§ 26345 Bond Interest During Construction

Government Code·California

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Key Takeaways

•Money from selling bonds can be used to pay the interest on those bonds while building a project.
•This can only happen during the building time and for up to 2 years after the project is done.
•The rules for how this works are written in a special agreement called an indenture.

Example

A city sells bonds to build a new school.

The city can use some of the money from selling those bonds to pay the interest on them while the school is being built and for up to 2 years after it’s finished.

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

Official Source

View on CA.gov

§ 26345 Bond Interest During Construction

Interest on bonds may be paid out of the proceeds of the sale of the bonds during the actual construction of any project for the acquisition, construction or completion of which the bonds have been issued, and for a period of not to exceed two (2) years thereafter as provided for in the indenture. (Added by Stats. 1947, Ch. 815.)

Last verified: January 22, 2026

Key Terms

acquisition agreement construction when california completion

References

Official text at leginfo.legislature.ca.gov
California Legislature. Government Code. Section 26345.

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Key Takeaways

Example

Key Terms

Related Statutes

References