. 815.)

Key Takeaways

•Some bonds can be paid back early by the people who issued them, but only if they follow certain rules.
•The rules for paying back early include things like how much extra money (premium) they have to pay and how much notice they have to give.
•No bond can be paid back early unless it says right on the bond that it can be.

Key Takeaways

Example

Key Terms

References

§ 26339 Bond Call Provisions

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References