§ 26396 Bond Fund Investment Rules

Government Code·California

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Key Takeaways

•Extra money in a bond or enterprise fund can be invested in safe things like bonds.
•The money can only be invested in things that are allowed by the rules set when the bonds were issued.
•Any money made from these investments goes back into the same fund.

Example

A city has extra money left in a fund meant for building a new park.

The city can invest this extra money in safe bonds to make more money. Any money earned from these investments must go back into the park fund.

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

Official Source

View on CA.gov

§ 26396 Bond Fund Investment Rules

Moneys in a bond fund or enterprise fund not required to meet acquisition or construction costs or expenses payable from the construction fund or interest on the bonds, may be invested in bonds and other obligations eligible for investment of surplus county moneys; subject to such limitations as may be provided in the proceedings authorizing the issuance of the bonds. Any income or interest thereon shall be added to and become a part of the bond fund or enterprise fund. (Amended by Stats. 1961, Ch. 396.)

Last verified: January 22, 2026

Key Terms

acquisition obligation construction investment issuance

References

Official text at leginfo.legislature.ca.gov
California Legislature. Government Code. Section 26396.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References